Topic: Don’t Fall Prey to these Market Sentiments and Save your Bitcoin (Read 322 times)

When there is an increase like now there will be a lot of temptation to sell immediately, especially those who have already bought at $ 16k, and the current price has almost touched $ 24k or a profit of more than 40%, in my opinion now it is not a good idea to sell because of the potential for an increase will continue to happen, we will regret it if later the price gets more expensive.

The hold part is a bit harder, the other three I can agree on. The hold part is harder because at the end of the day we are talking about something that would be hard to achieve, maybe it will drop right after you sell and you will be doing great job, or maybe it won't drop and keep going up and you will miss so much profit chance. That is why I highly suggest that you end up with something that is a lot better if you keep working towards holding.

If you hold, even when it is dropping, you could do DCA and recover that, there is an option to do that at least. But if you don't hold and it goes up, there is no way you could recoup that loss so it's gone. I would say keep holding even until it's too late is better.

I am glad you consider my suggestion to be helpful. 
If you need some information on the methods and things to watch out for when dealing with whales while trading, I'll give you a link towards a video by a nice crypto youtuber, you probably know him. you can check on his channels for other videos about whales and market manipulation, they are very informative.

https://www.youtube.com/watch?v=ltcnTTeDFjY

Do not forget to also mention how the whales set both red and green walls on the books orders to control the price on Bitcoin.

Bitcoin has prospects for the long term and we must have a goal of at least 5-10 years to invest in bitcoin and this will mean much more than the short term, about noise outside or even negative news that makes them panic we must be able to refrain from that situation The most important thing is never to store assets on an exchange, so we will not lose them or their value because bitcoins are still bitcoins if they are not sold.

True, if I buy the average bitcoin (DCA) from now to decades to do this it is the same as saving money for our retirement later, in fact it will be worth more than saving fiat which will become inflation.

Well, the best way is DCA (dollar-cost-averaging) or weekly or monthly if it becomes a routine, our bitcoins will accumulate in old age.

I notice that lately there are many bears out there. They are advising people to sell. However where were they during the $60K Bitcoin days? Why not tell people to sell then.

You got these investment firms like Morgan Stanley and JPM and they are saying to “sell crypto now” or if you own stocks to “sell now before a 20% correction”. And yet when there was a booming bubble they were telling retail to buy more and look what happened. This is why you shouldn’t trust anyone when it comes to investing.

Market sentiment is a thing that happens very often and indeed can have a lot of impact on assets. because that's the importance of emotional management here because every investment in crypto or especially Bitcoin, there will always be times when the Bitcoin price drops very far, the sentimental market is very high, and there is FUD everywhere so that the Bitcoin market drops even more. With an awareness of good emotional management and a high level of patience, we, equipped with understanding and knowledge, should be able to convince ourselves that this is a sentimental market and that we don't need to panic. right, hold your coins and keep them until the price reaches the target. No need to worry because we believe that Bitcoin will always go up in the future.

The present market is the time to get back additional earning through some means. Rather than depending on other people you need to keep yourself prepared. Different people have come with various predictions about the market and the outcome might vary much. Because, these are all lomg back Susan one's.

You gave DCA as something to do instead of hodling, at least that's how I understood this because you say we should not HODL and DCA instead.

I find this strange because I DCA to HODL. I don't take my profits because that means taxes. In some countries you don't pay taxes when you hold your coins and if I were to add bitcoin network fee, exchange fee and tax to go to fiat and then back from fiat into bitcoin I'd only add unnecessary risk to my investment without getting any profit. It makes sense for a trader but there are different people with different goals and not all of them will want to sit in front of a screen all day trading.

This is a great way to keep your emotions controlled. I'm a HODLing person, but that has pushed me towards loss. I bought $550 worth of cake in 2021. I put all of them on staking. And I was making good passive income until the bear hits in 2021's end. I was able to sell some like 25% and all the other was in staking. Then they launched locked staking where you put all your assets for a certain amount of time, and you can't withdraw them until the time's over.
I really wish I knew what DCA was back then. I would have never put all my assets in one thing and instead keep on DCA. i've sold all of them because of a medical emergency. Otherwise, I would've HODL them till the next bull run. But it is what it is now. I hope OP's post will help many people in a way that they will be able to keep their assets safe.

