You have been eyeballing this token for a little while. You have been on the fence on it. You first discovered this token through reddit, maybe you read it on 4chan or it hit some chart on Coingecko so you book marked it and forgot about it. But now, all the sudden it goes up another 100% in an instant. It had some major update announcement. You missed the boat, you don’t want to FOMO in and buy at the top. You’ll be a responsible investor and wait until it dips or you’ll buy another project because there are thousands of projects out there. A couple hours go by, or shoot maybe even a couple days go by, and now some social media influencer is talking about this project. It is ground breaking. This update will revolutionize the crypto space and you didn’t realize how huge this was going to be. You go onto Reddit and start searching to read more about this token. You find an active thread and there is post after post talking about how this token is going to explode and blast off to the moon or mars or shoot even a different galaxy. We’re all going to be in lambos and retire early. This is still so early because it hasn’t hit mainstream adoption yet but it will be getting that done in a reasonable amount of time. Maybe this is just an ERC-20 token and the ground breaking news is that they announced that they are going to be releasing a roadmap and or a website in the next coming days or weeks. You decide to throw in money because why not, surely this can’t go down and like clockwork, it goes down almost instantly after you put your money in. You panic and sell for a loss and lose 30% of your investment in the matter of minutes. People dispel the FUD and the price goes back up and so you buy back in and then it dips again. This time you decide you will stick it through and you are going to ride it for the long haul but it only dips. It dips again. And it dips again. You end up selling out because you could be having your money in a safe investment like Bitcoin which is only bound for success. Time goes by, and if you had just held your tokens from last summer or last fall maybe you would have been up by x10 but instead you look at your trade history and wonder why you made these bad mistakes.
This is just a journal entry so I can remind myself what not to do. DYOR is commonly thrown around in the crypto world and only invest what you are willing to lose. Good luck out there!