Bitcoin Forum

Seriously if you can’t sleep at night because Bitcoin fell 20% then you have too much of your assets allocated to it. Bitcoin is volatile. It will swing a lot in both directions. You need to be able to handle the volatility. If you can’t handle the volatility then don’t put so much of your money into it. If you only put 20% of your money in Bitcoin and the price falls 20%, then that’s only a 4% drop in your net worth. If Bitcoin is 50%, then that’s a 10% drop. If you cannot handle these swings then to need to lower your exposure. You should not be up at night wondering how much money you may gain or lose the next day and how it will affect your financial situation. This mostly goes for losing money though as no one seems to think they’re over overexposed when they’re making money.

surely it will be easy to understand that bitcoin volatility and its price will change very quickly either the percentage decrease or increase. if tonight it goes up, tomorrow morning it could go down and vice versa.

..or they simply really don't know what they're investing in. :P I myself am really really overexposed(in the perspective of traditional investing/finance) and became a lot more overexposed because of the price rise; and yet I didn't get nervous in the slightest because these price movements are to be expected.

The last time I couldn't sleep after investing a large amount of money, was after buying a Brent Crude Oil tracker about 7 years ago.

I got up first thing in the morning and sold it for a small profit, and then oil crashed days later. Phew.

The gods were telling me something (the Viking gods probably, as oil, iron, timber etc are probably their remit)

The longer we become involved in Bitcoin and Crypto the more we are exposed to its movements
as well as its developments. This means that 20% swings dont panic us into acting irrationally.

I too am overexposed to Bitcoin, I have all of my FIAT savings in it, also have 2 loans converted to BTC.
The first will be paid back in 1 month and I am showing 4x on that.

I dont panic because I believe I am "all in" in the right space. Hold my FIAT for retirement
or putting it into a pension for other people to earn fees from and trust they invest wisely
on funds unaccessable for years does not appeal to me.

Having a diversified portfolio is a way to approach investment in an organized manner. But, as you diversified portfolio you need to consider stock, bond, businesses, crypto. also, it is your risk appetite that will determine the percentage composition of your portfolio. if you have 50% of crypto, it means you are exposed to volatality by 50%.

I couldn't agree more. Due to the increase, I've been fairly overexposed myself. And while anxiety kicks in with the drop, I think most of us have been here long enough to be at ease with the price fluctuations of BTC.

Anyone who just bought in with no prior exp, I can see why they may be nervous.

This.

As long as you have lots of little bits of everything, then you can have more fun and freedom speculating with the individual bits.

Just goes to show how they're pretty new in the market, that or well they never learned anything. I myself was always panicking over 5% 10% decrease/increase back then, but heck now I'm just like whatever tbh. Not that I'm leaving myself to lose my funds, but I don't react negatively and would rather instead think of what to actually do every now and then.

It'd probably even better for those types of people to just leave their wallet for a few years and separate themselves from the crypto space IF all they're doing is hodling. At the very least, you won't wake up in the morning to check the price, only to see it drop by 1% and yet you panick over it so much.

Those who are just getting into the world of cryptocurrency investing will be very nervous when bitcoin loses 20% of its value. Even if they lose 50% value, they will panic. I agree with what the OP said. Don't invest all your wealth into bitcoin if you are a beginner.

Yeah it's obvious that anyone that lost always think emotionally, because it's not easy to get money sometimes, bitcoin dropping really making people invest large to have bad feelings even though is not large money is money and that's make people to be desperate of having it in all ramifications, and is obvious that some people use all their money to get bitcoin, so having bitcoin is major of their assets, so i think as a human they have to reason based on what prompt the down fall of btc and also blames themselves for not withdrawing before it's go down in price, that's is the reason I always emphasis not to carry all our eggs in one basket.

My advise when it comes to bitcoin investment since I was a complete failure is to never get your emotions over the bitcoin market price movement. If you believe that in the future bitcoin will going to surpass the current market then even how many times it will fall as long as you keep holding and even buying when bitcoin market is cheaper then that would be a good attitude and once you endure the price will be great.

Same here - most of my networth is in BTC, but after witnessing all the crashes since 2016, I can only yawn at these 10-20% corrections. If someone thinks that Bitcoin is doomed when they witness a normal correction, it really means that they did absolutely zero research on Bitcoin's fundamentals and past performance, they just FOMOed because they thought they will double their money in a week.

One thing to remember is that investing in bitcoin is not the same as investing in altcoins. based on the downturn, the panic happened, but they forgot that bitcoin was still alive. This is what it says, no matter how much money it pays to have it, I think it will be safe. even though it dropped dramatically. because the inversion will exceed it. Another thing with relatively own altcoins does not guarantee.

I agree with you, in fact you said it all. Many people are yet to understand the right way to go about investing in Bitcoin as well as other cryptocurrencies, they see it as a get rich quick system thus putting all their funds with the expectations of getting it big and when the price goes sideways they start panicking, even at the slightest correction which the market needs they will still panic. Just like you correctly said, there is no need to put your funds if you cannot deal with the volatility, and this volatility is not going anywhere, and works together with the crypto space thus it demand that, every one invests what he can afford to lose, invest in good coins like Bitcoin, hold and watch the value grow, moreover, Bitcoin growth over the years is a good proof that it has come to stay.

I'm much more nervous about being over-exposed to cash. I have had a couple of thousand dollars as a safety net in the house for a few years now, and the risk that cash will be banned "because viruses" seems more significant than ever.