IMO hodling is the lesser of all evils listed here. You don't even have to do anything, just buy and hold then sell if you think profits are already enough. Holding coins only becomes a problem when people are greedy and think that there will still be a price increase bound to happen even though the orderbooks and volume are currently showing the asset as overbought. The practice in itself isn't bad, but the problem is on people that are not really paying attention to the writings on the wall.

Bitcoin will always be profitable especially if you see it as a long term investment. Forget about bitcoin as as a get-rich-quick scheme as only poor minds fall for it, that’s why they never end up successful investing in bitcoin because of that mindset. But if you keep doing DCA everytime there is an opportunity to buy, and you place them for long term hodling, that’s when you start seeing sustainable profits and even put yourself in a very good position as long as you keep the faith by hodling your bitcoin, and you stay out of panic buying and selling.

Yes, that's why i tried to wrote them under one title,


i admire your optimism about bitcoin, Well every person has their own agenda regarding to hodling the btc. some hold them to make money in short period of time and some hold it to use in retirement. well my question to you is, what those will do who are already retired. Well i think they should hold it for there next generations. well this previous sentence is used as marketing scheme in new coming shit coin where they say to traditional people that. You would not live a life like this if you fathers would have saved btc in the 2010, But no worries now is the time you guys can buy our shit token and prevent your self from the mistakes your fathers made. hahaha lol.

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dear, i'm not saying anyone to sell there holdings. why are you felling prey to my article, it's just an informational article. You are the one who have to decide whether you should sell it or not. And for the clarification of your confusion/doubt, maybe i got your context wrong. but let say it

I tried to tell that. for example, one who hold money from 2018 bought it for around lets say $3,700 and they hodl it for around 10 years, lets say the price in 2028 will be around $120,000 (just assume). Profit becomes = $116,300. Let's say we the hodler keep an eye on the market and observe the sentiments of market. and try to sell it at ath in 2021. around $69,000. profit = $65,300. After collecting that profit we all know according to cycle price of btc will touch it atl of the cycle which was around $16,000. After buying at that point. and selling at $120,000  target now, total profit becomes = $169,300. which is more than $116,300.

Well, i still agree with you, well if i'm in 2018 i would or would not be optimistic as i do not know the future at least. But i would also like to hodl my btc of $3,700 why because traditional hodler think that he/she bought that btc at low price why he/she sell it at $69k and why i should take risk of selling it at $69k while i have no idea that either it will come to $16k or not. So they prefer to hold their btc.

But we have to understand the value of $3,700 of 2018 and value of $16k in 2021. Everything depends upon the value of assets not the number of prices. (I think i have got another topic lol). i hope you got my point.


i will keep your taste in my mind, Next time i write content and will try to make it interesting. thanks for your honest review.



Wonderful suggestion that is! I will try to write something on that and i will include it by replacing with P&D scheme heading. I was also thinking of removing it. But i think now.

Personally, I would not include the Pump n' dumb in this compilation, since we are talking about Bitcoin and added to your commentary on Bitcoin's decentralization there is also the fact Bitcoin  liquidity is so high that it cannot be easily serve as medium to pump n' dump unknowingly victims.

instead I would mention some of the tricks of the Bitcoin whales to influence the market to their favor, it sounds more in tune with Bitcoin.

Anyways, good contribution, I guess.  

I've got your thread open in another tab, and I'm going to read it shortly--but even without reading it, I have a very definite opinion on 'diversification' in crypto.  That term is applicable to the stock market, where there are different industries whose earnings vary based on a number of factors, and they aren't all correlated.  But crypto?  First, very few coins aren't correlated with bitcoin and second, 99.9% of altcoins are pure shit and will never be used for anything but speculation when there's interest in them.  Some are red-hot for a while and then just fizzle out, and even with bitcoin being as volatile as it is I think it's far safer to hold it rather than buying a basket of altcoins.

As for the points OP made, they seem to be targeted to newbies who haven't heard those terms, which are regurgitated so many times all over the internet and even in the mainstream media that it's annoying at this point.

Of course, diversification of traditional markets is based on different stocks rom different industries, for example but also much broader like precious metals such like Gold or even real estate.
It's very different from crypto, where we can just go for BTC and, if we want to have more gains but also more risk of course, buy some Altcoins. But it's increasing risk of course.

Ok, makes sense now. 

