Navigating the Crypto Rollercoaster
Investing in Bitcoin is as much about understanding technology as it is about comprehending investor psychology. In the volatile world of cryptocurrencies, emotions often drive decisions.
1. Fear and Greed: Bitcoin investors are susceptible to bouts of fear and greed. Fear can lead to panic selling during price dips, while greed might result in FOMO (Fear of Missing Out) buying at peak prices.
This is something that novice investors often do, but if they realize it, it will be an important lesson for the future.
This fear is definitely felt by beginners because they are afraid of experiencing losses or losing ownership, which often results in lost market opportunities due to not entering the market at the right time and also exiting quickly due to panic. And cause sales to become unprofitable, even at a loss.
On the other hand, the greed of most of them has led to poor decision making, which often results in holding on too long and/or exiting the market too late, resulting in small losses or profits.
This is true for beginners who are new to Bitcoin, and many of them also make the mistake of buying at the wrong time without doing proper research. They buy when the price of Bitcoin is high enough and hope that the price will continue to rise, and when it does not meet expectations because the price of Bitcoin falls, they sell because they are afraid of falling further, making them sell at a loss.