Topic: $28,000 Bitcoin price. How explain falling price to worried newbies ? (Read 376 times)

I must've forgot. It's locked.

Newbies should understand  and learn the market first before entering , this means we do not need explanation to them if they are doing their Homework from the start.

Newbies will only experience losses if they are greedy and not paying attention to the market movement .

and 28k? this is still high as we can expect in this second year from the bull market.


best to lock it now mate , and besides the thread is now spammed and need no continuity to discuss .

Thanks everyone. I'm locking this thread it isn't needed now  

Personally I would not bother explaining your friend anything about it and the reason is quite simple, he is only interested in the short term variations in the price, he is not seeing the big picture and when that is the case those people are only interested in the market that is the hottest at the moment, and without a doubt the bitcoin market does not fulfills that condition, so let him invest in whatever he wants as you will never change the opinion of someone like him.

Of course, we don't have control of the market's movement and as much as we want to see the price going up (same with newbies), it will not be the case.

As for beginners, then welcome to crypto world, unstable market, with a lot of going up and down and no one knows for sure when is the next movement. I guess if you see profits already, then take it, specially in a bearish one. And again, we have say this many times already, have patience, that is the key to survive in a bear market.

One should understand that it's all part of the market/investment to see a pump or dump and it's normal. No one should stressed themselves just because their investment turn red all of a sudden. The same applies when the market is in bull run too, you take profit when bull run and you buy when the market is in red/dip that's how the market should someone perceive and not the other way around. The market won't always be pumping forever because it will surely gonna lose its value over time.

I don't think there is anything we can do unless they ask what we should do about the current market, all investments are risky as a newcomer of course he is not an idiot, and has been looking for plus and minus information about the investments he will make in the world both crypto and forex do not promise guaranteed profits.
and we can not presume words ... when everything is wrong by comparing one investment to another. a manly man knows for sure with an attitude and a decision without regrets

I think not only cryptocurrencies but in most types of investments, they were never safe actually. Though we can still expect profits, but we don't know how long it lasts or it may just fall into a sudden bankruptcy. And bitcoin is not an exception. And its not even a guaranteed investment to make us rich, so if he finds forex more profitable than crypto, then stick to it. Bitcoin is just another option for those who become hopeless to make profits.

Tell your friend, wherever he's effective to trade, he should just stay there. But it's okay to remain with his curiosity about the crypto market because that shall give him the idea of how volatile it is just like forex.
Honestly, when someone asks you about how sure they are with their money and if it's going to profit as they invest in bitcoin. You tell them that in every investment there's a risk. Because if you guarantee them that they'll earn, you'll be the one that will be chased by them if a total bear comes in.

Nothing accurate with the past data's of bitcoin and you can show it up to the newbie who's been nervous on the current market movements since for sure once they see that this is normal phenomenon on crypto or even with forex.

Although we cannot dictate what they should do because not everyone have high patience to wait for something huge coming with bitcoin and tell them that those people who have patience to wait for bitcoin recovery will always be rewarded.

Yes many people think that investing in ordinary crypto makes them rich in an instant, but all of that is wrong.
Even though it is true that every investment has its own risks, but we need to think again that investment cannot change our world in an instant.

I don’t get it why are you scaring your friend?
I mean it’s just trading not gambling I guess?
Yes I don’t know about you, but the traders I mate, they all are good in calculations and estimating prices of coins.
And regarding your friend, first tell him to have patience. Making money is not overnight game.
He invested in December and now in 5-6 months he is crying for half of it’s capital loss? Ask him to wait for one year, then he will enjoy 25% extra profit.
Crypto investments are for long runs, if you want to make money in shorter period of time, then accordingly be ready for the risk that you will get with the investment.

I should've defined "safe" better I've noted what you've said thanks.

Look what's happening to Terra Luna stablecoins collapsed. Stablecoins weren't safe from day one I didn't trust them. Terra Luna investors lost everything. I wouldn't buy stablecoins there's a big risk you'd lose the investment.

I wanted to introduce him to cryptocurrencies. It's usual people asking questions when they've been introduced to something new. I remember I'd ask questions when I was new. He isn't trading forex he wanted to understand different risk factors he thought Forex gives bigger returns and is safer than cryptocurrencies.

I've told him if gets trading in cryptocurrencies investing in wrong coins will be his biggest mistake. I'm trying to show him it doesn't have to be high-risk high reward dealing cryptocurrencies if he's holding for the long haul or choosing well before investing.

Typical newcomers ..

they want something that easy to make and an investment become their first choice due how lured it is especially if you have a friend or someone around you successfully making thousands even million dollar in very short time without knowing that there is a huge risk in it , they just ignored it and here they are complaining .. bubbling about something that they should aware since the first day.

it is not,because 26k is the lowest day after your post.
actually it is wrong, because he will never lose if he can handle the investment longer that means you should say that if he is willing to keep holding then he is safe.

he can say that because he does not understand how bitcoin stands for the last 12 years , so change his mindset and explain to him how it follows after the dumping .

When someone does really have that kind of impression then having real experience or true engagement will really be opening their eyes on how reality works into this market and once they would

really able to know that then this is where impressions do really been cleared up.If you do make out some explanation out to noobs out there then its up to them whether they would really be believing

into it or not but most of the time they would really be going on their own actions on what they do really have in mind but once they been fucked up then thats the time they do learnt up things.

