Can you protect your Bitcoin from market volatility? - page 6.

DarkDays

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Quote from: sheenshane on August 02, 2021, 06:59:40 PM

You forgot to include this, HODL, and aim profit target.

This is the smartest way to protect your Bitcoin during volatility and hold for a long period of time. We know how volatility works and it's good for storing your Bitcoin for a long period of time. Just HODL and you will be fine.

HODL is the long-term strategy to get protection against volatility, though for more temporary strategy converting to stable which you can then earn a nice APY on is by far more attractive.

Which approach you take, of course, depends on your goals and if your risk appetite but unlike holding fiat in a bank which will erode away by inflation with crypto owners can take a much more active approach which is 10x better.

sapnu

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When it comes to protect your bitcoin from volatility, as to what has been mentioned, there are a lot of ways you could use to achieve it. Nevertheless, just by having the fact that bitcoin's value is volatile and will always be changing, we all know we have no choice left but to strategize upon making actions wherein we can reduce the harm that the volatility brings to our investment. At some point, we cannot really protect it from volatility hence we can keep on holding and regain our losses once the price returns to its stable price or even exceed which will give us benefits.

Pejoh Asu

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Quote from: Macadonian on August 02, 2021, 03:12:22 PM

Quote from: dkbit98 on August 02, 2021, 01:00:20 PM

Why would we need to protect from volatility if volatility is working in out favor long term?
Sure, if you are a regular everyday crypto trader you need to follow all the news, charts and be constantly under pressure for making some profit, and it is almosut guaranteed that you will lose money at some point.
What we need protection from is governments, broken monetary system and fiat currencies that are gradually losing value every day.
Bitcoin is best protection we have for that.

The long term is not guaranteed and if you are working on the assumption that Bitcoin will continue going up then you are going to lose a lot of money at some point. Everything has a limit to how much it is worth.

Yes that's right, there is no guarantee that long-term hold will definitely profit, it's better to sell when you get a big profit, price increases sometimes occur and you have to wait a long time, for example the 2017 trend which once reached $19k and then dropped to below $4k.

Sir Legend

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Quote from: Macadonian on August 02, 2021, 03:12:22 PM

Quote from: dkbit98 on August 02, 2021, 01:00:20 PM

Why would we need to protect from volatility if volatility is working in out favor long term?
Sure, if you are a regular everyday crypto trader you need to follow all the news, charts and be constantly under pressure for making some profit, and it is almosut guaranteed that you will lose money at some point.
What we need protection from is governments, broken monetary system and fiat currencies that are gradually losing value every day.
Bitcoin is best protection we have for that.

The long term is not guaranteed and if you are working on the assumption that Bitcoin will continue going up then you are going to lose a lot of money at some point. Everything has a limit to how much it is worth.

The long term is only effective if we have strong finances, most people are not patient when they see bitcoin's rise so they immediately sell, after the price continues to rise then they buy again and panic when the price drops so that the end result is a loss.

cheezcarls

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In my own opinion, I would convert it to USDT or any other stablecoin to manage my risks when Bitcoin is subject to volatility. As the market is very unpredictable, we may not know when will the price go up or down and it happens without warning. Risk management is still necessary because Bitcoin and other cryptocurrencies (except stablecoins) are simply subject to volatility.

KennyR

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Being active on the market could help us protect our bitcoin from market volatility. Volatile feature of bitcoin can't be controlled by anyone at any form of speculation or manipulation. Everything happens based on the demand to the supply along with the positive and negative things taking place associated with bitcoin.

I haven't experimented it, but there is more chance of protecting your bitcoin through continuous involvement into cryptocurrency trading. Because if you're active in the market automatically you'll get to know when to sell and when to buy. Maybe at times things won't happen as we predict. Somehow the loss can be limited at some occasions.

Tahsin Kabir Kollol

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You can convert your bitcoin to a stable coin may be a forward response to shield from instability and just exchange with some part of your cash to forestall enormous misfortune. Instability is the reason why individuals are exchanging with Bitcoin since they get an opportunity to make a decent amount of cash instead of other exchanging resources. On the other hand, you can increase the amount of your bitcoin by repurchasing by reviewing the positive market movement through market analysis.

ipanks

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I prefer to hold my bitcoin from the market volatility and I do not enter the market. That will be better for me to avoid feeling afraid of the price. People can also not even think about how the price will move later because their reason to hold bitcoin is a long-term investment. If you can see what happens to the early adopter who has a lot of bitcoin in their wallet not selling their bitcoin at down, they will hold it until they see the price reach their target price. If you see the price is down, especially down deeper, that will be your chance to buy more bitcoin and use it as your investment. In the future, you will see your bitcoin value will increase sharply so you can sell it and get your money back.

