Topic: Bitcoin holder are not maximizing the bitcoin potential - page 4. (Read 826 times)

Yes true the process is profitable but all the time holders cannot do this because people get profit only to utilize that profit in something else which is profitable or may be in some activities of home which is necessary. It is also possible that lots of individuals are only dependent on bitcoin and they gain income from bitcoin therefore the process of selling and buying on regular basis will be hard for them.

Selling some part of bitcoin will be profitable to buy bitcoin again at lower cost but it will takes time but selling whole bitcoin to wait for dip is not desirable decision as we don't know when the next dip will occur.

The easiest way to maximize profits is by trading Bitcoin and not holding in my opinion, there is power in making more profits in what you control than leting it stay idle and with that, market players will play with your profits. As a trader, when you make profits, it's already in the bag and whatever the market does after that is not of your concern, if its slight down further, it will not affect your value as you have already convert it to profit but if you are holding, you don't get to claim the profit and it can go up or down or may even go down below where it was purchased.

Just imagine buying bitcoin when it was around $4,5k and you patiently hold it to all time high of bitcoin but refuse to sell and now that the price is now $26k, there is still good profit IMO but not good strategy; A smart trader will have exited the market around $50k+ and then buy back again and with this, you can have more bitcoin in your posession.

So basically, you are just saying that all of us Bitcoin holders should maximize the volatility of it therefore, we must trade, so that we can gain more profits than just holding right?
I have some questions to you OP.
1. Yes trading is for everyone, but do you think that all Bitcoin holders are capable of trading? Do you think that they can do well in trading?
2. Do you really think that if a Bitcoin holder will go in to trading, there is a high chance that they can get profit?

Think of the risks of trading. Think of every Bitcoin holder and think "Will they handle the risks that they may face when they enter trading?" Think of how it will affect them if they lost their money because they realize that trading isn't for them. Think of the possible things that they might've think if they lost their money doing trading. They will realize in the end "If only I just held my Bitcoins instead of trading it, I might've earned way lesser, but it's safer than just trading which isn't for me."

Yes I know that you can get more profits if you do trading than just simply buy and hold, but not all can do trading just to let you know. Many aspiring traders loss their money in trading. Think wider OP. There are many ways for an investor to earn using Bitcoin, and not only in trading.

Correct, there is the mistaken notion that in order for a trader to become profitable they need to know what the market is going to do at all times, and this is false, the market can only do two things to go up or to go down from its current levels, now it could also remain motionless but at some point it will have to take a direction.

And as you can see this is very similar to a coin toss, so if a trader can predict with an accuracy higher than 50% what is about to happen and they have solid money management skills then they can make money, as such it is not necessary to have almost infallible predictive abilities in order to make money on the markets.

And how exactly somebody could possibly know about this? The market is unpredictable, you can know nothing for sure. If what you said were true, then we would live in a completely different world, where everyone could earn from trading and be in profit for most of the time. But that is simply not true. "Always" is the word that has nothing to do with the stock market.

First, we must distinguish between a trader and an investor, as they are 2 different things. Yes, the goal is to make a profit and everyone has different ways of making a profit. A trader targets the profit that they will get in a short time, while for investors they will have a way to take advantage by holding assets for a very long time, even it takes several years before they go out and take profits.
So these are 2 different things, we cannot say that bitcoin holders (especially investors) do not maximize the potential of bitcoin, in fact I see them also maximizing the potential of bitcoin completely.

It's true that there is a lot of volatility in the crypto markets and that an experienced trader could take advantage of it. The question is how many of the long term investors that hold Bitcoin for the purpose of storing value are comfortable to trade short term? When we start day trading, we need to be a lot more active and check the market constantly. At least for me it's not really possible at the moment with my normal job to focus so much time on trading. In the end the risk of losing a large amount in a sudden price drop is much higher than the chances to make a few gains. Another issue of trading HODL Bitcoins is that the tax gains are being realised every time we are buying and selling our coins. Especially for some investors that hold their coins for several years this could lead to large tax bill that we would need to pay. Also, for anybody that is looking to take advantage of high volatility price movements there might be even better candidates in the alt coin market. Some coins that are not traded so actively might offer much higher returns when the prices jump.

It is also important to notice that trading is a full-time job, so anyone that wants to become a trader either needs to leave their main occupation behind or work two different jobs at the same time, something that is not easy as anyone that has tried to do this before can testify.

However becoming an investor can be a very relaxed endeavor, as once you have done your analysis about the assets in which you want to invest there is not much to do except to buy that asset and for your target price to be hit, and as such you can keep your job while your money works for you.

I didn't say that it is not risky, I know that this is more riskier than those who didn't immediately sell. But I'm sure that if we only know where exactly the swing points, we will just wait for that zone to trade. The price movement in the market is not always up, it consist higher high and higher low. Why it happens, because there are what we called short-term traders that sell their assets. Ofcourse, it's a big traders such institutions that can cause the big move of prices in the market. As what I have said, if we know where exactly the higher low or higher high, we can maximize the profit by always buying at higher low and selling at higher high.

