Topic: Why people are buying when the price is going up and not when it is down - page 2. (Read 3993 times)

The main reason on that are same as an actual earning of some profit. See the difference between a lower and a higher price. Let's as base on the basic commodity people got panic to buy  if the price getting high. For this situation here in crypto if the coins pump the price all the investors see their much bigger gain on huge time for the exchange.

everyone has their own strategy. but if someone buys at a high price it may be because they don't want to miss the positive market trend and their strategy is to short term. It could be that, when the price is low, they don't want to make a decision because they are afraid of losing, so when the price starts to rise they buy it. What we need is to find out where we are before anything happens. If you miss it, take it off and wait for the next train

Trend following for me is one of the effective strategy when buying a coin. Even in stock trading this has been a good strategy because it can definitely create profit. People can buy when the price is low however buying in a down market just as @okala said is risky because you don't how it will behave. On the other hand, in trend following you know that it will continuously go up the only thing you should focus on is to know when you should take profit.

There is this principle in trading and the principle is called "the trend is your friend" you hardly lose if you can trade along the trend line. When the market is at the top or down is always the most risky place to place a trade as it always go against most of the trading positions.

People are willing to take the risk with crypto, as long as they can multiple their investment in the least time possible. Crypto has a misconception of being a "get rich quick" scheme. It explains why people buy crypto when prices are going up and not when they're going down the drain. The vast majority of people doing this have no prior experience in trading, nor they know how crypto works. As long as the mentality of buying high and selling low is still in effect, most people end up losing all of their hard earned money in an instant.

Only those who know when to buy and when to sell, will benefit in the long run. Crypto's prices are more speculative than anything else. Investing when prices are going all the way to the moon is mostly based on emotions than all the other way around. Regardless of what people do with their money, crypto will be here to stay for a long time. The market will continue to be extremely active, which is a good sign for crypto's adoption in the mainstream world. Just my thoughts

It is because people want to buy it before the price going too high.
If the price is very high, then they can't buy with cheaper price. Most people will come if the coin price increasing because later they can sell it higher than their buying price. Although there is no guarantee the price will be higher, but they still take the risk.

Exactly. People behave on emotions more than anything else. When they see prices going up at an unprecedented rate, they believe they'll miss an opportunity of a lifetime to make huge profits. Once prices start going down the drain, they think crypto is about to fail. In other words, they buy when prices are going up and they sell when prices are going down. This is the usual behavior of newcomers into crypto with no trading experience. The smart money will always buy when prices are going down the drain, since the crypto market usually bounces back to its original levels. It's like a roller coaster in this volatile world of crypto. If you play your cards right, you'll be able to do fine even when everything seems to be falling apart. The key is to put most of your holdings into Fiat or a stablecoin of your choice to preserve your spending power. You can put the rest into volatile cryptocurrencies to make profit within the short term.

In the end, most people will end up buying or selling crypto the wrong way since they're not willing to fully understand how the market works. It's something unavoidable since everything is based on emotions than anything else. As long as there's market activity for various crypto assets, the industry will do fine for a very long time. Smart crypto investors will buy and sell at the right time in order to minimize losses as much as possible. Just my thoughts

can be seen from the current market conditions bear season still continues and what happens is just hang on and go down buying coins in a downtrend is too risky unless the maximum decrease occurs so it's better to wait for the trend up to arrive then buy coins at that time

I have had cases like this so I think the problem is we don't have a plan.  Because when prices plummet, people tend to be anxious and frightened, so without a plan they wouldn't dare to buy.  So in order to trade well, we should work with a clear plan so that we are not driven by our inner emotions.

I also notice this kind of mindset where most of doers are newbies meaning they are riding the hype hoping that they will get more profit by doing it but they forget that they should have earn more profit when they have bought when the price crashes.

Most of the newbies are afraid to buy in bear season because they think that what if the time will come that the crypto will become worthless or something like this. This is what notice to most of the investors who didn't accumulate their assets at bear season or they just don't have the patience to wait for the bull season to occur again.

I think you are wrong with it because only new to cryptocurrency will buy crypto but not those experience enough to invest and risk their money. Most of the people who buy when bitcoin or altcoin  has low market price are those people that knows what and when to invest. If you know someone who invested now maybe you should have told him what to do especially when market will be crashing. Most of them will sell due to panic just like what happen to my investment and now I regret that bitcoin had grown so fast and so good.

It is unfortunate that many tend to buy when the price is going up maybe because of the FOMO surrounding the project at that point, many don't even take correction of price into place before jumping to buy a token when the price is up and most of them end up losing out. It is important to buy when the price is down than buy when the price is up.

because they imagine and follow trends in the market.
if the market goes up they believe the price will go higher then buy it and a few moments later the price goes down even though they don't know how long it will take.
and conversely if the market goes down they believe that the price will fall even further so they sell to avoid bigger losses even though it is not necessarily that it will go down for long.
the winners are those who set the target in every action.

Those who buy when it's up want to ride the wave.

It's possible if you buy in the middle of the rise and can be pretty profitable even when you're late for the party, as long as you keep your hand on the button and are prepared for stop loss.

Buying when the price is down is pointless with shitcoins. You're waiting for a whale to come and pump it which may never happen.

Welcome to trading.

If nobody would buy at ATH price, how would we take the profits from the dip? 

It's the principle of the market. When market on sale, they will find the way to sell off their asset to cutloss, and every is strong bullish, they become FOMO, going to buy and expect in a quick profit.

I think the thing is that people are afraid of being late. The price is rising and they think that they are losing profit. This is simple psychology. I think it's all because of greed. And when the price falls, people are afraid that they will lose money.

Everyone has their own strategy for trading. Those who only follow FOMO usually only want to get a little profit to avoid high risks. Buying coins when it goes down is quite risky, because not all coins will easily going up. The team needed "a big news" to attract investors to buy their coins on the exchange, and of course it isn't easy. I think buying coins when it's going up is better, because you only need to pay attention to the moment "buy/sell" to make a profit.

 I believe that people are not really that much of a big trader so they do not really know what is "up" and what is "down", bitcoin makes the slightest down and they think it is down down and not just a bit down and they get out, which it recovers from as we all know, that is why they end up not buying at down. Up is the same way as well, they end up buying while it is going up and they end up seeing stuff like "bitcoin will be 100k" and so forth everywhere which is not true for at least right now, but they believe it because they are new and they think "that is x10, I should get in on it" and it stops after like %5 profit. Which is why not knowing up or down is a common thing and should not be a big deal, it just so happens that newbies may not know them very well.

It's their prerogative, it's their money anyway and they want to safe in their investment, they don;t want to buy coins and after buying they find themselves at loss because the value keeps dropping so they prefer to buy when the price is going up and not when the price is dropping, they though it's more safer.