this is actually a basic concept because in this case buying at a low price and selling at a high price are actually words that must be held firmly from the start when you are here.
but on the other hand, many people find it very difficult to apply things like this properly.
There are several reasons when they can't afford the first such as not being able to resist the temptation when the price rises a little they immediately sell and when the price corrects they panic about it.
In fact the people who have the understanding of buying when it's cheap and selling very high are the only people who have experience here and indeed it takes patience and research is needed for this.
Topic: Buy? . . . Nah, hang on a minute. - page 4. (Read 547 times)
yes I totally agree with that.. it's good that we can hold back for a moment to invest our funds in crypto, especially altcoins... we can't predict how the crypto market will be in the future.. and we shouldn't invest our funds not entirely in crypto only ... wisely, we must have investment fund management so that we don't experience huge losses
It's true invest what you can afford to lose, but investing less than 5% from total portfolio in crypto is a pennies.
Let's say your wages are $1000/month, 5% from $1000 is only $50/month, you would get charged higher than $50 if you withdraw BTC or ETH network tokens. I don't really understand why does debt is becoming a new normal on the current conditions, if you didn't have enough money to buy non-important stuff... it's better you wait until you have enough cash or don't buy it. It just sad that many medium-low class people really want to have luxury lifestyle, that's why they're fucked of their own debt.
Investing in Bitcoin for retirement savings can be a good idea since we're know how good Bitcoin performance for long term.
Let's say your wages are $1000/month, 5% from $1000 is only $50/month, you would get charged higher than $50 if you withdraw BTC or ETH network tokens. I don't really understand why does debt is becoming a new normal on the current conditions, if you didn't have enough money to buy non-important stuff... it's better you wait until you have enough cash or don't buy it. It just sad that many medium-low class people really want to have luxury lifestyle, that's why they're fucked of their own debt.
Investing in Bitcoin for retirement savings can be a good idea since we're know how good Bitcoin performance for long term.
When it comes to crypto, only risk the amount you are comfortable with losing. This space is unpredictable and it is definitely not safer than the traditional investments. Because of that, the potential rewards are a lot greater than what you may get from the other investments. The sooner you accept this fact, the better it is for you. If you can't stomach this volatility, buy real estate.
Oops, it still works for me. Take simple example of buying BTC at the rate of lets $ 100 and selling it when the market is going bearish. Now in this bearish trend the bitcoin market has fallen down to lets say $50! What position are you in now? Profit or Loss?
Now think about it in opposite way. The market has fallen badly, the entry point is $50, and on a fine day the price hits $100. Now what position are you in ? Profit or loss?
I am pretty sure if you are able to answer both of them correctly then you know your claims aint right.
- Simple math.
"Its not a question of altcoin or bitcoin, its question of how you manage your entry and exits in the market".
Now think about it in opposite way. The market has fallen badly, the entry point is $50, and on a fine day the price hits $100. Now what position are you in ? Profit or loss?
I am pretty sure if you are able to answer both of them correctly then you know your claims aint right.
- Simple math.
"Its not a question of altcoin or bitcoin, its question of how you manage your entry and exits in the market".
To sum it up--"Buy when the price is low and sell when the price is high, BUT invest only what you can afford to lose."
Sorry — but bro you pretty much just combined like 2 of the most generic trading/investing advice in existence. You made it sound as if your 'strategy' was some new and groundbreaking lol.
I'd say it's better if you not invest on crypto aka shitcoins, but just invest in Bitcoin.
That's what I was thinking. The OP is talking about "crypto", and applied to shitcoins his analysis makes sense, but if we focus only on Bitcoin, now is a good time to buy and well over the 5% he is talking about, depending on your knowledge and risk tolerance.
If we start from the assumption of being free of consumer debt, having an emergency fund and want to invest in Bitcoin because of its limited, autonomous and decentralized nature, we can have a very important part of our net worth in Bitcoin. What percentage will depend on each one, but I always recommend diversifying a little bit, even if it is 80% in Bitcoin and the rest of premium assets, whether Real State, shares of premium companies, etc..
I fully agree. Unfortunately, this is something a lot of people probably failed to do. I guess there are many of us who seem to have overinvested in Bitcoin or perhaps crypto in general.
In my case, I only have a small savings in my bank account. My retirement savings so to speak is also in Bitcoin. While I don't have debts, I also haven't invested significantly in less risky assets like real estate or government bonds or whatever. I don't have a stable business either. In other words, I am heavily invested in Bitcoin.
I might actually be investing more than I can afford to lose, but since I am not actually losing even a wink of sleep even in the face of this bear market, I guess I'm doing it right.
In my case, I only have a small savings in my bank account. My retirement savings so to speak is also in Bitcoin. While I don't have debts, I also haven't invested significantly in less risky assets like real estate or government bonds or whatever. I don't have a stable business either. In other words, I am heavily invested in Bitcoin.
I might actually be investing more than I can afford to lose, but since I am not actually losing even a wink of sleep even in the face of this bear market, I guess I'm doing it right.
I'd say it's better if you not invest on crypto aka shitcoins, but just invest in Bitcoin. The rule of buy low and sell high can't be used on shitcoins because they doesn't have any fundamental and easier to manipulated due to low market cap + centralized. Bitcoin is the only one coin who have fundamental and you can analyze how much it will goes to bottom etc. Looking on 200 week moving average the bottom may likely around $24,500, however no one can know does it will happen or not, but at least it can help your decision.
If you didn't have good analysis, you do Dollar Cost Averaging by buy Bitcoin every day/week/biweekly/month in any prices. So in the long term based on Bitcoin's history, you'll enjoy the profit.
If you didn't have good analysis, you do Dollar Cost Averaging by buy Bitcoin every day/week/biweekly/month in any prices. So in the long term based on Bitcoin's history, you'll enjoy the profit.
We've been told to buy when the price is low and sell when the price is high. This is pretty much the thumb rule in trading.
But that is not without conditions. It isn't absolute. It doesn't always guarantee profit.
Let us not forget the RISK. And risk correlates with volatility. High volatility means high risk. And since the crypto market is a volatile market, the risk is higher here than in the stock or FX market.
So, the "buy=low, sell=high" strategy only works when you successfully manage the risk.
You can do that by:
1. Investing less than 5% of your total portfolio in crypto
2. Prioritizing other aspects of your finances ahead of investing in crypto
- emergency fund
- retirement savings
- high-interest debt payment
In other words, invest only what you can afford to lose.
To sum it up--"Buy when the price is low and sell when the price is high, BUT invest only what you can afford to lose."
It may not guarantee a profit but it can help cut down loss when the bear attacks.
But that is not without conditions. It isn't absolute. It doesn't always guarantee profit.
Let us not forget the RISK. And risk correlates with volatility. High volatility means high risk. And since the crypto market is a volatile market, the risk is higher here than in the stock or FX market.
So, the "buy=low, sell=high" strategy only works when you successfully manage the risk.
You can do that by:
1. Investing less than 5% of your total portfolio in crypto
2. Prioritizing other aspects of your finances ahead of investing in crypto
- emergency fund
- retirement savings
- high-interest debt payment
In other words, invest only what you can afford to lose.
To sum it up--"Buy when the price is low and sell when the price is high, BUT invest only what you can afford to lose."
It may not guarantee a profit but it can help cut down loss when the bear attacks.
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