Why do even the wise lose in Bitcoin investment

[Rhow]

In the field of investment, it is not enough for an investor to have good knowledge about Bitcoin. There are some investors who know well but they could not succeed in investing and the root of this is the human tendency to make decisions based on emotions. In this discussion, I would like to discuss the emotions of investors.

There are many investors who can make good plans but only plans cannot bring success in investing if that plan cannot be implemented. A very familiar word in the Bitcoin market is that it is volatile and this volatility should be considered naturally. But investors react to this volatility differently due to which the results do not come as expected.

The factors associated with Bitcoin volatility

When the price increases, FOMO is created among investors. They think that Bitcoin may go beyond their limits right now. If they cannot buy at that time, they will not be able to buy Bitcoin or they may lose a big profit. This type of FOMO is created with the increase in price, which can cause losses for the investor.

If the price decreases, then many think that they may be facing a big loss, which is why their panic sale starts at that time.

Some people hold the profit in the hope of more, which later leads to losses. As these problems constantly circulate among investors, they are prevented from getting the expected results from their investments.

Making decisions based on emotions like selling at low prices and buying at high prices is a big problem for investors. If investors can make good decisions about these two things in their investments, then it is possible to get good results from their investments. I am interested in contributing your feedback on this.

[Davidloki]

You have misunderstood Bitcoin investment completely.

Bitcoin investment and investment generally is not a test for who is wise and who is foolish. Investing in Bitcoin is all about technical know-how than measuring your level of wisdom. The knowledge you have acquired and how you apply the knowledge is what keeps your investment going for the long term.

People who are considered to be "wise" naturally have tried Bitcoin and failed, some tried to outsmart or find a shortcut in achieving success through Bitcoin with nothing to show forth in the end. On the other hand, those who are not considered wise have succeeded consecutively in Bitcoin investment because they did not ignore the basic principles.

You can have master degree, PHD, other academic honors and still lose in Bitcoin investment. The reward is for those who learn and discipline themselves not for title owners, CEO, or someone who have the highest shares. This is a chance for you to change your narrative whenever you see people losing in Bitcoin investment, it is not because they lack wisdom it is because they didn't apply the strategy correctly or they are not consistent.

[MainIbem]

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When you mean "wise" I guess you're referring to good understanding about Bitcoin investment right? It so it's either such person lacks patience or came into it for quick profits cause someone who truly understands what investing in Bitcoin is all about should be aware that it's a long-term asset and would require investors to hold it longer for better rewards. Taking profits too early means selling at lose so no mater how wise an investor is selling too early to chase quick gains is same thing as losing. Selling when the market is down even though the investor has held longer can also be classified as selling at lose too, someone who claim to be wise should know that.

[Yablee0]

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When you mean "wise" I guess you're referring to good understanding about Bitcoin investment right? It so it's either such person lacks patience or came into it for quick profits cause someone who truly understands what investing in Bitcoin is all about should be aware that it's a long-term asset and would require investors to hold it longer for better rewards.

For someone to approach Bitcoin investment with such mindset of making quick profits overnight is practically a huge failure on arrival. Because in Bitcoin their is no short cut around it possibly every protocol, systematic steps that follows like: (investing from our discretionary funds, having the courage to hold strong to like 5-10 years time,
staying consistent in our accumulation journey by using the DCA method and lot more) need to be followed according before you can arrive your desire destination. Their is no way you will be doing the right thing in your investment journey that you wouldn't have something tangible at the end of your investment, so it's just about the determination and commitment in us that can turn the lights more brighter in our favour.

However, when investing in Bitcoin or whatever, it's more better to at least have the basis understanding or knowledge about it than just being a completely novice that can't differentiation his left from your right,  perhaps basis knowledge helps us navigate our way out to a positive result in all we do.

[Karl_3000]

The wise people can not lose in bitcoin investment because such people would have researched and know how to invest in bitcoin.

Some people are traders but they are calling themselves investors is the reason they are losing.

Just buy bitcoin, and as the price is going down, buy more but they will not buy more but they will be panic and sell.

[Doan9269]

Anything we are doping in bitcoin investment has to go inline with the expected steps needed of us to carry, once we made a mistake we are going to face the repercussion at the same time, because we cant do the wrong thing and expect the right outcome, this is why we must be intentional about our investment and at the same time try to learn to know more about bitcoin network, this will prevent us from being a noob, because it is not by how far, but how well.

