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

[Gurujebs]

I also saw some friends selling their bitcoins when the price went down because they needed the money. I don't blame them, because everyone's financial management is different. Some have extra money and emergency savings, so they won't sell their coins. There are those who try to invest with just enough money, even though when they need it they have to sell their coins at a loss. because sudden needs no one knows and cannot be predicted.

Everyone is entitled to spend his Bitcoin the way they like I think since it's their money and we don't know the sources of their income. There is this common practices among bitcoin investors during bullrun, are fond of using their emergency money to buy Bitcoin and I guess that's because they know that they can make money from Bitcoin halving.

We have many of them guilty of this practice and it's very wrong, looking at the profit to buy risk emergency money is very wrong but no matter how you try to inform people, they will do what's in their mind and nothing can change that ideology on their head.

[Eroptech]

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

Before you venture into bitcoin investment , you should have a lay out plan, in terms of how long you intend to hold your coin is it 4-10 yrs or more .most investor sell the bitcoin they have in their portfolio  when ever there is a price correction forgetting that bitcoin is a volatile coin and the price is not alway stable and with the thought that the price will still dip the more will auction for sell. There are also investors that doesn't have an emergency fund, that has invested all their disposable income into bitcoin so when an emergency arise they will rush and sell their bitcoin to settle it, that is why DCA remain one of the best strategy in bitcoin accumulation. With this strategy you can map out certain amount of your disposable income that you can invest in bitcoin and also have and emergency fund. Lack of trust in bitcoin hitting all time high can also make investor to sell their bitcoin.

[philipma1957]

My brother had a 401k at work he moved all of it from safe bonds to stock market index. Market crashed. He panic sold.

He did this not once not twice but three times.

His 401k was about 275k when he retired. Should have been 450k if he just stuck with bonds. Would have been over 800k if he started with the market and never touched it until a year or 2 before retiring.

My bother has a PHD from Columbia university he is pretty fuckking smart. about a lot of shit but stupid as you could be when it comes to investing his 401k.

[dekafee79]

I also saw some friends selling their bitcoins when the price went down because they needed the money. I don't blame them, because everyone's financial management is different. Some have extra money and emergency savings, so they won't sell their coins. There are those who try to invest with just enough money, even though when they need it they have to sell their coins at a loss. because sudden needs no one knows and cannot be predicted.

Everyone is entitled to spend his Bitcoin the way they like I think since it's their money and we don't know the sources of their income. There is this common practices among bitcoin investors during bullrun, are fond of using their emergency money to buy Bitcoin and I guess that's because they know that they can make money from Bitcoin halving.

We have many of them guilty of this practice and it's very wrong, looking at the profit to buy risk emergency money is very wrong but no matter how you try to inform people, they will do what's in their mind and nothing can change that ideology on their head.

I think using emergency money to buy bitcoin is a mistake if it is only based on hype because there is a bullrun and hoping that the price will rise again, even though we know that bitcoin is unpredictable and bitcoin's habits are very volatile, this is very risky. We should have thought about this before taking that step.

[armanda90]

I think using emergency money to buy bitcoin is a mistake if it is only based on hype because there is a bullrun and hoping that the price will rise again, even though we know that bitcoin is unpredictable and bitcoin's habits are very volatile, this is very risky. We should have thought about this before taking that step.

Its not mistake using emergency fund for investing in bitcoin during on bearish moment but its fatal investing in bitcoin since hype and have on bullrun moment. Emergency fund will be increasing when investing in bitcoin during on crash or bitcoin has lower price but always use free money for investing in bitcoin and not recommended using saving money or emergency fund.
Bitcoin investment can't promising with much profitable as we want take profit it,
need time and patience waiting bitcoin progress moving to the higher price and always use your not daily needed money for investing.

[MUGNIA]

I think using emergency money to buy bitcoin is a mistake if it is only based on hype because there is a bullrun and hoping that the price will rise again, even though we know that bitcoin is unpredictable and bitcoin's habits are very volatile, this is very risky. We should have thought about this before taking that step.

It's true that it's a big mistake to use emergency funds to buy BTC at high or hyped prices, where the risk of loss or decline in value will be real before your eyes, not the profits you will get but the losses you will get.

