The Razors Edge…of Fear Investing

For many cryptocurrency investors, how they feel is determined by the current performance of the cryptocurrency markets. If the markets are in a bull run (uptrend with rising prices), then there is a general feeling in investors and newbies called FOMO (Fear of missing out). If in a bear market where prices are slumped and in a downtrend then there is FUD (Fear, Uncertainty and Doubt). This means that a lot of investors are in a constant state of fear. This is what I term Fear Investing. Fear has been shown to have a lot of negative effects on the mind and the body.

According to research out of the University of Minnesota, “once the fear pathways are ramped up, the brain short-circuits more rational processing paths and reacts immediately to signals from the amygdala. … While fear can play tricks with your memory and your perception of reality, it also affects your body.

What this means is that not only does fear affect our body but also the decisions we make. As a cryptocurrency investor, decisions need to be made very quickly. What may take months or years in a traditional stock market situation, can take only hours or days within the cryptocurrency market. Fortunes can be made or blown within minutes to hours.

I know that I too have been subject to the whims of a fear befuddled mind and FOMOd in to numerous positions that in hindsight were not the best. I also have allowed FUD to cloud my judgement and made further poor decisions as well.

To be honest I don’t want to live my life in a state of crypto fear.

One, I know it’s not good for me.

Two, I know my judgement is compromised and I do not make good decisions.

Three, it’s not sustainable.

I want to live my life with motivation and enthusiasm, not based on fear.

Where is the market heading now

The cryptocurrency market is currently at the pointy end of a large descending triangle (determined by the red lines in the diagram below). The green lines show a shorter term sideways triangle.

In Trend Analysis a triangle pattern shows a wide to smaller trading range over a period of time. A lot of trend analysis investors will wait for the price to break out of the triangle as a signal to determine which direction the price will move. If the price breaks out of the triangle in the upward direction with volume then that is a bullish sign and investors will start buying. If the price breaks out of the triangle in the downwards direction with volume then that is a bearish sign and investor would look at selling quickly.

Above is the chart for Bitcoin (BTC). As you can see, the swings in price from up to down get smaller and smaller over time as the price is “funnelled” into the pointy end of the triangle. This is a bit of a self fulfilling prophecy as those investors that follow trend analysis will perpetuate and strengthen these signals, meaning they won’t buy or sell outside of this range whilst they wait to see how the price will break out of the pattern. This means that trading volume decreases as investors sit on the fence and wait.

This state of unknown price direction creates an enormous amount of anxiety, as investors don’t want to miss out going long if the price breaks out and up, and they don’t want to miss dumping their crypto quickly if the price breaks out and down through the support.

Bitcoin is king, and nearly every ALT follows the price direction of Bitcoin. That’s why there are so many eyes watching and waiting to see how the Bitcoin price breaks out of this triangle. How it breaks out will determine which way the whole cryptocurrency market will go. This is all based on fear. Fear of the unknown.

Look for value not prices

I don’t want to live in fear as an investor. I don’t want to made poor decisions because my judgement is clouded by fear. I’ve come to realise that there is a 3rd option to the FOMO or FUD feeling. It’s based on looking for value.

If my motivation is based on what excites me and what I find meaningful in terms of investing, then price because less relevant. If I invest in those cryptocurrency projects that are aligned with my own interests and values rather than simply speculating in fear of price action, then I’m living in a different paradigm. Instead of living in fear, I’m living in excitement, inspiration and enthusiasm knowing that what I’m investing in is not just price but about who I am as a person, and what I’m about. It’s investing in me and how I can contribute to those projects that will help the world.

This is the state I was in when I found the Equaliser project. Equaliser is a cryptocurrency project whose primary purpose is to provide affordable, strong energy efficient homes to those that would not normally be able to afford a home. Equaliser is aligned to my own values because it’s about helping others, and is doing so by merging innovation in building and blockchain technologies to build low cost homes, and ensuring Title registry on the Equaliser blockchain. The Equaliser cryptocurrency coin EQLI is the purchasing currency for an Equaliser built home. This will further provide value and stability to the Equaliser cryptocurrency. Equaliser is designing and building its own formulation of extremely low cost building materials which will allow it to greatly reduce labour and building costs but still provide high strength, high quality homes.

What I like about the Equaliser project is it’s motivation to help those that need it the most, by targeting regions where there is a housing crisis and with populations desperate for housing. Puerto Rico will be the major target area for Equaliser to roll out it’s Equaliser solution. Puerto Rico has been decimated by Hurricane Maria in 2017 which destroyed vast areas of housing and leaving hundreds of thousands homeless. Also, with 10 years of rising debt has resulted in over 45% of the population considered below the poverty line. The Puerto Rico island is the perfect area for Equaliser to lend a helping hand. Equaliser plans on rolling out the Equaliser solution worldwide to countries such as Australia and the United Kingdom in the future.

I’m happy to be off the FOMO/FUD hamster wheel, and am excited for a cryptocurrency project that has meaning and value to me. I’ve found the Equaliser community to be very welcoming and determined. If you’d like further information about Equaliser click on the links below.

With love and peace,

Paul Clarke

Medium: JellySmash

Twitter: @greenbergblue


For more information on Equaliser click:


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Donations are always appreciated, you can deposit to either of my below addresses –

Bitcoin (BTC): 35fjF5ZtPfB8crHogJBxDmsF9cMknqVHmM
Ethereum (ETH): 0x2f14f76A8BBa608c7d0C4fe27b66d3E54075Bc26


Short video on Equaliser

The Equaliser Whitepaper

The Razors Edge…of Fear Investing was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.