Following the fake news of Bitcoin ETF approval by Cointelegraph yesterday that made Bitcoin price surge to around $30k, there was someone that jumped into the market with with over $600k only to realize it was a fake news and the market started dumping and quickly sold. Do you now that within 10 minutes he lost over $49k. These are the people that Bitcoin is risky for... they want quick profit.
This is the type of investor who only targets news to accumulate Bitcoin and there are only two risks, namely if the news is fake then he will lose because the price will immediately fall but if the news is true then he will profit from the price increase. That's what is happening currently in the market, they can make quick losses and quick profits. But I don't really like following the style of buying instantly just for quick profits because it carries a greater risk to what we have planned.
I am more interested in accumulating gradually rather than aggressively because those of us who buy regularly will be more profitable at the level of buying at low prices compared to those who only refer to instant purchases when there is news. But if the buyer does not sell it immediately then he only loses in the fiat estimation, not in his Bitcoin ownership. And he can hold his Bitcoin holdings while waiting for the price to rise again.
The is true definition of gambling... expensive gambling for that matter because the pain came very fast, just within 10 minutes. Imagine investing that amount when Bitcoin dumped to the $16k region and holding it till now, that would have been a massive win for him. Unfortunately he want it so fast and it ended in tears. probably he is busy now spreading all kinds of FUD about Bitcoin as a way of venting his anger. Well, the market have a way of humbling anyone that want to beat the process of growth.
People forget that most of the Bitcoin millionaires are people who held for long... the time factor must be a constant to be able to maximize the opportunities offered by Bitcoin because there is no shortcut.
Sometimes people who are new to bitcoin and/or new to investing might end up making FOMO kinds of mistakes, and I recall that in mid 2015, I had created a system in which I was letting some of my savings build up in case there was a BTC price dip.. so the BTC price was bouncing around in the mid-200s for an overwhelming part of 2015, and in October/November 2015, the BTC price largely shot up from the upper $200s to $500, and I ended up experiencing a kind of panic when the BTC price got up to $500, I bought a pretty decent amount of BTC at that local price top, and I pretty much used up more than 60% of my available cash, and so that was the top of that particular run since BTC prices corrected back down to $300-ish and then got stuck in the lower $400s for about 6 months, and really those BTC that I panic bought right around $500 in November 2015 did not become profitable until the end of May 2016.. and surely the whole situation could have been worse for me if I had not just waited out the whole thing and then compounded my mistake by selling for less than I had bought...
I was not unhappy having the extra BTC, but surely those BTC were bought at a higher price than they otherwise could have had been bought.
so I was not really able to buy the dip back down to $300 and any amount of BTC that I was able to buy in early 2016 was somewhat tempered by my having had used a decent amount of my available cash in November 2015.. even though I did have a bit of a cashflow during late 2015 and early 2016, so I was able to buy some more BTC around $400 before it went back above $500 in May 2016 and really did not ever again return below $500... bitcoin saved me from myself and my mistake, but ONLY because I was able to hodl through my mistake.
And I learned a lesson from that experience without actually getting reckt too badly in the process...