Why do people panic and sell their bitcoin when it falls in value?

[debra]

why do people panic and sell their coins

Do you refer to the current dump in Bitcoin?
I think the current drop in Bitcoin price isn't caused by many people feel panic. I assume it is a market manipulation done by whales. It is interesting to see the dump after the good news about Bitcoin ETF. We know that it is finally approved, ideally it will bring positive impact on the crypto market. But it seems to have no impact, the market goes in the opposite way. 

[Litzki1990]

That's why it's so important to be bold when it comes to investing. Those who lose patience at the least or those who are afraid at the least can never accept temporary loss. An investor who invests $1000 only to find $800 in his wallet a few days later will be very alarmed. When that time comes, he panics and thinks that if he doesn't sell his bitcoins very soon, his dollar may drop even more. Along with such thoughts, he may think that now that he has converted his bitcoins to stable coins, when the price will decrease again, he will buy bitcoins again, thereby increasing his profit potential. A Bitcoin investor who lacks courage basically thinks about these things and sells his investment even if it is a loss.

[bounceback]

That's why it's so important to be bold when it comes to investing. Those who lose patience at the least or those who are afraid at the least can never accept temporary loss. An investor who invests $1000 only to find $800 in his wallet a few days later will be very alarmed. When that time comes, he panics and thinks that if he doesn't sell his bitcoins very soon, his dollar may drop even more. Along with such thoughts, he may think that now that he has converted his bitcoins to stable coins, when the price will decrease again, he will buy bitcoins again, thereby increasing his profit potential. A Bitcoin investor who lacks courage basically thinks about these things and sells his investment even if it is a loss.

Losses $200 of current capital $1000 will make the trader or investors not get much experienced in cryptocurrency will face panic but have smart investor will put stop losses to manage not loss more and get chance to buy back. But very important when trading in cryptocurrency never panic face moment with bitcoin get lower price drastically, have been usual thing when bitcoin drop have time recovery and bounce to more higher price again.
The real investor actually not care about how bitcoin dump and believing the moment for bitcoin recovery again, they will buy back when bitcoin have lower price than sell with panic moment.

[xSkylarx]

The only reason was that they were lacking knowledge and discipline, because if they had that, they wouldn't get easily scared of price dumping. Most of the newbies are doing this because they bought only on green days, which they thought they would continue, but when the price drops, they will now be scared. Though there is nothing wrong with this as this is part of the learning, the problem is that you are still committing it after that hard learning.

[KryptoBull]

The only reason was that they were lacking knowledge and discipline, because if they had that, they wouldn't get easily scared of price dumping. Most of the newbies are doing this because they bought only on green days, which they thought they would continue, but when the price drops, they will now be scared. Though there is nothing wrong with this as this is part of the learning, the problem is that you are still committing it after that hard learning.

It is a fact that investors are always manipulated by greed + fear, and greed + fear that create action and that action creates market fluctuations. I believe that the majority often make wrong decisions and create the tops and bottoms of this market.

People who lack knowledge often act according to the majority and instinct, they will be greedy when they see positivity and they will be afraid when they see risks. Anyway, the crypto market needs the mistakes of the majority to reward the remaining few with more experience and knowledge.

[DaNNy001]

why do people panic and sell their coins throw some light on this topic and share your opinion

Mostly because they lack knowledge and their mentality towards the market is a poor one Because if they knew how that Bitcoin is volatile then they would know that selling  coins is not a good but also the same time. I know you might ask why I say so ? That's because not everyone is full time holders so the one that sell are the short term holders that trade on the market value and cash out although it's very risky but it's some how good to those who do this.

[Hamza2424]

why do people panic and sell their coins throw some light on this topic and share your opinion

Panic sell and panic buy are the actions caused by Fear and Greed and I think this topic is already been covered here. Fear or greed You should read this topic, as it will enlighten you more. In my opinion, we panic sell when we get a news, which actually is not a real news, it is just a manipulated news and we panic sell or in other words we buy the news and results in lose.

And when we results in lose we call it panic sell. So in short terms, when we make quick moves like selling quickly under some stress or pressure without caring about the loss or profit we call that move a panic sell. Talking about why people panic sell, there would be hundred of reasons for that, they might have fell for a FOMO or FUD or they might not bear the pressure of market or they don't see there money going down in value etc.

Edit: I'm adding my previous reply, because it is kind of weird as I don't remember that there were some thoughts I've already posted, so it's wise to edit. Seems like in both posts there's a conflicting approach to present my thoughts.

why do people panic and sell their coins throw some light on this topic and share your opinion

I'm not sure why such, low-quality topics are even allowed like really there should be some strict rules to avoid spam and I'm very sure that this is just spam, otherwise, OP should consider adding more value to the topic.

Anyway, the point to discuss according to OP if he really needs to know is that people mostly don't sell their assets but some weak hands like newborns in the market, and some emotionally weak people make such decisions. Always standing against the market emotion is really hard, but the one who trains himself is a true Bitcoiner.