Sounds fair, I've been just interested because it's a very detailed article and a good read of course.
I've doubled my Merit for your post, good work and you put quite a lot effort into it. It's also a very good presentation of content by suitable formatting. 

Where did this meaning of HODL came from? Isn't it that it's just a misspelled typed word of someone who's drunk. Well, whoever and whatever was the meaning of it, why is should be avoided?

You can't tell someone who's been holding for years and then made a decent profit out of it to say that he should avoid it. Experience wise, holding is profitable especially if you're holding good cryptos and the number 1 of it, BTCitcoin.

The best advice to follow is to see bitcoin as a long term investment vehicle. Ignore all outside noise, FUD & short term price movements. You will not lose money if you buy bitcoin & hold it long term. For any noob, just starting to buy now, it might be hard for you to become rich by buying only bitcoin in the short term but if you buy bitcoin regularly over many years you will be in a good position.

Save bitcoin alongside regular monthly fiat or pension contributions. 20 years of DCA (dollar-cost-averaging) monthly into bitcoin will put you in a nice position to enjoy a comfortable retirement.

Good write up OP - well done.

Unfortunately so many have and will be caught right up in exactly what your write about.

So many will need proof that the market is going up, they cannot see the long term and
will succumb to FOMO at the 12th hour before the markets "correct" and then
they will get influenced by FUD.

Just a little knowledge of the markets by reading your post for example will provide
some insight as to what to expect.

Yes 1miau, i read your diversification article and its really interesting. There is no doubt in your context. because diversification has more benefits in traditional market because that market has more sustainability and crypto market is very volatile. i think i made a mistake here by writing Diversification instead of DCA. because diversification means, investing your money into different types of securities or assets. and as we are talking about only btc then i must have to write dollar cost averaging method to avoid hodling to save btc.

Appreciate your concerns, i will edit the post and change it into DCA. Thanks buddy,

And Also thanks for the appreciations. and coming on to the genuity. i tried to provide source links to almost most important facts and figures i used in this article to prove genuity. Additionally, i read different article to get clear concept so i can write in a way that others can understand. So i hope you get the answer. I did not add those article links ofcourse not of every article. Do i have to add? or is it ok, i thought it would be overcrowded with links then. Yeah and the pictures i edit them myself on Canva.


Thanks for the appreciations.

Exactly,


yes davis196, i appreciate your concerns about correcting information, Firstly the biggest and worst market sentiments like, concerns related to regulations, security risks and enviromental conerns etc. these topic require lot of information and can not be covered under the roof of one article, or if you have on your mind then share, i will try to cover them separately with corelation to each other for better understanding. P&D scheme is for informational purposes, i think i also made mistake by writing not few lines in the heading "Why should we avoid Pump and Dump Schemes?" I will add some line just to clear things out. or if you want this heading to be removed or replaced then also i am open to hear you.

OP, you forgot to mention the biggest and worst market sentiment, when it comes to Bitcoin-panic selling. I think that panic selling doesn't belong to the FUD category and it should be on it's own category.
I don't agree that HODLing is a wrong market sentiment for Bitcoin. Maybe HODLing is wrong when you want to HODL some altcoin or token for the long run. I'm sure that HODLing middle-sized altcoins and tokens, that belong to shady crypto projects is a recipe for losing your money.
The pump and dump market sentiment doesn't apply to Bitcoin at all. I don't know why did you put it in this list. The pump and dump schemes are focused solely around shitcoins/tokens.

Pump and dump scheme does not exist in Bitcoin market. If it has ever existed, it was long time ago, years ago when Bitcoin had smaller price and very smaller trading volume. Nowadays, you can see rises and falls for Bitcoin but not pumps and dumps.

It is true to use pump and dump scheme for altcoins, not Bitcoin.

DCA and hodl your bitcoins with very long term vision will help you get rid of fear of missing out, panic.

Stop loss order is good but you have a better order, Stop limit order

Well, avoiding HODL is what we should stay away from since it's a great strategy to HODL.
The purpose of HODL is to take advantage from Bitcoin's capped supply and long-term trend.
HODL means we don't sell because selling would mean a loss if we miss getting back in, when prices will go up again.


And regarding diversification: I'm not sure if diversification is beneficial at all. I've written a separate article about it: Is diversification into different coins really a good advice for Newbies?
Just HODLing Bitcoin has proven to be less risky than diversification into different Altcoins.


