is using spot trading to buy low and sell high for few dollars a good practice? a close relative said he was able to grow his crypto portfolio this way, is this a good practice?
We have different strategy in investment Maybe that's a good practice when the price will go down then let's buy and if the price will go higher and higher then let sell. For me it's very easy to say but in actual investing it's hard do do because we don't know the movement of the market. In long term investing we must discipline our self before we invest. Because in investment full of excitement and trials.
Topic: buying low and selling high - page 9. (Read 1463 times)
is using spot trading to buy low and sell high for few dollars a good practice? a close relative said he was able to grow his crypto portfolio this way, is this a good practice?
Everyone wants to do this thing, but it is too difficult to be able to have such a moment. I'd rather take advantage of the moment, not have to find a low price but find a moment where the price is cheaper and goes up immediately. That's what I prefer. Your principle may be suitable for holders, long-term trading. But I think indeed everyone has different techniques according to their comfort. Maybe if you are curious you better try.
is using spot trading to buy low and sell high for few dollars a good practice? a close relative said he was able to grow his crypto portfolio this way, is this a good practice?
Yes, that is a good practice to test your skills but you should not use too big money if you do not have many skills.You should remember to analyze to find the right coin and that is not easy but you can stick to bitcoin trading if you confuse about selecting the altcoin.
When you can profit from bitcoin trading, you do not have to use bigger money to trade as you still learn more about trading.
Last but not least, take your profit whenever you see it and do not wait too long to take the profit because the price can move anywhere without you knowing.
How much small dollar we are talking about here? Because you can increase profitability if you will use futures trading with low leverage rather than spot trading alone. In traditional way, Spot trading is the perfect choice for buying low and sell high since it doesn’t have liquidation price but since futures trading already introduced, It was good for user that don’t have enough funds to borrow funds for trading in exchange for a certain margin ratio.
While technically true, OP, don't do this. Using leverage especially for newbies will just speedrun your demise. With spot, you can at least wait till your holdings go back up in price (assuming you didn't buy shitcoins); but with leverage, you can simply get wiped out.
is using spot trading to buy low and sell high for few dollars a good practice? a close relative said he was able to grow his crypto portfolio this way, is this a good practice?
If you are in profit on your spot trades then you are doing good already and remember that profit is profit so get settle with it. Since for wanting more you might experience a heavy lose due to unforseen circumstances like bag holding some coins because you believe that it will pump. So if you are new be settle with little because from their you can practice more your skills and for sure in future you can earn more with it.
is using spot trading to buy low and sell high for few dollars a good practice? a close relative said he was able to grow his crypto portfolio this way, is this a good practice?
It depends on what you think good practice is? Is your only goal in crypto to make money? Then it's just fine and one of the tools that can be used for that purpose. Do you support the concept of crypto at its basis and how it was conceived with BTC? Then it probably isn't because it's a game where people lose their money so that other people could gain money.
is using spot trading to buy low and sell high for few dollars a good practice?
In theory it is... if one does his math right and doesn't pay more for fees than it earns (this is in general, since no-fee trades won't stay forever).
But there's a big problem in reality: if you are inexperienced you can end up with a lot of Bitcoin when the price goes suddenly down or you can end up with a lot of USD when the price goes up suddenly. So you have to know how to foresee such cases and have safety nets that allow you continue trading (even with a small loss) if this happens.
This is why people tell that trading is not for everybody: it is difficult, no matter how easy it looks for short periods of time.
As with any trading, the more you invest the more you earn if you actually do profit. However, the more risk. If you're trading such low amounts, even if Bitcoin x10, you might be talking $100, but the risk involved in that provably isn't even worth the reward. It's up to you, but trading requires a lot of luck, I don't care about others say. You need luck, and you need a little bit of wit about you. If you can separate your emotions, great. If not, trading isn't for you.
Personally, if you haven't traded before, and are new to Bitcoin, I wouldn't recommend Bitcoin trading at all. Bitcoin is much more volatile than most trading, which means greater risk when you're trading frequently.
Personally, if you haven't traded before, and are new to Bitcoin, I wouldn't recommend Bitcoin trading at all. Bitcoin is much more volatile than most trading, which means greater risk when you're trading frequently.
is using spot trading to buy low and sell high for few dollars a good practice? a close relative said he was able to grow his crypto portfolio this way, is this a good practice?
How much small dollar we are talking about here? Because you can increase profitability if you will use futures trading with low leverage rather than spot trading alone. In traditional way, Spot trading is the perfect choice for buying low and sell high since it doesn’t have liquidation price but since futures trading already introduced, It was good for user that don’t have enough funds to borrow funds for trading in exchange for a certain margin ratio.
is using spot trading to buy low and sell high for few dollars a good practice? a close relative said he was able to grow his crypto portfolio this way, is this a good practice?
Well that is a good way but sometimes we made a wrong decision due to the market is unpredictable, still --the risk was there because we don't know when it will be high or low the price. Th right thing is to invest for a long term and hold it for how many years so that you will see the right profit, it seems like waiting if there is a bull market and no one can tell when it is. So possible you will gain profit with that strategy but your problem now is how to determine the market movement, perhaps, selling your portfolio or something like raising the amount by a dollar. 
a close relative said he was able to grow his crypto portfolio this way, is this a good practice?
Spot trading may be good practice for some people, i don't really know, but it isn't good practice for you because you suddenly want to try it out because your relative told you they did and grew their portfolio from it, that is information you can't even verify whether it is true or not, because you were only told, you were never a witness to it, according to what you said.Your relative only told you the advantages of buying low and selling high, making it sound all too easy for you to try out, well it isn't, there are risks in it, the market can't be predicted, neither can you be sure of the movement of the coin that you will be buying low with the hope of selling high.
Long term 'buying low and selling high' with Bitcoin will be possible, bitcoin grows in the long time, and it is good practice if you can buy it for a low amount and persevere for the long run, and the risk is very low too. But buying low and trying to sell high with many altcoins so you can make profits immediately is so risky and you might not make any money from it, screwing yourself in the process.
Buying low and selling high is an overly simplified way of looking at trading. It makes it sound so easy, but in reality it's a lot harder than most people think. It looks like a viable strategy if the chart consistently looks choppy like /\/\/\/\/\/ but of course, it's not always the case. You can buy small amounts hoping to sell it above just a few dollars, but you could easily be screwed if it decided to just going down.
That is basically trading if you are using spot trading to buy low and sell high, it is easy theoretically but money loss is possible in real life spot trading, the market is not easy to predict and very hard for beginners to start using spot trading to make money. You have a lot to learn, like learning how to manage your risk, how to control your emotion and how to never use more than the amount of money that you can afford to lose, people use the amount of money they can afford to lose to trade because if the risks involved.
If your purpose is investment, never leave your money on an exchange, all the coins that remain not used on your exchange account should be moved to a noncustodial wallet. But if it is trading that you meant, always know that trading is risky. If not done properly, it can result to money loss just like gambling.
If your purpose is investment, never leave your money on an exchange, all the coins that remain not used on your exchange account should be moved to a noncustodial wallet. But if it is trading that you meant, always know that trading is risky. If not done properly, it can result to money loss just like gambling.
I don't know if it is good practice but it is a method that day traders use regularly. You have to beware that this strategy is not as easy as it sounds because it requires a good understanding of the market and a lot of experience in it so that you can make the best "bets" on the price otherwise due to the high risks you could end up buying a shitcoin speculating to be pumped but it gets dumped hard causing you to lose a lot of money.
is using spot trading to buy low and sell high for few dollars a good practice? a close relative said he was able to grow his crypto portfolio this way, is this a good practice?
Jump to: