What Should Long-Term Investors Do If The Price Of Bitcoin Drops?

[tbct_mt2]

Due to the fluctuation of Bitcoin price most investors who are holding their Bitcoin are scared of losing their entire Bitcoin because of the frequent changes of Bitcoin price recently, some investors are panic of selling all their Bitcoin because they don't want to lose everything.

So what are your advice to those long-term investors?
Should they sell their Bitcoin or they should keep holding to it despite the unstable state of Bitcoin price recently?

Your question is more helpful with traders or speculators or gamblers in the market than with long-term investors. Because with long-term investors, they have different mindset than the three other groups: traders, speculators and gamblers. They focus on investment, long term, and this means their actions include accumulation and holding of bitcoin for long term.

With such mindset and practice, short term market volatility, drops, crashes won't affect investment plans of long-term investors. With them, if price drops or crashes considerably, they consider it as great opportunity, not risk.

The three other groups are panic and sell for loss or get liquidations during such volatile times of the market.
Psychological pitfalls of market cycle.
Investors know it and take advantage of it well while the three other groups are negatively affected by it.

[Humblevirus]

Due to the fluctuation of Bitcoin price most investors who are holding their Bitcoin are scared of losing their entire Bitcoin because of the frequent changes of Bitcoin price recently, some investors are panic of selling all their Bitcoin because they don't want to lose everything.

So what are your advice to those long-term investors?
Should they sell their Bitcoin or they should keep holding to it despite the unstable state of Bitcoin price recently?

In most cases, those who are always panicking about Bitcoin are people who don't understand much about it. However, anyone who has proper knowledge of Bitcoin will hardly panic or end up selling their Bitcoin just because the price continues to drop. This is because they understand that if Bitcoin's price drops for some time, it may eventually recover.But if someone understands that Bitcoin's price can recover after a decline, why would they think of selling their Bitcoin at a loss? It is a lack of knowledge that makes some people think in that direction, and it is also what prevents them from following the right approach to Bitcoin investment.There is no way someone can follow the right steps in Bitcoin investment without having the necessary knowledge. These steps include investing only with discretionary funds and looking for a well-secured wallet to store Bitcoin.

[OcTradism]

In most cases, those who are always panicking about Bitcoin are people who don't understand much about it.

If people are outsiders, don't have any money in bitcoin, they won't have to panic about Bitcoin market and any news or fuds. They can dislike, hate Bitcoin and even attack Bitcoin and its community but there is no reason to panic.

If they are insiders, already spent money to buy bitcoin, they have many reasons to feel panic. Especially if they lack of enough preparation with research and learning about Bitcoin, its market and market history as well as psychological cycle of the market.

However, anyone who has proper knowledge of Bitcoin will hardly panic or end up selling their Bitcoin just because the price continues to drop. This is because they understand that if Bitcoin's price drops for some time, it may eventually recover.But if someone understands that Bitcoin's price can recover after a decline, why would they think of selling their Bitcoin at a loss?

Emotion is short term but in long term it turns to psychology and people who lack of knowledge preparation, even just basics about Bitcoin and the market, will be most vulnerable and sensitive with negative news, fuds and market crashes. They will emotionally take action, and mostly FOMO buy and panic sell.

[KiaKia]

Keep buying? I don't see anything wrong in Bitcoin price dropping because it's a volatile coin by nature, it was built to be a very unstable digital asset, and now that it's more popular there is no reason for any person who is smart to get shaken out because of price drop.

If microstrategy is still buying why the hell should I panic? If many companies and institutions still believe firmly in Bitcoin why should I be scared? Things are even better now than they used to.

Today we have strong businesses around the world that believes in Bitcoin, in 2018 it was still all shaky and much more volatile than it is right now..

[m2017]

"What Should Long-Term Investors Do If The Price Of Bitcoin Drops?" - to do nothing.

Due to the fluctuation of Bitcoin price most investors who are holding their Bitcoin are scared of losing their entire Bitcoin

For a long-term investor, current fluctuations are of no consequence (and have no impact).

because of the frequent changes of Bitcoin price recently, some investors are panic of selling all their Bitcoin because they don't want to lose everything.

They should take some sedatives if they don’t want to lock in their losses.

So what are your advice to those long-term investors?
Should they sell their Bitcoin or they should keep holding to it despite the unstable state of Bitcoin price recently?

One piece of advice: stick to your original investment plan (which you should have developed beforehand) and pay no attention to what is currently happening in the market.

[Cryptomultiplier]

Keep buying? I don't see anything wrong in Bitcoin price dropping because it's a volatile coin by nature, it was built to be a very unstable digital asset, and now that it's more popular there is no reason for any person who is smart to get shaken out because of price drop.

If microstrategy is still buying why the hell should I panic? If many companies and institutions still believe firmly in Bitcoin why should I be scared? Things are even better now than they used to.

Today we have strong businesses around the world that believes in Bitcoin, in 2018 it was still all shaky and much more volatile than it is right now..

Yes, your comments hits the core of the question because volatility is one of the main features of Bitcoin's growth and that's why investors who hold have the belief that volatilities will dance to their favor probably nearing or during the time they set aside to diversify or liquidate some or all of their asset.

Oldies know how much that the price of Bitcoin is just noise, because it really doesn't affect your holdings unless you are a trader.
Instead of me to panic sell, I would rather panic buy, because at a bear season, it's the best price that's low that can easily be comfortable to buy more and any investor who is holding and thinks long term of probably up to a decade won't be bothered by price drops or rise in price until that duration is at hand.

[BItcoin Guy@]

It's only if you sell your bitcoin that you're at loss but if you don't sell when the price is low, you are not at loss because 1btc=1btc. Don't worry about the dip because the price will surely bounce back which is where you are to continue to hodli overtime till when the price has reached your price target to sell. Don't panic because it will lead to wrong decisions that will make you regret. Just hodli and if possible, buy more if you have extra funds.

That is what some people don't really understand. They think you can lose your funds in Bitcoin just because you invest, you need to sell at a loss before you lose all your funds, but when you invest and keep it, even if the price is deep, you should just try to be patient and continue holding it. One day the price will rise again and you will get back your capital and get more profit on top, because Bitcoin is volatile, you can't always predict the market and get it right.

Whenever you're panicking when the price of Bitcoin drops, your mind will start to shake and make you sell at a loss. That is the reason why knowledge is important first before embarking on your investment journey, and that will make things easier for you and help you hold for a long period of time without judging the outcome.

[Dr.Bitcoin_Strange]

So what are your advice to those long-term investors?
Should they sell their Bitcoin or they should keep holding to it despite the unstable state of Bitcoin price recently?

The very popular advice is for such investors to not always monitor price movement, they should invest the amount of money that they can afford to hold for a long term and they should also have emergency or backup savings in Fiat. Some of those investor that sells out panic due to price fluctuations meanwhile their aim was to hold for the long term, they don't have concrete knowledge of how price behaves, some of them may assume that once they buy, price should keep on going up until it reaches their target but it doesn't work like that.

You must understand that price doesn't continue to go up forever, it doesn't also fall forever, so before you invest, you must use the amount of money that you can be able to hold for a long term without the need to spend the money on something else, never invest any amount that you intend to use for something in a few months.

[Rockson1]

Due to the fluctuation of Bitcoin price most investors who are holding their Bitcoin are scared of losing their entire Bitcoin because of the frequent changes of Bitcoin price recently, some investors are panic of selling all their Bitcoin because they don't want to lose everything.

Does Bitcoin price fluctuation make any investor lose all his Bitcoin? Anyone thinking like this lacks understanding of how these things works, if the quantity of Bitcoin you have in your portfolio depreciates as a result of drop in price, it will go up when the price goes up, the price is not steady and every purchase opportunity should never be overlooked as a long-term Bitcoin investor, there are two things that can cause panic when the market drops, is either the investor was not frequenting his investing with his discreationary income, peehaps he was going above what he can afford, which could cause panic when the price keep going down or the investor is not knowledgeable enough to understand that price correction is something that should be expected at anytime and should serve as an opportunity for investors to buy more at a low price.

So what are your advice to those long-term investors?
Should they sell their Bitcoin or they should keep holding to it despite the unstable state of Bitcoin price recently?

They should hodl strong, and keep buying as they can consistently, they can
buy more during the price drops if they have what it takes to do so, because the price of Bitcoin is known to be unstable, it did not start now and for that, I do not think that such should be a hindrance for investor, to continue their Bitcoin acumulation and hodling for a long-term.

[aoluain]

most investors who are holding their Bitcoin are scared of losing their entire Bitcoin because of the frequent changes of Bitcoin price recently

Not sure how to take that, MOST INVESTORS - how can I fact check this?

I would have thought that at this stage both in Bitcoins journey and after the bear market we just
had* that MOST INVESTORS / Bitcoiners are just HODL'ing and additionally buying and DCA'ing.

SO there is also the case that LONG TERM investor can do whatever suits them best. If you are a long
term investor the Bitcoin market can do whatever it likes because you would be still in profit, even
in a bear market.

[Queentoshi]

So what are your advice to those long-term investors?

