Reasons why Long- term investors fears over drop in Price of Bitcoin

[Alphakilo]

Every reasonable long-term investor does not look at short-term gains; they look at the bigger picture in the future. What long-term investors do during price drops is use the opportunity to accumulate bitcoins and still stay focused. Prominent and institutional investors are doing it and have been very consistent with it. This is the difference between long-term investors and others.

Long-term investors understand that volatility is a major part of Bitcoin, so they use it wisely. That is even the major reason why they opt for long-term hodling in the first place. So, if there is any investor who panics whenever there is a drop in price, then that investor is not ready yet to be an investor. He doesn't have a long-term projection for his investment.

One mistake anyone can make is planning to be a long-term investor without a stable source of income or reserve funds.

Makes sense. Institutions like MicroStrategy have been buying up BTC during dips, showing that steady accumulation can pay off. But it's not just about patience, it also requires careful planning with an emergency fund. Both strategies complement each other in the volatile crypto market

A long term investor has a different mindset as in contrast to the investor that holds for a long time, just so as to diversify or liquidate their portfolio in the need of emergency or acquisitions or achievements of a goal.
I doubt long term investors have a goal they want to achieve like buying a luxury item or something else, other than they just want to grow their wealth because they believe that the volatilities which is a driving factor of the price of Bitcoin would act on their holdings to double or triple it when the price hits a high ATH that's obviously more than the initial price at which they bought to accumulate.

Diversification of funds in investment helps a long term investor know how to apportion funds safely into different places, so as to avoid being hooked in debt crisis or emergency situations or unforseen circumstances.

[As-Soon-As]

Investing in Bitcoin only in the long term reduces the risk and creates the ability to earn more profits. Those who have low income and short-term investors mainly spread misinformation about Bitcoin and Bitcoin investment, these investors cannot hold Bitcoin for a long time and fail in the middle and spread misinformation among the people.
However, investing in Bitcoin is only suitable in the long term, the strategy of investing in the Bitcoin market through price dumping and pumping has to be applied.
However, the DCA method is the best for regular Bitcoin investment, if you invest in Bitcoin through this DCA method, the risk is certainly much lower and there is a saving on the purchase price.

[Agbamoni]

No long-term investor would fear a drop in the price of Bitcoin. I disagree with you.
The purpose of long-term investment is for future profit, so whatever happens in the meantime does not matter. Most long-term investors are experienced, and they do not panic, unlike newbies. However, fear itself is a normal thing. It is part of how humans feel, but how a long-term investor responds to fear differs from how a beginner does.

[Plutomanian]

No long-term investor would fear a drop in the price of Bitcoin. I disagree with you.
The purpose of long-term investment is for future profit, so whatever happens in the meantime does not matter. Most long-term investors are experienced, and they do not panic, unlike newbies. However, fear itself is a normal thing. It is part of how humans feel, but how a long-term investor responds to fear differs from how a beginner does.

These long term investors are mostly whales in the market, they know exactly what they want and how to make their approaches towards the one thing that they want. They're not scared about the upward and downward movement of the market, they easily know how to grind and make sure they're reaping the fruit of their labor. Long term investors doesn't panic and not even moved by those things they see online because in the market, there's always presence of volatility that determines the change in price of of market pairs.

Newbies are just existing and have not gathered the courage they deserves because they're still learning. Only scratching the surface and haven't gone deep in the main thing of the day. Trading is complex and also simple at the same time, it all depend on the approaches and techniques been implemented by the trader and investor.

[CryptoYar]

[...]

Mistaken notion is that experienced ones are emotionless robots, when in fact they also experience sense of panic in market, just as anyone else, during vicious correction. Everything is different in behavioral response. Beginner avoids taking risk and simply sells their bags to market at loss, while veteran, with experience, learns to replace impulse of fear with pure facts and sustained beliefs.

Fear is, in my opinion, good warning that you like volatility of markets, but knowing how to deal with moment of fear is what makes real shareholder a real shareholder, not share gambler. It does not seem to matter to long term investors as they see these bear market drops as part of bitcoin monetization journey. They know that just straight line up is not real wealth. Emotion put in perspective with multi year timeframe becomes benign instead of fear and merely cue to divert attention from the charts.

[Peanutswar]

To be strong when this happens:
Have an emergency funds separate
Buy and keep predefined dips aside
Be on two sides etc.

In conclusion
As a mature Bitcoin investor your mideset towards losses is ought to be mature don't assume have it at the back of your mind that , it's volatile before entering, be disciplined, and control your emotions so it won't affect your mindset and decision

When it comes to a bitcoin investment or any other form of investment is you must need to consider of having emergency funds its separate funds that you can sustain you for the rest of 6 months of your usually expenses and of course it's different too if you have a funds for extra for the worst case of emergency happens which we do expect that we dont want to make it happen, I can't tell that im a professional trader or investor of bitcoin but I guess if we you well experience already the cycle you dont hodl for a very long term such as OP said 20-25 years of course you wanted to enjoy the gains and make another entry at the dip again and if you are an experienced trader you will understand how the market works, and you will not just sell your asset if you are a long term investor you set a goal, you manage when and where to exit and not just because of the hype.

[MarjorieZimmermanGinger]

Purpose of having emergency fund is to prevent any real life unexpected event from ruining your life, like medical emergency or unemployment. You will be putting your personal life in bare cup if you are investing that cash that is needed now in highly volatile investment simply because it is cheap.

