Is it good to apply contrarian investing in the cryptomarket?

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Investors within the economy and the different markets show certain feelings and enthusiasms that are counterproductive to their profit interests, so employing a different strategy to such generalized sentiment can be beneficial if making profits on investments in the cryptocurrency market, therefore if analyzed well it can be effective that we can buy and sell cryptocurrencies in a different direction to the general sentiment of the cryptomarket.

In that sense a contrarian investment would be to buy cryptocurrencies when everyone is selling, and sell cryptocurrencies when everyone is buying. What happens in this sense is that if we go in a direction opposite to the sentiment of the cryptomarket, is that for example everyone sells because prices are very low, then those low prices can be taken advantage of to buy on discounts and get the opportunity to sell on euphoria which is when everyone sells.

Anything that has to do with financial advice in the investment world within the crypto world is discouraged given the volatile nature of cryptocurrencies, so each person must do their own analysis and research, especially if you are going to trade commercially in a short period of time, however if your goal is to trade for long term gains, then it is very important that you consider trading with the contrarian investment strategy, since buying at times when everyone is panic selling at low prices can allow you to make large profits when the long term trend of low prices turns to higher prices, and thus earn significant profits.

The logic in this philosophy indicates that high prices give a selling pressure to large investors who are those who have the most volume of cryptocurrencies invested, therefore when they see that they already have the profits that mark their previous goals then it makes massive sales occur, and those who get caught in that feeling of bullish euphoria become disappointed to see how their profits vanish.

In finance and investments no strategy is unique and safe, however being able to apply a particular strategy can make us live the experience and be able to determine for future investments if we can apply it and obtain profits for it.