Do you remember back in the later parts of 2017? Or the rise to 20k during the transition into the new year? What about the flood of new ICOs rushing into the crypto game? It seemed like a very exciting time, something new or dramatic was happening every single day, for weeks on end.
The public was either for it or completely against it. The newbies that just entered were buying all sorts of coins and tokens, left and right. Any news was good news to their ears. It was truly a busy and bustling time for Crypto. So, when times like this come around, surely, it’s a bad thing, right? Not quite.
Many Crypto veterans would say that it is during the quiet times such as this, when the real work in Crypto is being done. Startups and ICOs like to rely on noise in order to help get their projects off the ground. Because let’s face it, most of these projects never really fulfill on their promises, and their promises are usually quite big, claiming to be the next best Bitcoin.
During bull markets, it’s common to see an influx of newcomers. These newbies come onto the scene and see all the veterans have made 10x or more (of course they’ve made 10x or more, they’ve been in the game for much, much longer), and then think that they can do it in a month or two without realizing that the “veterans” have been sitting on their holdings for years.
This kind of mentality (the get rich quick mentality) is the mentality that quickly leads a large number of newbies to their downfall. They get this mentality during the big buzz. People left and right are exclaiming “TEN X GAINS”, and/or “I just doubled my money with this ICO! Buy some of this!” Then without doing any of their own research, the gullible dive in head first only to lose their investment down the road.
Then when the prices come crashing down, all the newbies that lost most of their money then run around screaming “Crypto is a scam!” Sounds familiar right? It wasn’t all that long ago.
So, this is why a lot of the veterans enjoy and appreciate the “quiet” times. I’m sure ICOs are still being made every day, but at least you don’t get swamped with all the noise of a “HOT NEW ICO” every day.
Why are bear markets and quiet times a good thing for Crypto?
A common saying within the market is; “A bear market forces good trading habits.” And this is very true. It’s easy to make money when the entire market is green. As long as it keeps on going up, everybody is a “pro trader”, right?
Bear markets effectively cull the weak, and the ones that decide to stay and battle through the losses will have the insight and the knowledge for the next bull and/or bear market.
Developers and projects that have actual promise can continue their work in relative peace, without having to hear and deal with BITCONNEEEECT or other shenanigans. They can progress towards their next project milestone and properly test things without the feeling of needing to rush out updates.
Remember folks, just because you don’t hear from a company or project every few days or every week, doesn’t mean they’re sitting on their hands. They are most likely very busy!
Use this time to research deeper into projects and figure out what you’d like to invest in. Prices are typically lower during these times, and don’t forget that profit is your margin between the price you bought in at and the price you sell. So, don’t worry if it’s not an insane bull market right now, get out there and feed your brain!
Check out my last article on NEO vs Ethereum: https://embily.com/neo-vs-ethereum/
Mid-article illustration artist euniceesh, DeviantArt
Cover illustration artist SariKoljonen, DeviantArt