Bitcoin Bullish period and advantage. - page 8.

Frankolala

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Quote from: Plaguedeath on May 22, 2024, 10:46:38 AM

[quote
Let's illustrate.

We both have $1K to invest in Bitcoin, you bought Bitcoin at $5K on March 2020, so you own 0.2 BTC.

I also bought Bitcoin at $5K on March 2020, I own 0.2 BTC.
Next year I sold my coins at $60K, now I have $12K.
I wait for few months, then I bought Bitcoin at $30K, now I have 0.4 BTC.
After next few months I sold my coins at $60K, now I have $24K.
At the end of 2022 I bought Bitcoin at $15K, so I own 1.6 BTC.

So which one make more money at the end?

I don't understand your explanation, you are always selling at 60k which is not possible. The only time that you can sell at 60k was in 2021 after you bought in 2020,because bitcoin price was at 69k in ATH. After that the price of bitcoin dip to 16k in 2022 October. And after that time, it is this year that we saw 60k price so when will you sell again at 60k price apart from 2021.

The person that bought bitcoin in 2020 with you and didn't sell but continue to DCA since then till now, will be in a big profit compare to you selling and buying. No one knows the right time to buy bitcoin in order to make profit, because no one can predict correctly the price of bitcoin, if not all traders will be in profit and everybody will be a good trader.

Plaguedeath

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Quote from: bitLeap on May 22, 2024, 09:36:10 AM

We Bitcoin holders don't always worry about price ups and downs, is being a trader forever profitable? Of course not, is being an investor or holder of Bitcoin for a long time profitable? 100% yes. Tongue

upss

Of course traders aren't always make profit and never loss.

But, technically if the traders can always buy and sell at the right time, the profit is way more higher than investors. While @OP explains like becoming investor is more profitable than trader.

Quote from: Hatchy on May 22, 2024, 10:26:58 AM

Just like @Frankolala said, they would have to buy once again but at a higher value compared to when they had first bought and this to me is going to be loss for them but to the DCA holders it would be profit as they already have a lot of coins piled up and waiting for what ever x market they were waiting for.

Let's illustrate.

We both have $1K to invest in Bitcoin, you bought Bitcoin at $5K on March 2020, so you own 0.2 BTC.

I also bought Bitcoin at $5K on March 2020, I own 0.2 BTC.
Next year I sold my coins at $60K, now I have $12K.
I wait for few months, then I bought Bitcoin at $30K, now I have 0.4 BTC.
After next few months I sold my coins at $60K, now I have $24K.
At the end of 2022 I bought Bitcoin at $15K, so I own 1.6 BTC.

So which one make more money at the end?

Spaceman1000$

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Quote from: hd49728 on May 22, 2024, 09:08:17 AM

It's really hard to control your psychology, emotion and action in either bear market or bull market. You need to practice, live in this market a long time to be experienced first, then be able to calm yourself in severe times of the market like bull or bear, crash.

Psychology of market cycles. The chart is very famous but how many people can understand it and can actually use it practically in investment and trading, there are very few people can practice well.

https://costavg.com/
DCA power can be seen by tool like above to estimate profit if you DCA in last 2 or 4 years.

Learn and try to use this strategy
[ANN] JJG Sustainable Bitcoin Withdrawal Strategy
https://bitcoindata.science/withdrawal-strategy

Practicing and living in the market allows you go through the emotions, because you will be experiencing the ups and downs of the market flows from when it is bullish to when it is bearish, which will help build your psychology. Investor try to be too emotional at the first stage of their investment, just as the OP said that some investors will Buy the Dip and sell immediately they see bullish signal, but they are forgetting that, that same process will happen again and again till there is a new ATH. So for me I would say I will allow them to go through the emotions so that at the end of the day, they can learn on their own, because some of them seem not to understand holding for a long term is more profitable.

Hatchy

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Quote from: Plaguedeath on May 22, 2024, 08:02:15 AM

The reality people who buy Bitcoin at the dip and sell during bullish is better than DCA and holding.

I don't think those who sold during the bull season are better than the DCA holder. They are just simply traders though we can categories them as long term holders but their initial investment plan was to sell off at any slight bull so their aren't going to make as much profit as those who would be using the DCA and continually accumulating for a longer term. Yes these investors also have a target, but they over look the bull most times and continue holding. Just like @Frankolala said, they would have to buy once again but at a higher value compared to when they had first bought and this to me is going to be loss for them but to the DCA holders it would be profit as they already have a lot of coins piled up and waiting for what ever x market they were waiting for.

348Judah

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Quote from: laijsica on May 22, 2024, 06:57:09 AM

Some investors are generally interested in buying more BTC at DIP prices and tend to sell during bullish times. But holding is more important because it will happen again and again when ATH is observed in the market with gap of few months.

Everything about the market buy and sell is on a continuous process and we are also investing without affording to miss out on any earning opportunity alongside, each of the market season is when the people invest and set priority on what they want to do as well as how they are interested in going about it, all these happens because they are sure of making profits at the cause, after which they have invested and hold.

Quote from: laijsica on May 22, 2024, 06:57:09 AM

It can even discourage selling during market downturns. Many investment firms can build potential wealth by investing more during periods of BTC price appreciation.

