Investment Become Gambling

[Cleanshit]

~~

For sure no good investor would want to go into any investment without having a knowledge about where he wants to put in his money. When it comes to bitcoin, it no different, but don’t think you will need to know everything before investing in it, all you need is the basic knowledge, which are Buy or invest with your discretionary income and also buy with DCA as a newbie.

Using DCA as a newbie is best because you are putting in a quantity of the money you can afford to lose, so with that your emotions are not really attached to your holdings even when the market is dropping. And also since investing is not meant to be delay, you can’t be waiting for the Dip, so it best to use the DCA.

You're right to an extent except that the DCA is different from the discretionary fund, the DCA is a good strategy that help investors be consistent and consistency is the best way to overcome volatility or things like emotions that could make investors sell too early, whereas the discretionary funds is the money used for investment.

 Why people are encouraged to use the discretionary funds for investment is because it's a left over fund are after settling important needs so since Bitcoin is a futuristic asset and there's no guarantee cause the future is unknown, if anything goes wrong the investor won't be very emotional cause the important needs are already met.

Research can only be of help to rudice the risks of making out poor decisions but it may not reduce the market risk of Bitcoin. An individual who understands volatility can loss money Even when Bitcoin drops 70 percent cause of the panic. Learning the basic is important it a better approach l, keep on learning and start with amount you can afford

[Versatile_choice]

An individual who understands volatility can loss money Even when Bitcoin drops 70 percent cause of the panic. Learning the basic is important it a better approach l, keep on learning and start with amount you can afford

If a person understands volatility then what's the point of panicking when the price drops to 70%? I don't quite agree with you on that, a person can only panic if he or she does not know about the market volatile. Because they might be feeling that if the price drop to 70% that it may go up again and then they can decide to sell at lost instead of lossing completely.

so if you ask me, I would say that those who panic and sell are those set of Investors that doesn't understand the volatile nature of bitcoin. Some knew that bitcoin is volatile but they don't have a better understanding of how volatility works.

[Princess Leah]

~~

If a person understands volatility then what's the point of panicking when the price drops to 70%? I don't quite agree with you on that, a person can only panic if he or she does not know about the market volatile. Because they might be feeling that if the price drop to 70% that it may go up again and then they can decide to sell at lost instead of lossing completely.

so if you ask me, I would say that those who panic and sell are those set of Investors that doesn't understand the volatile nature of bitcoin. Some knew that bitcoin is volatile but they don't have a better understanding of how volatility works.

Same question i was about to ask him, and i disagree with what he say cause someone who understands volatility would take advantage of it by investing consistently cause when the person buys consistently he/she would buy during dips and also when the market up and it would help ease the pressure of getting emotional or to panic sell.

 True, not only those who don't understand volatility but those who are into Bitcoin for quick profits cause someone with the mindset of holding longer won't be bothered about volatility after knowing that Bitcoin has a progressive nature and tendency to add more value in the future.

[Primark]

That's right, what every intending investor need to invest in Bitcoin is basic knowledge and their discreationary income, whats basic know, that know that what you're investing in, is Bitcoin, that's what I see as basic knowledge, every other thing can come later, people go about stressing themselves doing more research when they don't have zero fraction of Bitcoin, does research stop, people should understand that they'll learn so quick if they are investing in what they are researching, and what if after research they still didn't invest, I don't believe in one delaying himself and making it seem like they are doing themselves favor, the best is to commence investment and learning as you at a go.

Because if the eagerness of making profit in Bitcoin quick some people wont even have that opportunity to do research to get knowledge.  But they would have to learn by theur own desperation before they can reaslise the importance of making research for investment. For some people it seems they deserve to learn from their mistakes of investing with no knowledge but the outcome of this will teach them more to know investing is not just about money but by knowledge and without it, it makes investment goes wrong.

There are two different things to understand here. There is a comparative difference between trying to enter the market with large amounts of money without understanding the risks in the hope of quick profits and learning from real experience by starting with small amounts.

If a new investor decides to invest in large amounts at the beginning without knowing the risks and volatility of Bitcoin and just by looking at the profits of others, then it is definitely wrong. But if someone has discretionary income, then there is no need to know everything in advance. In the beginning, he can start with a part of his discretionary income that if lost will not affect his lifestyle. With this, he gets the opportunity to start without waiting. At the same time, by starting with small amounts, he can learn from real experience. Everything can be learned by studying Bitcoin all the time. After starting with small amounts, he will be able to make the right decision for himself. In this way, both his knowledge and savings will continue to increase over time.

