I see why there are so many postings and analysis attempting to anticipate when the peak will occur. Selling near the top of a bear market and then purchasing around the bottom a year or two later appears to be a common sense plan, but it won’t work for the majority of us. You’ll run into one or more of the following problems, based on my own experience, and I learned it the hard way so that you don’t have to:
Missing out on buying chances and arriving at the next bull market with no cryptocurrency in your possession is a recipe for disaster. After being accustomed to seeing the price of the coins you follow touching the floor, the prices begin to rise one day. This will have happened a number of times for you to believe it is just another false rise, but it isn’t. It will continue to rise slowly but gradually until you begin to feel as if you have missed the train and must wait for the next drop, which never occurs.
You’ll end up with a smaller bag than you started with. Attempting to time the market necessitates regular monitoring of the charts and, in most cases, a large number of decisions. Some decisions will be correct, but this is a question of chance, and there will be many more that are incorrect. These bad decisions tend to remain in your mind far longer than good ones, influencing you to make even more bad decisions.
Get swayed by all the negative press that accompanies a bear market. All of the optimism surrounding cryptocurrencies vanishes whenever the market enters a bear market. The amount of garbage news slamming what once seemed to be a revolutionary technology is mind-boggling. Any incident that causes your coin’s price to rise in a promising way is followed by an even bigger drop, until you lose trust. All of this makes it harder for you to determine when the bear market truly bottoms out because you are no longer secure in spending your money in it.
This post is not intended to provide financial advice. These are just my thoughts after getting into crypto in 2016, believing I was smart enough to time the market and always being duped by the market. I believe that everyone should profit whenever they achieve their objectives, and profiting right before a down market appears to be incredibly effective. However, I can’t deny that I would have gained a lot more money if I had disregarded every bull and down market since 2016 and simply held my coins. Good luck to everyone who is reading this, and have fun!