A popular cryptanalyst said that a significant part of crypto investors adhere to the wrong strategies, and listed his warnings. The analyst, known under the pseudonym Altcoin Psycho, addressed almost half a million followers on his Twitter account. So what are 90% of crypto traders doing wrong and what strategy should they follow to increase their earnings?
Altcoin Psycho says that at least 95% of all crypto traders focus on the wrong place and therefore often lose money. A popular analyst who says that real investors focus on things like arbitrage, the recoverable value of miners (MEV), mempool bots and opportunities to use inefficient market makers believes that the real profit is here.
But 95% of crypto traders focus on order flow, technical analysis and indicators. Altcoin Psycho says there are two types of thinking in this market.
How can I interpret the information offered by the market?
How will others interpret the information presented by the market?
Most traders use the first option to make money, but Altcoin Psycho has seen from his own experience that the real return lies in the second way of thinking.
The right investment in cryptocurrency
To clarify, traders try to act at the right time, using the flow of orders and good technical analysis models. But to use these methods perfectly, they will have to spend years on them and they will not be fully successful. He says that he himself followed the first path for a long time and through painful experiences discovered what he needed to focus on.
According to the analyst, a significant part of crypto investors will not be able to earn until they switch to “second-order thinking”.
Altcoin Psycho said;
“So what does this actually mean in practice? The first (and most important part) is to swallow your pride. To understand quadratic thinking, you must first admit that most of this nonsense is a self—fulfilling prophecy, and you are not really a genius. Because you are well versed in technical analysis, the price does not bounce off your trend line, but because enough investors are looking at the same level, the price rises. Smart traders know this, so they use common traps such as stop loss hunting or support and resistance scams to lure individual investors.”
Altcoin Psycho says that he no longer weighs his own opinion about the project when it comes time to analyze the benefits of investments. Instead, he’s just trying to assess what the market will think about this project.
It has always been said that technical analysis is psychology, and the more people follow these indicators, the more successful it can become. Altcoin Psycho emphasizes that investors who are drowning in math have missed the part of “psychology” they should be focusing on.