[Ishicryptic]

The wise people can not lose in bitcoin investment because such people would have researched and know how to invest in bitcoin.

You are correct that wise people cannot lose in Bitcoin investment because they must have done their research to know how Bitcoin market is and also how speculators react to price, it takes people who lacks proper knowledge of the market to make avoidable mistakes.

If an investor have discretionary funds and choose DCA strategy to accumulate Bitcoin they will bypass FOMO and FUD in the market because they are not monitoring the market before they accumulate their Bitcoin. There are too many analysts in the crypto space and whatever they predict about Bitcoin price is there own speculations because they don't control the market. Bitcoin market is volatile so uptrend and downturn are to be expected, price has to dip before it will recover and become bullish, buy and hold because Bitcoin has potentials to reach ATH.

[Tonimez]

¢

First of all, how do you qualify a wise person in the bitcoin investment? When a person is truly bitcoin wise, there's no way he will loose in bitcoin because he would have a clear understanding of bitcoin and decide what he wants. Some folks are confused on whether to invest or trade. This set of confused folks, start up as Investors but when the wave comes, they panic and deviate, selling off their bitcoin abruptly thinking they want to mitigate their loss without knowing that they're not smart. So before you call someone wise, make sure that the person is doing it rightly and not playing around.

Even though there's no 100% guarantee that there will be good profit after a long period of time, it is still very wise to ignore the noise that sets in during bitcoin volatility because that's the only time you will be considered as wise. I doubt if there's a wise gambler guy because all of them are prone to panic anxiety and usually fall to the evil that comes with the fear of missing out. So being wise is knowing what you want and sticking to it.

[cocadalcan]

When it comes to Bitcoin investment, good knowledge actually means experience. If you are not experienced in Bitcoin investment, it will not affect your investment. You are right that emotional decisions are the most harmful for investment. Bitcoin price volatility is one of its characteristics. It is more important for you to be aware of the risks involved in Bitcoin investment, only then can you make good investment decisions.
Panic selling is one of the reasons for investors' losses. Another reason is the tendency to sell Bitcoin quickly in the hope of making small profits. This is a type of trading attitude in which a trader sells his valuable Bitcoin holdings in the hope of making small profits compared to earning several times the profit from Bitcoin holdings in the future.

[Creeper0]

There is a difference between education and knowledge, the person you are talking about may be educated but not wise. We cannot call a person who is aiming for quick profits or who is afraid during investment or cannot handle the greed of small profits a wise person, maybe he is educated in investment. We get education from others and knowledge comes from our own efforts. If a person can gain knowledge of investment through his own research, then I do not think that he can become a damaged or failed investor due to these reasons.

But an educated investor can fail in investment due to lack of practical application of his acquired education or lack of emotional control. Yes, we see many investors who are committed to long-term investment or their goals in normal times, but when the market falls or bullish or the fund turns into a small profit, then he succumbs to emotions and takes wrong steps, for which he later regrets.

[Realwhot]

what do you mean as wise? Because the thing that really matter is if you know how bitcoin investment works and how you can buy at the right time so that when the price falls you will not lose very much because of it and if the price goes up you will make more profit because you bought early at a lower price.

[Obim34]

~snip

Becoming investment wise is what makes an investor succeed. Investment wise means having good knowledge about Bitcoin, what should do and what to avoid, staying ignorant isn't an excuse because it attracts consequences that might result in losing funds.

The wise cannot lose in Bitcoin, unless you are referring to an aspect outside of Bitcoin. Knowledge is necessary to have, there are rules to every investment, safety and protection, if not followed, it becomes an issue for the investor.

[Gozie51]

Making decisions based on emotions like selling at low prices and buying at high prices is a big problem for investors. If investors can make good decisions about these two things in their investments, then it is possible to get good results from their investments. I am interested in contributing your feedback on this.