After all, it's an interesting compilation.
May I ask which are the sources where you got your content from? I might add some more Merit if I know about the genuity of your compilation and amount of your workload. 

Dear Op your complication for the his topic is great but i think you should move this topic to the trading discussion still as its BTC related as per your tittle and content so it falls between both Trading and Bitcoin Discussion.

I want requote your some points as far my observation FOMO and Fud these are the roots of Losing Assets. Whenever we see the market is getting massive green and we take urgent entry in other words Trying catch the running train we just lose everything. Similarly in small Red spots sudden exit from market destroy our portfolio.

The market is recovering after a long time of bearish trends and this has turned negative vibes into positive ones. I have observed some people with basic knowledge of crypto and blockchain talking about Bitcoin crossing $30k to $35k easily. I’m not saying that’s not going to happen, but I'm also not saying it must happen.
Therefore, before jumping blindly into the market, some knowledge of these market sentiments should be in mind. Because it’s not the first time that the market has been changing its trend trends, so background knowledge of every move of Bitcoin must be in mind to save your money.
Avoid These 4 Market Sentiments to Save your Bitcoin
Before jumping into a brief explanation. You should know the difference between market sentiments and personal sentiments. Market Sentiments explain the mood of the market collectively depending on many factors such as news cycles, Investor Sentiments and Market Trends etc. On the other hand, personal sentiments explain the individual’s attitude against any asset such as Bitcoin. For example, personal goals, biases and emotions etc.
We are going to discuss only market sentiments. These are the five market sentiments to which people belong to the beginner category and people belong to the Pro category. All of them fall prey. So here you will see what those sentiments are and how to avoid them to save your bitcoin or any other coin.
1. FOMO (Fear of Missing Out):
“Fear of missing out on any asset which you think you will never be able to get that chance of buying or selling that specific asset again and you take action according to the heat and pressure in the market”.
how to avoid FOMO sentiment:
We will try to learn the technique of avoiding FOMO with the help of an example.
Bull Run of BTC 2017:
In January 2017, the price of one BTC was $1000 and when the bull run started, the value of BTC began to increase in a short period of time. As can be seen in the picture below.
FOMO was created at that time not only among investors but also among traders too. All of them tried to fill their pockets with BTC so that they can save more profits in future. But after the end of the year that bubble collapsed and profits turned into losses. A sense of bullishness created among traders and market tries to manipulate their sentiments and they fall prey to it easily.
This becomes an example for all of us in the bull run of 2021 and most of us saved there profits before the collapsing of that bubble.

2. HODLing (Holding On for Dear Life):
HODL is the misspelled form of HOLD. This term was first used on Bitcointalk forum, here. The meaning of HODL and HOLD are the same. Which is to hold some assets for a long time regardless of any market conditions, there will be no change in that holding. Holders and investors are two different things and HODL is a word mostly used by holders.
Why should we avoid hodl?
Sometimes, the market is showing the indicators that now is the time to book your profits or to exit from the market but you as traders or holders, do not look at those indicators in the stubbornness of FOMO and have to bear consequences.
How can we avoid HODL?
These are the few steps that you can take to avoid HODL that can cause loss of BTC.

• Set stop-losses and take-profit targets
• DCA (Dollar Cost Averaging)
• Have a well-thought-out investment strategy
• Regularly review and adjust your portfolio
• Conduct research and due diligence
• Have a plan and stick to it

3. FUD (Fear, Uncertainty, and Doubt):
FUD stands for Fear, Uncertainty and Doubt. These terms explain the definition of FUD. Which is spreading false news and rumors about any token or BTC to degrade the prices of that particular token. Which in return creates fear, uncertainty and doubt among investors, traders and holders.
Examples of FUD in Bitcoin:

• The FUD of Bitcoin exchange in 2011, in which the CEO of Mt. Gox, said that around 850,000 btc has been hacked from the exchange due to some loopholes in our system which causes major drops in the prices of BTC. But, they never were hacked, the full story can be read here.
• Chinese FUD in 2013, in which they declared the banning of crypto withdrawals and deposits through banks. But later, they clarified that we are not going to ban banks dealing with crypto. We are just trying to handle money laundering cases. China has a long history of creating FUDs by banning crypto.
• Jamie Dimon’s statements about BTC as “Fraud” in 2017, caused a great dump in the market. He was the CEO of JP Morgan. After making that statement he also confessed that he made a mistake by calling BTC as “Fraud” and “it will blow up”.
• India announced a ban on cryptocurrency in 2018 which caused a great price drop of BTC. This was all a FUD by India because later they clarified that they do not want to ban crypto trading, instead they want to regulate it by some legal means.
• Rejection of BTC ETF Proposal by SEC in 2019 also a FUD which causes the BTC value to decrease. Later they also clarified that, we are not rejecting the BTC ETF proposal but instead we were not satisfied with some terms in the proposal that need improvement.