[Showlove01]

Research can only be of help to rudice the risks of making out poor decisions but it may not reduce the market risk of Bitcoin. An individual who understands volatility can loss money Even when Bitcoin drops 70 percent cause of the panic. Learning the basic is important it a better approach l, keep on learning and start with amount you can afford

Is research meant to reduce risk before? of course research does not reduce risk but rather it is the understanding one gets from research and how discipline they are. someone can get all they seek for in their research but understanding and making use of it properly becomes the problem and mind you, the reason some people make loss is not because they don't research but because they fail to follow it accordingly and discipline is what we should learn and it can not be actually taught, we develop it and grow with...

[Finebone]

so if you ask me, I would say that those who panic and sell are those set of Investors that doesn't understand the volatile nature of bitcoin. Some knew that bitcoin is volatile but they don't have a better understanding of how volatility works.

Understanding volatility or not, you are still going to sell in panic if you invest with what you cannot afford to lose.

Most Bitcoin investors are ignorant of the main cause of panic selling, which is exactly what you are demonstrating right here, because the only way you would never sell in panic is if you invest only what you can afford to lose, because even though the worst happens, you will still be alright financially. But anything that makes you to invest more than you can afford to lose, you are going to panic at every new low in the market, no matter if you are an experience investor or not.

[Cyber_warrior]

so if you ask me, I would say that those who panic and sell are those set of Investors that doesn't understand the volatile nature of bitcoin. Some knew that bitcoin is volatile but they don't have a better understanding of how volatility works.

Understanding volatility or not, you are still going to sell in panic if you invest with what you cannot afford to lose.

Most Bitcoin investors are ignorant of the main cause of panic selling, which is exactly what you are demonstrating right here, because the only way you would never sell in panic is if you invest only what you can afford to lose, because even though the worst happens, you will still be alright financially. But anything that makes you to invest more than you can afford to lose, you are going to panic at every new low in the market, no matter if you are an experience investor or not.

That absolutely right, another reason why an investor would panic to sell is if they fail to protect their investment. Even if you invest with what you can actually afford for lose(discretionary income) so long you fail to protect your investment with Emergency and reserve fund, you might in most cases be forced to sell even if your don’t want to.

So for a successful investment, an investor should make sure they invest with discretionary income and also make sure as they are building their portfolio they should also protect their holdings, so no emergency would make them sell out of panic.

[Hardyrobust]

so if you ask me, I would say that those who panic and sell are those set of Investors that doesn't understand the volatile nature of bitcoin. Some knew that bitcoin is volatile but they don't have a better understanding of how volatility works.

Understanding volatility or not, you are still going to sell in panic if you invest with what you cannot afford to lose.

Most Bitcoin investors are ignorant of the main cause of panic selling, which is exactly what you are demonstrating right here, because the only way you would never sell in panic is if you invest only what you can afford to lose, because even though the worst happens, you will still be alright financially. But anything that makes you to invest more than you can afford to lose, you are going to panic at every new low in the market, no matter if you are an experience investor or not.

That absolutely right, another reason why an investor would panic to sell is if they fail to protect their investment. Even if you invest with what you can actually afford for lose(discretionary income) so long you fail to protect your investment with Emergency and reserve fund, you might in most cases be forced to sell even if your don’t want to.

So for a successful investment, an investor should make sure they invest with discretionary income and also make sure as they are building their portfolio they should also protect their holdings, so no emergency would make them sell out of panic.

it is only during an emergency that an investor that doesn't have an emergency funds maybe force to sell their bitcoin to be able to settle whatever contingency that has arise. Aside this , I don't see the need while someone should sell their bitcoin because they don't have an emergency funds when they are not facing any emergency. Those without emergency funds can still invest in bitcoin and lay out plans on how to build an emergency funds by using part of their discretionary income.

[Sally9256]

Understanding volatility or not, you are still going to sell in panic if you invest with what you cannot afford to lose.

That's the honest truth and it's why it not advised to invest what you cannot afford to lose. The thing is when it's an amount you can't afford to lose it means you need it for something else that's why u don't want to lose it and when the price start to drop you start to feel uncomfortable and in the end you will sell it so you don't lose any more of it.

