I know it’s tempting…

Especially now — as virtually every cryptocurrency is crashing and the relatively low prices are exceedingly attractive… but hear me out.

I’m not telling you not to trade.

On the contrary, I encourage you to! The volatility of cryptocurrencies is exactly what makes this such a profitable endeavor.

However, cryptocurrencies are just like any other market and you must realize that before you even think about getting into it.

The only major difference between cryptocurrencies and stocks, FOREX, bonds, etc. is the wide-spread hype and hysteria. The excessive news and accessibility of the various cryptocurrencies has opened a door to millions of people who would — otherwise — never have got into trading.

As such, there are millions of new traders that really have no understanding of how markets work, how to analyze market shifts, or recognize the difference between bull & bear markets.

Many of these “traders” have never even heard of a MACD or a Bollinger Band. The idea of on-balance volume or accumulation/distribution lines is completely foreign to them.

Yet they buy and sell anyways.

They then proceed to make some quick money and immediately assume they’re the next Wolf of Wall Street. However, just like many “wolves” before them, what they fail to realize is that they’re simply riding the wave of a very bullish market.

When everything inevitably comes crashing down, that crushing reality is often responded to with “WTF?”s and other various incredulous expletives and these “traders” — in denial — are convinced there is just a problem with the market.

This country passed such-and-such legislation.

or

A vulnerability was discovered in that new coin.

No, my friends.

The problem is that you began trading willy-nilly without any real understanding of how markets work. If any of those bolded terms I mentioned a few paragraphs up was new to you — I hate to break it to you, but you are one of these people and I encourage you to spend some time studying and obsessively learning how to read and understand two absolutely essential concepts:

Market Sentiment Technical Indicators

Unfortunately for the willy-nilly traders reading this article, I am not here to teach you how to trade. I am here to rant about the reckless investing that is serving as just another avenue for the knowledgeable, experienced, and often wealthy traders to siphon even more money off of the low-to-middle economic classes that fall for these traps.

If you haven’t already wrongfully assumed I’m just here to be condescending and tell you that you’re stupid, I’m going to take this time to enumerate some of my thoughts on cryptocurrency trading.

Some of these are relevant to the above and some are simply the thoughts I share with friends and family when they ask for my technical advice on which cryptocurrency to invest in.

I sincerely hope you will extract some value from these ideas rather than flame me for being a contrarian.