$28,000 Bitcoin price. How explain falling price to worried newbies ?

[arabspaceship123]

Bitcoin fell to $28,000. It's price changes in short spaces it's bad for investors.

A friend asked if cryptocurrencies are safe. I explained it's safe up to his limit if he's willing to lose what he's invested. I said I'm happy with my investment but I can't explain what main causes help big drop in value.

He said if he'd invested $5000 on Dec 12 to buy BTC0.1 it's value would be $2,800 today. He said if he'd traded Forex he'd make better profit. What's behind cryptocurrency prices falling fast.

Is it basic economics pumps&dumps and buy&sell? He asked why don't USD, CAD, EUR, GBP, JPY drop values in fast ways like cryptocurrencies do. What's the easiest way I tell newbies the difference why fiat and cryptocurrencies price falls?

I've sent him this Gemini website so I hope he's going to understand. How will you tell newbies cryptocurrencies are safe investments when they're paying in fiat. They're always looking at the investment plus or minus using fiat. I've tried to explain to him but I can't.

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[jackg]

How will you tell newbies cryptocurrencies are safe investments

They're not "safe"? They're not as risky as they have been and people market them as protections against inflation which fiat currencies don't but I think it's a bad idea to call them safe.

Most safe investments have fallen recently, even some government bonds are trading at -% with only commodities out performing everything else.

If you invested $5k into most stock markets you'd have $4k now.

Forex investments are more stable because they're investments in diversified economies (essentially). Crypto has more growth potential then forex though as they also don't grow and have inflation.

[death69]

First, he needs to understand the word "Patience".

Second, he needs to accept the truth that he has entered a wrong entry point which makes him a lot of loss. But in the future, he will definitely earn a huge profit with bitcoin, as long as he chooses to stay with it.

Third, make him prove that he can turn $5000 to $10000 with Forex. If he has the capability, why didn't he choose Forex the first time? I bet that profitable investors will not frequently ask advice from others, especially Forex traders. Is USD becoming 2 USD in the future? No, It will never while bitcoin has turned from $1 in 2011 to $68,000 in 2021

[mk4]

Cryptocurrencies were never "safe". Outside of bitcoin, pretty much every single cryptocurrency outside stablecoins are very very experimental.

But to answer the currency question: most currencies are widely widely adopted and have been traded for multiple decades. Bitcoin is like more than a decade old, and most people don't even know what it does and why it's important.

As to your friend: if he thinks he can profit off of forex far easier, then why even force him to this industry? You don't necessarily need bitcoin or crypto to get rich.

[Henrobakkara]

Bitcoin fell to $28,000. It's price changes in short spaces it's bad for investors.

A friend asked if cryptocurrencies are safe. I explained it's safe up to his limit if he's willing to lose what he's invested. I said I'm happy with my investment but I can't explain what main causes help big drop in value.

He said if he'd invested $5000 on Dec 12 to buy BTC0.1 it's value would be $2,800 today. He said if he'd traded Forex he'd make better profit. What's behind cryptocurrency prices falling fast.

Is it basic economics pumps&dumps and buy&sell? He asked why don't USD, CAD, EUR, GBP, JPY drop values in fast ways like cryptocurrencies do. What's the easiest way I tell newbies the difference why fiat and cryptocurrencies price falls?

I've sent him this Gemini website so I hope he's going to understand. How will you tell newbies cryptocurrencies are safe investments when they're paying in fiat. They're always looking at the investment plus or minus using fiat. I've tried to explain to him but I can't.

Well, when it comes to crypto Investments your friend needs to understand that it is a highly risky investment especially if you don't have patience and you are investing in the wrong coins. As for me, Bitcoin might have dropped in price like your friend pointed out but it went to as low as $25k+ and now trading back up @ $29k+ so you see, some people will say otherwise because they just made some good profit today which is the whole essence of crypto trading/investment, High-risk high reward.

