Ask not what the market can do for you, but what you can do for the market.

in LeoFinance2 years ago

rivereddyliquiditymoneyeconomywater.jpg

Learning the painful lessons.

Living in abundance is probably the hardest thing to do in a world full of scarcity and greed. However, when it comes to crypto, harmonizing on this critical wavelength might be ironically the most profitable thing we will ever accomplish.

I've been learning the hard way over and over again through these years of pump and dump cycles that acting through fear is exactly how the market is able to extract billions of dollars from retail investors. The market is psychic. When we buy, price dumps. When we sell, price spikes. That's not actually how it happens, but it's how our brains perceive reality.

Example of how our own minds deceive us:

Say the price of Bitcoin went from $20k to $18k to $25k. If we buy at $20k we tell ourselves we're the unluckiest trader alive because the market always dips when we buy. Then we get confirmation bias when the price dips to $18k. Indeed, we are the unluckiest trader alive.

However, if we choose to not buy, our brain completely ignores the dip to $18k ("it's going to crash more"). Then when the price spikes to $25k we are again the unluckiest trader alive because the price went up when we didn't buy. See how that works? No matter what happens our minds trick us into thinking we are super unlucky and the market always does the opposite of what we bet on. The timelines and volatility are always such that this line of false logic can be employed over 99% of the time.

moneystormliquidity.jpeg

Of course there's a lot more too it than that, but...

The real point here is that our entire line of thinking was/is rooted in scarcity and fear. That's why we lost money ironically: because we were trying to make money. If instead we were selflessly trying to build value for the network, the network would have rewarded us by design.

What does a volatile network want?

What does Hive want?
What does Bitcoin want?

A volatile network seeks stability. It wants users to slowly sell as the price goes up and slowly buy as the price is going down. The network wants users to DCA, and the network hardly ever gets what it wants because people are greedy and they want to perfectly time the tops and bottoms and gamble their asses off for maximum gains. Then when shit goes sideways we panic and sell the bottom and make the problem even worse.

This greedy self-serving behavior is what causes all the problems and volatility in the first place. Very few people in this space have the self-control to make small moves at a time. When people make a decision they have a tendency to go all in on it looking for that maximum output based on the information at hand.

We can make way more money in the long run if we stop asking what we can do to enrich ourselves and instead ask what we can do to enrich the network as a whole. That means balanced positions and Dollar Cost Averaging based on current market value. It means being consistent and creating content every day, whether that content be a blog post or a full on app.

It sounds so easy, but much like looking at a price chart over the last ten years, we all know that studying the chart in retrospect and actually living the chart in real time are two completely different things. Those who do technical analysis on data they weren't actually around for are going to come to completely different conclusions than those who did.

Crypto is a cooperative.

None of the VCs, banks, corporations, or governments entering the space understand this even on its most basic and fundamental level. The entire world has been rooted in scarcity, fear, force, domination, and competition since the beginning of time. We are approaching a new era so quickly and so drastically that it rivals that of Jesus and Christianity itself. Don't be surprised when, "The year of our lord 2009," becomes the new Year Zero. The entire way society functions is going to change on a fundamental level.

The entire transitioning mindset of scarcity into abundance is going to be the most difficult transition humanity has ever made. It probably can't even happen until at least half of the people alive today have died off from old age. These things take time, but more importantly they require minds that haven't been completely brainwashed by the old system.

Conclusion

The best way to make money in crypto is to stop trying to aggrandize ourselves and instead attempt to build as much value for the network that we can without worrying about lining our own pockets with gold. In a world rooted in greed, this is no easy feat, but then again no one said this was going to be easy.

This strategy has failed many times before, but it will not fail when it comes to crypto; the proper incentives are finally going to be in alignment. Just look at Bill Gates and how he basically stole tech to get to where he is today. Look at all the open-source developers that were completely taken advantage of before crypto came along. The creator of E4M encryption has one of the most insane stories ever (from development nerd to Breaking Bad drug-lord).

The days of exploiting citizens who are willing to give everything they have and take only what they need (the true definition of communism) is coming to an end. Crypto is here to actually reward those citizens beyond their wildest dreams. It's only a matter of time before these dreams become reality.