You only have to worry about your BTC in terms of it going to zero and never recovering. Given an understanding of why Bitcoin is valuable, that seems increasingly unlikely.

Actually, if you, if you have been in the project for a long time, which is one of the legit Bitcoin enthusiasts, I think nervous is nothing to feel if we are thinking about this kind of drop, it is because of the length of the service and you are totally overexposing in terms of investing, perhaps you will remain in this project because everything is found and naturally occurring, moreover, it is a part in view with the digital process.

20% on your overall asset? I doubt that this would really be an easy case.No matter how badly i do like to make investment then i cant just reach out that certain point due to expense
and real life priorities but for those who are financially capabled then that would really be an advantage.

20% isnt something for you to bother on and i agree that if you do make out those calculations then those arent making those big losses when volatility goes
to the opposite side.

Getting nervous about the drop? It cant be avoided but somewhat can be handled.

Panic comes from being not comfortable with the thing they do. New investors mostly affected this and they got crazy when they saw a declining trend as they are always expecting a bullish run than this. Perhaps they are not still learning yet, they always fall into the trap and brought them to sell earlier.

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I couldn't deny having this feeling before but gradually, I have able to change it and realize that it only causes more losses if we let this emotion controls us.

Probably this is the feeling of the new investors who didn't yet understand how investing in crypto works.  As a crypto investor, we should know from the start that there's a risk upon your investment.  The volatile market makes your Bitcoin amount value fluctuate but actually, your Bitcoin will remain the same, so nothing to worried about.  If you invested 1 Bitcoin it will remain 1 Bitcoin, if the value towards dollars has been decreased, you should wait further to see your profit.  Don't sell when the price is low, that is insane.

Getting nervous is normal, but don't panic and hold your Bitcoin until such then you will successfully get your profit.

This is so on point! You just earned yourself one merit from me for being credible and calculative. The price drop trigged a statement where someone said that Bitcoin was dropping to half it's price (I guess due to fear!). Most people become afraid/nervous only because they've invested too much. I'll say this again, invest an amount you can forget easily, that way, you won't be checking Bitcoin price every second  of the day.

I personally don't see any reason why people need to be exceptionally nervous or worried about the market because of the recent dip which actually makes me happy because it just a sign that the previous surge in price is not a bull trap since the market holds steady to the $30K-33K price range. Besides, it just a preparation for the upcoming bull market.
But if it happen that someone was unable to sleep because of the dip it either hes overexposed or lack crypto wisdom.

Agreed this was price correction usually the price wil go higher after that just like 4 years ago after first bull run

btw altcoin still not touch their new ATH

You missed the point, newbie.

OP is not querying on nervousness, OP is saying if you are nervous right now, pull out some of your investment.  The scam sites used to say "only invest coins you can afford to lose"; your attitude should be like that with any investment.

I think that is why we need to know how much money we need to use to invest in bitcoin. Perhaps, we need to control our emotion, especially if we see bitcoin price get drops too deep like what we see now. But it is wrong if we can't sleep well every night because of the drops of bitcoin price because we will not have a healthy body, and we can't see how to prevent the losing money in the investment. Just believe that bitcoin will increase again, and this moment will be another correction for the bitcoin price, so we don't think negative that can impact our health.

Well said! You've explained the problem very well!

Totally agree with you! Just look at the rise in bitcoin over time. There you can see that the price goes up and down constantly and it's OKAY! People just need to calm down and be more stress-resistant ;D ;D

Maybe for those who are new in this kind of field where in prices of bitcoin drops heavily, they aren't used to the market's volatility.

I have been a long term holder and not even panicking with this drop, normally if we are going to panic and will sell it off because we are worried about the loss, then think again. There is always a choice of holding.

Funnily enough, having control over your emotions ain't even just bitcoin/crypto-specific as a lot of people think; it's actually for investing in general, and it's been a really really common advice for decades.

Here's one famous quote from Benjamin Graham(author of The Intelligent Investor, Buffett's favorite investing book): "Individuals who cannot master their emotions are ill-suited to profit from the investment process.".

^and this dude died in 1976. This advice has been THAT old.

Some people are saying that it is normal for bitcoin's price to drop when market is bullish so you don't need to worry that much.

But you still need to observe its volatility in the market so that you will not have a hard time regretting your activities when bitcoin's price continuously goes down. That's a part of being an investor, you need to deal with risks in the market so that you can make your money grow or you will make this bitcoin investment profitable.

You don't need to overthink and you just need to relax so that you know what to do depending on the situation.

It's a cycle really, those who are here in 2017 really see what a bear market is, they become smart and now call themselves as holder. And then we have the new set of breed investors, who haven't seen this dramatic drop panics and sell.


Majority of us don't panic because we all know that bitcoin will bounce back time and time again. If people are somewhat nervous specially newbies, then this is the time for them to really stick with bitcoin and learn what volatility is.

Not just overexposed but a lot of people who rides the bull are also lacking in knowledge about bitcoin, that's why they are shaking as well when the price is rocking down and up. Volatility in Bitcoin is normal, but newbies in cryptocurrency world seems to prior FOMO rather than studying what is Bitcoin and the Blockhain technology after they invested their money on it.

So the result is always the same over and over again. They always lose profits because of panic selling whenever the prices go down drastically because of a correction or a very short pullback.