Reasons for newbies loss in bitcoin

[Sanugarid]

Bitcoin is becoming mainstream these days and top most choice for many investors for making investments and contribute a good portion of their portfolio allocation towards the same but still we see panic sell among these investors making the situations worse for market and for themselves also. So what are the main reason for these sell off ? Later on when they buy at peak and sell off at drop they think btc was not the right option for them but don't realize their mistake.Some common reasons for these are as follows:

1) People think Bitcoin as tool to become rich overnight

The main reason for people investing in bitcoin is that they see btc as tool to become rich overnight and according to them if they would invest $100 or $1000 in bitcoin it would be double or triple within days and when they see their investment going down next step they get nervous and want to safe themselves from any further loss.They see on news and article that btc is up 1200% this year and they think it will keep on rising and when this does not happen they panic sell and start dumping their coins.They need to be atleast have patience and know it will take certain time for btc to jump back.Apple,Microsoft and other shares have not make upto S&P 500 overnight but still bitcoin is keeping the pace very fast. 

2) People ignore the volatility factor and past Crashes

Many new investors enter the market in the investment hype and hope for steady rise and ignore the main "Volatility" factor and it is the basic knowledge every investor must have prior investment.The volatility in crypto market is high and prices can fluctuates highly but when it goes down they start panicking and do the same mistake which is biggest mistake. Market have seen many dips and crash like situations but still they tend to ignore it and got nervous. They should see this chart history before any judgement:

When it have witnessed more than 70-80% crash in prices and still managed to rise to this level so why do panic sellers think it is bubble and will burst this time? It has been declared dead hundred times and still trading at $30k so if you underestimate it you will be in loss in future.

3) Whales manipulation and FUD

This is most common technique to create dump like situations in market to gain huge profits from this situation and accumulate more bitcoins at cheap prices.They spend rumours and create FUD in the market to which most of the newbies will get panic and start selling off and exactly same thing happens and the only ones who suffer loss out of this will be panic sellers.


WE ALL NEED TO TAKE INTO CONSIDERATION ALL THE FACTORS BEFORE INVESTING INTO BITCOIN AND HAVE PATIENCE FOR SOME TIME MOST IMPORTANTLY IN THESE DIPS SO THAT IT GET SOME REATAIL SUPPORT.

I agree with all the factors you've presented especially for the 3rd reason which makes most people panic sell but we can't blame them since not everyone can afford to sit back and watch their money get burn in the market.In addition, we should set aside our emotions when we decided to invest in BTC and don't let it take over your decision over your BTC. Invest in knowledge first before considering this type of investment.

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[Rahman11]

Trading. Trading can lead to big gains in Bitcoin, but it's not without risk. In fact, the movements in the price of Bitcoin are so great that it's very easy for even experienced traders to get whipsawed and lose a lot of money. Trading Bitcoin poorly is therefore probably the easiest way to lose money in Bitcoin.

[Assface16678]

Bitcoin is becoming mainstream these days and top most choice for many investors for making investments and contribute a good portion of their portfolio allocation towards the same but still we see panic sell among these investors making the situations worse for market and for themselves also. So what are the main reason for these sell off ? Later on when they buy at peak and sell off at drop they think btc was not the right option for them but don't realize their mistake.Some common reasons for these are as follows:

1) People think Bitcoin as tool to become rich overnight

The main reason for people investing in bitcoin is that they see btc as tool to become rich overnight and according to them if they would invest $100 or $1000 in bitcoin it would be double or triple within days and when they see their investment going down next step they get nervous and want to safe themselves from any further loss.They see on news and article that btc is up 1200% this year and they think it will keep on rising and when this does not happen they panic sell and start dumping their coins.They need to be atleast have patience and know it will take certain time for btc to jump back.Apple,Microsoft and other shares have not make upto S&P 500 overnight but still bitcoin is keeping the pace very fast. 

