How mentally prepared are you?

[Finestream]

Some people who sell on losses, it doesn't mean that they are not mentally prepared. Most times it is because they make wrong plannings towards investment. For instance, as the market is low and red, someone will want to invest, hoping that before the year runs off, there would be profits and he will withdraw both capital and profits for project or something related.
But if by the end of the Year, the profit didn't come, The investor will have no option than to withdraw or sell in lose in order to have money to accomplish the projected project or for even welfare in some cases. So it is all about planning and how much the person has, and not mental factor.

Investments have its own risks, so even if you are mentally prepared before investing, that would not guarantee that you will be free from losses. Losses will always be inevitable regardless if you are a newbie or pro in any type of investment. However, those who make extra efforts like financial planning and having the skills on creating good market analysis on the market will most likely result into successful investments. And these things will only be possible if you have long patience in your investments.

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[TravelMug]

Another big mistake is taking a loan if you don't have collateral or the means to pay it back when the time comes. I know people who take loans with over collateralized assets, but if you must do it, please be careful so you don't receive margin calls.

This is like a never ending experience for many. Usually, this comes during the bull run and those that have been enticed by the market and they think that it's there to stay at the top.
Much better to not do it and avoid doing so because you'll never like the consequence that it'll give to you. Just use your own money so that you're mentally prepared that you know what you're up to unlike borrowing with an unknown market behavior plus the obligation that you'll get to pay sum with the interest.

Not just by taking a loan, some i know quit their job to focus on crypto trading way back in 2017 because we are in a massive bull run that time and they think that it will go parabolic or at least they will still make the some money in a bear market, but it's not.

So yeah, takes a lot of mental preparation as the market is about timing, up and down. In bull market, everyone is very happy, but when we enter bearish cycle, it become a problem for everyone.

[electronicash]

Another big mistake is taking a loan if you don't have collateral or the means to pay it back when the time comes. I know people who take loans with over collateralized assets, but if you must do it, please be careful so you don't receive margin calls.

This is like a never ending experience for many. Usually, this comes during the bull run and those that have been enticed by the market and they think that it's there to stay at the top.
Much better to not do it and avoid doing so because you'll never like the consequence that it'll give to you. Just use your own money so that you're mentally prepared that you know what you're up to unlike borrowing with an unknown market behavior plus the obligation that you'll get to pay sum with the interest.

Not just by taking a loan, some i know quit their job to focus on crypto trading way back in 2017 because we are in a massive bull run that time and they think that it will go parabolic or at least they will still make the some money in a bear market, but it's not.

So yeah, takes a lot of mental preparation as the market is about timing, up and down. In bull market, everyone is very happy, but when we enter bearish cycle, it become a problem for everyone.

newbies who had not experienced the bear market will always be devastated by how much the price will dip. but i'm quite sure they didn't really go full into BTC as they have all know Bitcoin is being demonized here and there by media. the ones who go all in are the ones very stupid who had not done their research.

but its true though that it could lead to mental retardation. bear market is stressful. some who dive into leverage and lose all would even commit suicide.

[Kemarit]

Some people who sell on losses, it doesn't mean that they are not mentally prepared. Most times it is because they make wrong plannings towards investment. For instance, as the market is low and red, someone will want to invest, hoping that before the year runs off, there would be profits and he will withdraw both capital and profits for project or something related.
But if by the end of the Year, the profit didn't come, The investor will have no option than to withdraw or sell in lose in order to have money to accomplish the projected project or for even welfare in some cases. So it is all about planning and how much the person has, and not mental factor.

If you are someone who are just new into this market which these kind of mistakes were really that very common but eventually those things will change on the time that you had already been dealing with this market for

a while already which it is normal that your mental awareness will really be strenghthen up because of the experience and knowledge that you had gained overtime.Although it wont really be coming in to a point of all

knowing but at least you are prepared on various conditions or situations which you might encounter head on.Nothing beats out if you are prepared both mentally and emotionally
because these are primary things which do really affect trading decisions if these things been stirred up.

It will take a least one single cycle for a trader or investor to know how the market moves. Yes, you may have the technical analysis experience in your shoulder, but definitely crypto market is very different, for one it's so volatile and unpredictable.

But once you get that experience, maybe in the next cycle, you now have that experience, you wouldn't simply panic when the price is crashing. You will learn how to read between the line.

[Poker Player]

In my case, I was already quite prepared before learning about Bitcoin, as I had already been investing for a few years, and before that playing poker. If someone does not know, a chart of a winning poker player is quite similar to a chart of the stock market or the price of bitcoin, depending on the variety. The bitcoin one would be more like someone who is a winner in Sit and Go or Tournaments, while the S&P 500 one might look more like a winning cash player.

