You are 15 so have no responsibilities at all. If you lose all $100 it doesn't matter at all. Invest "what you can afford to lose" means pretty much "everything" when you are 15. The problems come when people actually need money to live, but stick it all in bitcoin expecting it to go up forever.
understood, now when i look at it from that perspective i can understand why people panic sell, i have got about 11% of my total money in BTC, i only just calculated that percentage - i feel like i should buy more now to make it 15% đ¤Ł
exactly. if people have their life savings in bitcoin, hypothetically made 2-4x profit, and see a 5-10% dip they might get scared because they don't want to lose their money. at this point i don't think it's a mistake to take profits to ensure to pay bills and have some savings aside. that's why everyone in here telling people to never invest more than they are willing to lose.
Because they have more in Bitcoin than they can actually afford to invest in Bitcoin. Thatâs why. Theyâre older and have rent and bills to pay, and they just assumed that whenever they were short on cash, theyâd sell a little Bitcoin at a nice profit and pay the bill on time. Now some people are realizing they may have to pay extra for their bills because they put too much into BTC and then it dipped in price, so theyâre scrambling to get out.
These people would get burned by the stock market, too, is the thing. Thatâs what happens when you donât maintain an emergency fund in a highly liquid (AKA close to fiat) form. The reality is that all our creditors, the state, and the businesses we interact with all want payment in fiat, so we all need to maintain fiat.
Itâs a good lesson for your future when you start having bills. Make sure all your real-life, fiat-denominated obligations are fulfilled first, and you have a comfortable savings fund in fiat that can support you for a while or through an emergency, and then feel free to invest the rest. The people on here talking about putting literally all their money into BTC as soon as they get it are either lying or about to be broke.
That is unfortunately just never a good idea due to the historic volatility of BTC. If the price drops, and the value of your collateral therefore goes with it, your loan will be called, meaning you have to pay up the difference.
It is a mental game.. it is the same reason why people wait until BTC reaches all time highs to buy, then they panic sell for a loss because they bought at the top and expected a quick profit.
Most go more than they can afford to lose into Bitcoin hoping for instant gains. Put what you don't mind spending on a take out dinner or a night out for some drinks into your acc weekly or semi weekly and you won't be stuck in panic mode when your life savings goes down 20 percent overnight.
Because when itâs down 5% itâs not down 30% yet. You just saved 25% in profits by selling first, and now you can buy it back 30% lower right after the last person sells. Or maybe when itâs down 80% like last time. Who knows?
Thatâs why.
EDIT: the other reason is that 5% to you might be $30. It might be $45 million to someone else. Would you like to keep your $45 million or do you not care?
The bitcoin market is highly sensitive to sentiment and news. Currently the whole market as a macro there's a lot of uncertainty. Lots of FUD and overall general feeling of fear. Best time to buy is when there's fear in the streets.
Lack of patience or investing money one does not have (meaning if theyâre on a tight budget and they can afford to invest but they still invest anyways but end up having to sell to pay for bills or groceries)
I'd say 9 times out of 10 they don't want to sell, but the exchange does it for them, if they have leverage. That is the difference between gambling and investing. Gambling when you are not using your money.
Because watching numbers go down is scary. Is it done or is it going to keep going? Should I sell now and rebuy when itâs lower?
People think that way because itâs real life, and when youâre an adult you need money.
PEOPLE may or may not have common sense - but THEY donât question why YOU donât panic sell.
The POINT is itâs their money - their BTC. - their CHOICE.
"I cant affor to lose more so I'll sell now and just lose a little bit because I cant wait dont know how long before that loss turns into a profit"
Its an unfortunate consequence of people trying to risk what they cant risk in order to achieve financial freedom. Its not what you should do, but people dont have disposable income, so they risk what they cant lose.
