Topic: Hiccups that can occur during Bitcoin investments. - page 2. (Read 403 times)

Bitcoin holders and pretty damn strong when it comes to dealing with the volatility. Ultimately I think the hardest thing a Bitcoin holder will ever do is to sell their Bitcoin!

I suppose initial hiccups might be due to a lack of understanding of how Bitcoin works and is stored. So one might make a mistake in transfer and lose the coins, lock oneself out of a wallet forever by forgetting to write down the passphrase and forgetting the password. Or buy at a high point and panic sell when Bitcoin goes 20% or more down from that. Alternatively, one might store BTC on a centralized exchange and fall victim to a scam or be unpleasantly surprised with needing to go through KYC.
I think these are the biggest risks, even though they don't have much to do with the investment strategy itself.

Most of the hiccups I see on this post are lacking of controlling emotion, been greedy and others but I place all of these on investing more than you can afford to lose and this to me is what brings about the reason for selling even at a loss during emergency situations or periods. Although some emergencies sometimes comes in huge that even saved emergency funds cannot take of them. But most at times when you invest what you can afford to lose you can have emergency funds aside and That will go a long way.

With an amount you can afford to lose you can simply Limit this hiccups like been confident even in during dips because the funds aren’t setting you in panic mode, not been greedy to go out early because it is not a borrowed funds and its likes

I wouldn't call it a hiccup but if you are all in, and at one point you need some money because of emergency, then you will have to withdraw it. Or if you are buying and accumulating for so long, again something big come up, and you have no choice but to get some out of your stash.

The beauty though is that you can start all over again, and since you have already experience doing it, then it will be just a piece of cake already. Mentally you have passed the big test, just doing DCA months after months, or years grinding hard in order to save x amount of BTC.

Being greedy is the most difficult part when investing into bitcoin. Buying bitcoin and not setting a target to sell it will result in losing your money. I've been a crypto investor since 2018 and experienced 2 bull runs, I missed taking profit during their peak because I keep listening to the unrealistic speculations by influencers on social media. I keep hodling thinking that this X target could be achieve on that bull run until it goes into correction and enter into bearish phase.

This upcoming bull market, I already have a plan when to take profit regardless if it still goes up. Hopefully, I can follow it and experience some success being into crypto for many years.

I think if we want to replicate a strategy by other people and they have been successful with that strategy, market timing is one of the most significant challenges. The volatility in Bitcoin can make it tough to say when its price may go up or come down, although Q4 has always historically yielded positive returns. Same for this year, in Q4 Bitcoin is expected to break through resistance levels, but missing the right entry point during consolidation phases may hurt your returns.

The other problem is sticking to one strategy and not trying to take a look at what is going on in the current market. The crypto market keeps on changing due to institutional activity and greater macroeconomic factors, like recent interest rate cuts. These would increase sentiment, but sudden liquidity shifts or derivatives activity may create unforeseen risks. One needs to be adaptable and keep updated with information so as to try and achieve success.

Most Importantly I think most Bitcoin investors have lost their Bitcoin because of security bridge and some persons too purposely gave off their asset to scammers because they didn't know it was scam. Even up till date, so many people are still falling victim to scam and are losing their money to scammers. So, for one to have a successful Bitcoin investment, I suggest they should learn about the security of their assets.

I always say start with one month, it should be the starting point for anyone. If you could save just one month of salary this would allow you to have such a big freedom. If you ever end up being unemployed, one month isn't enough, but you start to learn you could technically survive with half of your salary too, because you do not do anything and just stay at home, go to interviews and start eating cheap food, so what would cost you anything.

Secondly, this is a start, you end up trying to do 3-6 months like you said gradually, both thanks to help of you saving more and investing those too, and also price going up as well. When you reach 6 months, I suggest stop investing this way and start investing like an investor, because until that moment you invest like you are saving, after you reach six months you should start investing like an investor, meaning care about TA when you are investing so you can get the most benefit out of your investment.

The emotion if that time comes to them is going to be mixed. The feelings are going to be mixed and that's hard to bear because they cannot think right when that time comes.

All of the negativities will be there and thoughts will come to them as if there is no solution to that. And there will be no time for it to recover.

That is the reason why many of the long term holders doesn't feel any emotion anymore when the market dumps quickly because we all knew that it's going to recover.

I would say don’t think about any obstacles or hiccups when you have already thought of investing in Bitcoins. Bitcoins are meant to be invested for the long term. So there will be many short-term distractions in between. We need to ignore that and keep the investment on. We have seen Bitcoins rise from 500$ to 72,000$. Hence, it’s always ideal to invest for a longer period of time. Just put money in the coin and don’t follow the market for a few years; I am sure you will make thrice the money that you have invested after the completion of the third year.