In any case, the important thing about the similarities is that they teach you that making money is not variance-free: to win you have to go through volatility and it's not a straight line upwards. There are ups and downs.

[lienfaye]

If you are not mentally prepared for Bitcoin investment, it can lead to mental retardation.

Indeed especially if you have high expectation. Worse is if the money you invest is not the one that you can afford to lose, this is often the problem of investors who dont have patience to wait longer since they already need the money.

It's really important to prepare ourselves when we decided to invest (in general not only in Bitcoin) because there's no guaranteed to gain and there's no specific timeframe when we can take profit. When I was just starting I also made mistakes but I take it positively to do better so I apply what I learned and I keep in mind the possible scenarios that might happen. As an experienced investor, I learned not to panic in times the market is in bearish because that's how it works if you invest in crypto. As long as im not selling then I wont lose anything.

[worle1bm]

I will say you need to have faith in bitcoin and hold for long term which is not at all easy situation going through all the panic sell and dumps over these years but that's the key to get profits.

Why people panic sell? The most common reason is they don't believe in bitcoin, invested under the influence of others without doing the research of their own and more commonly they invest the amount they are not willing to loose so they have mindset set-up in that manner.But before investing we must know the results of our investment and be strong to hold for all these years as well.

[batang_bitcoin]

Another big mistake is taking a loan if you don't have collateral or the means to pay it back when the time comes. I know people who take loans with over collateralized assets, but if you must do it, please be careful so you don't receive margin calls.

This is like a never ending experience for many. Usually, this comes during the bull run and those that have been enticed by the market and they think that it's there to stay at the top.
Much better to not do it and avoid doing so because you'll never like the consequence that it'll give to you. Just use your own money so that you're mentally prepared that you know what you're up to unlike borrowing with an unknown market behavior plus the obligation that you'll get to pay sum with the interest.

Not just by taking a loan, some i know quit their job to focus on crypto trading way back in 2017 because we are in a massive bull run that time and they think that it will go parabolic or at least they will still make the some money in a bear market, but it's not.

So yeah, takes a lot of mental preparation as the market is about timing, up and down. In bull market, everyone is very happy, but when we enter bearish cycle, it become a problem for everyone.

Yeah, there have been folks that did that. Because of the bull run, they've gained confidence that it will like a green pasture at all times and then many have decided to quit their jobs. Too bad that they have to do that but it's better to have a lot of source of income before they decided to quit their jobs. Now, for sure those that have made a bad decision starts to realize that they should have done better instead and can't rely on the volatile market at all times.

[Kakmakr]

OP..... first things first...

How mentally prepared are people not to see Bitcoin as an investment product, but rather as a currency? Our first priority as a Bitcoin community must be to educate people to understand that Satoshi Nakamoto created Bitcoin to be an alternative currency.

People can buy bitcoins, but they must use a small percentage of those coins as a currency or the whole experiment will fail. Transactions generate "miners fees" and the miners fees pay for the miners to run the whole system... without those miners fees, Bitcoin will fail. (remember... Block rewards will fall away... and miners fees must pay the miners in the future)  

[virasog]

OP..... first things first...

How mentally prepared are people not to see Bitcoin as an investment product, but rather as a currency? Our first priority as a Bitcoin community must be to educate people to understand that Satoshi Nakamoto created Bitcoin to be an alternative currency.

People can buy bitcoins, but they must use a small percentage of those coins as a currency or the whole experiment will fail. Transactions generate "miners fees" and the miners fees pay for the miners to run the whole system... without those miners fees, Bitcoin will fail. (remember... Block rewards will fall away... and miners fees must pay the miners in the future)  

You are right about this things but normally when people invest in bitcoins their purpose is to make money. Most people invest in bitcoins only to make quick money or to get quick rich without doing much efforts. They don't know that bitcoin prices dumps are more severe as compared to the other financial markets like stocks etc.
You are very true that we need to understand that bitcoin is a currency primarily and the first focus will be to use it in replacement of the fiat currency.

[ethereumhunter]

Also, please do not borrow money to invest in Bitcoin, and only invest what you can afford to lose.

We don't know how mentally prepared they are to join bitcoin. Maybe some are mentally prepared and some are not ready to see price fluctuations that keep changing so they are shocked and unprepared. In investing in bitcoin or altcoins, they must be careful and not in a hurry to purchase so as not to be mistaken in placing an order.

And the bolded letter  is a suggestion we must avoid so as not to get into trouble later. And never be tempted by offers like joining a program that offers to generate huge profits in a short time.

