As of late, the bitcoin space is getting bigger than ever. While the currency’s price has sunk down a little bit from $40,000 to about $34,000 at the time of writing, the fact is that many people have now been bitten by the “bitcoin bug,” and they’re looking to take advantage of the currency’s many benefits and characteristics.
FOMO Is Hurting the Bitcoin Space
However, are they getting involved for the right reasons? Recently, one source put out a story regarding why so many newbies are getting involved in the bitcoin trading space, and the fact is that while bitcoin can offer a lot to new members of the community, it seems like all these new traders are suffering from a bad case of “FOMO” or fear of missing out.
It’s always a problem when someone gets involved in something that they don’t understand. It’s bad for them, and it’s bad for whatever venture they’re trying out. In the case of bitcoin, there can be quite a bit of suffering at hand. We’ve already witnessed this in 2018. Prior, the currency had hit its then all-time high of roughly $19,000+, and many people began getting involved because they didn’t want to miss out on the idea of becoming rich.
As a result, we saw several new traders putting what they couldn’t afford to lose into bitcoin, so when the asset tanked just a few months later, they lost everything, and for a long time, bitcoin was considered too unstable and too unsafe to warrant any further attention. It wasn’t until April of 2019 when the currency began to show signs of recovery, but it spent well over a year in the doldrums.
We are now seeing elements of the same exact behavior. One rookie trader named Amber Wells of Atlanta, Georgia (23 years of age) talks about when she first heard of bitcoin and what it was that inspired her to get involved. She claims:
All of a sudden, I’m hearing people saying, ‘I’m a millionaire, now!’ and I’m like, ‘Oh my God, I literally could have been you.’ I didn’t do too much research. I was just thinking, ‘Let me just get in there any way I can. I just wanted to be a part of it.
Not Getting the Right Education Can Wound Trading Goals
While it’s always nice to welcome a fresh face to the arena, she freely admits that she didn’t do much research, and this causes problems for the space. When someone does not have the proper investing education or knowledge, things don’t always turn out too well for the community or the buyer.
However, where she is being smart is that she’s only investing a little at a time to see how it goes. Right now, she’s set up automatic purchases of roughly $20 per week so in case anything negative happens, she won’t lose too much.