Most Bitcoin investors are ignorant of the main cause of panic selling, which is exactly what you are demonstrating right here, because the only way you would never sell in panic is if you invest only what you can afford to lose, because even though the worst happens, you will still be alright financially. But anything that makes you to invest more than you can afford to lose, you are going to panic at every new low in the market, no matter if you are an experience investor or not.

I won't agree that that's the only cause of panic selling. Yes when you invest what you can't afford to lose you easily panic and sell but also people panic when their main plan and target is to make profit they also panic and sell when things are not going their way. Different people have different reasons they pani and sell their Bitcoin.

[SDS11]

it is only during an emergency that an investor that doesn't have an emergency funds maybe force to sell their bitcoin to be able to settle whatever contingency that has arise. Aside this , I don't see the need while someone should sell their bitcoin because they don't have an emergency funds when they are not facing any emergency. Those without emergency funds can still invest in bitcoin and lay out plans on how to build an emergency funds by using part of their discretionary income.

Without being bias, i believe some of the people that do sell their bitcoin saying it is because of emergency is something they intentionally did sometimes out of fear that the market will dip or dump and may take longer time to rise. i really consider this mindset wrong because it can actually make someone to panic if the market is not going as they plan, like i said emergency funds sometimes is not always the problem the problem is the investor himself or herself and sometimes i think people do not have determination of what they want to do.

[PhilosopherKing]

Research can only be of help to rudice the risks of making out poor decisions but it may not reduce the market risk of Bitcoin. An individual who understands volatility can loss money Even when Bitcoin drops 70 percent cause of the panic. Learning the basic is important it a better approach l, keep on learning and start with amount you can afford

If a person like he should research the genesis down to the revelation of bitcoin, such a dude cannot reduce the market risk which is volatility, so there is no point of person even trying to. The market will still do whatever the fuck it still wants to do even if we don't like it. It will either it drop down hard or it rise up.

This is why learning is important. I don't mean that person should be unproductive because the person want to invest. The person can can be productive by ongoingly investing while also learning along the way. If person bring out their time to learn, then whenever the person experiences dip, the person will not be pressured into panicking because the person now know that the market will still now later recover and launch up.

[JayJuanGee]

Many beginners do not start with the excuse of this basic knowledge. There is no mandatory requirement of basic knowledge before starting investment. If you have discretionary income after meeting all the expenses, then you can feel free to start. Because basic knowledge is often nothing more than an excuse. We actually do not know how much basic knowledge is. Many do not start chasing basic knowledge. So let it not be that basic knowledge does not become an excuse for us to start investing. Even if someone does not understand his wallet, his own custody, and security now, he can start with a small amount from the exchange. Later, both saving and learning are possible together. When he is ready about his own wallet, his own custody, he will transfer it to his own wallet.

This thing called basic knowledge seems to have caused more delays to beginners than has impacted them progressively due to lack of scope definition of what the necessary basic knowledge truly is. some beginners hide in the shadow of waiting to gain a basic knowledge to delay unendingly. This is because they try to understand things that are not supposed to focus on from the early stage. Okay let's say that a person is a completely new person into tech, he has not been on social media, then he would need a basic knowledge of knowing thus:
Bitcoin is a Volatile asset
Bitcoin investment starts from at least 4 to 10 years holding period
Best and flexible investment strategy DCA
How to figure out his discretionary income
Getting a wallet.

Knowing all of this is not necessary.

All the beginner needs to know to start is that he has discretionary funds, and if he has discretionary funds he can choose how much to start with, and he can learn whatever he wants to or needs to know as he goes. He starts with whatever knowledge that he has, and if he has hesitancies, then maybe he starts to invest with a lower amount, yet if he has concerns that he believes do not allow him to get started, then he has to focus on resolving those concerns before he gets started...and at the same time, hopefully, he realizes that there is value in getting started, even if he is starting with a relatively small amount and learning as he goes from whatever his starting point may be.

These few things will not take till eternity to know.

The subjects that you listed may or may not take time, but the newbie bitcoiner does not need to know them.  He is able to start out buying bitcoin once he knows that he has discretionary funds.  Sure, he likely is going to need to know from where he is going to first buy his bitcoin, and his bitcoin source could trigger him into wanting to know more about certain aspects of bitcoin to the extent to which he is comfortable (or not) with his source of bitcoin, and if he is not comfortable with his bitcoin source, he might feel that he needs to search for (and/or compare) other possible sources for bitcoin that might vary for guys based on their location.

