Many new and inexperienced investors got burned by jumping on the Bitcoin hype train at the end of 2017. The 2018 bear market has been an expensive lesson for those who bought at the top. Here is just how expensive of a lesson it really was.
A Tale of Twenty Thousand
It was the best of times, it was the worst of times, it was the age of gains, it was the age of scams. It’s Nov 2017, mainstream news outlets are reporting on some internet money called Bitcoin, and your friends keep clamoring on with their dreams of Lamborghinis and moon landings urging you to buy in as you watch the price shoot up another thousand dollars every few days. You think it seems similar to the stock market, but with different types of online money. “Where does the value come from?” you ask your friends, only to be met by a slightly condescending answer sounding something like: “People decide the value, the same as everything else in the world.”

Highway To Hell
All of these red candles are bad, right? It’s New Year’s Eve, two weeks after making your first buy, and Bitcoin (BTC) has slipped back to $12,800. You watch your portfolio drop an average of $514 dollars per day until more than one-third of your initial investment has been wiped out. You think about selling, but have to trust that the price is just resting before making that next big move past $20,000. February rolls around as you frustratedly watch Bitcoin struggle to make it back over the $12,000 mark. By the end of the first week, however, you find yourself willing to sacrifice a limb just to get back to $12,000 — because Bitcoin has tanked again, this time sinking back to under $7,000. Your portfolio has now devalued by two-thirds, losing an average of $264 each day since buying Bitcoin 50 days ago. The end of February gives you a glimmer of hope that Bitcoin is finally back in action. By March, you’ve trudged your way back to that $12,000 level. This is the bounce you’ve been waiting for, you’re patience is finally paying off! Wrong. Your dreams are once again dashed, as Bitcoin sinks back to the neighborhood of $7,000 throughout March before ping-ponging back to $10,000 during April. This ‘red month, green month’ pattern is really starting to wear on your nerves, but everyone seems confident that Bitcoin ‘will never be this low again.’
Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Sponsored