Topic: Reasons for newbies loss in bitcoin - page 2. (Read 3616 times)

Bitcoin is becoming mainstream these days and top most choice for many investors for making investments and contribute a good portion of their portfolio allocation towards the same but still we see panic sell among these investors making the situations worse for market and for themselves also. So what are the main reason for these sell off ? Later on when they buy at peak and sell off at drop they think btc was not the right option for them but don't realize their mistake.Some common reasons for these are as follows:

1) People think Bitcoin as tool to become rich overnight

The main reason for people investing in bitcoin is that they see btc as tool to become rich overnight and according to them if they would invest $100 or $1000 in bitcoin it would be double or triple within days and when they see their investment going down next step they get nervous and want to safe themselves from any further loss.They see on news and article that btc is up 1200% this year and they think it will keep on rising and when this does not happen they panic sell and start dumping their coins.They need to be atleast have patience and know it will take certain time for btc to jump back.Apple,Microsoft and other shares have not make upto S&P 500 overnight but still bitcoin is keeping the pace very fast. 


2) People ignore the volatility factor and past Crashes

Many new investors enter the market in the investment hype and hope for steady rise and ignore the main "Volatility" factor and it is the basic knowledge every investor must have prior investment.The volatility in crypto market is high and prices can fluctuates highly but when it goes down they start panicking and do the same mistake which is biggest mistake. Market have seen many dips and crash like situations but still they tend to ignore it and got nervous. They should see this chart history before any judgement:


When it have witnessed more than 70-80% crash in prices and still managed to rise to this level so why do panic sellers think it is bubble and will burst this time? It has been declared dead hundred times and still trading at $30k so if you underestimate it you will be in loss in future.

3) Whales manipulation and FUD

This is most common technique to create dump like situations in market to gain huge profits from this situation and accumulate more bitcoins at cheap prices.They spend rumours and create FUD in the market to which most of the newbies will get panic and start selling off and exactly same thing happens and the only ones who suffer loss out of this will be panic sellers.

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WE ALL NEED TO TAKE INTO CONSIDERATION ALL THE FACTORS BEFORE INVESTING INTO BITCOIN AND HAVE PATIENCE FOR SOME TIME MOST IMPORTANTLY IN THESE DIPS SO THAT IT GET SOME REATAIL SUPPORT.

Newbies cannot easily controlled thier emotion in both green and bloody market, they are always loss because they are panic sellers when price is dump and panic buyers when the price pump, and that is normal to newbies because i experienced being a newbie and I experience loss during my newbie days, to avoid this lossing we need to learned by studying and researching and as the time goes by we can easily control emotions because or the learning's that we can get through studying.

When he got into crypto to give a try, he found it different and wasn't able to predict as he does with stocks. By the time he mentioned a principle that he follows, just invest what you afford to lose and leave it for long term. His long term is 3+ years, whether it is profiting by then or not just cash it out and start from the beginning.

These are too bad characters of newbies, but I am sure not all newbies like that. Don't underestimate newbies, some of them may have good knowledge about crypto and probably ever trade or invest in another digital market (ex: stocks market). This type of newbie won't be very careless to invest or trade without any research. Although crypto and stocks market is different, but some fundamental aspects have a similarity.

These are too bad characters of newbies, but I am sure not all newbies like that. Don't underestimate newbies, some of them may have good knowledge about crypto and probably ever trade or invest in another digital market (ex: stocks market). This type of newbie won't be very careless to invest or trade without any research. Although crypto and stocks market is different, but some fundamental aspects have a similarity.

Newbies are not know anything about trading strategies and they invest without any research and then they will loss money.

it's easier for them to just go along and be fascinated by the benefits that the old players get without thinking long thinking it's easy

Yes, they do not have the right attitude to the standards of an investor, despite the label of outside investor, deep inside they are a lot of tatters about knowledge and market information and when we deal with the problem in such a careless way, fate is destined for failed experiences. But fortunately the newcomers have a limited amount of money, although there are relatively high investments, they do not make up the majority, so early failure makes them early to acquire standard knowledge, those who get lucky too soon only make it easier for them to deal with their arrogance and stupidity

They don't want to study first for fear of missing out on opportunities, even though there will always be opportunities every day. They just want to get rich quick by doing what rich people do from investing in bitcoin without learning it first. how blockchain, bitcoin and cryptocurrency work they don't know and maybe they don't want to know.