This is what he just have to hear so that when he notices bitcoin price dropping, he wouldn't panic. He will also set his mind for a long term plan, choose an investment strategy likely DCA depending on his source of income, know how to figure out his discretionary fund and the get a wallet. When he has done this, he can go in straight and start investing in bitcoin.

Some new guys to bitcoin are going to be more organized in their cashflow management than others, and if a guy has a regular source of income and some set expenses, then he can figure out how much bitcoin he is going to buy each week and then maybe make adjustments as he goes, yet a beginner does not have to be able to buy bitcoin every week in order to get started, since in order to get started, all he needs is discretionary funds at the time that he makes his first bitcoin purchase.

Also, even though many of us know that bitcoin is an investment and not a trade, the beginner bitcoiner might not realize that bitcoin is an investment, so he does not have to commit to bitcoin investing from the start, yet hopefully if a guy is starting to buy bitcoin, then he will be inspired to investigate further into bitcoin and also inspired to clarify his cashflow in a sufficient enough way so that he can continue to buy bitcoin into the future, and perhaps even on a weekly basis with his discretionary funds and to be learning about bitcoin at the same time.

The extent to which guys choose to invest time, energy and value into bitcoin, which also includes how much time they spend learning about bitcoin is their choice, and some guys will decide to seriously study bitcoin, while other guys will not choose to seriously study bitcoin.  Those are personal choices that guys make, and sometimes they might later regret their choices.

This is different from trying to understand how long it takes bitcoin to start dropping in price or increasing in price since he has prepared for a long term.

It seems that fucking around trying to figure out bitcoin price moves in the first several years of buying bitcoin tends to be a waste of time, since beginner bitcoiners likely need to spend 1-2 cycles or more ongoingly building up their bitcoin investment, unless they are able to front load their bitcoin investment in shorter periods of time.  The majority of normal people tend to take a long time to build an investment, since many normal people struggle to invest into bitcoin (or anything else) in ways that amount to 10% or more of their income..so it tends to take a long time to build up a bitcoin investment, even if we might consider that any normal newbie bitcoin could run a range of putting anywhere between 5% and 25% of his income into bitcoin, and of course, the guys who are putting higher percentages of their income into bitcoin are likely going to reach a decently large bitcoin stash faster than the ones who are putting lower percentages of their income into bitcoin.

If you don't cut the time spent attempting to gain those ambiguous knowledge that is confused as basic knowledge, you can stay all through many years without investing in bitcoin.

Sure.  Of course.  It is better to get started buying bitcoin from whatever state of knowledge a person is as long as he has discretionary income and to learn along the way, rather than spending a lot of time trying to learn about bitcoin and delaying in getting started buying bitcoin - especially since the beginning bitcoin investment size can be adjusted down in circumstances that guys might be uncomfortable.  So a beginner bitcoiner who knows that he has $100 per week that he could use to buy bitcoin, he might purposefully choose to start to buy $30 per week during the early stages that he is still getting used to buying bitcoin and learning the basic matters related to buying bitcoin and even how those initial weekly bitcoin buys might affect his cashflows.

[Silikiem]

so if you ask me, I would say that those who panic and sell are those set of Investors that doesn't understand the volatile nature of bitcoin. Some knew that bitcoin is volatile but they don't have a better understanding of how volatility works.

Understanding volatility or not, you are still going to sell in panic if you invest with what you cannot afford to lose.

Most Bitcoin investors are ignorant of the main cause of panic selling, which is exactly what you are demonstrating right here, because the only way you would never sell in panic is if you invest only what you can afford to lose, because even though the worst happens, you will still be alright financially. But anything that makes you to invest more than you can afford to lose, you are going to panic at every new low in the market, no matter if you are an experience investor or not.

That absolutely right, another reason why an investor would panic to sell is if they fail to protect their investment. Even if you invest with what you can actually afford for lose(discretionary income) so long you fail to protect your investment with Emergency and reserve fund, you might in most cases be forced to sell even if your don’t want to.

So for a successful investment, an investor should make sure they invest with discretionary income and also make sure as they are building their portfolio they should also protect their holdings, so no emergency would make them sell out of panic.

it is only during an emergency that an investor that doesn't have an emergency funds maybe force to sell their bitcoin to be able to settle whatever contingency that has arise. Aside this , I don't see the need while someone should sell their bitcoin because they don't have an emergency funds when they are not facing any emergency. Those without emergency funds can still invest in bitcoin and lay out plans on how to build an emergency funds by using part of their discretionary income.

