Litecoin (LTC) – A few days ago, Charlie Lee said that it would have sucked if he hadn’t sold at the top. While to most people felt like this was kind of lack of commitment to the project, it was actually a smart move on his part. A move that others can emulate and make money in crypto as well. Charlie Lee’s key lesson is that it is smart to know when to fold and take a profit. While HODLing is a good strategy, a good understanding of market cycles offers better returns. The 2017 high was not buying time, but a time for those who bought in 2016 and earlier to take profits.
The good thing is that market cycles always repeat, making the current market a good time to buy, and not to panic sell. That’s because today most good cryptos are heavily depressed in prices, even though their technical capabilities and levels of adoption are way better than 2017, when they hit their all-time highs.
Take a project like Litecoin for instance. At its peak in 2017 it was trading at over $300. Today it is trading at the $50 level, a huge discount from its highs. The only thing that has changed is its core fundamentals. Litecoin (LTC) is now more adopted than it was last year. It is available on debit cards, and through SMS services such as the one by Zulu. Litecoin is also accepted on more locations all across the world, and its technical capabilities are way better than 2017.
Logically, this means that the intrinsic value of Litecoin is higher than last year. Therefore, when the next bull market comes, Litecoin (LTC) is primed for gains that will outpace the gains it made last year. In essence, for someone looking to invest in Litecoin (LTC) and make similar gains to last year, now would be a good time to buy not sell.
Unfortunately, for most people, the idea of buying low and selling high is always harder to achieve than it sounds. That’s because when it’s buy time, as it is at this moment, there is always lots of doubts about the market. Right now, there is lots of confusion as to how low the market can go, and naturally, people would have reservations about jumping in.
As the market keeps testing new lows, and shows lack of volumes, it is hard for someone who can’t conceptualize the bigger picture to get into the market. Most people will come in when FOMO kicks in, since at such times, prices are usually trending upwards. This leads to the same thing that happened in 2017, and that’s buying at the peak of the market, then selling when the market drops again, leading to an endless streak of losses and frustration.
The next cycle of extremely high profitability will go to those who can wither the storm and hold, then like Charlie, exit at the next top. If Litecoin, for instance, hits a high of $1000 in the next Bull Run, someone who bought at $55 would be sitting on a tidy profit. Can it achieve such a price? Its fundamentals make the probability of such an occurrence quite high.