If you are a new investor with a long-term mindset towards bitcoin, my advice for you would be to develop a very strong mindset towards your intentions because you will be emotionally tested by situations regarding fluctuations of the value of Bitcoin and you may be tempted to sell. Focus on your goal to be a long-term investor who profits at the end, not just the investor who quits due to pressure.
If you are an old investor that has been investing for a long time, you already know better that the value of bitcoin even though it drops will still go up again, your knowledge of this experience should bring consolation and encouragement in a market drop.

[Faisal2202]

It's only if you sell your bitcoin that you're at loss but if you don't sell when the price is low, you are not at loss because 1btc=1btc. Don't worry about the dip because the price will surely bounce back which is where you are to continue to hodli overtime till when the price has reached your price target to sell. Don't panic because it will lead to wrong decisions that will make you regret. Just hodli and if possible, buy more if you have extra funds.

1 USDT or 1USD will also remain equal to 1 USDT or 1 USD. The purchasing power is what changes, so you can't tell OP that 1 BTC = 1 BTC, haha. He knows its USD value, or whatever pair we are using to convert it into fiat, is reducing and it's losing its purchasing power too.

But unlike fiat, the purchasing power or fiat value of our 1 BTC can go down but it can also recover very fast and not just recover to the break-even point. It can give us huge profits too. That's why when we are holding BTC for the long term, we should not worry about short-term dips unless patterns change.

[fredericktaylor]

Due to the fluctuation of Bitcoin price most investors who are holding their Bitcoin are scared of losing their entire Bitcoin because of the frequent changes of Bitcoin price recently, some investors are panic of selling all their Bitcoin because they don't want to lose everything.

I do not agree, Bitcoin is unstable, the price fluctuates rapidly, but those who invest consistently with a long-term plan and hold Bitcoin with confidence will never be afraid of market volatility. I think your idea is completely wrong.

It is completely normal for the price of Bitcoin to increase and then decrease. Those whose main goal is to buy Bitcoin consistently and hold it for a long time will never be afraid of market volatility. They will basically invest more if the price of Bitcoin decreases, they will not miss the opportunity and will wait for better times in the future.

Those who invest with short-term plan with the goal of getting rich quickly with little knowledge will basically be afraid of market volatility. A long-term investor should not be afraid of market volatility.

[MisFoxie]

Due to the fluctuation of Bitcoin price most investors who are holding their Bitcoin are scared of losing their entire Bitcoin because of the frequent changes of Bitcoin price recently, some investors are panic of selling all their Bitcoin because they don't want to lose everything.

So what are your advice to those long-term investors?
Should they sell their Bitcoin or they should keep holding to it despite the unstable state of Bitcoin price recently?

Why do you think Bitcoin will result in a loss because of price fluctuations? Even if Bitcoin's price drops to $10 your Bitcoin holdings will remain the same and once the price returns to its previous position the loss will be recovered. So you have to hold Bitcoin until it reaches your expected price. Long term investors will definitely hold and only those users who are holding for the short term or urgently need money will sell.

[ejikeme24]

You're making this look as though this is actually the first time Bitcoin is experiencing drop in it value, Bitcoin price has never been stable and it is assume that we are all aware of it. i know those that started accumulating bitcoin recently may not get used to the market fluctuation, not that they have not heard about how volatile the price of Bitcoin is of course they knew  but  they may be finding it hard to cope during the dip especially if it is Their first time of experiencing dip.

 but I believe those older investors must have get used to it and they may not panick no matter how dip the price goes. However I can't advice anyone to sell his Bitcoin at this point in time, I think now is time to keep adding more stash to the one we already have because you may sell at loss if you decide to sell at this point in time.

[JoyMarsha]

Newbies panic the most and get scared of losing money on their Bitcoin investment when it decreases. For old investors who have basic knowledge of Bitcoin, you will find them not panicking or getting scared of price fluctuations of Bitcoin at a low price, instead, they will see it as an opportunity brought before them to buy Bitcoin at discount price. Bitcoin will not stay at a low price for long without increasing more than it already has. That's why many investors are making long-term investment plans in Bitcoin, not short term many newbies are having on their Bitcoin investment, to pump to their expected price.

[_act_]

What they normally do is of course hold.

They are here for long term holding so definitely they have witnessed and experienced the big dumps every year and since they survived those, it means they will continue to hold.

You get it right so perfectly. Long term investors may take years to invest in bitcoin and not sell it after long period of time. When they want to sell, they may only sell the profit or part of the profit. I have read researches before that those selling are not long term investors. Only short term investors are selling most while the long term investors continue to hold. I think the OP supposed to know the answer to his simple question. There is a reason they are called long term investors.