That is not entirely true. Often the opposite is the case. Short-term trading is very risky and there can be more losses than gains. Moreover, in a few hours, the situation on the market may not change radically, the price may stand almost still, and then there is no point in such a trade, you will only take unnecessary risks and pay commissions when the possible profit is not worth it.

I completely agree with you. Only by selling your asset can you determine that you are profitable. Most people, including myself, believe that I already profit  when I have a running position; there are times when the table will turn back. I understand that the greatest method to maximize profits in trading is to buy low and sell high in couple of hours and enter a trade a gain. The problem is that we don't know when it was appropriate to sell it because some traders are hesitant to do so due to the possibility of more price increases. For me, this is not the case; profit is profit, and I have nothing  to regret. The most essential thing is that you stick to it.

Not entirely true, people who have a vast knowledge and experience in trading rarely lose money.  And if the option for maximizing return is given, most people will take it since it is the natural aim of investors and traders.

But, I would agree with your belief that it is better to have part of the possible maximum profit if we are free of risk of losing all of our investments.


We cannot profit by holding only, we have to sell at some point to realize our profit and then we buy again at the lower price.  This is the essence of investment and taking advantage of the volatility of the market.  Thus, we have to trade, buy and sell although it may take time for us to do the trade, it isn't a bad move to wait for the price to hit our target selling price and at the same time the target buying price to reinvest and repeat the process.

The main goal of Bitcoin holders is to hold for investment for a certain period of time, usually long term, because there is a target price that they want to achieve, without having to carry out trading activities every day. This goal is of course different from traders who optimize volatility every day. So in my opinion, it's not right if Bitcoin holders don't take advantage of Bitcoin's potential. Traders and investors, especially long term holders, have their own goals and cannot be forced to do the same thing. So, don't judge what is appropriate and what is not. What is certain is that each of them can optimize themselves in the field they are working in.

this is why, it depends on the targets of each individual here. we have different goals so to speak. but most of these users are after for more profits. they need to be careful as they can easily lose those profits if not handled properly. if you know your targets here, then, work on your plans or strategies to reach that goal. you can read, listen to all those opinions but at the end of the day, you will be the one who will execute your plan.

There isn't really a "need" for maximizing it, that's the point. It already makes me enough money, why would I take any risks by doing anything bigger. I understand that some people may want to have something different and they may want to have something that is special but that doesn't mean that its going to be true, and you may end up with a loss. The reality is simpler, you are going to end up trading and you will lose the money.

This isn't a sure thing of course, you could trade and lose some money as well but there isn't really a guarantee to that neither, and you could end up losing money as well. Instead of that, you could just end up holding, which would definitely get you profit if you hold long enough. The trick with holding is that sometimes you have to hold just a bit, and sometimes you have to hold for a long time but at the end of the day you are going to end up profiting one way or another.

People should realize this and this is how you should really be thinking but if you dont really mind whether your profit is small or big then it would really be just fine that you would really be that accumulating for long term aspect which we know that there are really indeed difference in speaking about whales and those average or typical investors when it comes to this aspect on which it would really be just that normal that you would really be having those kind of different level when it comes to profits. Maximizing potential would be most likely be advantageous into those people who do have invested more but in speaking about exposure on such risks then you are
basically that prone more into risks and this is why its always that important that you should really invest only on things which you gonna really afford to lose and dont really going all in when it comes to this type of investment because this is where usually people do really able to forget on which investing but doesnt mind about the risks because we know that this market is volatile and there's no way that we could be able to
tell on where it would be going.

That is why we can only make money from the market when we are having good amount of Bitcoin as a trader or investor. Little holdings do not count much compared to those whales that are holding sufficient amount of Bitcoin in the market.
 If we really want to make money from the market then we need to be ready to buy good amount of crypto and hold in our portfolio or else we are going to make little profits when the bull eventually arrives. This is one of the things that give the whales edge over the market to be able to manipulate the market as much as they like.

Old or new HODLers has their own reason on why they can't buy on a good opportunity like what we have now. We don't know what they are going through so we shouldn't judge them. I think you are also talking about the whales here mate. Whales can be a different kind of breed. They can't be a HODLer but they can sell their assets immediately right after they manipulate the markets.

The one that can beat them are also their co-whales. We small-scale investors can just go with the flow. We can buy once the price dumps and sell once it pumps. That is how easy to make money here. The market doesn't necessarily need the whales and it will be a better place without them.

That is the reason why trading is not for everyone. Even though a lot of bitcoin hodlers would want to learn trading as well, but if they don’t have the required skills and trading experiences, they will never be profitable traders in the end. So it’s only a waste of time and effort when you are trying to trade and has still no positive outcome in the end. That’s the reason why some frustrated traders just settle in long term hodling. At least, they can still be profitable with less risk and less stress.

Bitcoin hodling might be underrated but if you are hodling sufficient number of bitcoin, you’ll end up an instant billionaire in the future. So I don’t think hodling alone does not maximize the potentials of bitcoin. However, with bitcoin trading, people know that the profits are more promising and tempting, but hey, trading is never easy and it needs close to perfection skills and trading expertise so you can be profitable on it. Otherwise, you are only wasting your money in trading when you consistently trade without knowledge and skills being honed.