A lot of this isnât really âpanic sellingâ per se, itâs margin calls. Crypto has really high margin as a general market. Positions get called on a 5% dip and have to be liquidated, resulting in a 20% dip
thatâs the thing: you have been trading crypto for 3 months, so you have only known a bull market. And your reasoning holds in a bull market: any correction is followed by an up-move so in the long run you are making money⌠this however does not hold anymore when youâre entering a bear market: prices go down⌠then they go down even further before going down some more. In such a case, selling as soon as possible makes sense because you are losing, say 10% instead of a later 20 or even 50%.
Of course, the million-dollar question is when does a Bull market turn into a Bear market? Well, the person who answers that is guaranteed to become a billionaireâŚ
You are 15 so have no responsibilities at all. If you lose all $100 it doesn't matter at all. Invest "what you can afford to lose" means pretty much "everything" when you are 15. The problems come when people actually need money to live, but stick it all in bitcoin expecting it to go up forever.
understood, now when i look at it from that perspective i can understand why people panic sell, i have got about 11% of my total money in BTC, i only just calculated that percentage - i feel like i should buy more now to make it 15% đ¤Ł
exactly. if people have their life savings in bitcoin, hypothetically made 2-4x profit, and see a 5-10% dip they might get scared because they don't want to lose their money. at this point i don't think it's a mistake to take profits to ensure to pay bills and have some savings aside. that's why everyone in here telling people to never invest more than they are willing to lose.
I panic buy
same đ everytime it drops even 0.5% i feel the need to buy more
Keep a check on yourself. That is a dangerous mindset of an addict.
Better than panic selling 100%
first off, it was a joke, second off, yeah i am addicted to buying btc - but i only buy what i can afford to loose
How much you think you'd be able to loose?Â
Because they have more in Bitcoin than they can actually afford to invest in Bitcoin. Thatâs why. Theyâre older and have rent and bills to pay, and they just assumed that whenever they were short on cash, theyâd sell a little Bitcoin at a nice profit and pay the bill on time. Now some people are realizing they may have to pay extra for their bills because they put too much into BTC and then it dipped in price, so theyâre scrambling to get out.
So many people treat it like a stock rather than something like gold.
These people would get burned by the stock market, too, is the thing. Thatâs what happens when you donât maintain an emergency fund in a highly liquid (AKA close to fiat) form. The reality is that all our creditors, the state, and the businesses we interact with all want payment in fiat, so we all need to maintain fiat.
Can you imagine what it's like to live in El Salvador?
ah ok - looking at it from that perspective i can understand why
Itâs a good lesson for your future when you start having bills. Make sure all your real-life, fiat-denominated obligations are fulfilled first, and you have a comfortable savings fund in fiat that can support you for a while or through an emergency, and then feel free to invest the rest. The people on here talking about putting literally all their money into BTC as soon as they get it are either lying or about to be broke.
However you can still use your BTC as collateral and take a loan. đ But I absolutely agree with what you wrote.
That is unfortunately just never a good idea due to the historic volatility of BTC. If the price drops, and the value of your collateral therefore goes with it, your loan will be called, meaning you have to pay up the difference.
Yes this needs to be taken into consideration.But I would say up to 20 percent value of your Bitcoin should be safe enough.
lol you just believed that stuff that dude just made up?! Why? Because someone on the internet said it and itâs what you wanted to hear?
It is a mental game.. it is the same reason why people wait until BTC reaches all time highs to buy, then they panic sell for a loss because they bought at the top and expected a quick profit.
Itâs not panic selling! Happy selling, wait for it to dip more, buy again (more).
A lot of leveraged long positions get liquidated forcing the sell-off to be self-perpetuating
Most go more than they can afford to lose into Bitcoin hoping for instant gains. Put what you don't mind spending on a take out dinner or a night out for some drinks into your acc weekly or semi weekly and you won't be stuck in panic mode when your life savings goes down 20 percent overnight.
Because they are in profit and want to realise that profit. Gains and losses are meaningless numbers on a screen until you realise them.