These examples must have given you the idea of how fuds are created and clarified later.
How can we prevent from FUDs on Bitcoin:
These are some rules to follow if you want to prevent from fuds.

• Reading reputable news sources and publications that cover the crypto market
• Following reputable experts and influencers in the crypto space on social media
• Joining online communities and forums where you can discuss and learn about crypto
• Staying up to date on regulatory developments and announcements that may affect the market
• Not making any hasty investment decisions based on hype or FUD.

To prevent falling prey to FUDs you need to know the market sentiments. Like you need to understand whether there is a fud or not. Then you can prevent from fud. To do so, you need to know these rules of how to detect a fud.

• Check the source: Before acting according to any news you watch, check the source of that news and compare it with other sources.
• Look for signs of manipulation: Sometimes, FUD are created by running some social media or crypto trading campaigns. All you have to find is suspicious activities which activate any red flags according to your senses.  
• Analyze the Evidence: Before acting upon any news, must check all the evidence then act accordingly.

4. Pump and Dump Schemes:
It’s an artificial sentiment in the market created by a group of people or by individuals by running different social media campaigns to create hype of specific token among investors so that they can increase the pressure on selling or buying. To understand this concept you need to know the difference between “overvalued and under-value” of any assets.
Over-value: means the price of some assets is higher than the actual value of that asset.
Under-value: It’s the opposite of over-value of some assets. In this the value of some assets decreases below the actual price.
Why should we avoid Pump and Dump Schemes?
People involved in these schemes try to manipulate the price of the token according to their need. For example if they want to over-value any asset, they create hype for that token to increase the buying pressure.
And if they want to decrease the price of any asset, they under-value it by spreading false news among investors to urge them to increase pressure on selling that specific token.
In this phenomenon, real investors who aren't involved in this scam, lose a lot of money and fall prey to these sentiments manipulated by market makers. But, if P&D schemes have no impact on btc value then when we need to avoid it. it do effect btc price indirectly, How? When P&D schemes are running in the market with shit coin to manipulate the market, This phenomenon causes regulatory scrutiny and in result strict regulation are applied on the whole crypto industry which indirectly effect the price of btc so you should be aware of them too.
These regulatory scrutiny could be very vague or could be ignorable depends upon the effect of P&D schemes on innovating ideas directly or indirectly related to bitcoin. To understand this concept you have to broad you point of view and think in terms of direct or indirect impact on btc by means of regulatory bans due to improper use of cryptocurrency to hurt innovative ideas of investors and organizations.
why pump and dump schemes cannot be applied to bitcoin:
Mainly, execution of these schemes on bitcoin is highly difficult because firstly, it's a decentralized asset, secondly, it has finite supply, so if someone tries to apply a P/D scheme on btc, can easily be spotted.
There are more than 500 exchanges from where users can collect data related to btc and prevent themselves from these schemes. Well if no pumps and dumps scheme can be applied to BTC then why we need to avoid it. Because it can be applied to upcoming shitcoin. That's another field of topic so we must leave it here.
How can we avoid the Pump and Dump Scheme?
Without going into a brief explanation, I will write only some points to follow to avoid the pump and dump scheme.

• Do your own research
• Avoid hype
• Be skeptical of guaranteed returns
• Be aware of red flags
• Diversify your portfolio
• Use regulated exchange

Conclusion:
Overall, these 4 market sentiments are no new things to an existing trader but they do a new thing to new traders or users of crypto. So by having the knowledge of these 4 sentiments related to the market will help your personal thinking strategies. FOMO, FUD, HODL and P/D, are not only the sentiments of the market. There are more on the list but these 4 are important to know about.
Note* I collected the above data from various articles and tried to write them in an understandable manner under the roof of one article. If this post is irrelevant or contains any mis-information then please it would be my pleasure to know about that. Because it’s my first thread on Bitcointalk.