Cryptos. The wins, the cryings.

To me, it's always been more or less very intriguing the way many people buy cryptos without knowing even a bit where they're buying.

Most of the people just buy cryptos into the whole "to the moon" hype but have no idea where they're buying (Fibonacci level?, support/resistance prices? etc).

If the coin goes mega high, they're mega happy with the profit. However, if they buy and plunges they get mega concerned and question the whole idea.

Was the price level wrong and will continue to dip or will recover shorty and will go "to the moon"?😟
Will I lose all my money? 😟
Am I buying a coin with a future?😟
Should I sell and take the loss?😟
Etc etc etc.

There are some other people who follow other people's financial advice. Following someone else's technical analysis and financial advice is a good and bad idea at the same time and I'll tell you why.

The good:
-You don't have to do any research, you just buy it. Lazy. Easy. Let's hope we get rich.

The bad:
-You have no idea whether the so-called expert actually is an expert or not in technical analysis
-Maybe the expert missed something or does not incorporate multiple technical analysis techniques
-You have no idea whether you should set a stoploss
-You have absolutely no clue whether the coin has a future either
-you have no idea at what price you should take profit your profit

Yet, a crypto in the long term (if you wait, "hodllll") will eventually go up (yes, hopefully).
But what if it goes totally bankrupt and never recovers? - Then you're done.

Well, that's when I think you should know what you are buying.
If you are buying 200 USD or 300 USD worth in a coin, I am guessing it wouldn't hurt too much to lose that amount if one single coin/investment goes bankrupt. Even if the coin drops so low and you end up with 10 USD out of the whole initial investment, you'll just have to hold for an indefinite period of time and hope it recovers.

As an example, if you had bought Bitcoin when it was at about 17.000 USD then you probably messed up big time.
At that price level, there were many clues that the party was not going to last forever and a correction was on the way. Volume was getting weaker at every peak, there was major bearish divergence on many indicators, and it was near very specific Fibonacci extension levels.

Yet, the clueless were still saying "to the moon" and buying at those levels.
Sure, the thing could have stretched even farther, but by how much more? You'd never know, and at those levels, especially under those circumstances, not by much.

That's when I think you should know what technical analysis really is. Especially if you are going to mess with a lot of money.

In the future, Bitcoin or any other coin will probably recover. Yes, that can be absolutely possible.
But what if it does not. What if it bounces slightly, and plunges again to even lower levels? Yup, that is always a possibility.

Many people buy their whole savings. Yes, some folks do that.
And do note: I am talking about a lot of money.

In that case, if that's you, you can then hodl and hope everything will be fine in. Then again, you can just hope, because you can lose it all as well.
If you panicked, you sold and lost a lot.

With technical analysis, at least follow someone that really does know (not a clown that gets his credits by a bull market) Having said that, in other words, you are more or less lucky to have a compass and some coordinates on the map.

With investing do keep in mind that the project needs to be a legit project. That's when you hodl, and then the price entry is not that important as when you are trading.