Topic: $28,000 Bitcoin price. How explain falling price to worried newbies ? - page 2. (Read 393 times)

I wouldn't really consider safe as such a strong word. I mean a thing doesn't need to be profitable just because it has guarantees. Sure bank interests are safe, and not that bad these days with the higher rates neither, but at the same time would you really believe that banks would give you guaranteed returns higher than inflation rate? I highly doubt so, why would they do that.

Hence I would suggest that crypto is safe, depending on what you are investing into. I personally believe that bitcoin for example is as safe as it gets, most projects are bad these days but bitcoin has been going strong for about 13 or so years, it's not even a new thing anymore.

It's a risk, always had been, always will be.
Who or what is backing up Bitcoin? None. It's all the community that believes about its technology and it works. It's not about elite people anymore who are always the one taking most of the profits. We can do it too, now.
Whatever your friend decides it's up to him if he is willing to take that risk. No one should be forced on investing in Bitcoin, actually, in everything. It should be an individual choice.

Forex and cryptocurrency is a totally different market and so it wouldn't be comparable at all. Volatility is a thing that will eat alive investors in the crypto space and if not being cautious on what an individual invested for, then, frustration is really at hand. I'm being cautious who I teach crypto and being cautious too on what they need to learn because at the end of the day there are individuals that always point fingers if they seem to be at loss even if they are responsible for there own investments.

Prices arent always absolutely accurate is the best way to explain it.  The market has the job of serving everyone always everyday non stop and if sellers want to pile into the price when not many buyers are awake then we will move down in order to provide the utility of cash always available.    The instant cash exchange to any currency doesnt mean you always will get the best or even correct value.
   I see various adverts for crypto around the world and in remote parts you will pay far more then headline because you are being given convenience, delivery, service at your choosing often with small amounts.  There is no one united price in reality, it varies by situation and volume, liquidity in that location etc.
   Dollar has a higher rating right now in a war and threat of greater war, its not too surprising we come under pressure as BTC is with no government.   It has its own advantages but how people view each currency will vary, right now BTC isnt as highly valued as alternatives but its the same unit it was the year before and will be next year also.  The dollar for example should dated by the year because its constantly changing, every year they issue giant amounts more with no fixed schedule but it does also have an army backing it so I understand its in demand now.
  BTC is surprisingly long term, thats the thing we lose looking at prices updating by the minute.

Give the right information about the market, because there is a common thinking among the people that cryptocurrency is a way to get rich in a much faster way. They never understand about the risks and the associated financial difficulties. Ask them to understand the market and know about its volatility compared to the stocks and forex market. Newbies easily get into traps, briefing them about bitcoin as the long term investment with much of risks is needed. Till date who has the ability to hold haven't experienced loss out of bitcoin investment.

People hold bitcoins because they expect higher gains but we have to accept the fact that the market reverses into the opposite direction which is very strong so bearishness is inevitable, with this incident many people panicked and sold a lot for those who panic, of course they are not mentally strong by looking at the cyclical market situation In this case, although we have experienced this incident repeatedly but they are not strong enough to hold it, even though if it continues to be held we still have a chance to recover with a series of buying again at a partial bottom.

Bitcoin falling now has become unbearable because and people who is holding bitcoin is afraid of having bitcoin in the wallet till now. Many of them is regretting of hoarding bitcoin. And any one who panic and sell bitcoin will not make it, and already they are losing. Like yesterday morning bitcoin falls to reach 26,000 thousand and 25,000 thousand. But it has risen to 28,000 thousand. And this is opportunity to buy bitcoin again because this 25000 thousand will be the last experience of falling for the year of 2022

Your friend has to understand that crypto and FOREX are different, they behave in a different ways, and he has to focus if he wants to be profitable. yes, he bought bitcoin at that price, but he doesn't lose his money if he would not panic and sell at the current price, patience is the key and he has to hold because this dump is just temporary.

Nah, it wasn't safe nor to say crypto was a safe haven.
This is somewhat important for the newbies to know this thing and must keep in their mind. The market will fall sometimes but this is not a thing to worried about as it recovers back momentarily. For we are just about to hold and indulge patience, we never lose any but if we get panic (as mostly happens before) it is absolutely not a surprise.

That I encourage newbies to keep positive no matter what it happens in the market and just choose good projects for investment.

Not making this up. Asked a small resto yesterday (a chain, so the owner wasn't even there) about their Bitcoin sign, thought they accepted it, but cashier said no, there was plans to do so, but it never really happened. Then asked me, you invest in Bitcoin? I said no, I do keep some from earnings, so more like a savings and alternate way of paying, and they were like "did you manage to sell at 70k???" and I said haha no, it was more like 68k but I didn't sell anything. "You must be so mad!". Yeah, maybe in 2017 I was a little upset I didn't take advantage. It was 20k then. Did you know it even went below 4k just a couple of years ago? And then now even you know it was almost 70k this year.

