Finding the 100x Altcoin Gems next, that will melt your face is something we discussed a lot.
We give that a fresh twist today. It includes a great deal of psychology in addition to the fundamentals.
Specifically, crowd psychology. During the upcoming bull run, this is important.
Now let’s get started and discover how important crowd psychology is to locating a hidden gem among altcoins.
Table of Contents
Read More: 5 Tips to Secure Your Cryptocurrency Holdings
1) Crowd Psychology in Crypto
Cryptocurrency has cycles. They are identical in appearance and repeat each other. But the result as well appears to be the same. It practically seems assured. Most people appear to lose money, while a small percentage succeed in making money. One major factor in this is crowd manipulation.
A common pattern is shown here. Up to 99% of customers do not make a purchase when the growth first begins. They consider it to be too late. But people purchase it because of (fear of missing out) when the market reaches an ATH. They sell when the market lowers because they believe that, that’s the end. A common trend is to purchase high and sell low.
What can we then conclude from this? You must learn to overcome FOMO if you wish to end this cycle. That seems simpler than it actually is, though. It actually is quite difficult. In 2022, I realized that I had fallen back into an old pattern. When the cryptocurrency market was soaring in 2022, I decided to invest in digital currencies. That’s when I finally started purchasing my first bags. They are all now 90–95% down. I didn’t sell them, at least. Some are getting better, and one has even turned green again.
Still, there’s a proverb that sounds like it holds a lot of truth. During your first bull run, learn, make money in your second, and then retire in your third. That places me somewhere about midway. One thing to keep in mind is being cautious about certain aspects. You can succeed in this market with their assistance. The following two incidents should be noted. An image of the psychology of a market cycle can be found below: Click Here. It also indicates our current situation.
2) Market Structure and Patterns of Crowd Manipulation
Probably the most important part of the cryptocurrency market is crowd psychology. Of course, a project’s foundations are also essential. Crowd psychology is greatly undervalued, though. You’re on the right track as soon as you start understanding this and use it.
This is how it functions. When a project is going unnoticed, you buy it. For instance, in the most recent bear market. Back then, a lot of projects were as cheap as chips. They can already have a 5x to 10x under their belt at this point in the bull run.
I discovered that during the bear market. Purchase during a bloody street scene. In other words, when a project starts to bring you down. Investors are now beginning to exit out. Large-scale events, such as the FTX crash, could heighten this emotion.
Therefore, while it could be frightening at first, you can enjoy the rewards later, during the bull run. You must continue to have trust in the project. Considering that the principles remain the same, correct? However, timing is just as important when it comes to selling. When it happens, happiness and greed begins to manifest. View the image below.
3) Lack of Discipline
Make objectives for yourself. These objectives may have particular guidelines and tactics. The one thing that’s most important right now is to stick to the plan and these guidelines. Below are a few examples. As an example,
- Profits are like hard-earned cash. Handle them in that manner. This isn’t a gambling game. You worked very hard on this. Don’t risk it away.
- You can make profits in a short time phrase. But you worked on this for months or years.
- Don’t invest in old tokens. A fresh bull run generates fresh tokens. These might increase by a factor of 100. That possibility won’t be present in the currencies that already reached their peak during the last bull run.
- Don’t diversify too much. You should always have a small bag of known tokens on hand.
- Don’t forget to take profits. You cannot survive on unrealized profits. Make sure you have and stick to an exit strategy.
4) How to Spot an Altcoin Gem
We have already discussed finding an altcoin gem on several occasions. I shall therefore keep this short.
- Look at the basics of a potential altcoin gem. Examine the difference in cost. Examine the investors. Seek out token economics. It can be the ideal time to buy if it appears to be dead.
- Find the correct tools that will help you. With this, CoinGecko can help. Your altcoin gem may be sorted by market capitalization or another factor. You may look at categories, for instance. Create watch lists.
- Keep following a project. Follow along on social media to be informed about its progress. Find the community and become a part of it.
Wrap-Up About Altcoin Gems
Crowd psychology and the market are often ignored when searching for an altcoin gem. But even so, this might be the most important component of success. We examined all aspects of crowd psychology as well as strategies for succeeding in it.
