For someone who has a long-term investment plan in bitcoin, and doesn't have another side hustle that pays them daily or monthly will be the one to sell their bitcoin at a loss price because they need money to solve a problem. But for Someone who has a long-term investment plan in bitcoin and a side hustle that pays them, will not be forced to sell their bitcoin at a loss price, compared with the individual who doesn't have a job or side hustle.
It is appalling that some investors are no longer investing in bitcoin with the money they can't afford to lose. They are not investing money for their needs just because they heard of the bull run is coming and they forget to save up some for the rainy days when problems come
This is what Bitcoin investment is about i.e. long term. If someone is looking for short term gain then he must look into Bitcoin. See the history of Bitcoin and we can see that there is good increase in price every 4 to 5 years. Long term investment doesn't only mean to avoid selling while price is down, it also include not selling even if you are getting few bucks over your investment. For instance, there are people who are getting excited on this bull run. They must HODL and should not sell in this small bull run. If they do so they will miss out the bigger piece of the cake.
If you invest long term but avoid Bitcoin then I would say your investment is incomplete. Bitcoin must be preferred as an investment platform if you are thinking of long-term investment. Outside of Bitcoin I don't see any coin that can be invested in for a long time. Bitcoin has always been the best coin to invest in for as long as I have known about investing.
I have been investing in long term plans for a long time and my investment platform is Bitcoin. I held my investment as well as purchased bitcoins in several steps. I bought some bitcoins when the price of bitcoin was $22K, then I bought some bitcoins when the price of bitcoins came to $25K, then I bought some bitcoins at $28K, and then I bought some at $35K.
That is, even though the price of Bitcoin has changed in these few months, I have invested in Bitcoin regularly. The reason I invest in Bitcoin during these periods of Bitcoin price volatility is to hold my investment for the long term. The price of Bitcoin is now around $45K and I have not stopped my investment at all at this point but I will be buying several more Bitcoins in a few days.
Many may dissuade me not to invest at this time but I will invest at this time because I have faith in the market and my investment is in long term plan.
If you are fairly new to investing and you are focusing on having bitcoin as one of your early (or beginning) investments, then you likely need to continue to buy bitcoin at whatever price it is at until you build up to a certain amount of bitcoin that starts to cause you to feel that you have enough in order to let off and perhaps invest into other assets, and gosh even if you been investing into bitcoin for one or two years as a newbie investor (and you did not lump sum into it), it hardly could be the case that you are even close to having a whole year's salary and/or expenses into bitcoin, so it is difficult to say that you are overinvested if you do not have at least a year's investment into bitcoin, even if you do not have any other investments.
At the same time, each of us has to make these kinds of decisions for ourselves, including if someone had never spent any time building up savings/investments, then s/he might not really know how to deal with both the fact that their investment is starting to get large and that it amounts to way more money than they have ever had access to previously.... so in that regard, it becomes even more and more important to make sure that your investment is secure.. and surely privately held would be better than holding much of your investment with third parties.. Personally I don't have any problem with the idea of holding your investment with third parties when you are just getting started, but the longer that you are in bitcoin, maybe even 6 months or more, there is likely going to be some needs to make sure that you know how to hold a decent amount (maybe even 80% to 90% of your bitcoin stash within your own control.. yes that takes responsibility, but it seems to become more and more important as your BTC holdings grow in value both from your ongoing injection of cash into it and also from potential periods like our current one, in which the value of your BTC holdings may well be going up based on BTC price appreciation.