The regret of buying assets at their peak

A lot of folks who missed out on getting an asset at a lower price thought they were being smart by waiting, but then they end up paying way more. It’s not just about paying more, they start getting anxious, wanting that asset they were afraid to buy cheaper to skyrocket instantly. Many people who hesitate to buy early have actually heard about the asset, but they just want to watch from the sidelines, hoping it crashes instead. Honestly, if you’ve done your homework and analyzed an asset but are still frozen by fear, chances are you’re gonna end up buying it when the price is already high.

Hence why the most popular issues are FOMO and FUD Former rushing in when the price is at ceiling and the latter when it is at floor. But the difference with what you are using as an example are them being store of value. If someone buys Bitcoin at $500K it isn't FOMO.

It’s the common human behavior to follow the heard on what’s the trending and crab mentality if they don’t manage to enter early. That’s the cycle of behavior on investment, first is fear stage which they don’t purchase asset because they think it’s scam or high risk then they will go to denial stage when the price was already growing which crab mentality enters that let this user talk a lot of negativity just to create FUD. Last stage is following the heard. Once they are already move on to denial stage, they are now buying at very high price because they already can’t stop themselves on buying even on high price.

People procrastinate buying of bitcoin because of the assumption that they are either late at the time they got started in bitcoin investment or that they can get bitcoin at a much cheaper rate than whatever price they got it at earlier. Regret doesn't yield any result so as an investor, you have the option of just buying your bitcoin anytime you have the chance to doing so. It's a common thing to always assume we have another good time to buy bitcoin which is the thought process of many that led them to missing out on several buying opportunity. As long as it's bitcoin, then buy with the trend, buy when people are afraid to buy and just buy as long as you have the resource to doing so.

I don’t think that is the case, if people are hesitant to buy bitcoin because the believe that the are already late to buying then they won’t be buying it at all. What I mean here is that the people who did not buy bitcoin even though they have heard about in and examined it only to buy it after it has gone up may find it regretful, although if they hold bitcoin long term they good but you should not miss it now because of fear.

It is true and there is a reason why people do that. The majority of them can't afford to take the loss, and we can say we should not invest more than we can afford to lose but the reality is hitting harder even surviving becomes a challenge in this highly competitive world, so they somehow manage to save a little and hope it could help them when they are retired, which is why they take cautious approach. Not everyone got the vision to understand what Bitcoin is, and even many who came here took their time to know that.

You should be grateful for the help to raise the price, the problem is this type would also in a worryingly large percentage also be selling on the way down.  At least in that fault the crowd provides a lower then normal & accurately priced BTC low for people to buy in and get a nice buy.   Its easy to criticize but its human nature to follow the crowd and we're all capable of doing similar to some extent.  Hopefully experience and familiarity helps lose the worst parts of this trait or at least we think twice and act better then the crowd mostly.

A lot of watchful waiting os suggested for a reason. Fomo is nothing new and the average trader will fail because they make these mistakes only. Ending up buying at the top and selling at the low. Because of this reason very few traders are actually making money from trading. To avoid this study the charts over time. You will easily realize what is the top and bottom and won't make this folly.

Since Bitcoin is still at its early stage, it is financially wise to buy the coin at any price. The problem is that most of these people are motivated to buy because they want to make quick profit. Instead of them to have a long term plan for Bitcoin,  they want to buy today and cash out within a short period. This might lead to losses since they might fearfully dump the coin because of FUD. The bull season usually comes with so much hype.  You would hardly see an advert about cryptocurrency on different platforms during this period. Even in some local newspapers in my country, crypto services are promoted because of this bull run. I guess this hype will reduce as the bear season creeps in.

They don't feel confident investing in Bitcoin at the low price. But when they see what happens to Bitcoin, they try to buy Bitcoin but unfortunately, the price starts to increase. But investing in Bitcoin without having proper knowledge will not make them a strong hand hodler because they will panic when the price is down after they buy. They are difficult to accept a new thing coming to them and just think that will scam them fast. But if they are willing to learn it before deciding, they will see that Bitcoin will help them to have a new investment and give them profit in the future. Those who already invested in Bitcoin a long time ago just smile when they see the price increase and they just need to determine when they need to sell.

Be specific with the word 'bitcoin' because we have various good assets out there. Some people don't value bitcoin when it's cheaper because they don't believe that it can grow and increase in value overtime. But the moment, they see the price pumping and other people are rushing to invest in bitcoin is when they will start having the interest. A lot of people needs other people to motivate them in whatever, they want to put their funds into. I don't see those buying bitcoin at an expensive price as FOMO, provided that their intentions is to hodli for long term. Even if bitcoin hits $1 million, investors will continue investing.