2) People ignore the volatility factor and past Crashes

Many new investors enter the market in the investment hype and hope for steady rise and ignore the main "Volatility" factor and it is the basic knowledge every investor must have prior investment.The volatility in crypto market is high and prices can fluctuates highly but when it goes down they start panicking and do the same mistake which is biggest mistake. Market have seen many dips and crash like situations but still they tend to ignore it and got nervous. They should see this chart history before any judgement:

When it have witnessed more than 70-80% crash in prices and still managed to rise to this level so why do panic sellers think it is bubble and will burst this time? It has been declared dead hundred times and still trading at $30k so if you underestimate it you will be in loss in future.

3) Whales manipulation and FUD

This is most common technique to create dump like situations in market to gain huge profits from this situation and accumulate more bitcoins at cheap prices.They spend rumours and create FUD in the market to which most of the newbies will get panic and start selling off and exactly same thing happens and the only ones who suffer loss out of this will be panic sellers.


WE ALL NEED TO TAKE INTO CONSIDERATION ALL THE FACTORS BEFORE INVESTING INTO BITCOIN AND HAVE PATIENCE FOR SOME TIME MOST IMPORTANTLY IN THESE DIPS SO THAT IT GET SOME REATAIL SUPPORT.

This kind of infomations are what the newbies need to learn and research more in order for them have a good and high success rate in buying/hodl bitcoin. Additional to this is the Panic Selling in which they tend to sell if they saw a sudden crash in the market. Well we cant anticipate where this time will hit but if you research good enough you can predict it. So overall, panic selling while the market is on crash is one way for the newbies to lose. How ever it is also a good opportunity for them to buy additional bitcoin.

[bryant.coleman]

Mostly these 3 things happen -

1. They invest in a Ponzi and their company runs away with their money.
2. They use some free wallet and again the company run away with their money.
3. They install some trojan through a program they're unaware of and the hacker steals their bitcoins.

There could be many possibilities but I thought it's better to post easy-to-understand ones.

I agree with all three points, but I believe that the no.1 reason is carelessness. I have heard about numerous instances when newbies lost their coins, due to careless handling. In some cases, they purchase a hardware wallet and store their coins in it. They forget to keep backup of this wallet and if the wallet is lost, then all the coins are gone. In other cases, they never bother to activate 2FA or email confirmation in their online wallet. Such wallets are like easy pickings for the hackers and crypto thieves.

[carlisle1]

Mostly these 3 things happen -

1. They invest in a Ponzi and their company runs away with their money.
2. They use some free wallet and again the company run away with their money.
3. They install some trojan through a program they're unaware of and the hacker steals their bitcoins.

There could be many possibilities but I thought it's better to post easy-to-understand ones.

I agree with all three points, but I believe that the no.1 reason is carelessness. I have heard about numerous instances when newbies lost their coins, due to careless handling. In some cases, they purchase a hardware wallet and store their coins in it. They forget to keep backup of this wallet and if the wallet is lost, then all the coins are gone. In other cases, they never bother to activate 2FA or email confirmation in their online wallet. Such wallets are like easy pickings for the hackers and crypto thieves.

Carelessness due to lack of knowledge, It's tough to see those newcomers who losses their money.

Forget about the wrong impression that this market is a place where it's an easy way to earn a decent amount of money.

Indeed, this is a good venue to invest in and have that equal chance to make some to huge amount of profits, but always
remember that it's your knowledge that will lead you to succeed.

[suboo112123]

My opinion is that, if you are a newbie for not only BTC but also any other financial market also, you must be studied in depth before investing or trading. if you didn't study about the market then definitely you will be lost because of the lack of knowledge. I know about a lot of people who lost their money by trading and investing without prior knowledge about the market. I spoke with them and they told me that they invented the market without much knowledge. so if you want to be a profitable investor or a trader, then first of all you must want to study the market.

[EewardDean]

When novices just start to buy btc and the first decline occurs, novices generally panic because they do not understand the mechanism and trends of Bitcoin. They are likely to buy btc only after they have heard of btc, so they do not have much confidence in btc, and it is normal for a sell-off to occur. When novices earn their first wealth, they will often sell bitcoins out of excitement and enjoy the fun, so novices are not very familiar with it and will not hold bitcoins for a long time!

