Narrow Framing

Both optimism and expert bias coalesce in narrow framing, the compartmentalization of wholistic decisions into individual choices. For instance, investors frequently focus on one data point or indicator rather than making holistic choices using complete information.

When considered together, it’s evident that, despite our abounding confidence, people are definitely not as good at making decisions as we think we are.

You Haven’t Seen Anything Yet

Cognitive bias undoubtedly plays an integral part in sidetracking our investment decisions, and its influence is amplified when investors enter crypto markets. In fact, crypto markets can be so tumultuous that investors use an acronym, FUD, to express that fear, uncertainty, and doubt are prodigious among crypto enthusiasts.

Unlike traditional investments, cryptocurrencies trade 24/7. The market never closes, which means that it is always active, and that activity can be uncomfortably aggressive. Double-digit daily price increases or decreases are not uncommon, and this invites investors to make knee-jerk decisions based on relatively limited information.

Moreover, the crypto community is dominated by “to the moon” expectations, and FOMO, another crypto-centric acronym referring to the “Fear of Missing Out”, becomes a viable investment model for too many people.

In short, crypto investors have their work cut out for them.

Fortunately, they don’t have to navigate crypto markets alone.

Crypto markets are currently experiencing a prolonged downturn, but there are plenty of opportunities to profit. However, those opportunities are unlikely to be discovered using our own intuition, research, or decision making. Our cognitive biases make it improbable that we will succeed.

However, while people are inherently bad at making rational decisions, computers are designed to only make rational decisions. When coupled with the power of AI and machine learning, we have found that the following strategies provide a compelling, computer-driven method for capitalizing on crypto markets:

  • One Day Most Volatile Strategy,
  • Top 20 Market Cap Monthly Strategy &
  • Daily Delta Rebalancing Strategy

Oleg Seydak is an entrepreneur and financial technology investor. Formerly a co-founding partner of Flint Capital, Oleg is now CEO and founder of Blackmoon, the only operational blockchain investment platform

.

DISCLAIMER FROM AUTHOR: