Do not hodl hot things

[JaanusRaim]

The truism "don't hold hot things" is perfectly intuitive for our bodies, yet in the world of investing, it is all too easily forgotten.
When an asset is already the center of attention and heavily hyped, it is the right time to act—not to buy or hold, but to sell.

True, not just any piece of junk makes for a great investment. If that were the case, the investment game would be quite boring—certainly not one of the most exciting human games, as it is today.

But every excellent investment looks like junk.
(Bitcoin has once again taught us this ancient lesson)

[Questat]

There is a famous saying in the Bitcoin world, buy the rumor, sell the news.

I think that's similar to what you stated, and actually that saying is still relevant until now, although currently due to institutional investors, the market is less volatile compared to the past few years. Still, it's good advice to remember so we don't get caught up in the hype and end up selling at a loss, after all in trading, timing is important so we cannot afford to be greedy.

[TheUltraElite]

If its bitcoin, hold for long sell for profit if the need is emergency or sell to buyback at a lower level.

If it is altcoin, buy at low with care because most of them will never come back up again. But if you have bought already, sell at the next possible point so as to make sure to profit and still get out.

I consider the second one as the "hot stuff" - because it can burn you down. I dont recommend altcoins but quite a few newbies end up buying some shitcoins now and then.

[Gozie51]

The truism "don't hold hot things" is perfectly intuitive for our bodies, yet in the world of investing, it is all too easily forgotten.
When an asset is already the center of attention and heavily hyped, it is the right time to act—not to buy or hold, but to sell.

When it comes to the body, you hardly take in hot things because of the temperature or higher temperature but hot in investment means prime or good time to invest. They say it is better to leave the stage when the ovation is loudest but the challenge with bitcoin is to know when to exit your profitable trade. It is therefore very important to set target for exit and that will safe you the temptation of being greedy because that is the major reason for over trading and loses.

[Oshosondy]

So are you implying right now that people should not buy bitcoin, but sell it? If that is what you mean, you are wrong. Or you mean that when bitcoin got to $126000, you expected the price to fall and which it did. But bitcoin has falling in price and it later increased to $80000. Bitcoin is consolidating and be expecting the price to later increase further.

[Yorubek]

There is a famous saying in the Bitcoin world, buy the rumor, sell the news.

You said it very well
Maybe this saying is still relevant

In a situation where it is very difficult to understand which way the situation is actually going, most investors panic and make wrong decisions. It is true that the more institutional investors enter the market, the more volatile the market will be. In fact, Bitcoin is so volatile that it is not possible to provide reliable information about the market, currently the market is stable, but no one can say exactly how long it will remain stable. At this time, it is not right to make decisions that can cause big losses, so it is reasonable to keep a calm mind and exercise awareness.

[Accardo]

Sell hot buy cold, you mean? when an asset is hot it's bullish, when it gets cold it's bearish. Buying or hodling on a bullish run is an action that demands steady attention from the investors, they'd have to watch out for the bullish trend's expected duration before deciding to hodl or sell. As for assets with no potential market growth, the buyer must sell in a booming market and move on, it'll do no favor to return back, as the asset may never come up or get hot again.

[Dr.Bitcoin_Strange]

This was actually a point of discussion last year and months ago when Bitcoin was still at $100k+,  some investors argued that buying at $100k was a bad idea because price was going to fall below that level which it eventually did. If you are actually directing this topic to Bitcoin, I would say it's coming late because Bitcoin have already experienced the bear dip and a lot of people already sold last year and early this year, and have bought again during the bottom.

[BTC FutureKing]

If its bitcoin, hold for long sell for profit if the need is emergency or sell to buyback at a lower level.

If it is altcoin, buy at low with care because most of them will never come back up again. But if you have bought already, sell at the next possible point so as to make sure to profit and still get out.

I consider the second one as the "hot stuff" - because it can burn you down. I dont recommend altcoins but quite a few newbies end up buying some shitcoins now and then.

Bitcoin will only crash when its price drops because people are making a lot of noise about it being down and they think it should be sold now, while it is a good profit opportunity and asset for the long term.

Altcoins are hot because they mostly follow Bitcoin, which is why when their price drops, they rarely rise and this makes people hot and they get scared. Although the one who buys it at a low price will have to do it for the same amount of time as the one who buys it at a high price because both have bought for profit.

For me, both are hot because when Bitcoin goes down and those who want to take profit think that Bitcoin will be very difficult and long to come and Altcoins feel that their price is less likely to increase now, so all of them can be hot.

[Ruttoshi]

I think what you said only applies to altcoins and not bitcoin because bitcoin gives you more profit the longer you hodli. It altcoins that are best to sell when you see a little profit because the price might not be able to reach that price that put you in profit. I have experienced it times with number.

It's shitcoins that are being hyped and not bitcoin so, it's better to involve yourself in bitcion long term investment than chasing little profit and get burnt.

[boyptc]

The truism "don't hold hot things" is perfectly intuitive for our bodies, yet in the world of investing, it is all too easily forgotten.
When an asset is already the center of attention and heavily hyped, it is the right time to act—not to buy or hold, but to sell.

The reason why we've invested in the first place is forgotten, and that reason is to profit by selling.

But we can't also help ourselves when we see the assets we hold are doing just fine and keeps on growing. And with that, we forget to sell because we want to hold longer for maximizing potential profits.

While it's right to sell when the hype is high but I don't think this applies to bitcoin.

But every excellent investment looks like junk.
(Bitcoin has once again taught us this ancient lesson)

Not anymore for Bitcoin. Those who don't have it tells that no more because Bitcoin is recognized globally these days as a good asset, no longer a junk in their eyes.

[The Cryptovator]

True, not just any piece of junk makes for a great investment. If that were the case, the investment game would be quite boring—certainly not one of the most exciting human games, as it is today.

But every excellent investment looks like junk.
(Bitcoin has once again taught us this ancient lesson)

Can you remember once a time Bitcoin was also junk at the beginning of Bitcoin's journey? From time to time it has explained that sometimes junk would also be profitable. But everything would not be like Bitcoin, but there it is. I have seen some innovators have invested in junk land. After a few years the government needs that area, and the person who bought that land becomes very rich.

On the other hand, we can’t consider every junk will be lucky. Some sectors have to be avoided for investment. It really depends on where you live. For crypto investors, Bitcoin is the best example, but for real-life investment, you have to think twice.

[abel1337]

So are you implying right now that people should not buy bitcoin, but sell it? If that is what you mean, you are wrong. Or you mean that when bitcoin got to $126000, you expected the price to fall and which it did. But bitcoin has falling in price and it later increased to $80000. Bitcoin is consolidating and be expecting the price to later increase further.

I think OP is pertaining to altcoins. Bitcoin as we know is strong fundamentally and whether it get hyped or not, its fundamentals is backing it up that's why bitcoin is still alive even after many crypto cycles. Bitcoin is the king for a reason and everybody knows it, we know as a bitcoin holder that bitcoin will rise and hit it's all time high price again even how low it fall during a bear market. It happened every crypto cycle that's why I don't worry if I personally bought bitcoin at a much higher price compared to the price we have today.

Typically altcoins, more like shitcoins/memecoins are hype driven and those who bought when everyone talks about it are the one who are getting rekt since they entered the as a liquidity to those who entered early. These kind of tokens are so much riskier than everyone expects. There are traders who are waiting it to be "hot" but never came to that conclusion. Trading these kind of token is the pinnacle of risk in terms of crypto token trading.

[hyudien]

This is a fitting adage when applied to altcoins, if you time it right, a piece of "junk" you’ve bought can turn into a nugget of gold—or, conversely, it could lead to your ruin. However, when it comes to Bitcoin, I don’t believe this still holds true. Even if you enter the market at an inopportune moment, the price of Bitcoin has the potential to recover unlike other coins (which are truly just "junk") that rely primarily on market euphoria.

[PX-Z]

... I dont recommend altcoins but quite a few newbies end up buying some shitcoins now and then.

There are actually some good altcoins, even among shitcoins, as long as you know when to enter and, more importantly, when to stay away. But for beginners who don't yet understand how these coins moves or how very volatile they are, it's better to avoid them until they gain enough knowledge and experience to handle such extreme volatility. Otherwise, they're just gambling without understanding the risks.

[Lida93]

When an asset is already the center of attention and heavily hyped, it is the right time to act—not to buy or hold, but to sell.

Among cryptocurrencies, bitcoin is in the centre of attention which makes it the leading cryptocurrency but, it isn't base on hype as it is with altcoins.

This warning or reminder as the case may be is one that should be directed to altcoins profit chasers and definitely not for bitcoiners. You can hold bitcoin for years as per your planned investment timeline and you won't get dumped on. Bitcoin unlike altcoins and tokens that are built on hype, bitcoin has utility value and with a strong ecosystem that has passed through many tests and survived.

[Zigabel]

The truism "don't hold hot things" is perfectly intuitive for our bodies, yet in the world of investing, it is all too easily forgotten.
When an asset is already the center of attention and heavily hyped, it is the right time to act—not to buy or hold, but to sell.

True, not just any piece of junk makes for a great investment. If that were the case, the investment game would be quite boring—certainly not one of the most exciting human games, as it is today.

But every excellent investment looks like junk.
(Bitcoin has once again taught us this ancient lesson)

People make this mistake to thinking that the most of opportunities are seen when the asset is HOT, and before you attribute it to newbies, even experienced investors make this mistake too when they are trying to be smart investing. They loose their investing discipline when they see moves like that in the market, they just feel they can be smart about it due to their experience in the market but then sometimes they do get lucky, and the other times they get unlucky with such moves. As a newbie or experienced Trader, always know moving with the crowd isn't always the best move to make as the crowd will most often be wrong, at the time when they seem to be giving up on an asset is usually the best time to spot an entry and by the time it is getting hyped already, you should be in profit and start finding exit while others are all hyped up and thinking they are having the best time to enter.

Although with Bitcoin it got some peculiarity, you may not necessarily want to go by the don't enter when its all hyped as almost every time is a good time for Bitcoin, and that is if only you have the patience, because in the long run, you may eventually get to still be in profit if you are patient enough, but same doesn't really apply with other assets.

[General_Bitcoin]

I have seen people label Bitcoin an overhyped asset at $20k and then say the same thing at $60k and beyond. However, how can we know when it's overhyped? If you sell each time people begin to talk about it, you may miss out on a large portion of the movement. The price alone doesn't give us a great deal of information. We need to look into why people are buying and if they're just short term speculators.

[Arenga pinnata]

Well, the saying the OP mentioned is indeed true. It’s similar to buying before the hype and selling when the hype is at its peak or when everyone starts talking about it. And this is the power of information we gain early on through the fundamental analysis we diligently conduct. If we’re diligent enough to check social media and various platforms run by leading investment firms in the crypto world, we usually get information early on. That way, we can decide to jump in right when the news is just released. And when the news starts getting hyped up by influencers and the hype begins to build, well, that’s when what we’re holding becomes a hot commodity. And that’s indeed the right time to let it go. Although, in reality, catching that kind of momentum is quite difficult. Often, we end up being the ones who miss out on the initial information. As a result, we enter the market midway and only make a small profit.

[Call_Me_Guru]

Maturity should also be imbibed in trading and investing, you don't react to everything you hear, you may regret it. I have avoided many IPOs just because they were too popular. No how they are promising, I know that if too many populations are there, there would be trouble. Overwhelming proportion of those investors rushing there are not nature, they only want to make money. Imagine them selling abruptly when they do not get the returns as expected, it all leads to chaos, we see that frequently. I prefer to buy Bitcoin and keep it. That has not failed me for years.