Topic: Bitcoin ETF Hype and Leverage (Read 246 times)

this exactly. if something sounds too easy to be true then its because well it is lol. The etf acceptance was priced long time ago. everyone was expecting huge gains and ive been just looking at it since i dont trade but i was pretty sure 90% + that it would remain volatile / potentially drop after it goes up a little. and it did exactly that.

People gotta understand that if the majority of people are bullish or bearish then BTC tends to react exactly the opposite way or sideways. I think even the next couple of months will break some necks as loads of people wanna open a super long position as its ''so obvious'' that we gonna hit a new ath soon. But instead we might have side way trend for the next couple of months or even the entire year lol.

I had to learn it the hard way too. Back in 2020 i was sure dogecoin would tank and i shorted it. it went up more. i called another short. it continued going up. i was sure it would tank at some point but after beeing down about 1 btc or so i decided to hold my horses as i couldn't call when that crazy shitcoin was topping out. eventually it continued its rally for a few days before crashing down.  Even though in that situation, most experienced people knew that dogecoin hat to eventually fall, nobody could tell when.

The normality of market is it usually moves opposite to most speculations about its next movement. Because market makers only can get profit by mislead most of the market participants and get profit when their plans succeed to deceive most of investors.

They are masters in Market psychology cycle and have experience, patience to execute their plans while mos of market participants only look at short term, lack of patience and discipline.

This is a normal day in the cryptocurrency market.
Where majority of people thought that it would mega pump because of ETF approval but it didn't because they already knew what would happen, so it's more likely what happened is "Buy the rumors, sell the news".
That's why trading is extremely risky during this kind of situations.

This is what we should be spreading out there all investments have risks and so do crypto we have to make people informed and tell them that crypto is not all wins and gains you might also experience some losses but this does not mean cryptocurrencies are a scam and full of lies learn to manage your expectations and study the risks associated with investing in crypto

Although I wish that Bitcoin is as widely accepted in my country as other online payment options, I'm also actually trying to hodl them as much as possible. More often than not, I don't want to spend my coins. All I'm saying is that while you can say that there's always available Bitcoin around and that "it's just Bitcoin" and "you can always buy it back little by little", it wouldn't be the same when you're buying it back at a much expensive price. The history of Bitcoin is full of regrets when it comes to spending or selling Bitcoin early because there will come a time when you might not be able to recover as much as what you've let go.

Sorry for the big loss. Still you managed to move forward! Cool move keeping some BTC for the long haul despite the losses. I think you holding onto it suggests you believe in  future growth, looking past the ups and downs. It's a chill and patient approach in the wild world of crypto

Indeed it is disheartening counting losses on such a Treasury investment as Bitcoin.  Bitcoin is such an glittering and attractive technological investment which a prominent lost along the journey could be unbearable to handle especially when the initial approach was appreciating before the lost count.
However, a lost count experience in the Bitcoin industry could serve as a lesson howby, experienced and inexperienced lost count Investors could take caution about and so to conciously identified the potential risks about the industries.
This could practically assist investors to enhance their capacity awarenesses towards the volatily of Bitcoin maybe to those whom are flexible to emotional challenges and those who are ignorant to accept the markets conditions.

I can get that you were excited at the time about the possibility of making some quick profits with the news, and while I do not know the percentage those 2 BTC represented, there is no doubt that it was an amount of money too big to risk in something that was an experiment.

Remember, even if holding your coins will never be as fast at building wealth than trading with leverage, the risk is many times lower as well, and depending on your personality it can also become incredibly easy to do so once you hold your coins for long enough to always be in profits, even when the market crashes.

It is important to know that Bitcoin being a high volatile asset cannot be influenced or controlled by anyone as it's activity is based on gradual process rather than dependent on hype or criticism so if you try using leverages on Bitcoin simply because they've got ETFs approval then you may actually be running into more consequential losses .


The most important thing an investor can do after incurring losses isn't to quit but rather to restrategize and see how he can bounce back again because giving up simply because you got into some losses is just a show of cowardice as a good investor will always keep trying no matter how many times he must have failed so definitely, hodling some Bitcoin in your portfolio regardless of the loss you encountered is a show of bravery and optimism that the future holds better than now.

Hype and leverage are the recipe for disaster with BTC and crypto in general IMHO.

This is my reminder to myself every time that I spend my a small amount of the crypto that I hold, it's that there's still more bitcoin left and that I'm hodling just the right amount that there's no guilt when I spend on something really good. Another thing that I like to add to the list of lessons is that it's just bitcoin, you can always buy it back little by little, that's the beauty of bitcoin, you can reinvest and get back even just a little as $1 unlike with stock market that is stable but you're going to need a lot of capital to even make a decent money out of it. That leverage thing should be for the pros and should be treated like gambling, don't put in what you can't afford to lose.

All decisions need to be considered in investing and that's true friends but losses are part of investing too. I want to do that if I already understand, if not, I trade using leverage, I don't do it at all, it's better to just trade on the spot, I trade to avoid additional risk of loss and I admit that if we are already skilled, in the sense that we are already skilled, leverage can be an effective tool to increase your coffers. -coast of our assets.

At least you've still got some BTC for long term hodling. I wonder why you missed it from your list of lessons, though. I think it is one very important reminder. This has been proven time and again. That hodling is better than trading is proven and tested.