[lucks001]

Will, Everyone Needs to understand to Be "Patience" Now Bcz This is How Panic People Get Lose Their Money 

[bittraffic]

If you are in forex and  its how the market reacted as you go long, you'd be liquidated in hours. The spot market in crypto is the safest as long as you just trade BTC and not sell once the price  drops this fast. You're not going to lose anything but just the value of the BTC but not a single satoshi.

How I would explain it to a worrying newbie is just to wait. It may take months to years though. But gradually its value will increase and maybe the next week he'd not lose $1000. That value may be $4300.

[hd49728]

You can not. Newbies have to join the market, experience sweet and bitter with the market, gains and loses. If they are outsiders, you can not explain and help them understand everything.

Emotion you get in the market is unteachable. You only can get it by yourself so do newbies.

Newbies will think Bitcoin is rising or falling because of reasons given by news. In reality, news don't show you real reasons that are hidden by market makers. Newbies can only digest the hidden secret if they are in the market long enough.

[mia_houston]

Profit and loss is a common thing in trading in the market, but I think for them beginners of course a crisis like this will make them panic and even feel sorry for losing money, to be honest I can't imagine what novice traders feel nowadays when looking at their portfolio prices and money estimates reduced by almost 80% in the market, especially if they use hot money to trade transactions of course sadness and disappointment is a real impact .

[Hamphser]

. How will you tell newbies cryptocurrencies are safe investments when they're paying in fiat. T

There's no such thing about safe investments and this is should your friend do really realize because this isnt how reality works even if he do stick with Forex or stocks its not really still a guarantee that he would

really make money or have really that chance on negative portfolio.Dont stress out yourself about explaining to them about the risk yet they would experience it for yourself

on how this market do really works and behaves.As long he dont sell then he wont be losing anything.

[stompix]

A friend asked if cryptocurrencies are safe. I explained it's safe up to his limit if he's willing to lose what he's invested.

No, they are not safe, they were never like that, BTC is almost safe long term but the other shitcoins will only make people's life miserable long term unless you're day trading and getting every pump and dump scheme right.

You should do it like this ask for his wallet and start pulling out banknotes and asking him if he's ok with you burning them all. Once you reach the point where he says it's uncomfortable for that much to throw away tell him that's the maximum he should be investing. Also, tell him that if he does go over that is his risk and he shouldn't be running back to you and complaining.

[GreatArkansas]

The most lesson I learned when I started to hold Bitcoin is to become patient. Because if you are not, you will not be rewarded. Especially if you experienced before 2017-2018 bull run, it was around an 80% drop from ATH and after that, Bitcoin started to rise again and made $60,000 ATH again.
That's what example of a risk-taker and having patience. Expect that in cryptocurrency that volatility is high.

[Eternad]

The most lesson I learned when I started to hold Bitcoin is to become patient. Because if you are not, you will not be rewarded. Especially if you experienced before 2017-2018 bull run, it was around an 80% drop from ATH and after that, Bitcoin started to rise again and made $60,000 ATH again.
That's what example of a risk-taker and having patience. Expect that in cryptocurrency that volatility is high.

Patient and know when to enter is what I preferred. You can maximize you patient efficiently if you will buy at a price point that is not on a sell zone. Bitcoin maximalist will typically say you just need to hold but what if you purchase at peak or near it? You will wait for a year or more just to breakeven or gain while you can maximize your profit if you will buy on proper zone and and patiently wait. Holding is the key to Bitcoin but don't let whales eat your money for there liquidity exit but rather use there money on TP.

[pooya87]

Explaining why bitcoin price falling is nothing to worry about during the fall is pointless. If you want to educate a newcomers you should do it when they are beginning and you should tell them that bitcoin is not and investment but it is the only decentralized global currency with limited supply.
I've learned that those who learn about bitcoin don't worry about its short term fluctuations contrary to those who think of bitcoin as an investment specially one that could make them rich quickly who lose sleep when there is the smallest drops and worse when the drop is bigger!