[Beparanf]

OP..... first things first...

How mentally prepared are people not to see Bitcoin as an investment product, but rather as a currency? Our first priority as a Bitcoin community must be to educate people to understand that Satoshi Nakamoto created Bitcoin to be an alternative currency.

People can buy bitcoins, but they must use a small percentage of those coins as a currency or the whole experiment will fail. Transactions generate "miners fees" and the miners fees pay for the miners to run the whole system... without those miners fees, Bitcoin will fail. (remember... Block rewards will fall away... and miners fees must pay the miners in the future)  

You are right about this things but normally when people invest in bitcoins their purpose is to make money. Most people invest in bitcoins only to make quick money or to get quick rich without doing much efforts. They don't know that bitcoin prices dumps are more severe as compared to the other financial markets like stocks etc.
You are very true that we need to understand that bitcoin is a currency primarily and the first focus will be to use it in replacement of the fiat currency.

Bitcoin investors nowadays are all this type. A trader wanna be and react every movement of Bitcoin price while they didn’t focus for the long term benefits of buying Bitcoin on below ATH price. I’ve been buying the dip every time Bitcoin price go lower than 20K and continue to do that weekly using my salary here on forum without thinking for short term profit because I know that the price will surely pump again at any point below that 20k level.

Newbie investors will never gonna learn and earn huge profit until they was left behind and learn from there mistake for not investing when they have time to buy at lower price.

[worldofcoins]

The rate at which new people are joining the forum and the entire community is very high, which makes me wonder how mentally prepared these new and previous users are for Bitcoin investment. If you are not mentally prepared for Bitcoin investment, it can lead to mental retardation.

The majority of people already know about bitcoin through news or from someone they know of.
It's good to prepare for bitcoin's pumps and dumps but newly arrived peeps into the community don't know much about bitcoin and when the market goes up they're in FOMO.
It's really hard for everyone to know about bitcoin when they start.

First and foremost, before investing in Bitcoin, beginners should learn more about privacy; beginners should start by learning how to secure their files and personal details on the Internet because not knowing or learning about privacy can be a very big risk for them because in Bitcoin investment, you can lose everything with just one single mistake.
Also, please do not borrow money to invest in Bitcoin, and only invest what you can afford to lose.

I agree with the last point you stated don't invest more than you can't afford to lose.
This forum is the best resource for someone to learn about bitcoin, from the majority - to almost everything that is covered about bitcoin here on the forum so they can avoid major mistakes that they would've made.

[Welsh]

A true newbie, i.e one that hasn't invested in Bitcoin or stocks before is going to have a fun time. Espeically, if they've over invested. Although, that's usually not the case. As a newbie you're usually a little bit scared to dip your feet in, even though you're sure that Bitcoin can help your current situation. It took me a long while before I built up that mental fortitude to be able to keep invested, especially when we've taken big dives.

The price barely effects me these days. I'm not concerned in the slightest, and I've accepted whatever will be, will be. Ultimately, if you don't invest in Bitcoin you have to rely on a third party to manage your money or be severely limited to only local transactions with cash. Plus, you're very likely going to be in the rat race until the day you die, with Bitcoin, and the way it can move up, and down quite significantly you have a chance of potentially earning some money you otherwise wouldn't with being invested solely in fiat.

So, taking all that into consideration, newbies should develop their mental game over a few years, usually. Although, investing small amounts is definitely the best way to show what you've been missing out on, but also not become to effected with the swings.

[beej]

I simply try to be optimistic at all times. Whether prices go
up the better and when they dip its considerably good. Some
stuff you can’t control but you can control how you react to
them, makes you think more and decide better decisions and
strategies. Buy low sell high as they say, but depends entirely
on my short term and longterm goals in crypto. Im still
learning, I think we all are in this market. The unpredictability
still adds that kick we all like and dislike by others, in a sense
its exciting at times.

[Davidvictorson]

For me I know that there are very exciting times ahead. However, for a newbie, it would seem hard to believe because of so many changes going on in the world - There is a lot of uncertainty, and many people are not sure how the economy will react. Here's the thing, every bitcoin investor is just smiling at the price of Bitcoin right now because they know what's going to happen. More people are still gonna become millionaires through Bitcoin, now is the time to Invest and be super patient.

[noormcs5]

Some people who sell on losses, it doesn't mean that they are not mentally prepared. Most times it is because they make wrong plannings towards investment. For instance, as the market is low and red, someone will want to invest, hoping that before the year runs off, there would be profits and he will withdraw both capital and profits for project or something related.
But if by the end of the Year, the profit didn't come, The investor will have no option than to withdraw or sell in lose in order to have money to accomplish the projected project or for even welfare in some cases. So it is all about planning and how much the person has, and not mental factor.

