Ripple supporter and XRP investor advocate John Deaton shared his thoughts with the community on the best time to buy XRP and other cryptocurrencies.
Deaton referenced recent fake news about BlackRock's filing to create an XRP ETF and weighed in on when one should actually purchase XRP or any other cryptocurrencies to avoid losing money.
He wrote: “I'm going to do something I've never done on this site: I'm going to give financial advice on how to profit from FOMO.”
“It’s too late to buy with FOMO”
Deaton stated that when “FOMO” (an acronym for “fear of missing out” or “FOMO” popular in the crypto community) occurs, it usually happens on the news. Earlier this week, news broke that the world's largest fund management company, BlackRock, had filed to create an exchange-traded fund based on XRP.
The price of XRP initially soared on the back of fake news, and then after BlackRock denied the rumors, the price fell by about 12%.
So, when news like this comes out and FOMO sets in, it's the best time not to buy cryptocurrency but to sell it, says Deaton:
Because of the post below, I'm going to do something I've never done on this site: I'm going to give financial advice on how to profit from FOMO.
You don't buy assets based on new “news” that makes people go crazy. Then you SELL the asset. Let's use XRP as an example.
According to Deaton, now is a good time to buy.
Deaton believes it's best to buy cryptocurrency before FOMO sets in, then wait for the news to break and then sell when everyone else is scrambling to buy it.
As an example, Deaton cites the case in July when Judge Analisa Torres announced her decision in the Ripple-SEC case, saying that the company's programmatic sales of XRP on secondary markets should not qualify as sales of securities.. XRP then quickly peaked at $0.93 until it fell back to $0.70, and then fell below $0.43 in August.
According to Deaton, the best time to buy XRP was before the decision was made public. After that, “it was possible to sell when the price rose to $0.93, although everyone else expected it to go much higher.”
Here's the “big hint,” Deaton shares.
Deaton himself, according to his post X, has not bought a single XRP since Judge Torres' announcement was made – he bought a lot of XRP before this happened. The same, he said, can be applied to BlackRock's news about the XRP ETF, which later turned out to be fake.. His warning is that if someone buys more coins on such news and then the news turns out to be fake or a scam, they are losing money rather than making money.
According to him, over the past years, Deaton has learned one important thing: by the time this news came out, someone smart had already made a lot of money on cryptocurrency. They most likely made a big profit from the 20-30% rise in crypto due to this FOMO. He's writing:
Here's a big hint I've learned over the years. By the time you and I hear the news on social media, the easy money has already been made. It's already too late. So the only thing you can do is buy whatever you want when it fails. So when news comes out that makes it go up 20-30% or…