[pawel7777]

Its not mistake using emergency fund for investing in bitcoin during on bearish moment but its fatal investing in bitcoin since hype and have on bullrun moment. Emergency fund will be increasing when investing in bitcoin during on crash or bitcoin has lower price but always use free money for investing in bitcoin and not recommended using saving money or emergency fund.
Bitcoin investment can't promising with much profitable as we want take profit it,
need time and patience waiting bitcoin progress moving to the higher price and always use your not daily needed money for investing.

Investing emergency money in any type of high-risk investment (be it Bitcoin or anything else) is always a stupid idea, even if some get lucky and the stupid move pays out with big profit.
Emergency funds should, by definition, be easily accessible and making a profit on them is not their primary purpose.

[Uruhara]

My brother had a 401k at work he moved all of it from safe bonds to stock market index. Market crashed. He panic sold.

He did this not once not twice but three times.

His 401k was about 275k when he retired. Should have been 450k if he just stuck with bonds. Would have been over 800k if he started with the market and never touched it until a year or 2 before retiring.

My bother has a PHD from Columbia university he is pretty fuckking smart. about a lot of shit but stupid as you could be when it comes to investing his 401k.

Maybe this happened because he didn't really trust the investment instrument he was entering into. And distrust arises as a result of insufficient fundamental information to be sure that one day the decline will end and it will rise again. that's a huge amount. And maybe he put in an amount that he wasn't prepared to lose more. So the level of panic becomes much greater. But I was also in that situation when I first got to know the world of investment. And at that time I was still quite an impulsive person. Sometimes I laugh remembering those times but I also feel regret.

[Captain Corporate]

Quite common human response to losing money. I feel like its going to end up being something not that shocking and we are seeing something that will not change at all. This isn't just one market, every market has that. However, remember that financial companies are out there grabbing what people are selling when it goes down, so its not going to be much problem when it comes to prices. Its not going to be simple, but we are going to overcome every drop, may take time sometimes, sometimes its quick, but retail and institutional investors realized that bitcoin price always recovers, so we buy whenever someone sells.

[Jamal Aezaz]

Investing emergency money in any type of high-risk investment (be it Bitcoin or anything else) is always a stupid idea, even if some get lucky and the stupid move pays out with big profit.
Emergency funds should, by definition, be easily accessible and making a profit on them is not their primary purpose.

Emergency fund is that amount which you can use anytime for sudden changes without any stress so if you put an emergency fund in Bitcoin investment or some other coin investment so you will not be able to take it out during the condition when you need it the most.

One should understand that the money for investment or emergency fund should be saved differently so he will not be distressed for the money during emergency as well as about his investment therefore he can keep his investment longer until he gets profit through it.

[doc]

Quite common human response to losing money. I feel like its going to end up being something not that shocking and we are seeing something that will not change at all. This isn't just one market, every market has that. However, remember that financial companies are out there grabbing what people are selling when it goes down, so its not going to be much problem when it comes to prices. Its not going to be simple, but we are going to overcome every drop, may take time sometimes, sometimes its quick, but retail and institutional investors realized that bitcoin price always recovers, so we buy whenever someone sells.

Yes, it is very natural for people to have a panic response when they lose money because the price of the coins they hold falls. but experience makes them understand, this is the fluctuating character of crypto so there is no need to panic and stay calm, because the coin price will return to normal if you choose the right coin.

[JISAN]

Quite common human response to losing money. I feel like its going to end up being something not that shocking and we are seeing something that will not change at all. This isn't just one market, every market has that. However, remember that financial companies are out there grabbing what people are selling when it goes down, so its not going to be much problem when it comes to prices. Its not going to be simple, but we are going to overcome every drop, may take time sometimes, sometimes its quick, but retail and institutional investors realized that bitcoin price always recovers, so we buy whenever someone sells.

Yes, it is very natural for people to have a panic response when they lose money because the price of the coins they hold falls. but experience makes them understand, this is the fluctuating character of crypto so there is no need to panic and stay calm, because the coin price will return to normal if you choose the right coin.

