Most of new bitcoin investors buy Bitcoin in hope of becoming rich. Knowing this fact, bitcoin whales (large BTC holders), deliberately create FOMO in the market so retail investors mostly newbie buy bitcoin at high prices. Once all potential retail investors are trapped, market takes U-turn and all trapped traders loss all of their hard earned money.
After this market consolidates for year or more and then again it is time to repeat the cycle. They use media to create hypes and fear of missing out in new potential victims - I am talking about new retail traders.This time again hope of becoming rich is created in these struggling people. In hope of becoming rich some takes personal loans and some even sell their homes in hope that they will earn enough money by investing in Bitcoin and then they will again buy a new home.
Whales do not care of this all. They again create massive pump in the market, trap new retail traders and then again dump the market and cycle repeats so on.
But some smart enough retail traders hold on to their investments for long term and create real wealth out of their investments.
In short, never enter in crypto world in hope of becoming rich instead take it as a wealth creation tool where you will invest portion of your money, not all.
And enter when everybody is selling and hold on to your investments for long term.
Points New Bitcoin Investors Must Be Aware of
Here are some very important points that all bitcoin investors much keep in mind. These are not mere lines, it is information that you must always remember.
- Do not sell your home or precious jewelry and take loan to invest in bitcons. It will ruin your life. I had lost all of my savings once.
- Do not think if you will miss the opportunity of buying bitcoin if you would not have bought right now. Nothing like that will ever happen. You will get enough chances to buy at good prices. For more information, study past chart of BTC.
- Fear of missing out is what ruins most of traders and investors lives.
- It is not a get rich scheme. It is too late to consider bitcoin as a multi beggar.
- Bitcoin and other cryptocurrencies are still experimental digital assets.
- As of this writing, in few countries Bitcoin is recognized by law and legal and in some it's totally banned. Know more.
- BTC is very volatile.
- It's not mandatory to buy one bitcoin. You can buy partial Bitcoin say 0.002 BTC or 0.25 BTC or any other amount.
- Bitcoin is subject to market risk which means you may also lose your money (rare chances but still possible), therefore, systematically invest in Bitcoin. Its value may eventually become zero.
- Only invest what you can afford to lose.
- Don't follow experts' advise blindly, do you own research.
- Don't become impatient buyer. There is a large group of whales out there who creates media hypes and pick influencers to influence small investors.
Comments
Post a Comment
Have a question? Just ask in comment box, we're always here to help you.