The emergency funds is very important for a long term investment and should be included as part of the investment plan as well. It’s important that an investor hoping to invest for a long term should be able to set out some funds while accumulating bitcoin from his discretionary income to serve for his emergency funds, if an investor don’t already have an emergency funds before embarking on bitcoin investment, he can set it out alongside while accumulating bitcoin by using part of his discretionary income for bitcoin accumulation and also using part of it for emergency savings. He must not necessarily use all his discretionary income for the purpose of bitcoin accumulation alone.

[ArabBTC]

I don’t think that it is even possible that a bitcoin investor won’t have emergency funds, apart from the fact that bitcoin is volatile does it mean that the investor wants to be spending his bitcoin on every of his day to day transactions? that isn’t possible because there are certain transactions that the sellers won’t want to accept payment in bitcoin, so every investor should have at the back of their mind to keep certain money aside for their day to day transactions, money invested into bitcoin shouldn’t be the investors total income, it should be funds that the investor can afford to let go for a long period of time, else he will be treating his bitcoin investment as gambling.

[ejikeme24]

I don’t think that it is even possible that a bitcoin investor won’t have emergency funds, apart from the fact that bitcoin is volatile does it mean that the investor wants to be spending his bitcoin on every of his day to day transactions?

It is very possible for a Bitcoin investor not to have emergency funds, even currently now there are some investors who thinks emergency funds won't be necessary in their bitcoin investment probably because their fellow investor came out successfully without having anything like backup funds. And sure Those guys who are dependent is likely to accumulate without setting emergency funds aside, because their parents or loved ones is there to help them whenever they need money for anything especially those guys who came from a wealthy family, they tend to accumulate with the little they are getting from the little job they are doing it can be Skill or online jobs. But those who are independent need to have some level of backup funds knowing fully well that when emergency need arises they may not have anyone to run to, they will have to fight it all alone.

[Stive009]

I don’t think that it is even possible that a bitcoin investor won’t have emergency funds, apart from the fact that bitcoin is volatile does it mean that the investor wants to be spending his bitcoin on every of his day to day transactions?

It is very possible for a Bitcoin investor not to have emergency funds, even currently now there are some investors who thinks emergency funds won't be necessary in their bitcoin investment probably because their fellow investor came out successfully without having anything like backup funds. And sure Those guys who are dependent is likely to accumulate without setting emergency funds aside, because their parents or loved ones is there to help them whenever they need money for anything especially those guys who came from a wealthy family, they tend to accumulate with the little they are getting from the little job they are doing it can be Skill or online jobs. But those who are independent need to have some level of backup funds knowing fully well that when emergency need arises they may not have anyone to run to, they will have to fight it all alone.

It is not unusual for a Bitcoin investor to lack an emergency fund. This is particularly true for those who do not bear major family or financial responsibilities and can rely on their families in times of need they often start investing in Bitcoin without setting aside a separate backup fund, knowing they have parents or loved ones to support them during emergencies.

However for those who are financially independent and solely responsible for meeting their own needs and handling crises having at least some backup funds is crucial. In the event of a sudden emergency there may be no one available to provide financial assistance. If one is forced to sell Bitcoin to cover these needs it could disrupt their long term investment strategy.

Therefore one should not assume that a strategy which worked for someone else even if they succeeded without an emergency fund will necessarily work the same way for oneself. Everyone’s financial situation family support system and income stability are different.

In my opinion there is no need to wait for every condition to be 100% perfect before investing in Bitcoin. However having a backup fund for essential expenses and emergencies allows one to continue a long-term DCA strategy much more comfortably. After all the purpose of an emergency fund is not to boost Bitcoin returns but to alleviate the financial pressure that might otherwise force one to liquidate investments during difficult times.

[Princess Leah]

I don’t think that it is even possible that a bitcoin investor won’t have emergency funds, apart from the fact that bitcoin is volatile does it mean that the investor wants to be spending his bitcoin on every of his day to day transactions? that isn’t possible because there are certain transactions that the sellers won’t want to accept payment in bitcoin, so every investor should have at the back of their mind to keep certain money aside for their day to day transactions, money invested into bitcoin shouldn’t be the investors total income, it should be funds that the investor can afford to let go for a long period of time, else he will be treating his bitcoin investment as gambling.