A friend asked if cryptocurrencies are safe. I explained it's safe up to his limit if

There is no "if", cryptocurrencies (ie. altcoins) are not safe. Bitcoin is safe only because it is providing a useful utility and is not going away otherwise the uselessness of altcoins ensures their failure.

[Welsh]

Its still up from two years ago, I mean even with the huge drop recently. If we look at it on a yearly basis, Bitcoin still has gained hugely. Tell me any other investment that does that.

Bitcoin fell to $28,000. It's price changes in short spaces it's bad for investors.

Not really. That's what makes it absolutely perfect for investors i.e those looking to make a quick buck, but don't plan on using Bitcoin for its intended purposes. If you're having big drops, and big rises that's the best investment someone could make looking to make a big difference to their wealth in a short period of time. It's only particulaly bad for those that are using Bitcoin as a currency. It shouldn't effect long term holders much either.

[TravelMug]

How will you tell newbies cryptocurrencies are safe investments when they're paying in fiat. They're always looking at the investment plus or minus using fiat. I've tried to explain to him but I can't.

Actually, it is not a safe haven, because safe haven for me is those commodities and assets that the value will not go down hard. So bitcoin or at least crypto in general is not, just like what we have witnessed in this month as the price plummeted to $28k.

So you have to tell that to your friend up front and be honest so that he/she won't be disappointment if somewhat they will invest on crypto.

[hugeblack]

Most of those who are looking for safety are afraid of losing 10% of the value of their money, let alone crazy fluctuations as they occur in cryptocurrencies, so it is better to teach him about the reason for using Bitcoin, for example, the government does not allow withdrawals or transfers to a country or inflation and others and over time you will find that he does not care about fluctuations.

In general, and from my experience, most people buy their work if the government makes it "official and legal" even if it is volatile.

[Kemarit]

The most lesson I learned when I started to hold Bitcoin is to become patient. Because if you are not, you will not be rewarded. Especially if you experienced before 2017-2018 bull run, it was around an 80% drop from ATH and after that, Bitcoin started to rise again and made $60,000 ATH again.
That's what example of a risk-taker and having patience. Expect that in cryptocurrency that volatility is high.

Not sure if this is the correct answer though, of course risk taking and patience is two emotions that will almost present if you want to be a successful crypto investors.

As for how to explain to worried newbies, well you have to tell them that of all the assets around, crypto is the most volatile, as it can go as high as 10% increase in a day and vice versa. If they can't take that, then obviously crypto is not the best for them, they could go do other assets that is stable like stocks.

[LogitechMouse]

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How will you tell newbies cryptocurrencies are safe investments when they're paying in fiat. They're always looking at the investment plus or minus using fiat. I've tried to explain to him but I can't.

Safe? Is it applicable with what is happening right now?
You can probably say that crypto is safe if we are in a bull market but in a bear market, no market is safe.

How to tell them? Just tell the truth that sometimes you will gain money (safe) and sometimes you will lose money (not safe) because that is what investments are. Just saying to newbies that events like this are normal in any markets and just by be patient will make them comfortable because right now, people are in an extreme fear. As a newbie, saying to them to stay patient and wait for a perfect opportunity to buy would be the best thing to say to them.

[buwaytress]

Not making this up. Asked a small resto yesterday (a chain, so the owner wasn't even there) about their Bitcoin sign, thought they accepted it, but cashier said no, there was plans to do so, but it never really happened. Then asked me, you invest in Bitcoin? I said no, I do keep some from earnings, so more like a savings and alternate way of paying, and they were like "did you manage to sell at 70k???" and I said haha no, it was more like 68k but I didn't sell anything. "You must be so mad!". Yeah, maybe in 2017 I was a little upset I didn't take advantage. It was 20k then. Did you know it even went below 4k just a couple of years ago? And then now even you know it was almost 70k this year.

It goes like that! They said.

I said, yes indeed. It goes like that.