What happens if a person starts to invest in bitcoin at or near the top of the cycle?
Those who start investing in Bitcoin at top or near the top of the cycle in terms of short-term investment will face losses. However, if someone invests for the long term, there is a possibility of profit again in the next bull run in the future. I think it would be more effective to invest for the long term by following DCA instead of investing a lot of money at once.
what happens if a person starts to invest in bitcoin after the top and as the price is going down?
If someone invests in bitcoin after the top and as the price is going down, what happens is that many people get scared when they see the price fall. And investors who bought on FOMO sell out of fear of loss. In a bear market, the price of bitcoin falls and as a result, many people sell bitcoin out of frustration. But if someone continues to be patient and continue DCA during this time, there is a possibility of profit in the next cycle. Another thing is that when the price falls, there is no loss. If anyone sell bitcoin without being patient after the price falls, then there is a loss
What happens if a person starts to invest in bitcoin at the bottom of the cycle and/or as the price is going up?
If the price is at the bottom. I think this is the best opportunity to invest. But at this time, many people try to sell out of fear and based on negative information. Then if someone analyzes the previous information and decides to invest in Bitcoin, then there is a possibility of profit in the future. But at this time, many people wait without investing because they wait for price more lower. As a result, they may miss the opportunity .
Should the above described situations be treated differently, since a person might not know exactly where he is in the cycle. To get started does a bitcoin newbie need to learn bitcoin cycle theory?
Sir i think It is not possible for anyone to know what state Bitcoin is in the cycle. However, a new investor needs to have some basic understanding of the cycle. As a result, he will be able to know what the state of the halving, bull and bear market is. However, it is better not to analyze these too much before or at the beginning of the investment, as there is a possibility of making wrong decisions. I think the best thing is to maintain discipline regularly and follow the dca and conduct long-term investment activities. As a result, anyone will be able to buy Bitcoin at a time-based and average price. If one have a long-term attitude, the risk is much reduced.