Reasons for newbies loss in bitcoin

[worle1bm]

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.

[A62662]

The main reason is greed and stupidity combined with more money than brains.

[cryptoaddictchie]

The point number 2 and 3 I guess are those of the reasons some of the newbies losses in the market. They ignore the reality that price could go down and when it crashes already they panic and sold even they are on a loss. Whale manipulations are the worst cause they can easily influence the decision of these newcomers on the market. One swing or pulling of the price and their get scared right away.

Newbies should understand all those factors and be calm cause if they let their emotions tremble they they will lose here.

[Jawhead999]

IMO most of newbies doesn't really loss if they invest in Bitcoin, because most of them loss since they choose unknown and scam shitcoin. Probably there's still person loss 50-60% of their investment right now if he buy it on the peak $60K+ and keep holding. But there's nothing to worry if he doesn't need that money, he could holding until the price back to $60K+.

Aside from 3 point above, most of newbies loss because of :
1. Using scam/fake exchange and wallet.
2. Got trapped in ponzi and pyramid scheme.
3. Bored of his investment doesn't earn fast profit, so they decide to trading without skill.

[Lorence.xD]

I think the number 1 and 2 are the likely reasons why newbies experience loss when they first get into crypto. I think that the number 1 is the biggest of them all because the greed of the people is what sometimes begets their downfall.

[bL4nkcode]

Most people here are affected by the number 3 even a non-newbie, once the price dumps some are in panic and thinking will get a huge lost if will not sell, so they will to prevent that huge lost and will buy buck after some time.

Also, in addition, because of greed and lack of knowledge, there are still a fraction who get lost due to scams believing such money making scheme will make them rich.

[OcTradism]

Not your keys, not your coins. https://notyourkeys.org/

They store their bitcoin on exchanges, and skip the fact that they don't have private keys.
They don't mind to learn about non-custodial wallet. Recommended wallets
They don't secure their asset, ignore all basic recommendation about security, privacy. Good topics on security and privacy

They don't know what they are doing, trading, investing or gambling.

[defi-Dany]

The point number 2 and 3 I guess are those of the reasons some of the newbies losses in the market. They ignore the reality that price could go down and when it crashes already they panic and sold even they are on a loss. Whale manipulations are the worst cause they can easily influence the decision of these newcomers on the market. One swing or pulling of the price and their get scared right away.

Newbies should understand all those factors and be calm cause if they let their emotions tremble they they will lose here.

lolYes, you are right, I am the newcomer you said.
When I first bought Bitcoin, I never thought it would fall by 50% within two days.

The panic made me hurriedly sell all my bitcoins. This time I lost half of my funds.

[cryptoaddictchie]

lolYes, you are right, I am the newcomer you said.
When I first bought Bitcoin, I never thought it would fall by 50% within two days.

The panic made me hurriedly sell all my bitcoins. This time I lost half of my funds.

But it doesnt mean that bitcoin will totally fall straight. There are times there is a reversal and thats the time you should sell your coin when the current price is above your buying price. Usually this is the easiest way on how to profit. You shouldnt be scared when your asset becomes negative, you only loss if you sell it at a loss anf thats happened right? Maybe next time you learn to hold if you encounter a situation like that again.

[rikybrosh]

I think new investors should understand supply and demand first. And it is not enough because there is an event called halving in bitcoin mining. In my opinion new investors should learn to understand the factors that can make bitcoin prise rise and fall, so they know where to open position in trading. It seems that many newbies are easily being panicked. I think atleast if they hold until bullish market come then they will not loss.

[Husires]

The main reason is people's ignorance of investment, you can make a profit from bitcoin by waiting, but how long can you wait without needing money? It is the means that will determine the amount of profits that you may achieve.

Beginners come from the motive of making a quick profit and therefore their hands are light and they will sell whenever they get the opportunity to do so.

The amount of money is not important as much as the time. An investment of 1 dollar is not considered a loss, but if it was made several years ago, it represents millions now.

