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

[legend45]

~
Without proper knowledge one
will always freak out when the price drops because they won’t understand that there are several reasons that may cause bitcoin price to drop and that whenever it drops bitcoin price will still rise again no matter how long it may take. I feel these set of people who panic and sell when the price drops didn’t get proper orientation before engaging in it and i feel they only joined up because they think it’s a get rich quick scheme where they can make quick money failing to understand bitcoin is volatile and price can move in any direction.

Yeah, knowledge and experience are important.
Without both we will freak out when the price drop.
We should know what happen..
do research and analyze..

Don't be panic when price drop,  always keep calm because price will go up again.
Bitcoin price is always volatile.
as long as it's not during the bearish season, the price will go up again.

[Uruhara]

Yeah, knowledge and experience are important.
Without both we will freak out when the price drop.
We should know what happen..
do research and analyze..

Don't be panic when price drop,  always keep calm because price will go up again.
Bitcoin price is always volatile.
as long as it's not during the bearish season, the price will go up again.

That's true because even in a bullish market the market will occasionally experience price corrections. And those of us who already have experience in the market tend not to panic and instead make good use of the market situation. In contrast to beginners who easily panic and will even say that BTC will fall further again and again. For short-term holders it is natural that they choose to exit when the market falls. But for hodlers there is no reason to get out when the market goes down. In fact, it is an opportunity for re-accumulation.

[tbct_mt2]

That's true because even in a bullish market the market will occasionally experience price corrections. And those of us who already have experience in the market tend not to panic and instead make good use of the market situation. In contrast to beginners who easily panic and will even say that BTC will fall further again and again.

Corrections in a bull run will help the market to wash out leveraged people and more easily to climb up more.

The chart shows that corrections like -10% are very common even in a bullish market. Knowing about those corrections will help us to prepare our psychology and plan better and won't be panic as well as won't use leverages.

For short-term holders it is natural that they choose to exit when the market falls. But for hodlers there is no reason to get out when the market goes down. In fact, it is an opportunity for re-accumulation.

They are not short-term holders but short-term speculators and they don't have plan to hold bitcoins. Just buy and speculate it will rise within few days or weeks. They have no idea and plan to do when Bitcoin has corrections.

[BitMaxz]

I think those people who panic selling are those people who already made a profit but some of them are newbies who have weak hands and are afraid that the Bitcoin they hold will drop in value.

Unlike traders, they always want to see cheaper prices because for them this is another opportunity to buy cheap and make a profit later. They usually do DCA to maximize their profit while holding Bitcoins.

Actually, it's normal to see Bitcoin price drop but still believe it would increase again since block halving is not done yet. Only weak hands who panic when the Bitcoin price drops.

[retreat]

In trading you will often see people panicking when the market turns downward. And this is normal because it is the response of traders to a market that is not in their favor to be able to save their assets from losses or they just want to secure profits so that it is not further eroded due to a bearish market. Each trader also has a different risk tolerance and psychology, so when the market tends to be bearish you can see how there will be many people panic selling their Bitcoin because they are worried that it will affect their investment.

Its normal habit with panic although you are have much experienced in trading, learned with mistake before want to make us more careful for next time trading and try how to make efficiency without have the same mistake. Seems panic selling when bitcoin price drop because they will save or secure assets more than loser and try to use stop loss feature to buy back in lower price.
What for become long term holding when assets values increasing down, better use stop loss and buy back later with many people panic for selling bitcoin or altcoin assets in lower price.

And because of that, traders must be clever at playing stop loss and buyback, because buying back later is a good strategy when a trader wants to get profit back from the market. This is because traders who panic sell when the market is bearish may buy back Bitcoin when the market is stable again. And when traders enter the market again when the market rebounds, this will really give them a decent profit opportunity.

[Thyplaymaker]

As most people has said already is not actually everyone. Most people that panicky sold their coins, is due to lack of proper knowledge about this crypto space. Back then I was a victim of such due to the feeble knowledge I have then about this space. So most time I endup entry market at the wrong time and any time it's experience a dip I always panic and sell having the thought that I'm cutting losses. And accumulated alot of losses.

But now that have focus more in learning more things about this crypto space it as also help I building me confidence in investing and these forum as being great help in that. Now I can focus using DCA method and anytime BTC dip I see it as opportunity to buy the dip without showing any signs of panicky.

