When watching live streams of cryptocurrency traders, be they Tone Vays or s**tcointalk, one of the most common questions from the community in the chat will be asking for a price prediction. People want to know when the bottom will arrive or when a new bull market will begin.
This isn’t limited to live streams. Telegram channels for your favourite coin community will also have random people suggesting a breakout is due to occur. More often than not, they are wrong.
Even the best traders make mistakes. Anyone who says that they don’t is lying, plain and simple. If you want to protect yourself from mistakes, then you need to put in the graft and learn the basics of trading yourself. By doing this, you can compare your own thoughts with the thoughts of the experts in the space and reach a satisfying conclusion.
If you ignore this and just listen to outside opinions, the risk you are setting yourself up for is huge.
The reason I am discussing this is because I saw such an example yesterday on a niche Telegram channel of about 3,000 members. Someone posted his prediction that Bitcoin was about to break out and rise hundreds of dollars imminently.
The reaction to his prediction was predictable. The community showed signs of “FOMO”, thanked him for his advice, and got all giddy. Shockingly, Bitcoin dumped a few hundred dollars overnight.
But hey, everyone is wrong sometimes. There is no use blaming those that make such predictions. None of them are financial advisors. If someone loses money after following their tips, the resulting blame more often than not resides with the pleb that listened to them in the first place.