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Why does the price drop when I buy cryptocurrencies and go up when I sell them?
This is a common experience and is explained by a combination of psychological and market factors:
Recency effect: When we buy something, we tend to pay more attention to the price right after the purchase, making any small drop seem like a "punishment". Similarly, when selling, we see any increase as a "lost opportunity". In practice, the price could have gone up or down anyway, but our brains perceive these fluctuations more intensely after a purchase or sale action.
Volatility: Cryptocurrencies are very volatile, and the market reacts quickly to several factors (news, large investors moving money, updates on the networks, among others). This constant ups and downs can make it seem like the price is "always" against our action.
FOMO (Fear of Missing Out): We often buy or sell based on emotion or the fear of missing out. The decision to enter or exit on impulse increases the chance of catching the market at a point that is not ideal. It is common to see the price rise after selling and fall after buying, as the market continues its normal movement, but our emotional decision seems to have been "contrary".
Market cycles: Big players or "whales" can move the market. If you buy when the market is rising, these whales may decide to sell to take profits, causing the price to fall. Conversely, if you sell during a decline, they may buy more, causing a rise.
To reduce this feeling, many investors try strategies such as Dollar Cost Averaging (DCA), buying little by little over time, without trying to predict the price.