[therozaq]

And because of that, traders must be clever at playing stop loss and buyback, because buying back later is a good strategy when a trader wants to get profit back from the market. This is because traders who panic sell when the market is bearish may buy back Bitcoin when the market is stable again. And when traders enter the market again when the market rebounds, this will really give them a decent profit opportunity.

I think when bearish, and we know it will increase again, better to hold.
But if it happens after bullish season, I personally will cut loss.
Because if I hold will need along time , wait for 3 years again.
You're right, trader is clever people.
Must have knowledge, experience and manage emotions. As many people said here.
I agree with this opinion.
I think not easy become a professional trader.
We must to manage our fund in exchange.

[rby]

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

It is not everyone that panics and sell their coin when bitcoin price is down. There are categories of people who do that;

• Newbies with no knowledge on how the market works
• People who invested with the money they'll need by next week
• Those still under the shackles of FUD

Without these, there's no good reason to sell bitcoin at loss because it has a proven record of recovery.

[Wiwo]

Sometimes, it not the panic that forced them to sell, it already a predetermined action so they just use the opportunity of that time to sell so that why others see them as panic selling but in reality, they already have the mindset to sell the their holdings, many times some peopleay get carried away with a particular trends that make them take such decisions as to sell their bitcoin holdings even when they don't really need the money, and those set of panic sellers are already on a new different level with they mind fixed on assumptions that the price will crash forther.

[Tribalchief]

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

People who panic and sell during a fall in price are basically short-term investors who want to make a profit within a specific period. There is nothing bad in being a short-term investor, but due to the volatility of prices, especially when rumors are circulating, they are often tempted to sell to avoid losing what has been accumulated.

[snowpega]

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

Dear OP not all people sell their points when Bitcoin makes any correction only those people sell their coin who have weak faith but on the other hand, those who have strong faith even fill their bags more because they consider it a buying opportunity and in easy words those who have strong faith don't miss any buying opportunity but sadly whose who have less or insufficient balance for more buying can not do anything.

Well Tell me your case do you sell when Bitcoin falls its value? selling like this is not good thing as bitcoin is the most strongest digital currency it will surely return you a good rewards if you hold it for long term. i think you should do some research on bitcoin like what it really is.

[krishnaverma]

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

This does not happen with Bitcoin only. It is common will all the other type of investments also. Like when someone invests in stock and its value drops too much, the person gets scared and takes out money in loss. If everyone had patience, no one will face loss witb investments because market always recovers. In long term, there will always be growth in the market.

Same is with Bitcoin, the investors who invest for long term, will always be in good profit.

[KingsDen]

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

People who panic and sell during a fall in price are basically short-term investors who want to make a profit within a specific period. There is nothing bad in being a short-term investor, but due to the volatility of prices, especially when rumors are circulating, they are often tempted to sell to avoid losing what has been accumulated.

Anyone can sell at loss when they are not strong emotionally. One thing is to invest another is to be emotionally strong to hold on even when the market direction is against you. Another good factor to consider is to know how urgent the investor will need his capital. If the investor will be need his money back soonest, they will be in a haste to sell in order not to get their capital stocked.
But if the investor used the money that they will not be needing urgently, they might not sell hastily and they will wait till the price reverses.

[elbans89]

Anyone can sell at loss when they are not strong emotionally. One thing is to invest another is to be emotionally strong to hold on even when the market direction is against you. Another good factor to consider is to know how urgent the investor will need his capital. If the investor will be need his money back soonest, they will be in a haste to sell in order not to get their capital stocked.
But if the investor used the money that they will not be needing urgently, they might not sell hastily and they will wait till the price reverses.

that's the fact, that we alway see in crypto currency. People isn't strong emotionally will be panic when see bitcoin fall, they will cut loss. Investing and  trading need good skill to manage emotions. Keep calm and learn about the market conditions. If you are panic you will lose a lot. better to hold and wait.

[Evgenklm]

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

The cryptocurrency market certainly offers impressive opportunities, but its volatility and sensitivity to external factors can cause concern. Developing a clear investment strategy, basing decisions on fundamental aspects rather than emotions and short-term market fluctuations, is crucial. A long-term perspective and education can help manage potential fluctuations and minimize risks.