Everyone trading or investing will be desperate about making profits, it all depends on the purpose for our investment, if we are going long or short, or maybe intended for making trades which some also understands the risk and requirements for doing that.

bitLeap

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Quote from: Plaguedeath on May 22, 2024, 08:02:15 AM

The reality people who buy Bitcoin at the dip and sell during bullish is better than DCA and holding.

From the past 4 years, if someone can buy and sell at the right time, they can at least earn 12x since the price on 2020 was $5K and now it's $70K. If they're DCA-ing Bitcoin from 2020, they're only earn 2x-3x.

Trader is better than investor, everyone can become investor, but not everyone can become trader.

We Bitcoin holders don't always worry about price ups and downs, is being a trader forever profitable? Of course not, is being an investor or holder of Bitcoin for a long time profitable? 100% yes. Tongue

upss

both are equally good and have their own targets, advantages and disadvantages. As long as you put yourself in the position of a trader who makes a profit then there is no need to devalue investment just because it is a matter of 1x, 2x and so on. After all, you cannot force investors to become traders and vice versa. If it is felt that traders are better, why do the richest people in Bitcoin prefer investment over traders?

Sometimes comparing investments and traders will be endless. Do what you like investing, trading or whatever with bitcoin, if you are looking for profit. Just realistic, right?

kryptqnick

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Well, from a purely pragmatic perspective of making more profit, it makes sense to buy low, sell high, then buy low again, as long as you can buy it for less than you sold it for. This way, a person can maximize the value if it's done properly. For example, one could buy at $4k in 2017, sell for $18k at the end of that year, and then buy again for, say, $10k in 2018, then sell for $60k in 2021, and so on. This reduces some of the risk because you can cash out when there's good profit, and then just way for the price to fall significantly to buy even more BTC.
But often it's just not worth it to spend time on looking for these patterns, so it's easier to just hodl or do DCA.

Peanutswar

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If you are an investor or trade you will always grab the opportunity when the market dumps but of course with the proper execution of the signals and analysis not all the time dip is already the bottom sometimes there's a follow-up on it so position where to buy is a must. Also if you are looking forward to the long-term goal of the bitcoin you can now make at least not the dip but also take the ride with the market hype and volatility and take profit once it gets satisfied with your unrealized pnl.

hd49728

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It's really hard to control your psychology, emotion and action in either bear market or bull market. You need to practice, live in this market a long time to be experienced first, then be able to calm yourself in severe times of the market like bull or bear, crash.

Psychology of market cycles. The chart is very famous but how many people can understand it and can actually use it practically in investment and trading, there are very few people can practice well.

https://costavg.com/
DCA power can be seen by tool like above to estimate profit if you DCA in last 2 or 4 years.

Learn and try to use this strategy
[ANN] JJG Sustainable Bitcoin Withdrawal Strategy
https://bitcoindata.science/withdrawal-strategy

Frankolala

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Quote from: Plaguedeath on May 22, 2024, 08:02:15 AM

The reality people who buy Bitcoin at the dip and sell during bullish is better than DCA and holding.

From the past 4 years, if someone can buy and sell at the right time, they can at least earn 12x since the price on 2020 was $5K and now it's $70K. If they're DCA-ing Bitcoin from 2020, they're only earn 2x-3x.

Trader is better than investor, everyone can become investor, but not everyone can become trader.

From your example that you use from 2020 to 2024, the person will make profit if he sells fine no doubt. But where the DCA and hodli investor will make more profit than that trader is in the end of the second circle, because he has sold all his bitcoin and how much will he buy back in the bear market of 2025/2026. This is where hodlers surpasses a trader. A trader can sell and buy back to start all over again waiting for the bull to sell again.

An investor profit lies on the compounding profit from his bitcoin portfolio over time, because the price of bitcoin increases in value with time. Trading sucks and that is why it is not everyone that can be a good trader because of the stress and emotional trauma of the market, which can make you run at loss. A professional trader can still run at loss, but a long term hodler cannot run at loss, but will have a huge profit at the end of his bitcoin journey. Hodli and save for your future. Trade and gamble with your future.

Plaguedeath

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The reality people who buy Bitcoin at the dip and sell during bullish is better than DCA and holding.

From the past 4 years, if someone can buy and sell at the right time, they can at least earn 12x since the price on 2020 was $5K and now it's $70K. If they're DCA-ing Bitcoin from 2020, they're only earn 2x-3x.

Trader is better than investor, everyone can become investor, but not everyone can become trader.

laijsica

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Some investors are generally interested in buying more BTC at DIP prices and tend to sell during bullish times. But holding is more important because it will happen again and again when ATH is observed in the market with gap of few months. A bullish period is characterized by overall market optimism and expectations of higher performance for the future. Even offers higher returns than bearish ones. A bull market usually reflects the utmost confidence of investors that a person can align their investments in this positive trend. Increasing market value makes investors optimistic about the positive loop. These positive market conditions may prevent investors from being psychologically tempted to sell BTC. It can even discourage selling during market downturns. Many investment firms can build potential wealth by investing more during periods of BTC price appreciation.

Topic: Bitcoin Bullish period and advantage. - page 8. (Read 1816 times)