Bitcoin Forum

Bitcoin has surged past $21k. Newbies are rushing into the market to buy some.. FOMO...it's incredible that people are more willingly to buy a coin when the price is high than when it's low. Take for example when btc was less than $600 in 2016, people thought it was just plain stupid to buy a coin for that much. I had the experience with ethereum, I could have bought eth at $100 but I wasn't sure and was waiting for the "right time". I later bought ETH at $400. The psychology of regarding coins as shit coins until they blow up and become too expensive is common among newbies. Even myself I am guilty. Enjoy the bull run guys!! Remember to lock your btc or swap to a stable coin like usdt. Good luck

That's the common problem with looking at USD value of altcoins whenever bitcoin price is rising!
In this case for example ETH was worth nearly 0.04 bitcoin and is currently worth 0.029 so you would have actually lost a quarter of your money (-27%) if you had invested in ETH whereas the same money invested in bitcoin would have gone up 596%.

This is probably because such people are looking to buy profit rather than the actually asset, they'll likely jump at  a random altcoin which was up by a high percentage, reason why pump and dump DeFi projects has so much fomo around it. If one truly understood the asset they were investing it, then the fundamentals of it would weigh higher than price activity, when deciding on the 'right time'.

By lock I assume you mean, store them in cold storage.
And if one is going to swap their bitcoins around to take profit, they should make sure to have an investment plan.
This thread could be a useful guide - https://bitcointalk.org/index.php?topic=345065.msg3697405#msg3697405

I don't know if it's just me, bitcoin will probably grow over 23-25k into 2021 but still the biggest mistake in crypto space is buying at all time high, so dangerous than anything I've ever knew about crypto, it takes 4years for old investors of 2017 to recover back when they entered @ 20k in 2017, if you are a newbie you don't want this to happen to you

The best time to buy bitcoin is red bearish market and I believe that the next bear market will be very huge, I know that many organizations are getting into Bitcoin and buying their shares but Volatility is inescapable in crypto space, the best time to buy is bearish season, if it's a must to buy right now well altcoins are still not showing any huge run yet

It's not only the price, it's also the trend. They see it rise and instead of looking back that it was around 3k not long ago, they think that if 20k was reached, 200k or 2M is just as easy.
Of course, the new ATH and the price increase makes media coverage increase by a great deal, fueling the FOMO.


That's best to buy various amounts over longer period of time. That should decrease the chance at least to buy it all at ATH.


True, but I am not convinced that next bearish low will be under 20k.
The history tells that the Gox ATH was around 1.2k, next bull run started at around 1k and went to 19k+ with next low at over 3k, still 3 times higher than the Gox ATH or the start of the following bull run.
I hope that the over-shortened explanation made sense.

Also, please edit and merge the 2 posts you made, to comply the rules/posting etiquette.

Its price scavengers that want to devour, when prices are juicy and plump, they only understand price in a crypto-coin, how do -Newbie- buy a crypto-coin when the price are high and what even cracking my ribs is they sell when price are dropping low. Crypto-coin is not for price scavengers
They can
+ fall into scam
+ waste-off investment
+ mis-conception and carry this to others
+ depressed

Those newbies attract to the market because they are surprised with what bitcoin price does.
They do not analyze deeper what is happening to bitcoin. Instead, they buy using an instant button.
But for people who bought bitcoin in a few days, they are making a profit and even they can increase their money in just a few days.
Your experience buying ethereum is good, but if you sell your ethereum $400 and buy back ethereum at $300-$400, you will increase your ethereum amount, and you can sell it at the current price.
That will gives you more profit.

It’s just gone above 23.401$ in the past few minutes. I’ve been looking at today’s local (Spanish) online press, and most of them are covering the 20K event, although it has not reached the TV media yet. These act as catalysers, and I’d really rather it be a more natural growth, than a hyped rush to make a purchase.
 
Things are just building-up, and I wonder if Bitcointalk is going to see those numbers rise again like in the past. I doubt they will reach an ATH of active users, since there is no accompanying ICO rush alongside. All the better really ...

