The cryptocurrency market often experiences large fluctuations. Is it possible to buy during a significant drop and sell when it rises again?
Theoretically, this is the safest way to make money and represents the underlying logic of speculation—buy low and sell high.
The problem is that when you encounter a significant drop, you cannot judge whether the market will continue to fall. Similarly, when there is a significant rise, you cannot judge whether the market will continue to rise. Moreover, there are countless small fluctuations (small drops and rises / large drops and small rises / small drops / large rises / not much drop and not much rise, commonly known as sideways movement) in between large drops and rises.
When it drops, you lose, you panic, you sell, and then it rises again, and you regret it.
When it drops, you lose, you think that it will eventually rise again, so you hold on, but it keeps plummeting and you get deeply trapped, and you regret it.
When it rises, you win, you think it will continue to rise, but then it drops back, and the previous profits are gone, and you even lose money, and you regret it.
When it rises, you win, you fear it will drop back, so you sell, but it keeps rising. If you had not sold, your principal could have multiplied tenfold, but you only made less than double, and you regret it.