[Wexnident]

Ignorance basically. It's like entering a gunshop (or any other shop for that matter), and going up to the shopkeeper asking for the "best" item they have, and then blindly believing whatever they say. They never bothered identifying what the shop really is about, and is just of mind that if they can resell the best item, they'd probably get higher profits kind of mentality. Man, if everything was only that easy no? Sadly the world isn't a single-player game, it's a multi-player one, and most of the time, it's 1 vs the world.

[Renampun]

The main reason is greed and stupidity combined with more money than brains.

it is very real that those with a lot of money and without experience lose a lot when investing in Bitcoin...

Bitcoin never makes someone rich overnight if that person is a newbie in Bitcoin. Bitcoin is a long-term investment, not an overnight money maker.

[Zilon]

Losing is not just tied to newbies along and as a matter of fact some newbies tend to hodl even longer than some greedy investors who are just concerned about how much the can make from the market immediately without even considering that different factors could also affect the flow of coins most especially news both from economy, political and societal sectors. So I feel people loosing in crypto is as a result of greed and impatience not just because of their newbie status.

[DeathAngel]

Newbies lose money in bitcoin because they have no patience, they expect to get rich in a short time & if the price goes down a bit they sell at a loss which is the worst thing you can do.

[davis196]

There are different categories of newbies,who join the crypto world.
1.Newbies,who decide to buy Bitcoin and HODL,waiting for a new ATH.
2.Newbies,who start trading altcoins and tokens.
3.Newbies,who get scammed by a crypto scam.
I guess that you are referring to the second category(the altcoin traders),which has little or nothing to do with Bitcoin.Those are the people,who lack trading skills,so they lose their money.They would most likely lose their money,even if they have joined the stock market instead of the cryptocurrency market.
The newbies,who think that Bitcoin is a get-rich-quick-scheme usually end up in the third category(being scammed).

[Shenzou]

I think that the main reason that you mentioned that is the real demise of many people who are new to bitcoin and crypto in general, is they invest in it in hopes of getting massive returns and huge profits over a short period, they look at some of the people that have made millions from it and they except themselves to have the same outcome not knowing what they have gone through to get to that point, now with that idea in mind they start making wrong decisions that lead to them losing their money,  so they key point is to go in the market not excepting a lot and not relining on it to get money, so that is why you should invest what you can afford to lose.

[worldofcoins]

IMO most of newbies doesn't really loss if they invest in Bitcoin, because most of them loss since they choose unknown and scam shitcoin.

Even I did fall a victim to this when i came into cryptos. There were sites mostly Cloud mining that was offering insane rates for keeping the bitcoins on their website, after looking at the returns most people deposit more money into the site to increase their returns that's where it gets rekt and they Ban that account or exits scams.

[yazher]

I think the number 1 and 2 are the likely reasons why newbies experience loss when they first get into crypto. I think that the number 1 is the biggest of them all because the greed of the people is what sometimes begets their downfall.

Those who are persistent in learning will use those experiences later when they invest again but with more caution and well prepared. But sometimes those who always get carried away won't take those downfall as their experience instead, they will just pursue and push their luck on some kind of investment that won't really give them a higher chance of success as long as they feel that those investments will push them to gain a massive amount of income, they won't think twice about it. it just they wanted to gamble their money.

[CryptopreneurBrainboss]

When you look at it, newbie lose basically because they don't know/understand what they're doing. The influence of the society is what is getting them into the industry. They don't want to be left behind so they fomo into the market which makes them so impatience that they want to make quick gains in the soonest time possible.

This ideas of becoming rich overnight makes them to become gullible as they tend to want to engage themselves in the trending tech not realizing that scammers are already leveraging to scam investors knowing there'll be new potential target in this new trends. Without understanding what the trends are they go in hoping to profit and come out (pump and dump) but majority don't succeed.

This might be a bad example but considered the success of dogecoin although it isn't something worth recommending to investor but those that took the risk and invested profited after it got pumped so now others (majority the newbies) are investing in the newly launched memes with the hopes of getting dogecoin type of success overnight which is where the scammers hiding behind the marks of founders arr ripping them off.