They also want to see them self happy earning with the current trend of the market  that's why they can get easily hype whenever there are traders who posting their profit in this current market trend happening these season. But actually before anything else they should do a study about how they can manage the risk since giving figures and give easy advices can give them false confidence which can lead to buy on wild guesses and this dangerous to them since they might gonna buy at the peak, for that instead to earn they will lose their money.

I couldn't agree more. There should be more people investing in a project because they believe in the tech rather than investing for immediate profits. But hey what do we expect when hyips keep flooding the internet with "invest 1btc and get 5btc".

Psychology is to follow the achiever and unfollow the loser.

This is what is happening now and it did happen last time in 2017 when Bitcoin reached 20k. After reaching ATH at that time a lot of FOMO was created by media and social media influencers about Bitcoin reaching 50k by the end of 2017. But, suddenly Bitcoin took a downward plunge and those who invested in Bitcoin at its peak in 2017 started spreading rumors that it is a Ponzi scheme and a bubble.

As of today, the sudden rush by newbies to buy Bitcoin is again being created by the media outlet and social influencers and they are now claiming that it will reach 100k by the end of 2020. The FOMO is so big that on 17 Dec Bitcoin was the second most searched keyword as per Google trend. Prior to that date, it was the 18th most searched keyword.

Hence, I always stay away from news related to Bitcoin from anywhere except this forum and keep my trust and faith in it.

FOMO is one aspect of the network that newcomers and non-bitcoiners must feel when the price of Bitcoin surges very high like it's doing at the moment, it's just like users who join the network when bitcoin is about to be halved, they are only rushing cause they have heard that halving will prolly cause an appreciation in the price of Bitcoin, FOMO will lead a lot of people into panic buys as well as to make mistakes in their choices, but it could as well teach them a lesson on how to invest next time.

As this bull run continues, very soon, scam activities will go up as well, desperate people will take actions without thinking and scammers will take advantage of them, as a newcomer, always ask questions before taking any move, and don't hurriedly take a decision, cause it could be the wrong one.

It’s nothing out of the ordinary if you understand why it’s happening. Most people do not want to invest in the long run because they need money for daily needs, and when the opportunity arises for the price of BTC to start rising sharply, they calculate that they will profit in the short term. In just a few days, the price jumped by as much as $4000, which has already brought profit to everyone who invested at the time of the new ATH.


I don't know what exactly you mean by "lock", but I think that stable coins are not a good option given their nature of existence in the sense that they can be frozen at any time, or become worthless. The basic rule is that every stable coin is backed with $ or some other asset, but in practice this is not the case.

It is okay to have a happy moment because we succeed in making a profit, but we need to be careful if we want to buy back again.
The crypto market now becomes bullish for a while, making many people happy to see they can make a profit again.
But we need to remember that after the bullish trend, the bear trend will come again, and we need to prepare for that.
Analyzing more will be better to set the time to buy, so we can hope that we can buy at a low price.

OP I'd probably right! I got a whatsapp text from a local friend today, asking meif she could join bitcoin. I was surprised at the text but then, wasn't surprised she wanted to join following the bull run because, that's when the value seems to stand out and rings a bell in the hearts of noobs. But then, it feels wrong following the fact that, your supposed to buy when it's low or going and sell when it's high but the truth and what fuels investors motives is, the all time highs are still going to be broken. The question is when? Time I'd of the essence.

 It's quite interesting that we have a few knowledgeable newbies around here with this sort of analysis and understanding of the crypto space, it's in evitable that you've been watching form the sideline and has finally decided to get the go going. So much for a head start.

i believe that the main reason for newbies FOMO buying is not just about bitcoin price rising but mainly it is because before this rise they used to hear how bitcoin will never go up and maybe even die from all those FUD spreaders. feeling like they are "missing out" is so much stronger when they used to think it won't.
that is probably why each time we have a lot of FUD the follow up rise is so much bigger :)

many were hesitant then because the price of bitcoin plummeted after ATH in 2017 which is a red flag for those who are looking for possible income and a good investment. because they see that they can go bankrupt quickly but since they see that it can also recover they see the possible opportunity for them using trading buy and sell Bitcoin and other is afraid to be left behind so they want to invest as early as they can after ATH.

