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welcome to the deep dive we're jumping
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right in today the crypto market well
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it's buzzing especially with this
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altcoin season everyone's talking about
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it really is exciting but uh definitely
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risky territory too exactly you see
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those huge gains the hype online and you
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feel that pull right that urge to just
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dive in totally but okay let's pause for
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a second we need to talk about a super
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common mistake buying the top ah yes the
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classic FOMO trap consider this like
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your guide to hopefully dodging that
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stress dodging those potential losses
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that can come with it definitely and
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when we say buying the top what we mean
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is you know jumping into a crypto after
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it's already shot up like crazy yeah
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like 100% 200% maybe even 300% or more
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in just a few days or weeks and that
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fear of missing out the FOMO it's
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powerful it pushes people to buy late so
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our mission today let's really dig into
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why this happens so often what are the
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consequences and most importantly how
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can you avoid it we'll look at real
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market stuff past cycles okay so picture
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this you're scrolling maybe online and
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boom a coin you barely know is suddenly
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up say 75% in just 3 days it feels like
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everyone else is getting rich quick and
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you're just watching from the sidelines
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that's the lure isn't it it really is
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and you start thinking maybe this just
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keeps going up you know straight to the
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moon but things don't just go straight
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to the moon do they that's a bit of a
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misconception not usually no what often
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happens is that initial surge it might
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be driven by early buyers maybe even
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some coordinated groups that kind of
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parabolic move well it's rarely
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sustainable markets have cycles ups and
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downs and that's exactly where buying
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high really stings you finally jump in
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feeling like you're catching the wave
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and then what happens the pullback the
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price correction it's almost inevitable
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after a massive runup we could be
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talking what 15% maybe 18% even 20%
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drops for sometimes more easily and
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suddenly that thousand dollars you threw
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in maybe feeling hopeful well now you're
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instantly down $200 ouch that doesn't
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feel good no and what's really tough is
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the emotional side of it you go from
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excitement to just pure anxiety yeah you
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start second guessing yourself watching
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the charts constantly checking your
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phone every 5 minutes and then you feel
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this pressure this urge to just sell
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even at a loss just to make the feeling
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stop it gets really stressful it kind of
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reminds me of uh remember back in
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December 2024 that big altcoin run oh
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yeah that was intense everything seemed
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to be flying a lot of people felt like
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"Okay this is it i'm finally making it
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then reality hit what followed was what
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5 months or so of just down or sideways
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at best pretty bearish yeah and anyone
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who bought right at the peak during that
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December madness they'd probably spent a
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long long time underwater just
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regretting that impulse buy it really
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highlights the need to break free from
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those purely emotional decisions so okay
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you see a coin pumping hard before you
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click buy what should you do we think
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there are three really critical
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questions you need to ask yourself
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honestly okay let's hear them first one
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if I buy this right now am I actually
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going to be okay if the price tanks in
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the next two days m that's a good one
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forces you to face the immediate risk
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your actual tolerance for that potential
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drop right question two am I buying this
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only because it's already up a ton like
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400% or something and am I secretly
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hoping it's going to do something
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totally unrealistic like another 800% or
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a 20x like tomorrow ah the reality check
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question is this FOMO talking or is it
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strategy are my expectations grounded
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exactly and the third one maybe the most
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important why am I really buying this
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coin what's the actual plan here what's
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my prerogative what's the reason beyond
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just number go up is there tech a
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community a purpose what's your time
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frame yeah if the only answer you have
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is uh cuz it's pumping that's probably a
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massive red flag absolutely asking these
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questions helps you switch gears you
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know from just chasing pumps to making a
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thoughtout decision so okay practically
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speaking how do you avoid getting caught
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buying the top what steps can you take
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well one really solid strategy is don't
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go all in at once scale in you mean like
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dollar cost averaging sort of yeah or
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just starting smaller if you like a coin
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that's already moving maybe put in just
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a fraction of what you eventually want
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to invest right keep some capital aside
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some dry powder as they say exactly so
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if it does dip which it often does you
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can buy more at a better price it's like
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dipping your toe in the water instead of
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a cannonball that makes sense it
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averages out your entry price over time
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and it ties into understanding that
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pullbacks are normal right even in a
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strong uptrend totally normal
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consolidation happens prices need to
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breathe even Bitcoin dominance you know
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its share of the market it consolidates
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and that affects all coins too so just
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because a price goes up a lot doesn't
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mean it won't come down a bit before
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potentially going higher expect those
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pauses those dips which leads back to
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having a plan please have a plan don't
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just you know ape in that's the slang
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right just blindly throwing money
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because something's trending right know
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why you're buying and just as crucial
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know when you might sell have some
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targets maybe for taking profits or even
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for cutting losses if it goes wrong
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speaking of taking profits maybe we
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should talk about market sentiment like
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the fear and greed index yeah that's
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relevant right now hypothetically let's
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say it's around 71 that indicates greed
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in the market so when everyone's feeling
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greedy and euphoric maybe that's
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actually a signal it can be it doesn't
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mean sell everything instantly but it's
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often a sensible time to think about
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locking in some gains turn those paper
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profits into real realized gains you
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could even dollar cost average out of a
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position selling bits as the price goes
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up that's a smart way to manage risk on
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the way up too now zooming out a bit the
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bigger picture let's say Bitcoin's over
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100K ethereum is holding above $2 that
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suggests a strong overall uptrend right
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yeah the macro trend seems bullish and
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interestingly Ethereum dominance its
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market share relative to Bitcoin looks
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like it might have bottomed out and
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historically a rising Ethereum dominance
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can often fuel altcoin runs can't it it
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often does meanwhile Bitcoin dominance
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might be decreasing overall but it'll
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still likely consolidate sideways at
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times affecting the alt market flow okay
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so let's look at some recent examples
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because they really illustrate this
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buying the top risk perfectly think
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about some of those meme coins lately oh
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yeah names like what dgn Migles Cockinu
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Zero Bro Simon's Cat they can pump
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incredibly fast and often dump just as
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fast or faster but it's not just memes
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look at something like Brett right brett
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went up to about 9.3 cents then what
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pulled back like 18% after consolidating
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exactly imagine buying right at that 9.3
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cent peak you'd be down almost 20%
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pretty quickly feeling pretty stressed
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or uh Medicaid was another one huge pump
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like 106% up and then a 15% drop right
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after these aren't small moves they show
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how fast things can turn yeah if you
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bought the top on either of those you'd
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be feeling the pain and that's a cycle
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we really want you to avoid that
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destructive pattern of buy high because
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of FOMO watch it drop panic sell at a
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loss and then immediately jump into the
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next hot coin that's pumping repeating
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the same mistake it's just an emotional
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roller coaster that usually ends badly
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for your portfolio and your sanity so
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wrapping this up the main takeaway here
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really is patience having a plan and
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actually understanding like really
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understanding that crypto is volatile
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resisting that FOMO urge when a coin's
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already gone vertical that's probably
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one of the most important skills for
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protecting your capital in this market
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it really is so maybe take a moment now
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reflect a little have you ever fallen
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into this trap have you bought the top
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before yeah think about it honestly
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recognizing if you've done it in the
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past is actually a really good step
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towards not doing it again and building
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on that here's something to really chew
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on how can you take these ideas the
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questions to ask the strategies like
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scaling in yeah having a plan how can
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you actively apply them now how can you
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navigate this current old coin season or
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the next one with a bit more wisdom a
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bit less emotion and avoid those
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gut-wrenching moments after buying too
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high thinking about that planning for it
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that's really the key to a hopefully
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more successful and definitely less
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stressful crypto journey thanks for
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joining us for this deep dive