A Little-Known Crypto That Surged Over 7,000% within 6 Hours
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Popular crypto analyst and trader, Lark Davis, has warned that most traders will lose a lot of money despite the surge in prices of cryptocurrencies in the market.

In a recent video shared with his teeming subscribers on YouTube, Lark Davis warns that even in a bull cycle, most investors will part with their gains in the long term.

Due to this potential fact, the trader explained a number of important strategies that can be applied to maintain accumulated gains and avoid unbearable losses in this bull cycle.

Read Also: Credible Crypto Who Predicted XRP’s Slight Recovery Analyzes What Is Next for Ripple’s Token

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The famous analyst is of the opinion that most cryptocurrency investors usually fall into a malicious cycle of FOMOing into rallies, followed by panic selloffs upon seeing slight retracements. He said they also follow crowd mentality and social media hype until they lose most or all of their accrued profits.

He noted:

“Most investors, they will buy the top, sell the bottom, buy the top, sell the bottom, rinse and repeat ’til they’re broke. Here’s a chart from Santiment showing that when the majority of social media sentiment is saying to ‘buy buy buy buy buy’ that it’s actually usually time to sell sell sell sell sell. And that when the majority of social media is saying,

“‘Hey it’s time to sell, everything’s going to go to zero!’ that’s actually the time to be buying. And I know it sounds crazy, but this is what the herd does every single freaking time.”

Trader Lark Davis Warns Most Investors Will Lose 90% This Cycle. Here’s His Best Means to Preserve Gains
Courtesy of Santiment

Read Also: Traders Are Increasingly Converting Bitcoin (BTC) and Ethereum (ETH) to XRP –Ripple States Reason

Traders Must Understand the Risk in Crypto Trading

Davis also pointed out that traders must understand the risk in trading cryptocurrency before making the decision to invest or trade, noting that many traders get “way in over their heads” and get stuck in a project in the process.

He also told his viewers to abandon a coin or project when they feel like they no longer hold the sure upside agility or value. He advised traders to know when to click the sell button, in order to secure their gains:

“Learn how to take profits. This market has a habit of creating lots of short-term paper millionaires. Your coin pumps to the moon like crazy, crazy stuff, you’re suddenly rich, but you never click the sell button, and then six months later your portfolio is down by 90% from your initial investment – all [those] riches gone. Gone!

This has happened to so many people in crypto. You have got to take profits. Do not become a victim of your own freaking greed…

Read Also: Credible Crypto Who Predicted XRP’s Slight Recovery Analyzes What Is Next for Ripple’s Token

Here’s the thing: if you never hit the sell button, you’re never going to realize your gains. You’re never actually going to make a profit. It’s all theoretical until you click ‘sell.’ Make a habit of taking profits.

It’s going to help you sleep at night by de-risking your portfolio and also rebalancing your portfolio when you do have these big positions that are pumping like crazy. It’s also going to make sure you’re compounding consistent wins over time that you’re steadily building your wealth. This is how winning is done.”

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Solomon Odunayo

By Solomon Odunayo

Solomon Odunayo is an accomplished blockchain and cryptocurrency expert at Herald Sheets, known for his in-depth analysis and engaging articles that cater to both beginners and experienced readers. With a degree in Computer Science from the University of Lagos, Solomon leverages his technical background and keen understanding of the crypto space to provide readers with valuable insights and up-to-date news. His passion for innovation and commitment to staying current with industry developments make him a trusted voice in the digital currency community.