As the Bitcoin price dropped on February 23, 2021, you probably panicked. Part of you was also wondering what happened. The price of Bitcoin was going up and on a smooth path to keep going higher.
For an experienced investor, when Bitcoin dropped, this was normal. Bitcoin has had its history of dropping several thousand dollars in a flash.
As a new investor, you have to get used to this. Bitcoin doesn’t go up forever and you need to think about your own plan with your digital currency.
Take some notes because as long as you have money in Bitcoin, the price will take you on some rides just like you are at an amusement park sitting on a roller coaster. The roller coaster will go up and then before you know it, the ride will suddenly drop.
This is how I see investing in Bitcoin and investing in general. Investing is like riding a roller coaster.
Your investment will go up and down just like you are sitting on a roller coaster. Sometimes the ride on Bitcoin is sudden and fast and many times you’ll have no idea what happened.
In most cases, such as this one, Bitcoin Whales sold their Bitcoin to take in their profit.
Whale and humpback whales have sold 146,000 Bitcoin. This is equivalent to 6.72 billion.
Glassnode reported that any Bitcoin address that holds between 1,000 to 10,000 Bitcoin is a whale.
As the whales were selling, MicroStrategy came in and bought 19,452 Bitcoin at a price of $52,765 per coin.
As an investor, you probably don’t have this much money to spend on Bitcoin.
As an investor, there is one thing you should not do.
Panic and sell all of your Bitcoin.
When you do this, you could lose focus with your initial goal. Hopefully, you do have a goal or at least a plan before you bought your Bitcoin.
Having a plan will keep you focused.
When you don’t have a plan, you could make careless mistakes and actually lose money rather than make money. You could easily sell your Bitcoin for a loss.