When Bitcoin fell below 100k, did you panic and sell or did you say DIP and buy? There was a good buying opportunity and Bitcoin recovered in just 1 day. It experienced an increase of over 5% in just less than 24 hours. I don't think people here will panic and sell, but there are so many uninformed people out there that many of them may have fallen into this trap.
When a market condition present itself like this just no that alot of people has been overpowered my the panic mindset to sell everything even at lost, the mentality of uninformed people in Bitcoin is that the moment they made a conclusion on there mind about were Bitcoin will not fall to anything that disrupt that price they thought negatively they starts giving up to sell, so actually that's the difference between an optimistic person with the knowledge of barriers and fluctuation in the price and people who knows nothing but only the optimistic that is always going to be up with no decrease.
Being optimistic is indeed very necessary when we invest in bitcoin, because if we are not optimistic about the assets we have bought, it is like buying an object that we do not know its use. But in my opinion the most important thing that will strengthen us in investing in bitcoin, is actually not just knowing about the fluctuation of the bitcoin price. But about our initial intention to invest in bitcoin. In my opinion, this plays a fairly important role in the sustainability of our bitcoin investment. Because if we already intend to invest in the long term in bitcoin and we have determined a purchasing strategy such as DCA, I think we will avoid panic.
Because basically people who panic when they see the fluctuation of the bitcoin price, it means that those people do not have the right initial intention. Because if the initial intention is to invest in the long term, for example 10 years or more. Certainly before reaching the 10 year period, I think we don't need to care about the price of bitcoin or its fluctuations. Because why, because whether bitcoin is currently going down or up, it has no effect on long-term investors. Because the point is if bitcoin goes down they won't sell it and vice versa when the price of bitcoin goes up. So that's why our initial intention when investing in Bitcoin is very important.
Being overly optimistic about investing can cause problems for an investor later. For example, if a person is optimistic after investing that his investment will make $4 or $5 profit immediately after investing or if he thinks that his investment will never go down. If someone thinks like this, he will be forced to sell his investment later. Because when he sees a decline in the market, he will get scared and then he may decide to sell his investment.
I think it is very natural for a new investor to be scared. Because an investor has never seen a decline after investing. For example, seeing a decline without investing is one thing and seeing a decline in the market after investing is another. Because when you invest, if you see a decline in the market, fear will work in your mind. When you see a decline in the market without investing, you will not be afraid and will not give much importance to the decline. When you invest your money, it is very natural to be scared at first.