No investment is safe. People assumed that Netflix or Facebook would be safe investments and look how badly they performed this year. You want safe investments then invest in treasury bonds/yields or just keep it in your savings bank account.

I got friends like that also. They wanted to give me $10K and said turn it into $100K. Like it’s easy making a 10x investment. Too many people consider Bitcoin and crypto as a get rich quick scheme and hence why they get burned.

I can say, that's a challenge. That's a hard job to explain things that you don't even know where to start with. But on another note, just tell him that it is because crypto has still high volatility and the up and down movement is owed to various factors. No one can pinpoint the major reason/s why btc is going down. They will understand later on that this market takes time to understand because you can't learn things overnight especially just by asking the opinion from a friend.

Looking at the bitcoin charts on the yearly time frame, you can easily see that the 30k area is a very important region ,and for anybody that trades using the SMC/ICT you can clearly see that there is an equal low which means buyside liquidity which translates into markets coming to sweep that liquidity and a signal for bulls in disguise as it has the fuel to go up!

To be honest, it's not easy to explain the problem of falling prices on bitcoin that is happening like it is now for newbies.  they only see a decline in the value of the asset they bought without thinking about the history of bitcoin price and also its future potential.  i hope you find the best way to explain it to your friends.

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.

Profit and loss is a common thing in trading in the market, but I think for them beginners of course a crisis like this will make them panic and even feel sorry for losing money, to be honest I can't imagine what novice traders feel nowadays when looking at their portfolio prices and money estimates reduced by almost 80% in the market, especially if they use hot money to trade transactions of course sadness and disappointment is a real impact .

You can not. Newbies have to join the market, experience sweet and bitter with the market, gains and loses. If they are outsiders, you can not explain and help them understand everything.

Emotion you get in the market is unteachable. You only can get it by yourself so do newbies.

Newbies will think Bitcoin is rising or falling because of reasons given by news. In reality, news don't show you real reasons that are hidden by market makers. Newbies can only digest the hidden secret if they are in the market long enough.

If you are in forex and  its how the market reacted as you go long, you'd be liquidated in hours. The spot market in crypto is the safest as long as you just trade BTC and not sell once the price  drops this fast. You're not going to lose anything but just the value of the BTC but not a single satoshi.

How I would explain it to a worrying newbie is just to wait. It may take months to years though. But gradually its value will increase and maybe the next week he'd not lose $1000. That value may be $4300.

Will, Everyone Needs to understand to Be "Patience" Now Bcz This is How Panic People Get Lose Their Money 

Well, when it comes to crypto Investments your friend needs to understand that it is a highly risky investment especially if you don't have patience and you are investing in the wrong coins. As for me, Bitcoin might have dropped in price like your friend pointed out but it went to as low as $25k+ and now trading back up @ $29k+ so you see, some people will say otherwise because they just made some good profit today which is the whole essence of crypto trading/investment, High-risk high reward.

Cryptocurrencies were never "safe". Outside of bitcoin, pretty much every single cryptocurrency outside stablecoins are very very experimental.

But to answer the currency question: most currencies are widely widely adopted and have been traded for multiple decades. Bitcoin is like more than a decade old, and most people don't even know what it does and why it's important.

As to your friend: if he thinks he can profit off of forex far easier, then why even force him to this industry? You don't necessarily need bitcoin or crypto to get rich.

First, he needs to understand the word "Patience".

Second, he needs to accept the truth that he has entered a wrong entry point which makes him a lot of loss. But in the future, he will definitely earn a huge profit with bitcoin, as long as he chooses to stay with it.

Third, make him prove that he can turn $5000 to $10000 with Forex. If he has the capability, why didn't he choose Forex the first time? I bet that profitable investors will not frequently ask advice from others, especially Forex traders. Is USD becoming 2 USD in the future? No, It will never while bitcoin has turned from $1 in 2011 to $68,000 in 2021

They're not "safe"? They're not as risky as they have been and people market them as protections against inflation which fiat currencies don't but I think it's a bad idea to call them safe.

Most safe investments have fallen recently, even some government bonds are trading at -% with only commodities out performing everything else.

If you invested $5k into most stock markets you'd have $4k now.

Forex investments are more stable because they're investments in diversified economies (essentially). Crypto has more growth potential then forex though as they also don't grow and have inflation.

Bitcoin fell to $28,000. It's price changes in short spaces it's bad for investors.

A friend asked if cryptocurrencies are safe. I explained it's safe up to his limit if he's willing to lose what he's invested. I said I'm happy with my investment but I can't explain what main causes help big drop in value.

He said if he'd invested $5000 on Dec 12 to buy BTC0.1 it's value would be $2,800 today. He said if he'd traded Forex he'd make better profit. What's behind cryptocurrency prices falling fast.

Is it basic economics pumps&dumps and buy&sell? He asked why don't USD, CAD, EUR, GBP, JPY drop values in fast ways like cryptocurrencies do. What's the easiest way I tell newbies the difference why fiat and cryptocurrencies price falls?

I've sent him this Gemini website so I hope he's going to understand. How will you tell newbies cryptocurrencies are safe investments when they're paying in fiat. They're always looking at the investment plus or minus using fiat. I've tried to explain to him but I can't.