I definitely agree with your statement.

The problem with most of the newbie investors is that they only invest depending on the trend on social media and about the current news without even reading the reason behind the surge. Now assuming that they indeed invested then the price dropped, they are also the ones who complain about bitcoin being a 'scam' and a 'fraud' investment. Instead of blindly investing into bitcoin, supply yourself with sufficient knowledge and tools to know the reason behind the surge.

Again, bitcoin is a volatile currency and its price may suddenly increase/decrease without any warning. So in order to at least save your investments, learn to be smart and capitalize on your role as an investor and not as a rider who follows trends.

I guess we can't do anything with it, newbies are just bandwagon, if they saw something that is on a trend they'll go for it. Like in the case we are all in, upon seeing Bitcoin's current price right now, the fact that it is in a rally they tend to accumulate as well though it is very expensive to buy and once they got what they want they will just leave instantly. I bet they didn't even know truly how the market work, they only because of the trend and profit. And I think this also happened in 2016. Fortunately, today's rally was different because the growth was firm enough and more mature unlike we had before.

Would you believe if I say I had the opportunity to buy 10k BTC at around $0.1 per coin in its very early days? I didn't buy it at that price because my dad straight away rejected my proposal to go for this. I studied everything from its whitepaper to knowing about the technology backing its transactional run (I'm talking about Blockchain), but my dad thought it's a HYIP (and it was time back then when such things were in the trend). I lost too much in HYIPs before I got known to BTC that my father didn't let me buy it, not even when BTC was just $30 (as he wanted to prove me that it's a HYIP shitcoin and nothing and he thought he proved it to me when BTC crashed down back to $5). Things never remained the same for BTC and so is the case with those in the top 10 according to their marketcap. I believe that you need to get the rest ones assorted in order to find the best coin and get into it, wait for some years to get the next 100x.

A shitcoin is not a cheap coin, it's a coin that doesn't have any utility, innovation, development, usually all it has is aggressive marketing. They also often have severe flaws that make them centralized and unsecure. It's irrelevant what their price is, even if they rise x1000 they are still shitcoins that are doomed to become worthless in the long run.

And selling BTC for USDT is stupid, Tether is centralized and could crash at any moment with no protection for holders. Better stick with traditional banks if you deal with fiat, at least they are fully regulated.

Elon Musk's comment about bitcoin got me worried. Is there going to be a dump because of this?

Bitcoin hit ATH of $27k yesterday. 2020 seems to be ending on a good note. Santa came through with bitcoins lol

The right time to buy bitcoin is the "now time" you see the price, what I mean is, there is no right time to purchase bitcoin, the best time is now no matter the price only if you exhibit a patient character, I came to understand that the best way to go about this is to become hodler as a newbie till you have gathered some useful information for your yourself and learn a lot regarding trading. The price often scares people away while they were aware when it was cheap, it just that and that's how the system is, nothing to change about it.

It's that FOMO that's the best way to get the pump to keep going. I sense no manipulation here. Every entry price is expensive no matter what, what's assured is that there will be profit/loss at a certain time. So one has to be careful on which coin to buy into. Bitcoin and other coins with good marketcap are good to look into.

At time of writing of your post, bitcoin was at all time high at 21K and some people may have thought this is the end of bull run and cashed out. They would have missed the insane gains afterwards when bitcoin moved to 41,000$ within 2 months. Although it important not to fall for the fomo in bull run but at the same time it is important to realize to take profits near the end of bull market and not at the start of bull market.

You are not the only one who feels guilty because of FOMO, we all are, we always on the look for the market to move and waited for the right time to buy because we are still in doubt in our heads.
Because in the past FOMO is the one ruling in the community and with so many big names spreading negativism in the community we are always in doubt.

Yep, FOMO and FUD are some of the reasons people get involved in pump and dump scams, or panic sell when the market experiences a dip. FOMO is time, money, and stress. One could have a heart attack reading tweets. Its difficult not to fomo, it takes time and understanding of the market. And more importantly it takes discipline