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"Bitcoin" Fomo factor at play again

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Written by   283
3 days ago

Given the continued rise in the price of Bitcoin, every jack and Harry want to go into cryptocurrencies by investing in Bitcoin without really knowing what cryptocurrencies are all about. The reason for this is that they don't want to miss out again on the Bitcoin rush and gain. I have been watching the continued increase in BTC price that it seems it might soon blow over the moon, so much that the numbers of investors in it keep increasing every day and the majority of these investors fall in the Fomo group. I have had to answer so many people sending messages to my inbox asking if they should invest in BTC and where to do so. My first reply to all has been "do you know what is Bitcoin?" And why do you want to invest in it?. Always the response is the fear of missing out (FOMO).

Investment in cryptocurrencies isn't for everyone. Nobody can tell exactly how it is done, but generally, we can say that some ways are better than others, but when someone wants to go into investing in cryptocurrencies without any knowledge about how it works such a move could be very dangerous. If you are going to ask Google what is BTC, then you shouldn't be thinking of buying any. Imagine someone who doesn't know anything about Crypto wallet and how to use it wants to buy BTC simply because the price is going up continuously. I have had to deal with a situation of sending BCH to TRX wallet because the recipient doesn't know the difference in wallets. The issue of volatility is another thing entirely. Many think that BTC is magic that keeps increasing in value without any responsible factor for the increase. In fact, this Fomo group doesn't even know cryptocurrencies prices are never stable, it can be as high to the moon now and the next minutes fall lower than the valley. Cryptocurrencies are complex and so requires adequate knowledge before thinking of buying any.

Buying or investing in BTC isn't for everyone because you don't really have the money. BTC is beyond the reach of the average person, it's a business for the rich. No matter what you hear of someone getting rich buying and selling BTC, try to know how much they invested in achieving that goal then you will know you don't belong in that class. The golden rule in Crypto investment is to invest what you can afford to lose. This is where many Fomo people are missing it. You can't invest $100 in BTC and expect to make a fortune from it because that is what you can afford to lose, you don't really have the money. Those who made fortune from BTC invested thousands to millions of dollars and could afford to lose it should that be the case. You don't need to be Fomo about the BTC rise because you can't afford it. Don't try to put your life savings into BTC thinking you might get a ticket to riches, that can be counterproductive. So many people lost their life savings this way during the 2017 BTC boom. If you know what you can afford to lose is only a few bucks BTC is not for you.

Most people believe investing in BTC can make them get rich overnight because of the stories they have heard of someone becoming a millionaire practically overnight from their early BTC investment, which gave them 10x’ their investment in two months. Only in Crypto do we see an exponential increase in weeks or months, this draws a lot of Fomo py looking for a way to make money quickly. It can be funny sometimes as it is just like winning a lottery, the chances of getting a higher return are incredibly slim. If you intend to get rich quickly by investing in BTC you better stop being Fomo because Crypto investment is a head speculative game. It would not be ideal to spend the money you don't have on a speculative asset. Doing so is like buying a ticket for disaster and not a success.

Those who made it big with BTC are hodlers who are prepared to play the long game of speculation and while sitting on their coins for years. They don't see it as a get rich quick scheme but as a way to add to their long term asset portfolio. Like this, it works out for them given enough time and leading to financial freedom and not for Fomo factor.

Thinking that you are missing out as the reason for investing in BTC is worse a reason that can cause bad decisions. You feel like going crazy sometimes watching other people making it big from their BTC investment, but Fomo buying is never an ideal thing to do. I went this way a few weeks back when the price of BCH was dropping deeply, I almost Fomo swap my precious coins for BTC save for the expert intervention of a dear friend (@Telesfor).

There is only one way that can guarantee anyone success in Crypto investment, it is by playing the long-term game. In playing the long-term game patience is required. It can be as long as ten years in waiting for the value to increase to the amount you might think justified to sell them. But what is a coin that is only good for store value and is to be sold but not to be spent?. BTC, as it is now, doesn't have the potential to become a useable currency due to its complications, why not go for other altcoins like BCH which has all the features of usability and accessible by all. One more thing, BTC developers aren't working for global adoption but for global investors to drive its value higher leaving the ordinary people out of the equation for possession.

Even if you think Bitcoin might be getting expensive now and it might continue to go higher, that's not enough reasons to Fomo buying which might be counterproductive. It is so easy to get things wrong during a bull run when prices are going up left, right, and center, and in every other direction. If you still want to be Fomo, try to follow the two golden rules of crypto: don’t put in what you can’t afford to lose, and whatever you do have, you hodl.

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Written by   283
3 days ago
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