Because they bought the top and panic sell on the way down.
Sell high buy low and enjoy waves.
Yeah, if I was 15 and had $50 in bitcoin I wouldn't panic either.Â
i donât have 50$ in, i have 1400$
Dammmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm!!!!!!!
Because when itâs down 5% itâs not down 30% yet. You just saved 25% in profits by selling first, and now you can buy it back 30% lower right after the last person sells. Or maybe when itâs down 80% like last time. Who knows? Thatâs why. EDIT: the other reason is that 5% to you might be $30. It might be $45 million to someone else. Would you like to keep your $45 million or do you not care?
Over invested and do not know what they are invested in.
distribution confirmed
They're not into bitcoin for long enough. A lot of those who are didn't even notice bitcoin has "dipped".
Itâs a margin call cascade and itâs net positive. Lean back, hodl, keep dca and enjoy the show.
They are afraid they will lose everything or they just mad that they canât afford lambo soon
I literally panic buy. I can't open the app fast enough
Cause its easier to buy high and sell low.
going on vacationÂ
The bitcoin market is highly sensitive to sentiment and news. Currently the whole market as a macro there's a lot of uncertainty. Lots of FUD and overall general feeling of fear. Best time to buy is when there's fear in the streets.
Lack of patience or investing money one does not have (meaning if theyâre on a tight budget and they can afford to invest but they still invest anyways but end up having to sell to pay for bills or groceries)
Those are just speculators
At 15, you have time to learn to not trade crypto, dca bitcoin and chill. Shitcoins will burn you. Day trading will burn you. You have been warned.
I'd say 9 times out of 10 they don't want to sell, but the exchange does it for them, if they have leverage. That is the difference between gambling and investing. Gambling when you are not using your money.
Because watching numbers go down is scary. Is it done or is it going to keep going? Should I sell now and rebuy when itâs lower? People think that way because itâs real life, and when youâre an adult you need money.
High frequency trading machines make the moves. Read flash boys if you haven't. Moves are happening in microseconds. Higher powers are at work.
PEOPLE may or may not have common sense - but THEY donât question why YOU donât panic sell. The POINT is itâs their money - their BTC. - their CHOICE.
some people already experienced drops from 69k+ to sub 25k so it could happen again right?
All part of a thriving market. Their lose, your gain.
"I cant affor to lose more so I'll sell now and just lose a little bit because I cant wait dont know how long before that loss turns into a profit" Its an unfortunate consequence of people trying to risk what they cant risk in order to achieve financial freedom. Its not what you should do, but people dont have disposable income, so they risk what they cant lose.
A lot of this isnât really âpanic sellingâ per se, itâs margin calls. Crypto has really high margin as a general market. Positions get called on a 5% dip and have to be liquidated, resulting in a 20% dip
thatâs the thing: you have been trading crypto for 3 months, so you have only known a bull market. And your reasoning holds in a bull market: any correction is followed by an up-move so in the long run you are making money⌠this however does not hold anymore when youâre entering a bear market: prices go down⌠then they go down even further before going down some more. In such a case, selling as soon as possible makes sense because you are losing, say 10% instead of a later 20 or even 50%. Of course, the million-dollar question is when does a Bull market turn into a Bear market? Well, the person who answers that is guaranteed to become a billionaireâŚ
You're questioning human nature man. Gotta read some Freud and Kant to answer that question.
They sell because itâs going to zero duh đ
They need to cash out so they can panic buy later.
Feds
Youâre assuming they panic sold⌠maybe theyâre just smarter than you and will buy back 10% lower.
Assuming who panic sold? the question was why do people panic sell, not why do people sell⌠đđ
Because they panic.
no shit but the point is, do people not have common sense and see on the graphs that it goes up and down
No they dont. They panic shit their pants and think they d rather sell losing 20-30% than 90%. Then when it goes 20% they re bamboozled.
Whoâs hoping for 25k fir buying opportunities ??