You're free to do so if you want to. It's just that people underestimate how hard it is to pull it off, as most people who attempt to do such a 'strategy' just end up having less bitcoin than they should have.
Don't get me wrong, it's fun and it gives me a huge adrenaline boost when doing so. I just make sure I only trade with a very small percentage of my total portfolio.
Topic: BTC to Tether for percentage gain - page 2. (Read 296 times)
Question
HODL is common practice with many Bitcoiners but has anyone braved the risk of changing out BTC for a stablecoin to then change back into BTC when the price has significantly lowered to gain percentages?
Personal Experience
I have held & traded, personal view is that the trading aspect is exciting (within reason) as it yields percentage points. Having a risk assessed figure in mind then switching out to wait for the prolonged market decline to join back draws very few negatives from my view.[/center]
If you try out this method of selling and buying, you should also know how to scalp out your profits or better still, transfer them to a cold wallet so it doesn't get lost in trade incase you encounter loss.
If you do get stuck after selling your fiat to another currency and because of the sudden price movements you can't buy back BTC, it would be wise then to HoDL and accumulate separating your gains from the capital you intend to trade with of course.
Try to also employ technical and fundamental analysis of the market to see which is the best time to trade and to HoDL for longer.
So you basically want to sell for fiat and then if bitcoin goes lower you buy it back. You use the same amount of fiat but you buy more bitcoin because its cheaper. Sure this is a great way of doing things as long as we are in a bull market. But what will you do if you sell, and the price keeps going higher and higher? Or you sell and it goes lower and lower?
Best is just to hodl if you think it has more growth long term. This type of scalp trading never works out. Especially for new traders. You might get lucky once or twice and get a better average of your bitcoin holdings but eventually you will sell at the wrong time and buy at the wrong time.
Best is just to hodl if you think it has more growth long term. This type of scalp trading never works out. Especially for new traders. You might get lucky once or twice and get a better average of your bitcoin holdings but eventually you will sell at the wrong time and buy at the wrong time.
Usually the opportunity only surfaces when in a bull market which as we know is rare, less frequency is more favourable with risk management
So you basically want to sell for fiat and then if bitcoin goes lower you buy it back. You use the same amount of fiat but you buy more bitcoin because its cheaper. Sure this is a great way of doing things as long as we are in a bull market. But what will you do if you sell, and the price keeps going higher and higher? Or you sell and it goes lower and lower?
Best is just to hodl if you think it has more growth long term. This type of scalp trading never works out. Especially for new traders. You might get lucky once or twice and get a better average of your bitcoin holdings but eventually you will sell at the wrong time and buy at the wrong time.
Best is just to hodl if you think it has more growth long term. This type of scalp trading never works out. Especially for new traders. You might get lucky once or twice and get a better average of your bitcoin holdings but eventually you will sell at the wrong time and buy at the wrong time.
HODL is common practice with many Bitcoiners but has anyone braved the risk of changing out BTC for a stablecoin to then change back into BTC when the price has significantly lowered to gain percentages?
Yes it is a common practice. We call it "trading". The basics are very simple, like you noticed, you need to buy low and sell high, then buy low again.
Binance is a good place to execute this idea because they also offer very high (10% to 20%, sometimes even higher) daily compounding interest on your USDT balance. Which means, you make money even when you are waiting in FIAT.
The biggest disadvantage is the risk you are taking by using a centralized exchange. If you don't mind it, then go ahead and make sum monneyy
HODL is common practice with many Bitcoiners but has anyone braved the risk of changing out BTC for a stablecoin to then change back into BTC when the price has significantly lowered to gain percentages?
Bitcoin price can rise and fall but its yearly trend is upwards. No government, bank can seize your bitcoins in your non custodial wallet if they don't arrest you to get your wallet private key.With stablecoin, they can seize it even in your non custodial wallet.
Another risk with stablecoin is depeg.
PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets
Stable coins: a deep dive into valuation and depegging.
Hello Everyone,
I'll keep this one short.
Question
HODL is common practice with many Bitcoiners but has anyone braved the risk of changing out BTC for a stablecoin to then change back into BTC when the price has significantly lowered to gain percentages?
Personal Experience
I have held & traded, personal view is that the trading aspect is exciting (within reason) as it yields percentage points. Having a risk assessed figure in mind then switching out to wait for the prolonged market decline to join back draws very few negatives from my view.
I'll keep this one short.
Question
HODL is common practice with many Bitcoiners but has anyone braved the risk of changing out BTC for a stablecoin to then change back into BTC when the price has significantly lowered to gain percentages?
Personal Experience
I have held & traded, personal view is that the trading aspect is exciting (within reason) as it yields percentage points. Having a risk assessed figure in mind then switching out to wait for the prolonged market decline to join back draws very few negatives from my view.
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