Financial discipline is actually must and highly critical issue is there should be both buckets with regard to differing goals. Good investors make investments without using their cash. They have reserves in hand, or dry powder and are only offered in event of dip in market. It enables them to more easily gather more coins when they are in crash without financial strain at home. It is not risky gamble with emergency savings that is the basis for long term plan.

Financial discipline is indeed a necessary foundation for achieving a better financial position because it allows one to have more control in prioritizing. Emergency funds are also not used forever, so the money can be diverted to investments, although that isn't the only way to use them. They may be able to set aside the emergency fund again for the next period in the current year. Ultimately, this all depends on each individual and how they manage their finances well. Achieving financial freedom requires thorough preparation and a better plan with an appropriate strategy.

But it's far better to use unused funds or discretionary income for investing, as an emergency fund also needs to be set aside for unforeseen needs, as you mentioned. When the market experiences a significant downturn or Bitcoin prices are discounted, that money can be used to purchase a much larger amount of Bitcoin, ensuring that other needs are not affected or disrupted because we make a plan for the use of each fund in its implementation.

[Ishicryptic]

Sure profit is not guaranteed in every businesses and investments including Bitcoin so there is always risks that will be involved and the level of risks depends on the type of business and investment so having a level of fear in Bitcoin investment is understandable. Although Bitcoin has proven over the years that it is a store of value yet we have to understand financial management before investing in it because it is a volatile asset. We are supposed to buy Bitcoin with our discretionary funds not money for our basic expenses so that we wouldn't be under pressure to sell prematurely inorder to survive. Bitcoin investment has potentials to increase your fortunes in the future but you need to invest with amount that you can afford to loose to avoid unnecessary fears when we are in bear run.

[Rockson1]

No long-term investor would fear a drop in the price of Bitcoin. I disagree with you.
The purpose of long-term investment is for future profit, so whatever happens in the meantime does not matter. Most long-term investors are experienced, and they do not panic, unlike newbies. However, fear itself is a normal thing. It is part of how humans feel, but how a long-term investor responds to fear differs from how a beginner does.

Is he actually talking about long-term investors, maybe he might be referring to short term investors, op should try to get more facts before putting up any write up, how will a long-term investor whose main goal is to keep acumulating Bitcoin and hodling for a long-term be afraid of a drop in Bitcoin price, has he forgot that a long-term Bitcoin investor can decide to buy at a lesser price if the price of Bitcoin drops at anytime which will be and advantage to him, unless the op is referring to those that called themselves long-term investor on their lips not real long-term investors, a real Bitcoin investor is a good strategist that supplies good strategies that will enable him to actualize his goals.

[arwin100]

No long-term investor would fear a drop in the price of Bitcoin. I disagree with you.
The purpose of long-term investment is for future profit, so whatever happens in the meantime does not matter. Most long-term investors are experienced, and they do not panic, unlike newbies. However, fear itself is a normal thing. It is part of how humans feel, but how a long-term investor responds to fear differs from how a beginner does.

Is he actually talking about long-term investors, maybe he might be referring to short term investors, op should try to get more facts before putting up any write up, how will a long-term investor whose main goal is to keep acumulating Bitcoin and hodling for a long-term be afraid of a drop in Bitcoin price, has he forgot that a long-term Bitcoin investor can decide to buy at a lesser price if the price of Bitcoin drops at anytime which will be and advantage to him, unless the op is referring to those that called themselves long-term investor on their lips not real long-term investors, a real Bitcoin investor is a good strategist that supplies good strategies that will enable him to actualize his goals.

Its confusing for saying that long term investors will get afraid to see a price drop, since if we look at multiple discussion about this many will say that they would love to see such thing, because that means its great opportunity for them to buy cheap Bitcoins.

Usually short term investors feared with that angle, since if there's a drop will came that also hurt their positions. People has long term mindset usually don't get bothered on drops because they know its temporary and they are always following their plans.

[YOSHIE]

Reasons why Long- term investors fears over drop in Price of Bitcoin

That's a normal and natural thought in the world of investment, investors after placing their money in Bitcoin, they have in mind profits, not losses, so it is natural that they are wary and anxious when the price of Bitcoin falls for a long time.

The faster the price of Bitcoin rises as investors want, the faster the profits they will get, therefore in general we can understand that no investor wants to lose, in general they want big profits.

[purple_sparkles]

I think long-term investors are not too worried when the price falls, because this is exactly the time when they can gradually accumulate bitcoin over a long period. It's an accumulation phase, and the longer it lasts, the more bitcoin can be bought at favorable prices. Short-term investors, however, tend to worry much more, since for them it means having their funds tied up for a long time.

[Mate2237]

OP are you talking about yourself or you are really serious about saying that long term investors are nervous and fear a drop in price price. Anyone who is seen as a long term investor has already come to the reality about Bitcoin and will be committed in keeping their Bitcoin holding for long. So I don't think that any long term investor will fear a drop in price for what so ever reason. Because Bitcoin investment is best appreciated when left for a long time.


The only people who are not too comfortable with long term investment due to a drop in price which, to them will lead to lose on their on end are the short term investors who are only after making money only on a short term plan, so is this your thread to me is addressed to the wrong person's.