Blockchain and Cryptocurrency Basic - Purchasing Cryptocurrency Asset Based on Psychology and Market Cycle Principle

For this demonstration, I will be purchasing LTC on the USDT pair with over 14USDT. At the moment, LTC is on the Hope Phase because people are hoping for a possible recovery after a long downtrend. On the daily chart, the price has made a little bullish move which is a great sign, so I am still in the hope phase that there will be a rally to the upside. I decided to buy now because I am hopeful that the price will rise and there will be an uptrend movement. I entered the trade at 136.57USDT which for me is a good entry point because if the recovery happens, the price will rally to an uptrend which will put my investment in profit.

The LTC/USDT chart is showing that the market is in the Hope Phase. This is the phase where investors are hoping for the price of LTC to recover after a huge fall. I bought LTC at this point because the price has show some bullish signs which means that if the price of LTC completes it cycle, my investment would be in profit. In my opinion, this was a good entry point as I hope for the market to rally to the upside.

When it comes to cryptocurrency investment, market psychology in the market play an important role to what happens in the market and how an investor reacts to what happens in the market. FOMO and FUD are very common trading psychology that investors show which can greatly influence their investment decisions. FOMO which is just the short form of “Fear of Missing Out” is one of those popular terms that basically means the emotional bias of an investor or trader in the market. The market psychology consists of the different trading psychology of traders and investors in the market and FOMO is one of the trading psychologies exhibited by investors and traders. FUD (Fear, Uncertainty and Doubt) on the other hand, is another popular acronym that is used in the crypto space a lot. It is pretty much the opposite of FOMO. It occurs when there is fear in the market due to factors that might have led to the FUD. It is also trading psychology or emotional bias of an investor or trader in the market. Above all, it is important to not let your emotions take control of your investment or trading decisions and let the market play out. Due to FOMO and FUD, a lot of investors has either lost a lot of money or missed out of an opportunity to make huge profits due to fear or panic.