Bitcoin volatility can never be avoided, but panic can be avoided with the right strategy and education. As you say, 'Investing by understanding your financial situation will reduce panic'. Yes, investing by understanding your financial situation reduces panic, but no matter how good the financial situation is, when the market price drops, some anxiety acts and the panic does not go away completely. And this is more the case with new investors. In this case, the DCA strategy is good to avoid panic. It protects against market fluctuations by investing regularly and systematically and helps to focus on long-term planning. As a result, the investor learns to remain calm without panicking.
Patience, fear or panic and greed are three very important things in cryptocurrency. Many of us cannot be patient, in fact, patience is the real thing when investing in Bitcoin. Investing in Bitcoin means keeping your investment in a certain profitable place for five to ten years. You should not sell greedily. The price of Bitcoin is increasing. If you invest in Bitcoin, you will definitely get profit but you have to wait. Don't be afraid, after buying Bitcoin, if you think why the price is not increasing or the price is decreasing, such thoughts cannot be brought to mind. You must have a long-term plan. You can invest in Bitcoin without fear.