[SamReomo]

why do people panic and sell their coins throw some light on this topic and share your opinion

Those people who get scared and sell their coins don't really know the real importance of the coins that they have bought. Those are mostly newbie investors or weak hands who don't really know exactly what's investing and how can a investor earn profits.

They basically watch social media influencers and follow them blindly. And such people are also daily news readers and when they see some negative news about the coins that they're holding then they can't control their emotions and in fear they sell out their coins.

They think that they won't lose a lot of money if they sell their coins but when they see the value of those coins growing then they regret that why did they sold their coins at such cheap rates. They won't learn any lessons and they continue repeating the same mistakes again and again.

[EthereumDev_]

Mostly because they lack knowledge and their mentality towards the market is a poor one Because if they knew how that Bitcoin is volatile then they would know that selling  coins is not a good but also the same time. I know you might ask why I say so ? That's because not everyone is full time holders so the one that sell are the short term holders that trade on the market value and cash out although it's very risky but it's some how good to those who do this.

I really agree with what you say because so far Bitcoin has a very limited supply while the development of digital currency technology such as Bitcoin is increasingly developing, which means there is a possibility and opportunity for Bitcoin users to increase even higher and will make the price of Bitcoin very expensive because it will definitely It's getting harder to get Bitcoin, so it's better to keep buying as much Bitcoin as you can and after that store it for a very long time and it will give a lot of profit to those who still have Bitcoin.

[sampoerna]

why do people panic and sell their coins throw some light on this topic and share your opinion

Usually, panic occurs because someone is not really sure what they are holding or the conditions they are experiencing. And also sometimes or even often we find that panic occurs because of certain factors:
- afraid of losing the money
- Do not or have not understood investing in Bitcoin thoroughly
- Just understand that investing in Bitcoin will always provide high profits in the near future
- There is a high level of expectations from investment in Bitcoin, even too high, but it cannot withstand various risks

What is certain is that if we understand the cycles and volatility conditions of Bitcoin, then we will be more alert and wise with various Bitcoin conditions. So, never feel that we are losing our money when the price of Bitcoin plummets. Because in reality, our money is still there as long as we still hold Bitcoin.

[TomPluz]

why do people panic and sell their coins throw some light on this topic and share your opinion

As long as those involved in cryptocurrencies are people, they can be affected by human nature and looking at it one can be facing the side-effects of fear...that fear of losing more. Although we have to quantify that most experienced traders and holders have already learned to reign in their fears when the market is making a dip just like what we are experiencing these days. There are now ways we can be able to control our emotions and not be lead away from the very short-term market movements. In fact, I would say that if one has no taste for daily trading then the best thing to do is just to hold a digital asset - especially the top ones in CMC - and then just revisit them months after or even years later. One must not have a herd mentality - monkey see monkey do - otherwise that can be one of the best ways we can lose money in the market. One must allot some time to study, analyze and learn things related to the market if one is hoping to one day realize a good life out of one's involvement with cryptocurrency.

[ZAINmalik75]

why do people panic and sell their coins throw some light on this topic and share your opinion

People panic sell because they think they gonna lose every single penny that they have earned by working hard and after investing it in some asset that is highly volatile, the profits and losses move too fast that the person can't control his/her emotions anymore and when he/she makes more profit then the investment means when they make 2x they start to panic sell.

You must be thinking what's so panic in that, while they made a profit, In my opinion, panic sell works for both profit and loss, for example when one person is making a profit i.e a good profit, he panic sell and when a person is making huge loss on the investment, he panic sell to save what has left from that. Mostly the victims of panic sells are newbies who have no control over there emotions.

[famososMuertos]

Well, these panics cannot be measured "in people", that is, the correct thing is to mention the market panicked, you cannot quantify how many people do it.

So if you simply look at the market volume, it may have been a movement of one or two whales, meaning it is something that is not necessarily a disaster, which is in reality what we are interested in knowing.

Simply an individual can sell for so many circumstances, e.g. people's is simply taking advantage of the market movement and buys or sells according to his interest, in fact he does both.

I think in a way the panic of selling is the madness of others to buy, it's just that. 

[bitterguy28]

why do people panic and sell their coins throw some light on this topic and share your opinion

Imagine like this , you invested in a market that you don't fully understand and then suddenly your investments value drops badly and you don't know that this is normal in the market you entered , does it alarming to your decisions .

This is different from the people that knows crypto investing , those like us that is willing to HODL no matter how long it takes .
so yeah I understand their sentiment and I also knew where they are coming from.

[philipma1957]

This applies to stocks bonds gold silver and all crypto.

Dca is the best way to not panic.

Set a dca you can afford x a week for 200 weeks never sell any of it.

better yet do it for 300 weeks

At this point hodl or maybe you sell maybe you don’t.

Most people do not do a long term 6 year dca plan.

most people like to think buy the dip and hodl. So if we are at 49 and it drops to 43 k they buy a lot.

then it drops to 39k. they panic and sell.