Bitcoin is not something we might buy now and expect to become rich tomorrow. It is a long term investment, and anyone who wants to profit from it must be patient and not panic when the market falls. The fact is that Bitcoin price changes all the time, and this is normal. However, if you panic and sell quickly, you might lose more than you gain. Real investors realize this and remain calm when prices fall.
Now i would not ask anyone to accumulate bitcoin near the all time highs (specially those who do not have extra money) and in times where we know the cycle may end in a few months. For fresh investments, maybe one can wait for a year or so and then he can get better prices to get into bitcoin. For those holding bitcoin, they should keep holding and shouldn't sell early there is still chance that bitcoin may 1.2x to 1.5x from the current prices.
Time waits for no man likewise bitcoin price, which is the main reason why a new investor shouldn't wait for the bear market and should start buying right away if he has his discretionary income ready. Waiting for the bear market is not a guarantee that you will buy bitcoin cheaper because nobody knows what price will be the bottom line of the bear neither does anyone know when the bear market will start. Therefore, waiting for the bear market is a blind decision and strategy to think of.
There are a loy6of disadvantage of waiting for the bear market. Firstly, you can spend the available funds when an emergency plays out that needs urgent attention and you don't have funds on ground to tackle it. You will use the money and might not be able to buy bitcoin when they bear market arrives. Secondly, it leads to procrastination and keep you as a no coiner while others are busy building up their bitcoin investment and piling up wealth for their future but you will just be stagnant financially.
Lastly, you will regret in future for waiting when bitcoin price will have reached $1m because, you could have started buying now and accumulate a good size of bitcoin stash before that time. You will end up with little bitcoin. See bitcoin as a store of value to save your funds from losing value overtime and start investing right away. Instead, of keeping fiat that depreciates in value overtime.
Yes, waiting for a price drop when buying Bitcoin is not an appropriate strategy for long-term investors. Logically, we should understand that waiting for a price drop is a strategy that is prone to dilemmas. So, rather than worrying and missing out on opportunities, I don't think buying Bitcoin should be fixated on price. Regardless of the current price, it's highly likely that in 10 years, the price will be much higher, and we'll profit. So, why ignore momentum and choose the right price when buying Bitcoin?
There is nothing wrong to wait dips for purchasing bitcoin but experienced investors do it differently than newbies. Newbies wait for lower prices, try to find bottom prices to buy in, while experienced investors can do Dollar Cost Averaging regularly and don't mind about price, or they can wait for price dips of 10%, 20% or 30% and buy without concern about at what prices they make purchases.
They know that price dips are very good for accumulation and if they can hold bitcoin for a long time, profit is very good especially if they buy in dips.
The thing that is always observed in the case of newbies buying Bitcoin is that they act hesitantly. They cannot understand the right time to buy Bitcoin. Of course, I agree with you that when the Bitcoin market is falling, they buy more and hold it for a long time. Experienced people take advantage of this falling opportunity, and they invest more than their Bitcoin buying budget during the fall. On the other hand, newbies are immersed in a panic around the Bitcoin fall and as a result, their Bitcoin investment is disrupted.
When the market is in a slight decline, some investors panic. They start thinking that maybe their losses will start from there. Bitcoin is a volatile cryptocurrency and it is unknown when it will increase or decrease. But for those who do not panic and just hold Bitcoin regularly during that time, the temporary decline of Bitcoin will not have any effect. For those who can speculate about Bitcoin, the decline of Bitcoin is an opportunity and for those who are ignorant about it, the decline is a panic. In any situation long-term holder of Bitcoin will get the advantage. As a new investor, if he only does DCA regularly, he will not face long-term losses but will be able to acquire permanent assets by growing his portfolio.
Most at times when I see people panic as a result of a drop at the market price, I always tell myself that this people have faulty foundation, because if the foundation is right, there will be no room for panic bite. The first lesson every investor should have is the understanding of the terrain, because if an investor does understand the terrain, it will automatically solve 70% of the problems they might face in cause of their investment journey. Bitcoin investment is not a roller coaster, it has up's and downs which is the integral part of the market formation.
Someone who is an investor in bitcoin and knows the volatility nature of bitcoin would never panic when there is a dip or downturn in the price of bitcoin, Instead what a realistic investor would do is to take the opportunity and keep accumulating, any folks that gets scared an panic whenever there is a downturn isn’t an investor someone who have a good knowledge of how bitcoin works, and knows what Bitcoin is all about and how it appreciate after a downturn, would definitely exercise patience and continue to hodl for a long term purpose and keep buying and keep accumulating more Bitcoin.
The reason why some people panic is not because they don't know the volatility nature of Bitcoin but rather the reason why most people panic is because of wrong investment approach, especially those who are Investing for short term, once they invest more than they are suppose to invest because of the feeling and hope that the price will go up and unfortunately the price start dipping they will surely panic because they have made a very big mistake and that is the reason why we should not invest for short term and should not also invest with what we can not afford to let go because it will make one to be monitoring the market which is a stress and waste of time.