Posted Using LeoFinance Beta

Sort:  

Wisdom!

image.png

Posted Using LeoFinance Beta

BOOM1.jpg

toruk_washere_new3leo.jpg

Read how this all have started with Toruk

Posted Using LeoFinance Beta

@onealfa is everywhere quality content is to be found.
:)

Posted Using LeoFinance Beta

I like how you talk about what a volatile network want. I've never thought of it that way. It makes sense.

Posted Using LeoFinance Beta

He really made sense.

Build value and keep on stacking

I was really struck by the uniquesness of that part also...it was logical in a decentralized blockchain kind of way...
:)

Posted Using LeoFinance Beta

I wonder how many crypto investors are looking at creating value when investing in any particular coin/project. I guess the answer is the perfect description of what the majority of such investors really are. Fun fact: although I have not invested a cent in Hive it has earned me the most from all my cryptos that I owned over the years. Going all in while being so impatient most of the times when on a buying spree and forgetting to take profits is my story in crypto.

Posted Using LeoFinance Beta

One thing drilled into my brain by @cryptowendyo videos:

Take profit, remove your capitol, create a moonbag

Posted Using LeoFinance Beta

Hmmmmm... A very good post on psychology of investing

But I feel timing the market is of no use tho

I feel the best way to make money from crypto and generally investing is to do what opposite of everyone is doing.

If everyone is hyping then you should be selling.

But in all, look for a good project and consistently buy and you will gain in the long run

Exactly @bhoa

Market timeing

bad

DCA

good

Slow consistent adding value

good

Greedy take all I can

bad

:) @shortsegments

Posted Using LeoFinance Beta

DCA dollar cost average in to bitcoin especially now during this bear market. And earn Hive by our blog posts here.

The whole idea that all your files should be in cloud behind TSA locks so that they can copy your work, frontrun your research and take your rights and the yield.

Wow!
I didn't know tis, thanks for the info...

Posted Using LeoFinance Beta

Greetings @edicted you could not have said it better, greed is what ends up limiting our growth, on the contrary, if we focus on growth and participation within the network our results would be more solid and lasting in time.

Thank you for sharing your point of view.

It is truly very easy to fall into the traps of the mind, and let ourselves be fooled by appearances and that is what happens to most people in market cycles; because they let themselves be guided by their emotions, which leads them to make mistakes in their actions and then they don't even know what happened, or why they lost.

And I also agree with you that volatility in the markets is due, among other things, to the greed and selfishness of people who, with inexperience and unconsciousness, operate or trade aggressively in the face of any market movement, believing that there is a possibility to get rich quickly.

Without a doubt, all this is a vicious circle from which it is very difficult to get out, and even those of us who are already aware of it; we will always face volatile and erratic markets in the field of cryptocurrencies because most people are not aware of the problem that they have and that said problem is the main cause of the situations of losses that they obtain.

That is why I always say that the most important thing is not what the markets do, but how we act or react to what happens in the markets. In fact, my most recent post is coincidentally very related to everything you talk about in this post. I invite you (and I invite everyone to read it), it is The most important thing is not what is happening in the markets.

Excellent post. Thanks for sharing!

Posted Using LeoFinance Beta


The rewards earned on this comment will go directly to the people( @claudio83 ) sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.

Cool @claudio83
This is a good example of adding value by Tweeting this post, and earning rewards in the POSH post rewards go to you. SOmetimes this place is surprising and full of AHA moments.

Posted Using LeoFinance Beta

If you do what "the network wants" you'll end up as a shark bait, because your buy dca will be higher the the sell

Congratulations @edicted! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s):

You received more than 410000 upvotes.
Your next target is to reach 420000 upvotes.

You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

Check out the last post from @hivebuzz:

Hive Power Up Day - July 1st 2022
NFT for peace - Thank you for your continuous support

Yesterday I was looking up different types of value theories to correlate with Cryptocurrencies to help me gain a better understanding of how to view the different cryptocurrency and the blockchain supporting them. I felt like there was a piece missing from my research on how to help the narrative fit. When I read your post today it was like everything connected together!

Thank you for teaching about these methods in your post.

I agree with this, I have honestly lost a lot of money investing short and being a retailer.

I think the best investment is long term and making an entry in a bear market.

Posted Using LeoFinance Beta

It's almost like AMMs are... good? ;)

Posted Using LeoFinance Beta

I have just entered this market and I am happy to add information to you

gotta listen to the JF Kennedy of Hive on this one . Real way to go!!

Loading...