When these kinds of events happen, the market's first reaction is panic. And honestly, it's kind of understandable.
Our brains can’t handle losses, and as soon as they see a threat, they freak out and do whatever it takes to protect themselves. It's the same deal here, just with a game behind the scenes.
The truth is, coins like $BTC are almost entirely dependent on market hype; their value is built on how many are entering and exiting the asset, and that’s the crux of it.
When news like this breaks, the first thought is:
"How will this affect my holdings?" That’s why I say it’s understandable, but selling here is the worst move you can make.
If you truly want to stop being just another face in the crowd and become a real investment strategist, you need to grasp the value of patience. Your prized asset isn’t going to disappear tomorrow; learn to swim against the tide, no matter how crazy it sounds.
When these situations arise, take a moment to think and then act. Always see everything as an opportunity to keep growing and don’t throw in the towel at the first dip of your month.
This world is amazing, especially when you take a moment to think.
The value of time. An investment where time is working against you is not an investment.
A successful investment is one that is planned with a clear mind, discipline, and well-defined entry and exit points. This last part is what weighs heavily on many, leading them to abandon their positions. I understand that waiting can be tough, especially when you're trading in a space you know is high-risk, or at least appears that way. In fact, the only true risk is never in the asset you choose; it's in the strategy you decide to implement with that asset, which must always be time-based. Without it, you get anxious and end up with more losses than gains. But here's an interesting perspective: as long as you hold the asset in your hands, you haven't incurred any wear and tear. The fact that you may have lost a few cents or thousands of dollars by holding it doesn't constitute a loss; it's merely a moment of risk due to uncertainty. The real loss occurs when you decide to sell that asset at a price lower than your entry point, which often happens with the infamous "I sell to buy back later" strategy. When you exit, you realize too late that you've just GIVEN away the asset to those who truly understand the value of time. Brother, don’t invest out of fear; invest with caution, because fear leads to losses, but caution leads to thoughtful decisions.
Don’t ride the downward wave or climb the upward mountain; get to know the asset well before you dive in and always consider the time factor. Keep in mind, etched in stone, that you have no control here; if $BTC dropped by -10% in 24 hours, do yourself a favor and don’t let mass panic take over. If you know where you put your money, stop getting scared by red numbers. Success is a constant rollercoaster of ups and downs, and even in so-called "success," you'll find the same fluctuations.
Investments are a field where not only your money and brain are put to the test but also your patience. In today's crypto landscape, where any breeze can lift or crash an asset, it requires a cool-headed approach to "how to enter and exit the market efficiently."
It's not enough to follow the philosophy of "buy low", "sell high"; if that's the case, it’s more profitable to hit up a casino and bet randomly. Everything is guided by the PRUDENT price you consider for exiting or entering.
How to draw prudent lines? (Beginners)
Knowing the market is having a healthy respect for its movements; fear is not defined as being scared, but rather the awareness of what the asset is capable of doing in the next 4 hours. And that's when our strategies bloom.
First, it's crucial to remember that you should NEVER invest money you need; you must be aware that just as you can gain, you can also lose.
Second, a low price doesn't immediately mean a buying opportunity, and a high price doesn't guarantee a selling chance; you need a limit where you feel satisfied, that threshold that makes you say, "this is what I’m taking" or "here's where I'm entering."
Third, don’t follow the herd; if you see the price, in this case, $BTC , crashing, for the love of God, don’t sell what you bought at a lower average price. And you might say, "but I want to keep moving," which is understandable; one easily gets anxious when the price is just a few cents away from hitting and then retraces.
But it’s like this: either you invest another amount, or you lose when you sell... Or well, just give it away; there’s no escape here. If it’s the former, please check reliable sources online, like investing news, platform updates, etc. Never rely on those alarmist posts claiming that Bitcoin or the asset you invested in will vanish for your next move.
To conclude, I want you to memorize this:
"Be fearful when others are greedy and greedy when others are fearful" ~ Warren Buffett.