Perhaps another lesson that we can get from this story is the use of leverage. As much as possible, we have to avoid it. I don't know how high the leverage you used in your positions, but x2 is probably the manageable limit.

I don't know what the Buffett quote has to do with the last two sentences, but the former is a nugget of wisdom and the latter I absolutely agree with.  It's easy enough to get wiped out in the stock market if you're using too much leverage, and the swings in stocks are nowhere near as mind-blowing as those in crypto.

Dude, I would give my remaining nut (RIP, lost nut) for 2BTC.  It's hard for me to wrap my head around losses that big, as I've never had that much to play around with.  From the tone of your post, you seem to be taking it in stride and thus I have to assume you're a muthafukkin' baller.  Hope you learned a good lesson. 

Well said PrivacyG, a expensive lesson, i jumped with 0.5 BTC, DCA all the way down till i got liquidated

The big loss you took sucks, but take it as a lesson.  How in the world did you think it was a good idea to experiment leveraging by using 2 BITCOINS?

It typically works this way.  The Rich have connections and news before we all do.  They make the moves before we do.  Bitcoin ETF did not mean much in my opinion.  It will bring more money but it does not mean any thing for Bitcoin itself on its own.

The Rich made the moves before you did.  Both when they purchased and when they sold.  The rumors before the actual news destroyed a lot of people, I am sure of it.  Particularly people like you who were doing leverage.  Then the real news came, which were the equivalent of the rumors.  And the event happened again, and a lot of people lost again by doing the exact same thing trusting there would be a way to gain wealth out of this event.

To put it shortly.  You learned a lesson.  Stop gambling your money and start holding.

The process of justifying ETF's problem, if this scenario is not accepted, people will blame it. Individual mistakes are the most obvious, failure is not so strange as just stopping at that point without trying to overcome challenges. In any case, the journey of bitcoin development up to now has achieved admirable achievements, and the rule that wealth is not for the crowd manifests itself in every field, competition is truly fair, if you are good you will get worthy results. There are really many things that we need to learn and adapt to market changes. Speculating about the future only partially reduces the risk, or no matter how solid the plan is, it just hasn't been broken yet. Nowadays, each person will have their own approach, just don't give up and you will achieve success.

In the end, the ETF was just priced in and the shorters were proven right, but that's only after BTCUSD reached a scam whick of epic proportions liquidating most of the shorts in the process.
It just goes to show that when a market has high speculation, there will be high price fluctuations also.
Shorting or longing BTC based on logic makes little sense. All leveraged positions will be targeted to be forced into closing one way or another. And the high leverage offered on crypto exchanges, as well as the amount of traders with no idea of what they're doing, makes BTC just an easier target for whales to manipulate the markets as they wish.

I am sorry for your loss. It is a bold plan to say the least to use leverage during the etf approval 'hype'. The ETF would never have brought instant increases in price. If the ETF would ever influence price it would be in the mid to long-term.

Using leverage in crypto markets is crazy in its own right. They are so volatile and driven my emotions and FOMO. Perhaps you experienced this when you decided to use leverage trading. A useful index when investing is the fear/greed index. Right now its set on greed and few days before ETF approval it was 'Extreme Greed' which is clearly unsustainable.

The base price of Bitcoin is really what the miners need to cover their expenses. You can gauge what this value would be by looking at average global hash rate and mining difficulty. Anything on top of this base is supply and demand and/or FOMO

When investing in crypto always remember to treat your investment as 'expendable' money. Markets are so volatile and the value of your investment can plummets overnight. Hopefully in your case if you can hold out for a few months the price should recover as we near the halving.

IDK man, the halving & ETF news seemed too big to miss the train

"Be fearful when others are greedy and be greedy only when others are fearful" - Warren Buffett.

Even the biggest coins can fall or rise 10% in a single day with no reason. Going into leveraged trading with crypto is a russian roulette.

Hey fellow crypto enthusiasts, I wanted to share a personal experience that I believe holds valuable lessons for all of us. Recently, I found myself drawn into the excitement surrounding a Bitcoin Exchange-Traded Fund (ETF) and decided to explore the potential gains using leverage. Unfortunately, my journey ended with a loss of 2 BTC.

This serves as a reminder for all of us in the crypto community: caution is paramount. Cryptocurrency investments are renowned for their volatility, and the allure of quick profits can sometimes lead to equally swift losses. It's essential to approach such opportunities with a discerning eye and an understanding of the risks involved.

Here's what I've gleaned from my own experience:

Thorough Research Matters: Dive deep into the specifics of your investments. Understand the market, the cryptocurrency involved, and any associated financial instruments. Knowledge is your best defense.

Hype Can be Deceptive: Crypto markets are often influenced by hype. It's important not to let market sentiment alone dictate your decisions. Always balance excitement with a solid grasp of the fundamentals.

Manage Your Risks: Leverage can magnify both gains and losses. Only invest what you can afford to lose, and be mindful of the potential consequences of using leverage.

Stay Informed and Adaptive: Cryptocurrency markets evolve rapidly. Stay abreast of the latest news, trends, and developments, adjusting your strategy accordingly.

Consider Seeking Advice: If uncertainties persist, seeking advice from financial professionals or those with experience in crypto investments could provide valuable insights.

Experiencing losses in crypto investments is undoubtedly disheartening, but it's crucial to learn and grow from these setbacks.

For me i have lost a lot, but i still hold some BTC for long term