Understanding human psychology is one of the most important skills of successful crypto investor.

Most people act suprised or sceptical when you tell them it. They treat this information as another pseudo scientific bullshit. But it is not. Crypto is all math, logical patterns and and technology? Not only. You miss out most important factor - humans. All is good, simple and logical on paper. Quality should succeed and every investor DYOR and use logic. It is utopia and like all utopias fail in reality. To be good investor you need to understand how average person in crypto think and be smarter than them. It is like marketing, you can let it control you or find out patterns and learn how to not fall for tricks. More advanced investors not only do this but also us this precious knowledge to be more successful. Few things many of us underestimate: Price of a coin. We all understand that buying 0,1 of $1000 coin is the same as buying 1 whole 100$ coin. Problem is that most people don't see it that way. They prefer cheaper coin cause their subconscious tell them cheaper coin can grow more. "What if my coins would go to $10 each" seem more realistic than "What if my coin would go to $10k". Market cap and % profits doesn't matter for most people. They just think cheaper coins have more growing potential. Number of coins. Technicaly it doesn't matter, but for most people it does. Everyone want to have 1 million or 10k coins much more than 5 or 20 coins, even if they are worth the same. Another trick of our subconscious. More coins = more profits. Ofc it is not true, but majority of people think or at least want to think otherwise. Even those that know often fall for this trick. Having million or billion coins sound great for our imagination. Gambling 5/20$ on few millions coins look like much better deal than gambling those money on 10 coins. People like to be part of group. Coins with good community have huge advantage over groups where people look strict and only care about technical things. Average user feel safer seeing people like him, that joke, like memes and are nice or uncertain sometimes than bunch with self proclaimed experts that don't want to be friendly. In real life it is the same. Do you prefer to spend your time with with people like you or men in suits that talk about things you have no idea about? Answer is obvious. People like to feel special. They want someone to pat their head and hear: "you are early, you found hidden gem, you are nice person, everyone will be jealous of you". They want their families and friends to be proud. They want to mean something. Too many people in crypto like to smash newbies and act supriced why they don't want to listen. Stick and carrot work better than just a stick. People want to get their dose of hopium. If you have two advisors you will listen to pesimistic/realistic one or to overoptimistic? We all want to heard good news. If enought people believe in good things they can actually happen. Again, do you like spend time in real life with people that always say NO, are whole time angry and negative toward everyone and everything? Probably not, after some time you have enough of this sad bullshit. On average we like those silly, but optimistic and nice people more. Ofc those things are not only thing that matter in crypto. But good investor should have at least basic understanding of human psychology. Humans are weakest element of every project. Their choices are ofter irrational, they have zero knowledge, act spontanous and invest into coins only basing it on emotions. Imagine most imvestors act like a monkies. They will chose banana over a book for countless reasons and you can do with this knowledge whatever you wants. submitted by /u/Nuewim [link] [comments]