Retail investor Bitcoin cycle:
STEP 1: Purchase at the market peak driven by greed ("I'll grab a quick profit and exit"). STEP 2: Observe a 20-30% price drop. STEP 3: Sell at the low out of panic ("It’s doomed to zero!").
Retail investor Bitcoin cycle:
STEP 1: Purchase at the market peak driven by greed ("I'll grab a quick profit and exit"). STEP 2: Observe a 20-30% price drop. STEP 3: Sell at the low out of panic ("It’s doomed to zero!").
STEP 4: Declare Bitcoin ineffective ("How is an inflation hedge not climbing indefinitely?!"). STEP 5: See the price stabilize near the bottom and lose interest ("Stocks and real estate seem better with their regular returns").
STEP 6: Overlook Bitcoin until the next peak, missing most gains. Then the cycle repeats. Avoid this common pitfall. #Bitcoin #Investing