AniviaBtc

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You can prevent your money from liquidating when you're just storing it and not making transactions with it in the market.

A holder will always have his money only in his wallet and he will not lose and make any amount when he's just holding it for too long.

You can somehow protect your assets from scammers, hackers, and other risks, but not in volatility in the market.

Darker45

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I once was a fan of using USDT to avoid too much volatility. There was a time when I preferred to trade BTC:USDT more than any other pairs. However, it was really hard to catch the perfect timing. I even ended up having more USDT than BTC in my exchange wallet. Converting BTC to USDT with the hope that you could buy back at a cheaper price could only get you stuck, but playing BTC with altcoins is even worse. The unpredictability of Bitcoin's price made me chose to HODL and avoid confronting volatility on a daily basis.

maxreish

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If we are talking about the security we cant definitely protect it from market's volatility. But, there is a way to lessen the risk, converting your coins into stable coins to at least being safe from unstable market. If there is a sudden massive drop, you can still be able to save up your coins by converting to USDT or TETHER.

sheenshane

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You forgot to include this, HODL, and aim profit target.

This is the smartest way to protect your Bitcoin during volatility and hold for a long period of time. We know how volatility works and it's good for storing your Bitcoin for a long period of time. Just HODL and you will be fine.

And I tend to agree with the manage your money, invest that you can afford to hold, and wait for a long time so that you will never think of withdrawing from your portfolio.

Macadonian

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Quote from: dkbit98 on August 02, 2021, 01:00:20 PM

Why would we need to protect from volatility if volatility is working in out favor long term?
Sure, if you are a regular everyday crypto trader you need to follow all the news, charts and be constantly under pressure for making some profit, and it is almosut guaranteed that you will lose money at some point.
What we need protection from is governments, broken monetary system and fiat currencies that are gradually losing value every day.
Bitcoin is best protection we have for that.

The long term is not guaranteed and if you are working on the assumption that Bitcoin will continue going up then you are going to lose a lot of money at some point. Everything has a limit to how much it is worth.

isaac_clarke22

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Quote from: dkbit98 on August 02, 2021, 01:00:20 PM

~

...and why protect ourselves in volatility if it can't be controlled in the first place? Cheesy

Risk and the volatility in the market when we invest is only manageable, but not able to be eliminated for obvious reason that the market is decentralized.

Trading is just one way to manage through the volatility. People could just go and stop loss through it.
Another one I could think of in trading is that one could also just trade their Bitcoins with stablecoins for obvious reasons, but I wouldn't advise people hodling their stablecoins as it capable of being frozen.

dkbit98

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Why would we need to protect from volatility if volatility is working in out favor long term?
Sure, if you are a regular everyday crypto trader you need to follow all the news, charts and be constantly under pressure for making some profit, and it is almosut guaranteed that you will lose money at some point.
What we need protection from is governments, broken monetary system and fiat currencies that are gradually losing value every day.
Bitcoin is best protection we have for that.

Cvetik56

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You can't protect BTC form volatility. But you can protect yourself from it. Invest only what you can afford, invest on the dips, make research and stay calm.

BOAEDAN

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if we want to protect our bitcoins from the market, maybe a simple step we have to do is, to always hold our bitcoins, don't be easily provoked by market prices, at least we have to hold our bitcoins for more than 2 years, so we can take profits in the market. future..

avikz

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There is actually no way to protect our bitcoins from the market volatility, in literal sense! But keeping an eye on the market ups and downs, can bring enormous opportunities that people don't always realize. When the market is actually trading at a lowest price range, people fear that the market will go down further so they don't buy. But when the market shows an upward trend, they all rush to buy in when half of the potential profit is already gone. That's the loosers mindset.

People with winner's mindset, enter at the lowest price range and book profit at the peak. Every volatility is an opportunity!

LFC_Bitcoin

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The best thing you can do is see bitcoin as a long term investment. Don’t expect quick profits because it’s still an immature, new market & can be highly volatile. Nobody who HODL’s for 4+ years ever lost money so my advice is is to buy regularly but don’t obsess about price. Bitcoin is one of the best investments around if you are able to hold medium to long term.

electronicash

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every trader rely to stablecoin when they see the price is getting too huge because they alsk knew price will drop soon. its always the stablecoin as the go to cryptocurrency whenever its about to pop.

holding is a not a good idea. somehos it crosses my mind to go for POS token but their value also drops when bears rule the market.

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