[judas]

I would like to add something to this list also. One of the other reasons why newbies lose too much money is that they are becoming really greedy. They want to buy Bitcoin with nearly all of their money which is so wrong. Because as we all know, Bitcoin is a volatile cryptocurrency. You shouldn't trust it fully with all your money. We don't know when it will go down sharply or go to the moon. Maybe it will go down to a very low level and it will stay there for even one year. In this period, it will affect you deeply as you already invested nearly all your money into Bitcoin.

And some people among these newbies are panic sellers. They don't know how to manage their investments affectively. When the price goes down quickly, they panic and want to sell a serious amount of their coins immediately. But they don't know that it will harm them in the long run as the price will recover after some time.

[BobK71]

Most of the people who are new in this platform make some common mistakes which can lead to big losses. For example, many people invest a large number of amount once in the hope of making more profit without realizing it. There are so many rumors on going around the world. Here newbies are Victims of fraud.

[kenskie]

Investing without learning, stupid thing to do.  They just think of earning and double or triple their money, they don't think the high volatility rate of Bitcoin. Patience is the Key.

[pinggoki]

I would agree on the post but I don't think pump and dump schemes produced by whales solely affect the newbies, it affects everyone who invested in bitcoin in my opinion. FUD however, would always originate from the people who barely know what bitcoin is so I think these two come hand-in-hand. (e.g. newbie loses a lot of money because of a dump, gets upset about it, spreads FUD amongst the public therefore dumping the price even more). This has been the case for the most part of cryptocurrency's history. Now the first two reasons can be absolved by learning how cryptocurrencies work and their ins and outs. the only seemingly uncontrollable factor that could affect a newbie's loss in crypto is the latter part.

I would like to add something to this list also. One of the other reasons why newbies lose too much money is that they are becoming really greedy. They want to buy Bitcoin with nearly all of their money which is so wrong. Because as we all know, Bitcoin is a volatile cryptocurrency. You shouldn't trust it fully with all your money. We don't know when it will go down sharply or go to the moon. Maybe it will go down to a very low level and it will stay there for even one year. In this period, it will affect you deeply as you already invested nearly all your money into Bitcoin.

And some people among these newbies are panic sellers. They don't know how to manage their investments affectively. When the price goes down quickly, they panic and want to sell a serious amount of their coins immediately. But they don't know that it will harm them in the long run as the price will recover after some time.

This is so true, unless you really don't have a choice, you shouldn't put all your eggs in one basket as this rids you of all possible backup plans that you could possibly take in case your first option fails. Most newbies go balls-deep in one coin and complain that they lost a lot when the coin dumps. This became so common that the meme phrase "buy high sell low" had become a staple joke between investors when advising new comers because most of the time, this is what they would do at the sight of a bearish market.

[Gyfts]

I've found a lot of people do understand volatility factor if Bitcoin, they just happen to cave in and panic cell when things aren't going well. You can put in whatever you want into bitcoin and within the next 10 years you will see returns. That isn't to say there won't be massive crashes from now until that point, with new investors jumping ship.

[Pamadar]

There are many reasons for newcomers to Bitcoin losses which if not followed properly can lead to huge losses. The reasons are mentioned below.

Excessive greedyness
Lack of enough knowledge about market and cryptos
Lack of patience in trading
Invest on shit project.

There are many reasons newbies lose, and I've experienced all of the above, but the more I hear and read the more I understand the best strategy to be profitable in crypto, when I first got to know crypto I was greedy because I hoped for big profits from projects that promised big profits , finally I got scammed and this makes me excited to keep learning.

Experienced mostly the best learning process, indeed many newcomers losses their money after investing in this market.

There are many factors, but the main thing is the lack of information about the business that they are entering.
but along the way, after many struggles, they will learn and, after that, they enjoy the good benefits of investing
using bitcoin or any alts that they used as a token of their investment.

Most of the people who are new in this platform make some common mistakes which can lead to big losses. For example, many people invest a large number of amount once in the hope of making more profit without realizing it. There are so many rumors on going around the world. Here newbies are Victims of fraud.

Newbies, mostly the victims, in any trading business expect that whales are present. Without any knowledge of their existence,

you are gambling with your money, make sure to know how to handle this kind of investors, know how to work well with any possible manipulation that's mostly present in the market.

[Nutrient]

Newbies tend to lose when they don’t study past record of the market volatility. Also, they tend to deliberately ignore the fact that Bitcoin is not a short term project.

[LyJones]

Lack of self-control;
Too much knowledge of the latest market trends;
Delays in making decisions about difficult financial issues;
Leave the previous market uncertainty behind and think that both bull and bear markets are predictable;
The full energy is not concentrated on all the investment portfolios;
Avoid unfamiliar investment products;
Unwilling to sell underperforming investments;
The tolerance for risk always rises and falls with the market.

[Ngewex Yuk]

Investing without learning, stupid thing to do.  They just think of earning and double or triple their money, they don't think the high volatility rate of Bitcoin. Patience is the Key.

For bitcoin of course there is no doubt if newbies practice by investing directly. investment without analysis is gambling, crypto is a real project but many are scams, study in detail the team composition, if in doubt then ask a trusted source, especially in this forum, if convinced then invest immediately.

[blckhawk]

there are a bunch of reason why newbies have losses when it comes to investing in bitcoin, the most impactful one is the lack of knowledge when it comes to cryptocurrency, because many people believe that if you invest in bitcoin you will be rich overnight which is a wrong mindset. bitcoin's market is very volatile meaning that the price of bitcoin will always go up or down depending on the demand on it. so if you think that investing in bitcoin will make you rich instantly, then you are wrong. you must first invest in knowledge about cryptocurrency before investing money.

[olib123]

there are a bunch of reason why newbies have losses when it comes to investing in bitcoin, the most impactful one is the lack of knowledge when it comes to cryptocurrency, because many people believe that if you invest in bitcoin you will be rich overnight which is a wrong mindset. bitcoin's market is very volatile meaning that the price of bitcoin will always go up or down depending on the demand on it. so if you think that investing in bitcoin will make you rich instantly, then you are wrong. you must first invest in knowledge about cryptocurrency before investing money.

Yes I totally agree with your opinion lack of knowledge, panic, impatient, putting high amount and greedy plans these are some reasons for newbies loss in Bitcoin.

[jakdanyel]

In addition, people should be aware that it is not recommended to invest nearly all of your money into Bitcoin. Because if you will not be able to afford that big loss, you can be in a really big trouble in case you lose all your money for example. People should always invest with an amount which they can afford later in a bad situation. And one should never take loan to make an investment into cryptocurrency also. It is just crazy, you know.

[$crypto$]

Newbies are really affected by the FUD, they can easily persuade because of the FUD, and whenever there is a FUD on a coin that they are holding they will still sell it even though they are already at loss. The greediness and ignorance also make them lose their money, some of the newbies think that crypto is easy money and a way to become an easy millionaire and that is also one of the other reasons why they lose in this crypto world.

If newbies will try to gain knowledge first before doing crypto activities then they might lessen their loss, losing money in crypto is really normal and I am used to it so many times but with the knowledge that I gain each and every day I lessen the loss and make it a gain.

Even the news of FUD makes a very cruel trap for beginners to lose money because of ignorance so that they will sell even at a loss, behind all this because their mentality is very weak.
A few days ago bitcoin fell because some said it was FUD or bulltrap and other types but without us realizing all these things have become commonplace in bitcoin, and will surely become a frying pan by a group of people who can buy low, but in reality now bitcoin has begun to crawl again, it's a sign that in every certain sector there must be control.
So beginners have to understand this and most importantly by holding back a little it will be much more difficult in the future.