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

[Mr. Magkaisa]

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.

           -   There are many people who are really smart, but when it comes to investment, if they don't have an idea, people like your brother will also become victims. But if he had only invested the money he had in Bitcoin, his capital profit would have probably tripled.

So sometimes it's hard to know that you're smart because usually self-indulgence swallows up our true personalities too much, and when our money goes to nothing, it's as if the intelligence we have is also ignored. Sad reality, actually

[ajiz138]

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.

That's right, that's why when investing we are required to use money that is specifically for investing, so that when something we don't want happens, we can be calmer in dealing with it.

It's different when we use money for other needs, we will definitely feel panic when something unexpected happens. This is something I experienced when I first got to know crypto and I learned a lot from it.

[LUCKMCFLY]

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.

But despite everything, this is something very natural and necessary in every market so that there is always movement of money and action in speculative markets, in bitcoin this always happens, because bitcoin is one of the stocks and currencies that have the most appeal worldwide, and what makes it so valuable is not only its price but its high volatility, which is not controlled and the government does not have its hands in it, I think that is the most attractive thing, however when the price goes down and some people sell out of fear, because they do not want to see their investment lost, and at that moment that is what they think about the future, they have to have a very high financial culture to hold on and wait for the price to recover, not everyone has it.

[dekafee79]

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.

That's right, that's why when investing we are required to use money that is specifically for investing, so that when something we don't want happens, we can be calmer in dealing with it.

It's different when we use money for other needs, we will definitely feel panic when something unexpected happens. This is something I experienced when I first got to know crypto and I learned a lot from it.

If you want to invest in crypto, you should use money specifically for investment, not money that is also used for necessities, because crypto is very volatile. Prices can change over time, this makes those who use non-free money panic. panic will always be there even if we have been investing in crypto for a long time.

[lepbagong]

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.

I think it is a natural response for anyone to do after knowing that what they did was wrong, resulting in losing money because the coin price did not match their expectations, but they fell and suffered a loss.
It's true, that, finally, experience can make them finally understand that situations like this are commonplace and there's no need to worry. Just keep holding back and, in time, prices will increase again.
The fear is that if they anticipate wrongly, they will let go because they don't want to lose big, but instead their actions will be wrong.

[LogitechMouse]

There are quite a few times in the past where I need to sell some of my Bitcoins because of some events that I can't even control. My mistake at that time is that I went all in on Bitcoin and other altcoins that I forgot to put some of my emergency funds, and when the time comes that I need it, I don't have anything and cryptocurrency at that time is also going down. I have no choice, but to sell some of my tokens just to have some money to use. I sold it at a loss.

I'm disappointed on my decision, but I just thought that at that moment, my priority is the emergency that happened than my portfolio hence, I did that thing. I learned from that of course, and now has emergency funds already.

I don't think that should disappoint you, it was the most logical option in an emergency. I would have done the same. The important thing about your experience is that it will not happen to you again now that you have additional funds for any emergency.

I'm disappointed on myself at that time because of not having an emergency funds, but it really helped me a lot.

Sometimes, experiencing it the hard way is required for us to learn and make some adjustments in our lives. That emergency taught me to have an emergency funds when needed and sell those assets just to have money to be used. I hope that nobody here will experience the same as what I've experienced because it really is hard without any emergency funds at all. Don't wait for an emergency to happen before having an emergency funds.

[SmartGold01]

There are quite a few times in the past where I need to sell some of my Bitcoins because of some events that I can't even control. My mistake at that time is that I went all in on Bitcoin and other altcoins that I forgot to put some of my emergency funds, and when the time comes that I need it, I don't have anything and cryptocurrency at that time is also going down. I have no choice, but to sell some of my tokens just to have some money to use. I sold it at a loss.

I'm disappointed on my decision, but I just thought that at that moment, my priority is the emergency that happened than my portfolio hence, I did that thing. I learned from that of course, and now has emergency funds already.

I don't think that should disappoint you, it was the most logical option in an emergency. I would have done the same. The important thing about your experience is that it will not happen to you again now that you have additional funds for any emergency.

I'm disappointed on myself at that time because of not having an emergency funds, but it really helped me a lot.

Sometimes, experiencing it the hard way is required for us to learn and make some adjustments in our lives. That emergency taught me to have an emergency funds when needed and sell those assets just to have money to be used. I hope that nobody here will experience the same as what I've experienced because it really is hard without any emergency funds at all. Don't wait for an emergency to happen before having an emergency funds.

You know as worker or business owner maybe a bitcoin investor what they should do is to have their income or monthly salary have splitting into several places maybe it could be into 3 to 5 places in this they should be able to have 1. Emergency fund, 2 Savings, 3 Charity, 4 Investment and or kind of reserved funds for family expenses. If someone has all these set aside then I don't see any reason for them to go alter their investment while savings and reserve funds is there to take care of all the needs.

[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.

That's right, that's why when investing we are required to use money that is specifically for investing, so that when something we don't want happens, we can be calmer in dealing with it.

It's different when we use money for other needs, we will definitely feel panic when something unexpected happens. This is something I experienced when I first got to know crypto and I learned a lot from it.

Yes, that's right. And I've experienced it several times. That is, I try to add more to my investment capital up to a limit where I am not ready to lose. And when the correction occurred, panic immediately filled my mind. And since then I have also learned a lot and tried to be more able to control myself and also manage my finances well, including in terms of allocation for investment.

[dekafee79]

Yes, that's right. And I've experienced it several times. That is, I try to add more to my investment capital up to a limit where I am not ready to lose. And when the correction occurred, panic immediately filled my mind. And since then I have also learned a lot and tried to be more able to control myself and also manage my finances well, including in terms of allocation for investment.