You should first have the believe in bitcoin as an investment worth throwing some value on. Use only your extra cash to buy bitcoin so that you can do without it and buy constantly to build and grow your stash.

Set up an emergency funds of 3-6 months of your monthly salary, so that if real emergency occurs like losing your job, health challenge as so on arises, you will be able to solve them without deeping hands into your bitcoin investment.

Don't get carried away with little profit on your bitcoin investment but focus on reaching your bitcoin target with patience. Don't think Bitcoin investment is a get rich rick scheme.

I would agree because, for newbies especially, it's hard not to see at least some green for a long time, they think that there will be no tomorrow and their investment is failing them (even if everybody else is holding alongside them and they just do have more skin put into the BTC, thus not worrying about it).

The excitement will be a failure at the first volatility that an inexperienced investor sees. We see these panic sales, and we see the accusation that the price has fallen and people are forced to sell to save the funds that are left. And until a person sees his mistakes after recovery and further growth, he will not be able to truly test everything on his own experience. No matter how much is written that investing should involve strong hands and faith, you can also often see accusations from those who are impatient or too hasty.

The "hiccups" are going to be mostly you acting on your emotions — panic selling due to fud, going all in, or buying on leverage because of greed, those stuff.

There should be little to no "hiccups" if you're just dollar-cost averaging and buying spot.

if you start investing with the right mindset and strategy and continue with that, you wouldn't face any challenges but if you start with the wrong mindset and a wrong investment strategy, you're certainly going to meet hindrances along the way which will prevent you from effective investment.

The wrong mindset is mostly that you're hoping to get quick profit and it leads you to use an amount you're not willing to leave in Bitcoin for a long period of time, once that's the case, every bull will become a distraction to sell and every DIP will want to propel you to still sell. DCA solves this challenge and gives you calmness throughout all the period you're investing in Bitcoin because you know you're not investing too much at a time and while you continue to buy you get used to volatility and wouldn't always become worried of what will become of Bitcoin or your invested money.

Not knowing when to enter the market is one big challenge any newbie could face as a recurrent investment hiccups that though in my opinion I perceive as a necessary evil for them to understand that bitcoin is a volatile asset and timing it when to jump into the market is key to staying in profit more often. The result you get entering the market when it's in dip is obviously different from when the market is experiencing a correction. Something just a small section of newbie are acquainted with.

First the major hiccup occurances that Bitcoin investors may encounter is "fluctuations" of volume prices at when the price of Bitcoin depreciates when investors were expecting market increase during holding to make profits.
Then it may push Investors to quick selling of their assets due to FOMO then, their investment plans must have negatively been affected their goal of holding until they makes profits.

Another is investors with the DCAs accumulation plans.
Understanding the strategies of the DCAs, investors are either scheduled on buying their Bitcoin assets bite by bits maybe because they don't have the exact fund to purchase and accumulate up to the expected value of Bitcoin to their assets at a time, and same lane, they ought to place purchasing orders when the market price is depreciating to buy higher values with minimum amount but due to the highily volatile of the market, price may suddenly increase which becomes disruption to their accumulation plans.

Although this sensational investment effects remains effective on "weak hearted" volatile investors who can not stand the storms in the fluctuating crypto markets.

I tagged this reoccurrence effects on "price fluctuations" because the volatility of Bitcoin potentials can not be manipulated by investors so, failure to bear that fact would keep investors investment plans reoccurring from achieving a successful investment plans.

I have not been in the Bitcoin space for a long time to complete the four-year cycle. But from my observation, FUD is one of the major challenges people go through. I observed that there are individuals and organisations whose main task is to cause and promote FUD, and this will cause many weak hands to dump their coins.

Another issue might be uncertainties. Some investors have good plans but they don't give room for emergencies. There could be health issues, loss of job, natural disasters and so on; without emergency funds, Bitcoin investment plans might be truncated.

Keeping your Bitcoin in a centralized platform. I am sure people who kept their money in FTX had great plans. But that single mistake of not keeping it in a decentralized wallet has affected their plans.

Getting too affected by FOMO or FUD. This happens a lot with new investors. They are either too scared or too eager. They buy when they see the market going up because of FOMO and even though I know bitcoin will still continue to rise, it is important that you buy it at the cheapest price possible not the most expensive to obtain maximum profit. At the same time, you also shouldn’t be swayed by short term or temporary dips or negative news and immediately sell your funds. Remain levelheaded and objective at all times.

If you want no 'hiccups' here is what you need to do:

1. Buy bitcoin.
2. Hold. Forget about the price.
3. Don't sell for another 10 years.

Wash, rinse, repeat (DCA). The troubles newbies get into stem from getting nervous about buying and selling.