Those who don't have the patience to invest long-term tend to panic when the price of Bitcoin drops slightly because they think the price will drop even further and they will lose a lot.  Many people plan to sell the bitcoins at a small loss as the price is falling and buy back later when the price is on the dip.  But even if they think they are smart in this way, they may later realize how wrong they are.  This is how they lose a lot of money

[doc]

Quite common human response to losing money. I feel like its going to end up being something not that shocking and we are seeing something that will not change at all. This isn't just one market, every market has that. However, remember that financial companies are out there grabbing what people are selling when it goes down, so its not going to be much problem when it comes to prices. Its not going to be simple, but we are going to overcome every drop, may take time sometimes, sometimes its quick, but retail and institutional investors realized that bitcoin price always recovers, so we buy whenever someone sells.

Yes, it is very natural for people to have a panic response when they lose money because the price of the coins they hold falls. but experience makes them understand, this is the fluctuating character of crypto so there is no need to panic and stay calm, because the coin price will return to normal if you choose the right coin.

Those who don't have the patience to invest long-term tend to panic when the price of Bitcoin drops slightly because they think the price will drop even further and they will lose a lot.  Many people plan to sell the bitcoins at a small loss as the price is falling and buy back later when the price is on the dip.  But even if they think they are smart in this way, they may later realize how wrong they are.  This is how they lose a lot of money

People who invest in bitcoin should have a plan for long-term holding and don't care about the market going up or down before the sell target is reached. because holding bitcoin is 2-3 years from purchasing during a bearish season.  Don't panic and sell at a loss when the price of bitcoin falls, because bitcoin will rise again until it reaches the ATH that we planned.

[LUCKMCFLY]

Good advice, we must have an emergency fund that is not in the form of crypto investment, because this is very risky.  When we need it we will sell our coins accordingly, we can suffer losses if when we sell the price of the coins falls.  It's best to use free funds to invest, because crypto is very volatile.

Yes, I hold fiat money for that emergency fund, because I realize that something we don't want might happen to us, even though I always pray that I won't be in a situation like that.

Even though we have never experienced something like that, we must prepare for it. Not having experienced it doesn't mean you won't experience it, right? although again I don't expect that to happen to me, and to everyone.

Anything that could be a Contingency plan for emergencies is something that should be done immediately, because for all of us we must be people who have to have everything very clear and without any kind of impediments to protect Ourselves , I have seen how some people have saved bitcoin and have it in hodl mode and due to economic emergencies they have had to take it out to solve, so sometimes it is difficult but a good effort has to be made for that, of course it is one of the things that one says, but otherwise many more things have to be done to have Everything absolutely clear, that is what I follow of course.

I also saw some friends selling their bitcoins when the price went down because they needed the money. I don't blame them, because everyone's financial management is different. Some have extra money and emergency savings, so they won't sell their coins. There are those who try to invest with just enough money, even though when they need it they have to sell their coins at a loss. because sudden needs no one knows and cannot be predicted.

Sometimes things with the financial part are Open for many but very tight for others, sometimes having to give up an investment is very Difficult because it is something we have wanted to do to make a profit, but when it is an emergency it cannot be Weighed, you have to act at once, we are people who must always put our things in a Hierarchical way and from there make decisions , although I will always recommend that it is best to have bitcoin saved and wait as long as necessary, I am sure that by 2025 we will have a very good Price Increase and it will give you Opportunities, it is never too late to Start investing.

[Uruhara]

Quite common human response to losing money. I feel like its going to end up being something not that shocking and we are seeing something that will not change at all. This isn't just one market, every market has that. However, remember that financial companies are out there grabbing what people are selling when it goes down, so its not going to be much problem when it comes to prices. Its not going to be simple, but we are going to overcome every drop, may take time sometimes, sometimes its quick, but retail and institutional investors realized that bitcoin price always recovers, so we buy whenever someone sells.

For those of us who have managed our finances and capital in investing, perhaps we can calmly face every possibility that occurs in the market. Like when we experience a correction we can buy again. But for those who invest with money that is actually not worth using for investment, such as money that they are not actually prepared to lose, they tend to panic when the price drops and instead sell their bitcoins. That is why someone must first understand the risks in investing and only have to be ready to do it when they are ready for the risks.