It goes like that! They said.

I said, yes indeed. It goes like that.

Safe? Is it applicable with what is happening right now?
You can probably say that crypto is safe if we are in a bull market but in a bear market, no market is safe.

How to tell them? Just tell the truth that sometimes you will gain money (safe) and sometimes you will lose money (not safe) because that is what investments are. Just saying to newbies that events like this are normal in any markets and just by be patient will make them comfortable because right now, people are in an extreme fear. As a newbie, saying to them to stay patient and wait for a perfect opportunity to buy would be the best thing to say to them.

Not sure if this is the correct answer though, of course risk taking and patience is two emotions that will almost present if you want to be a successful crypto investors.

As for how to explain to worried newbies, well you have to tell them that of all the assets around, crypto is the most volatile, as it can go as high as 10% increase in a day and vice versa. If they can't take that, then obviously crypto is not the best for them, they could go do other assets that is stable like stocks.

Most of those who are looking for safety are afraid of losing 10% of the value of their money, let alone crazy fluctuations as they occur in cryptocurrencies, so it is better to teach him about the reason for using Bitcoin, for example, the government does not allow withdrawals or transfers to a country or inflation and others and over time you will find that he does not care about fluctuations.

In general, and from my experience, most people buy their work if the government makes it "official and legal" even if it is volatile.

Actually, it is not a safe haven, because safe haven for me is those commodities and assets that the value will not go down hard. So bitcoin or at least crypto in general is not, just like what we have witnessed in this month as the price plummeted to $28k.

So you have to tell that to your friend up front and be honest so that he/she won't be disappointment if somewhat they will invest on crypto.

Its still up from two years ago, I mean even with the huge drop recently. If we look at it on a yearly basis, Bitcoin still has gained hugely. Tell me any other investment that does that.

Not really. That's what makes it absolutely perfect for investors i.e those looking to make a quick buck, but don't plan on using Bitcoin for its intended purposes. If you're having big drops, and big rises that's the best investment someone could make looking to make a big difference to their wealth in a short period of time. It's only particulaly bad for those that are using Bitcoin as a currency. It shouldn't effect long term holders much either.

Explaining why bitcoin price falling is nothing to worry about during the fall is pointless. If you want to educate a newcomers you should do it when they are beginning and you should tell them that bitcoin is not and investment but it is the only decentralized global currency with limited supply.
I've learned that those who learn about bitcoin don't worry about its short term fluctuations contrary to those who think of bitcoin as an investment specially one that could make them rich quickly who lose sleep when there is the smallest drops and worse when the drop is bigger!

There is no "if", cryptocurrencies (ie. altcoins) are not safe. Bitcoin is safe only because it is providing a useful utility and is not going away otherwise the uselessness of altcoins ensures their failure.

Patient and know when to enter is what I preferred. You can maximize you patient efficiently if you will buy at a price point that is not on a sell zone. Bitcoin maximalist will typically say you just need to hold but what if you purchase at peak or near it? You will wait for a year or more just to breakeven or gain while you can maximize your profit if you will buy on proper zone and and patiently wait. Holding is the key to Bitcoin but don't let whales eat your money for there liquidity exit but rather use there money on TP.

The most lesson I learned when I started to hold Bitcoin is to become patient. Because if you are not, you will not be rewarded. Especially if you experienced before 2017-2018 bull run, it was around an 80% drop from ATH and after that, Bitcoin started to rise again and made $60,000 ATH again.
That's what example of a risk-taker and having patience. Expect that in cryptocurrency that volatility is high.

No, they are not safe, they were never like that, BTC is almost safe long term but the other shitcoins will only make people's life miserable long term unless you're day trading and getting every pump and dump scheme right.

You should do it like this ask for his wallet and start pulling out banknotes and asking him if he's ok with you burning them all. Once you reach the point where he says it's uncomfortable for that much to throw away tell him that's the maximum he should be investing. Also, tell him that if he does go over that is his risk and he shouldn't be running back to you and complaining.

There's no such thing about safe investments and this is should your friend do really realize because this isnt how reality works even if he do stick with Forex or stocks its not really still a guarantee that he would

really make money or have really that chance on negative portfolio.Dont stress out yourself about explaining to them about the risk yet they would experience it for yourself

on how this market do really works and behaves.As long he dont sell then he wont be losing anything.