Define "Trader" for me, Please.
I am a newbie and have bought stocks for over 50 years. I am excited to buy my first bitcoin, but the old school concept of buy and hold kicks in so where does the "Trade" part kick in? Can you give me a step by step, "A day in the life of a Bitcoin Trader". ie - I set up an account with the Coinbase Exchange and then to stay in sync, I registered for a Coinbase wallet and then bought a Ledger Nano S for security and only then tentitively bought $50 worth of Bitcoin from a Bitcoin ATM machine at the Exxon Gas Station at the corner of Alpha and Beta in downtown Chicago. I held up my iphone to the QR code on the screen and my Bitcoin software grabbed the encryption code .... well you get the idea. I need a step by step primer as to what the "Trader" does to Trade. Thanks for reading.
I posted this on another subject, so please excuse me if it is cross-posted. D
Yeah.. your framing of this issue is quite broad and vague... There are a lot of ways that bitcoin holders trade, yet some holders are reluctant to sell any of their bitcoin so they just buy and accumulate and buy on dips and replace any that they sell.
So you could establish any systematic way of doing a kind of trading, and it does not need to be daily - for example, in my recent formulation, I am selling about 1.6% of my bitcoins for every 10% that BTC prices go up and I am doing it in $100 increments and buying back with a similar formula... Such formula can be tweaked in terms of percentages and also in terms of increments.. also it can be tweaked if you are more inclined towards accumulating more bitcoin or selling more bitcoin to accumulate cash.
When I started, my amounts were smaller and also my increments were smaller because I was trying to practice a lot; however, with the passage of time, I have increased my increments .. my percentages have remained somewhat similar except sometimes I might make some extra play and then have to attempt to reallocate over time to get back in balance...
So you can make it as you will.
To me it seems that most folks trade in a such a way that is gambling too large amounts to bet in one direction or another, and I tend to advocate against those kinds of approaches .. and assertions that you are going to outsmart the market...
One of the biggest certainties about bitcoin is its volatility, and for that reason, you can build in a kind of trading that allows you to profit from such volatility, continue to accumulate with perhaps dollar cost averaging investing and without getting greedy.