Sometimes, it isn't really about assumptions but about previous experiences still haunting them. If you've been scammed online before or entered into some pump and dump shitcoins project shilled over social media, you'll be reluctant to buy Bitcoin even if all evidence are given to you. Some investors first experience with the crypto space is their problem but such people  becomes so afraid they're not willing to give another try. A mistake is meant to give us experience to try again with more experience but if we allow fear more than the desire to succeed, then it becomes a second major problem for us investors.

It is typical human behavior and nobody actually knows which way an asset is going to go. Just look at the AMD share price since 2019 when it was $29 and it is now $230, but it has gone through many cycles in between. People might have mocked you and told you it's at the peak when it reached $100, yet if you held on a couple years later it would have doubled in price again from that point. It's all about perspective and the timescale involved, so I'd almost say to ignore people if you've done what you think is the proper level of research and have believe in the end conclusion. This is how the truest investors win - they have faith in their ideas over the long term, ignoring random market behavior which can often be irrational.

Trend pushes more publicity across all media, people who love to follow trend would join the bandwagon and cheer up about their involvement in a trending project or topic. These people won't stay around when the price drops, it's just an impulsive threat of missing out, and when price don't go up immediately they'll rush to sell and empty their portfolios. The market has proven time without number that it's meant for those who are willing to hold even at a strong market situation where losses are expected at a high level. Those who follow trends are like bonuses to the existing investors. There add more money to the market.

I have also heard about AMD and how good it has been doing but it is not regrettable for me because i wasn’t familiar with it in 2019. I do not regret missing an asset I did not know about, but I will regret AMD if I knew about it, examined it and its potentials but did not get it. But if you leave AMD because you needed more funds to get BTC that’s good, you can not get all promising asset and if you have less money buy bitcoin.

In fact, buying when everyone is hyping it, feeling like you missed out &  then jumping in way higher is called FOMO &  regret driven investing. In my opinion, acting early is badass when you do your homework. But when you are just chasing hype, it is really dangerous. Keep in mind that trends change very quickly &  what goes up suddenly could  come down just as quickly. If you are buying because you are scared of missing out then you are not really investing, you are actually speculating. So I would say, keep it balanced. Invest when you have confidence. When you see everyone panicking, hold on tight.

Many of those who didn't buy earlier didn't believe in the project or its potential, or perhaps didn't understand it at first. Who could have predicted that Bitcoin would appreciate so much? Gold is the oldest asset in the world, so it's expected to appreciate even more overtime. It's easy to judge, but it's difficult to understand people's true motivations when deciding whether to invest in a particular asset or not. I remember when I first read about Bitcoin. I confess I considered buying some back in 2009/2010, but the information available was quite limited, and I didn't fully understand what it was all about. In the hustle and bustle of everyday life, I ended up forgetting about it. I reconnected with cryptocurrencies in 2016 and have continued to do so to this day. Do I think I should have bought Bitcoin back then? Yes, but I didn't, so what's the point of dwelling on it? If Bitcoin continues to grow in value, the best time is now; if not, later, and so on...

I I feel that many of these folks who refused to invest in Bitcoin at the early stage when it was much more cheaper, did so because they doubted if Bitcoin will ever be of any value in the future. Truth be told most of their doubt about Bitcoin was as a result of them being victims of scams and ponzi scheme and as such this affected their mentality and prevented them from investing. Then why many of them are rushing into it now when the price is more higher is coz Bitcoin really exceeded their expectations. Infact ehn a lot of folks have been more aggresive in their accumulation coz hey now realized that Bitcoin is not a scam project as they thought it would be.

If a person doesn't have enough money to buy a large quantity of Bitcoin, then I'll agree that they might be late and may not fully catch up with the trend  unless they stay consistent with their investment plan. This will mean having a fixed amount dedicated to buying Bitcoin monthly, if they can keep up with the strategy overtime there will be huge difference in their investment portfolio. Else they might just end up tying up their little funds in an investment that requires so much capital.

A similar picture was also seen during the previous bull season. However, people flocked to BTC at $64,000 USD. At the time, that price seemed incredibly overpriced. Indeed, the price subsequently dropped during the bearish period to $16,000 USD. Those who re-accumulated from that low price were fortunate. Those who entered at this price shouldn't feel too late. But they must hold on tight to avoid being shaken when the market turns bearish, potentially halving the Bitcoin price. But remember, in the next bull period, the current price will also seem very cheap. Those who didn't enter now will likely regret it. This is the importance of DCA. It helps us avoid the fear of missing out. Because our goals are long-term, we are free to buy at any current price. The most important thing is to know and understand what we are doing in our investment goals. The same applies to gold.