First off dear, nothing concerns the emergency funds with what's spent on day to day, they’re different things altogether, the emergency funds is set aside for emergency situations and it's very advisable for investors to have that intact so if an emergency situation occur, they won't use money for emergency needs or day to day needs for the investment.

 Every investor should know how to manage their cashflow in the sense that they'll know the amount that would be suitable for their necessities then use the remaining for investment then build their back up and emergency funds. With a proper planning the investment would go smoothly, there would only be complications when there's no proper planning on how to manage the cash flow, ignorance and lack of conviction.

[Sir_Garry55]

I don’t think that it is even possible that a Bitcoin investor won’t have emergency funds. Apart from the fact that Bitcoin is volatile, does that mean that the investor wants to be spending his Bitcoin on every one of his day-to-day transactions?

It is very possible for a Bitcoin investor not to have emergency funds. Even now, there are some investors who think emergency funds won't be necessary in their Bitcoin investment, probably because their fellow investors came out successfully without having anything like backup funds. And sure, those guys who are dependent are likely to accumulate without setting emergency funds aside, because their parents or loved ones are there to help them whenever they need money for anything, especially those guys who came from a wealthy family; they tend to accumulate with the little they are getting from the little job they are doing; it can be Skill or online jobs. But those who are independent need to have some level of backup funds, knowing fully well that when an emergency arises, they may not have anyone to run to; they will have to fight it all alone.

Every successful investor in Bitcoin will have emergency funds. We all know that this is very important to every investment you will make; not only to Bitcoin, it also applies to other aspects of investment as well. If this is not put in place, it will really have an effect at a time when that emergency fund comes into play, and it will force one to sell some of his or her coins. Having emergency funds that will always act as a backup is the way that can make any one to achieve that success during the time of Bitcoin investment.

[Promocodeudo]

I don’t think that it is even possible that a bitcoin investor won’t have emergency funds, apart from the fact that bitcoin is volatile does it mean that the investor wants to be spending his bitcoin on every of his day to day transactions? that isn’t possible because there are certain transactions that the sellers won’t want to accept payment in bitcoin, so every investor should have at the back of their mind to keep certain money aside for their day to day transactions, money invested into bitcoin shouldn’t be the investors total income, it should be funds that the investor can afford to let go for a long period of time, else he will be treating his bitcoin investment as gambling.

I think you're talking in terms of proper planing and risk management, and you are convinced that every investor keep to that, even as it has been a days to day discussion here that Bitcoin investors having emergency funds is proper thing for them to do, some of us here are still not taking such practice serious, you might not believe this, but that's the fact.
People are too reluctant to the extent that they neglect what should be done, for me, Bitcoin investment without the provision of emergency funds is just gambling, there are stuffs we don't play with, the significance of creating emergency funds shouldn't be overlooked by investors while investing in Bitcoin, that my take.

[GIF-JOBS]

An individual who understands volatility can loss money Even when Bitcoin drops 70 percent cause of the panic. Learning the basic is important it a better approach l, keep on learning and start with amount you can afford

If a person understands volatility then what's the point of panicking when the price drops to 70%? I don't quite agree with you on that, a person can only panic if he or she does not know about the market volatile. Because they might be feeling that if the price drop to 70% that it may go up again and then they can decide to sell at lost instead of lossing completely.

so if you ask me, I would say that those who panic and sell are those set of Investors that doesn't understand the volatile nature of bitcoin. Some knew that bitcoin is volatile but they don't have a better understanding of how volatility works.

Having a realistic idea of Bitcoin's volatility can reduce the likelihood of panicking and making a decision immediately after seeing a 70% decline. Because if a long-term investor already has an idea that a major price drawdown in Bitcoin may occur, then such a decline should not be completely unexpected for him. In that case, it may be relatively easy to maintain his long-term plan even if the market goes in the opposite direction. Selling in panic not means that the person does not know anything about Bitcoin's volatility.  Someone may know about volatility but may misunderstand his mental tolerance in that situation because he has not had real experience of a 70% decline.

Another important point is that past recovery is not a guarantee of future recovery. It is important to understand the real meaning of volatility and its impact on him. If someone is forced to sell after a 70% decline, then the amount of his investment may have been more than his financial capacity. Therefore, knowledge, mental preparation and the right position size are all three important.