Topic: As the 4th Bitcoin Gaining Cycle Comes, How to Maximize Your Profit (Read 169 times)

Don't chase the bottom price, a smart trader should make a smart strategy and hedge it to avoid the risk and earn more profits when the market fluctuates.

BTW, 6k is a support line for this period.

1. I mentioned about BitOffer Bitcoin Options because I think BitOffer Options is the easiest and the best hedging tool for bitcoin trading. And I was trying to tell everybody that the bitcoin price is going to go through the 4th gaining cycle.

2. History did repeat itself. Yes, you may right that the future may be influenced by different factors. But look back to financial history, we always can find our answer and do our analysis based on history.

3. I know that most of the traders use futures and options and leverage trading as a way to earn profits because of its high leverage. But one of the functions of financial derivatives is hedging your spot trading: Spending a low amount of budget to save the asset loss with high leverage. Every coin has 2 sides, it just depends on how you do it.
Sorry about that I am a rational trader, so I hedge my every transaction when the market fluctuates.

We may discuss more on whatsapp or telegram if you want.

Don't make it in an old school style.  First we should make a stable investing plan and hedge it.
We can discuss more.

In bitcoin trading, the most effective way for traders to maximize the profit is to hedge it. That is also the function of finance derivatives. Without hedging, in trading and holding process, you may lose some value of bitcoin and miss the chance to earn profits when the bitcoin price is fluctuating.

I hold the view that the gaining cycle has not ended yet. Look back to three gaining cycles before, now the bitcoin price is fluctuating.  And it probably goes to 10K this time.

About catching the low point, you should start making an investing plan with a good strategy and hedge it to avoid any risk.
Maybe we can discuss more about the price analysis and trading strategy.

For the price to drop to $4k, whales would have to make panic sell as in November 2018. I think the situation is too stable for them to succeed. It is very likely that the price will fall, but in my opinion the lowest possible level is $6k.

I think this is the reason for the topic, the long introduction above did not make any sense. Remember people don't tend to read long topics ----> check above replies.

History does not have to repeat itself. Many analysts rely on what happened in the past to predict the future, but given the different factors, history will not repeat itself "at least in the usual circumstances."


I don't think that trading in futures contracts and using leverage will reduce the risks, it depends on your experiences and how you deal with the crash.

It seems to me that the price will not fall so low. 1-2k is not enough, I think it will probably drop to 4k

The fourth gaining cycle is yet to come. What we experienced with the market over the month of june is just the regular growth. The way available to profit or maximize the earning is through holding and trading. There is no big way available to maximize the profit in the prevailing market scenario, luck plays big role by this time period.

The 4th gaining cycle ended in June this year, we're now descending.

The 5th cycle will be lucky to get to 10k, but first we have to get to the next low, prob 1 or 2k

I think you should transfer this thread to Service Announcements to avoid deletion.

As the 4th Bitcoin Gaining Cycle Comes, How to Maximize Your Profit and Avoid the Risks?
 
Background:
  By reviewing the bitcoin market movements last month, the bitcoin price on Nov. 1st was $9,054. When the end of Nov came, the bitcoin price dropped to $7,318.
  As the historical trend of bitcoin has gone, the bitcoin price has been through 3 cycles of gaining:
 
1. From 2009.01 to 2013.04, the bitcoin price rose from $0 to $198. At the initial point of the 1st period, the bitcoin had no price, and its value was defined by Satoshi Nakamoto and other early miners. At that time, bitcoins had nowhere to trade, the early miners only could hold it. It is one of the reasons why the bitcoin price pumps or dumps sharply because the early holders can choose anytime to sell it and quit. In the middle of 2010, the first bitcoin exchanges such as Mt.Gox launched. And as exchanges like Bitstamp, Kraken and Coinbase started operating, the era of “Bitcoin Online Trading” came, and the bitcoin price had soared to $198.
2. As the bitcoin price firstly touched $198, some of the early miners started selling the bitcoins they hold for arbitrage. When the date past 2013.07, the bitcoin price fell to $69. Then, the bitcoin price boomed to $1,000 when some of the institutions with a traditional financial background and some personal investors injected capital into the bitcoin market in the second half of 2013.
3. In early 2014, the biggest heist of bitcoin on Mt.Gox happened urged the bitcoin price to slump. the bitcoin price did not go back to $1,000 until Feb 2017. And as the ICO projects got popular and the fork of bitcoin happened, the trading volume of bitcoins reached the peak and the price of bitcoin also reach the peak of $20,000.

After reviewing the gaining cycles of the bitcoin price until now, the corollary that we are now going through the fourth cycle.
Just as the financial history repeats itself, the percentage of holding bitcoin more than 12 months has decreased to 40%, which is similar to the situation that the last time the bitcoin price boomed to $1,000. We can easily draw a conclusion that the decentralization of bitcoin holding means that the trading demand of bitcoin is increasing. And when the bitcoin trading becomes diversified with the bitcoin finance derivatives became more and more robust, more and more financial institutions and personal investors will enter the bitcoin market. Thus, in the next period, the bitcoin price will present an uptrend in total.

So, how to achieve the benefit maximization and avoid the risk when the fluctuations happen in this period?
 

Hedging is definitely an important part you should plan for your bitcoin trading. With hedging work for your trading, you will avoid the risk of holding a bitcoin but the price drops in some time.
For example, 3 weeks ago, the bitcoin price decreased from $8,150 to $6,665, if you hold 1 bitcoin, then you would lose $1,485 during this decline. However, if you chose bitcoin derivatives such as futures or options to buy a contract for BTC Short, then you will save $1,458 loss when the bitcoin price dropped.
Here are two solutions I’ve mentioned above: Futures&Swap, Options.
1. In futures trading, you can open leveraged BTC Short contracts with the principal, margins and fees. If you hold 1 bitcoin at that time, and you select the leverage in 20X, to save the loss of $1,485, you will need the principal in $400, and the margins at least 0.00024 BTC (but usually you will need to input more to prevent from liquidation). It is a useful way for you to hedge the risk of holding 1 bitcoin.
2. In options trading, for example, if you open a 7-days put contract on BitOffer Bitcoin Options, usually it only needs around $200. Moreover, it does not request any margin and any fees.
Here is how it works:
When you hold a 7-days put contract, if bitcoin price drops from $8,000 to $7,000, you will earn $1,000 profit, and in total, your loss of the bitcoin you hold will be hedged because you earn $1,000 from BitOffer Bitcoin Options.

What if the bitcoin price rises from $8,000 to $9,000?

You will lose $200 with the 7-days put contracts you buy, but you still earn $1,000 with the bitcoin you hold.
BitOffer Bitcoin Options, the best hedging tool ever, is now the easiest and cheapest hedging solutions you can see in the market.

Ending:
With an effective hedging strategy, I deeply trust you all should be able to maximize your profit and avoid the risk even the bitcoin market fluctuates acutely like always.