Maybe there will be no loss in bitcoin unless you didn't sell when there's a price dump or correction happen. Paper loss is what actually the issue here and to many people got scared about encountering this that's why a lot people holding bitcoin lose its because they got afraid on certain dump happen since they sell their bitcoin out of panic on those situation. If they could just able to wait for price recovery since bitcoin is well known for that for sure there will be no loss gonna happen but instead they could able to enjoy the profit what can actually bring by good events brought up by bitcoin hype.
We are seeing now the good events that can help bitcoin to pump and people should consider that since its important to know these so that they could set some targets on when they would sell their coins and take their profits.
We know that the bitcoin cycle keeps repeating itself and that doesn't just talk about ATH but also the correction and recovery processes that occur in the market all the time. If someone understands investment correctly then during the correction occurs they will not move to sell but instead take advantage to buy. Inaccurate knowledge will cause them to experience panic and FUD continues to disturb their psychology so they try to cut their losses by selling. In fact, if it's not excessive, you can take it calmly and wait for the recovery process if you want to sell it.
Knowledge can lead someone to see opportunities whether related to buying or selling because we have to be clever at seeing existing opportunities. Even though selling under certain conditions can only provide a small profit, compared to selling at a loss it is actually very unfortunate, so anyone can target their investment to run as desired.
Personally when I first joined the crypto space , btc wasn’t my motive coz as of that time I had very little funds . So I thought the need to diversify my portfolio with low cap gems for quick profits . After compounding for a while I was able to invest some amounts in btc .. i hear most people just buy and forget about it lol , I buy take profits then look for a better entry to buy again strategically
Almost many people do this and when the capital we have is small we definitely try to find ways to manage our portfolio in other coins. But along the way, taking an approach to other coins doesn't give any results, especially coins that don't have a large market capitalization. Some people buy and hold the bitcoin assets they own for the long term because they believe the long term is the chosen step.
When you are able to read market movements regarding Bitcoin, buying and taking profits in the short term will be much better. Because not everyone targets long-term investments and there are still many who invest in the short term to generate profits.