Basically, I believe what you have narrated is how our emotion play play fast one on the investor and truly emotion can also be to the advantage of the investor just as it can put fear on the investor and make him exit his hodling too fast and no sooner than later, the price begins to appreciate. I don't blame volatility in bitcoin as the problem because an investor expects the volatility because that is what will make the price to appreciate but what matters is how long the investor is willing to wait. A short time investor in bitcoin is likely to lose if his target is not filled and he goes off early but most longtime hodlers make profit from bitcoin and not losses.

[Makus]

A lot of people forget that knowledge isn't only the only thing that's important when it comes to Bitcoin investment, emotional discipline and understanding Market psychology plays a huge role as well. There are people that understands the market, they know how to analyze by reading the charts and having a clear strategy but they make mistakes that they end up regretting because emotions don't make them think logically. Lack of emotional control mostly exposes you to greed and also panicking when the market goes through a down trend.

[Mhizlove]

The wise people can not lose in bitcoin investment because such people would have researched and know how to invest in bitcoin.

Some people are traders but they are calling themselves investors is the reason they are losing.

Just buy bitcoin, and as the price is going down, buy more but they will not buy more but they will be panic and sell.

I addition wisdom in bitcoin is not Only about research but patience and discipline all together, even someone that knows it well can still lose if emotions push am make e panic sell or overtrade. True investors always plan ahead of time and also think long term and not all price movement they respond to, the real difference is not when you just say you're an investor but how you manage and behave with market movement

[Bit-Mj1014]

Bitcoin investment is tricky one, it goes beyond wisdom or intelligence, it mainly about consistency and sticking to plan to matter what, because of it's volatility when investing your emotions might be all over the place, the best you can do is to stick to your strategy.

[Shadiq]

To be successful in investing, we need to have some qualities, knowledge alone may fail to bring success in investing. To start investing, we need basic knowledge, it is important to have trust or belief in Bitcoin, it is important to have long-term goals. Even to make long-term investment successful, first of all, patience is needed, realistic and consistent planning is needed, deep knowledge is needed to keep the long-term investment journey safe, the ability to control emotions during market instability and etc. etc. are the qualities that are needed.

Basically, all the things necessary to be successful in investing are important, you may not be able to exclude any of the mentioned things. To be successful in investing, you must have all the necessary skills. Knowledge and the ability to control emotions are not enough.

[Adams0001]

A lot of people forget that knowledge isn't only the only thing that's important when it comes to Bitcoin investment, emotional discipline and understanding Market psychology plays a huge role as well. There are people that understands the market, they know how to analyze by reading the charts and having a clear strategy but they make mistakes that they end up regretting because emotions don't make them think logically. Lack of emotional control mostly exposes you to greed and also panicking when the market goes through a down trend.

If you have knowledge you have finished half of the learning about bitcoin, and again I can said if you get knowledge experience will definitely come and that is when emotional discipline and understanding will comes and you will no how to control your self and have the patience to hold Bitcoin for a long term. What people don't Really understand most about bitcoin investment is that is not the way people are saying it he usually works sometimes.

many people always said you will be profitable when you invest in bitcoin but they don't usually explain when you can probably get assurance of getting profits. We no that bitcoin is volatile but if you invest for like 5 to 7 years am sure you will get something in it he won't be the same way you invested before, but people are discourage because not everyone can hold for so long and that is why bitcoin is not for everyone.

[Agbamoni]

Wise people hardly make mistakes because they ask questions when necessary and they do their own research without jumping to conclusions. If you see someone who you think is wise, lose in a bitcoin investment, know that he is doing something he isn't supposed to do out of ignorance or greed. And surely, this wont be his first time in Bitcoin investment. He lost because he wanted to make more profit than he had made before.

[Mate2237]

There is nothing like been wise when it comes to Bitcoin investment, you can use your circular wisdom to invest in Bitcoin. No it doesn't work that way been wise in Bitcoin will imply that such a person will have a good appreciation about how Bitcoin works and it's principles. Failure in Bitcoin related investment has been associated with one thing and that is lack of understanding before investing. When you start anything with out first of all taking time to study how such a thing works failure is certain.



From what I get get from your thread you are concerned about how different person's reacts to the market, This is be avoided if the person investing will understand that Bitcoin investment is not done with your emotions on. And looking for quick profit this has been one of the mistakes those who may not be too informed about Bitcoin investment has been doing. If you understand that Bitcoin investment works well when kept for a long time, no matter the market you will not be afraid.