Investments have its own risks, so even if you are mentally prepared before investing, that would not guarantee that you will be free from losses. Losses will always be inevitable regardless if you are a newbie or pro in any type of investment. However, those who make extra efforts like financial planning and having the skills on creating good market analysis on the market will most likely result into successful investments. And these things will only be possible if you have long patience in your investments.

Also if people are mentally prepared for the loss in portfolio, they will not panic and sell when the bitcoin price dumps.

If people have knowledge about bitcoin and know about the price history of bitcoins, they will not panic if they see bitcoin prices at the lowest levels. Usually, people buy in a bull market and sell in a bear market. With knowledge, they can change their approach and do vice versa.

[isaac_clarke22]

~

True. Your first paragraph was exactly my experience when I started back in early 2017. It is really not "little bit", but it is reaaaaallly scary to dip and get your feet wet in the market. I experienced panic selling mid-2017 before I realized that there are such thing as bearish and bullish season, but good thing I did not just stop there. It is truly scary because you need to mentally prepare yourself to lose your money and considering that I even live in a third world country where $20 is a lot to lose already and not just those that you can earn back easily.

Today, I am almost the same as you although for me I do not really care anymore what is the price. I would just do a quick Google search of the price and regardless of what Google Finance shows me, I do not even do anything anyway although if I have spare, I would buy more Bitcoin if it is in the red side for now.

[justdimin]

A true newbie, i.e one that hasn't invested in Bitcoin or stocks before is going to have a fun time. Espeically, if they've over invested. Although, that's usually not the case. As a newbie you're usually a little bit scared to dip your feet in, even though you're sure that Bitcoin can help your current situation. It took me a long while before I built up that mental fortitude to be able to keep invested, especially when we've taken big dives.

The price barely effects me these days. I'm not concerned in the slightest, and I've accepted whatever will be, will be. Ultimately, if you don't invest in Bitcoin you have to rely on a third party to manage your money or be severely limited to only local transactions with cash. Plus, you're very likely going to be in the rat race until the day you die, with Bitcoin, and the way it can move up, and down quite significantly you have a chance of potentially earning some money you otherwise wouldn't with being invested solely in fiat.

So, taking all that into consideration, newbies should develop their mental game over a few years, usually. Although, investing small amounts is definitely the best way to show what you've been missing out on, but also not become to effected with the swings.

That's the thing about newbies, they are both more brave when they shouldn't and end up getting lucky, or they should be happy to join in and they do not because they do not know what they are doing.

It's not an easy decision because it does get to a point where you can't make a decision just yet, it's going to be something like bitcoin going up and you should join and veterans would be careful about a bull trap, whereas people who are newbies would join anyway, and if the price actually does go up, newbie would be right, but in the long run veteran would make more profit after a few years. That's why it's not always a guaranteed way of trading, and mentally it's important to be ready for the long term.

[Jody.Drummer]

Some people who sell on losses, it doesn't mean that they are not mentally prepared. Most times it is because they make wrong plannings towards investment. For instance, as the market is low and red, someone will want to invest, hoping that before the year runs off, there would be profits and he will withdraw both capital and profits for project or something related.
But if by the end of the Year, the profit didn't come, The investor will have no option than to withdraw or sell in lose in order to have money to accomplish the projected project or for even welfare in some cases. So it is all about planning and how much the person has, and not mental factor.

Investments have its own risks, so even if you are mentally prepared before investing, that would not guarantee that you will be free from losses. Losses will always be inevitable regardless if you are a newbie or pro in any type of investment. However, those who make extra efforts like financial planning and having the skills on creating good market analysis on the market will most likely result into successful investments. And these things will only be possible if you have long patience in your investments.

Also if people are mentally prepared for the loss in portfolio, they will not panic and sell when the bitcoin price dumps.

If people have knowledge about bitcoin and know about the price history of bitcoins, they will not panic if they see bitcoin prices at the lowest levels. Usually, people buy in a bull market and sell in a bear market. With knowledge, they can change their approach and do vice versa.

From this we know that knowledge is the basis of success. Mentality alone is not enough if they do not have extensive knowledge of bitcoin. And knowledge alone is not enough when they do not have a strong mentality.
I put knowledge before mental. Because if we have knowledge, it will create a good mentality in investing. All of these are interrelated and must be owned by an investor, because if you don't have one it will be difficult in the future. Do not hesitate when you want to invest here, because here is not the place to try.