Panic will always come if we don't use the free funds that we are ready to lose, when there is a price drop or a major correction. I also experienced this several times, but that experience made me have better emotional management and no longer panic when the market drops.

[Freemind]

You know as worker or business owner maybe a bitcoin investor what they should do is to have their income or monthly salary have splitting into several places maybe it could be into 3 to 5 places in this they should be able to have 1. Emergency fund, 2 Savings, 3 Charity, 4 Investment and or kind of reserved funds for family expenses. If someone has all these set aside then I don't see any reason for them to go alter their investment while savings and reserve funds is there to take care of all the needs.

I agree with what you say, but there are people who for various reasons cannot do it that way or they simply have not stopped to think about a way to solve possible emergencies. Personally, for years I have divided my salary into several parts, and in another fund I have cryptocurrencies, so I don't have to use a single thing to solve possible problems. But that is something that depends on each person.

[SmartGold01]

You know as worker or business owner maybe a bitcoin investor what they should do is to have their income or monthly salary have splitting into several places maybe it could be into 3 to 5 places in this they should be able to have 1. Emergency fund, 2 Savings, 3 Charity, 4 Investment and or kind of reserved funds for family expenses. If someone has all these set aside then I don't see any reason for them to go alter their investment while savings and reserve funds is there to take care of all the needs.

I agree with what you say, but there are people who for various reasons cannot do it that way or they simply have not stopped to think about a way to solve possible emergencies. Personally, for years I have divided my salary into several parts, and in another fund I have cryptocurrencies, so I don't have to use a single thing to solve possible problems. But that is something that depends on each person.

Yes that is it, most people do not believe of having such funds set aside for emergency because they believed that they can never have issue or something that could worry that much to start thinking of alternatives and even though if they had they would say maybe when is time then we think of how to cross bridge, which is a bad orientation to investment.

[Nwada001]

You know as worker or business owner maybe a bitcoin investor what they should do is to have their income or monthly salary have splitting into several places maybe it could be into 3 to 5 places in this they should be able to have 1. Emergency fund, 2 Savings, 3 Charity, 4 Investment and or kind of reserved funds for family expenses. If someone has all these set aside then I don't see any reason for them to go alter their investment while savings and reserve funds is there to take care of all the needs.

I agree with what you say, but there are people who for various reasons cannot do it that way or they simply have not stopped to think about a way to solve possible emergencies. Personally, for years I have divided my salary into several parts, and in another fund I have cryptocurrencies, so I don't have to use a single thing to solve possible problems. But that is something that depends on each person.

Building a solid emergency fund as well as reserve or float funds should be the first thing to do before even beginning to build up your investment because that's the only thing that'll determine whether or not your investment would grow or if it'll be stagnant or if it'll crash.

As long as life is concerned, emergencies will always come up and if peradventure they do and you have no back up plan to sort out the emergency, but have an active investment, then you can be sure that the value of your investment will automatically drop when you dip into your investment for financial support to sort out the investment.

[SeeBiscuit]

bitcoin is currency, and currency is something that affects almost every aspect of our lives.

Money makes the world go 'round as they say, right?

It's only natural for people to make emotional-based decisions when they haven't trained themselves properly for this kind of thing. It's not easy, but finding a community like this that can support you via words of encouragement, advice, and general knowledge can help not just panic sellers, but all types of people with all types of issues (financially/bitcoin speaking).

[Rubel007]

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.

           -   There are many people who are really smart, but when it comes to investment, if they don't have an idea, people like your brother will also become victims. But if he had only invested the money he had in Bitcoin, his capital profit would have probably tripled.

So sometimes it's hard to know that you're smart because usually self-indulgence swallows up our true personalities too much, and when our money goes to nothing, it's as if the intelligence we have is also ignored. Sad reality, actually

There are many people who are smart in investing but fail to make the investment profitable. However, investing is not a platform where an experienced person can make profits. But there are some basics where a small mistake can lead to big losses. Everyone who has a little understanding of crypto investing knows how reliable Bitcoin is for investing. However, there are many investors who invest in an investment platform in order to make a quick profit from the investment, which later results in huge losses. If that person had invested in bitcoins, he would have got many times more profit than his total assets.

[SmartGold01]

You know as worker or business owner maybe a bitcoin investor what they should do is to have their income or monthly salary have splitting into several places maybe it could be into 3 to 5 places in this they should be able to have 1. Emergency fund, 2 Savings, 3 Charity, 4 Investment and or kind of reserved funds for family expenses. If someone has all these set aside then I don't see any reason for them to go alter their investment while savings and reserve funds is there to take care of all the needs.

I agree with what you say, but there are people who for various reasons cannot do it that way or they simply have not stopped to think about a way to solve possible emergencies. Personally, for years I have divided my salary into several parts, and in another fund I have cryptocurrencies, so I don't have to use a single thing to solve possible problems. But that is something that depends on each person.

Building a solid emergency fund as well as reserve or float funds should be the first thing to do before even beginning to build up your investment because that's the only thing that'll determine whether or not your investment would grow or if it'll be stagnant or if it'll crash.

As long as life is concerned, emergencies will always come up and if peradventure they do and you have no back up plan to sort out the emergency, but have an active investment, then you can be sure that the value of your investment will automatically drop when you dip into your investment for financial support to sort out the investment.

Most times people think that to make a solids investment comes from deeping hands into their investment by using it to sort out any issues and keep saying the reason for their investment is to used it to sort out issues knowing to well That's no investment that can yield profits while they keep touching.