Topic: Does anyone notice the "investment cost" ? - page 2. (Read 402 times)

You should not bother OP because you are still profiting. Not all the time do we think that investors can always be in good situations but at least you have BItcoin to sell when an emergency comes and still earn something from it. Though we can say that it was not the right time to sell your Bitcoin, however, it was still the best option (for me) to sell them rather than having a loan to others which surely cost more for interest rate.
You can still restart it again, might buy now it a little more expensive than before but remember that the price of Bitcoin is growing and we are on soon to bullish, you'd better think optimistic rather than being negative.

While I understand your point, it doesn't necessarily have to happen that way. The latter, as the OP mentioned, requires you to actually sell at a lower price than the one you've purchased, which might simply be a temporary drop in value. However, I'm not saying that it's impossible for your profit to practically go to zero, but there are ways to lower the chances of it happening. You can simply redeem your profit and reinvest the rest. DCA is also a generally a great method to at least lower the imminent risk. Unfortunately, you cannot stop the inevitable; at some point, we all will suffer a loss.

Everything about investment has its risks and it's profits,If you are an investor who wants a good profit out of your investment, it is better to hold for long-term before selling, With this strategy,it is a most that you will make a good profit if you sell in a bull run. I'm a long-term holder of bitcoin, The DCA pattern is one of the strategies that is good, and DCA till the next bull run.Long term holding is more profitable more than short -term hold, Bitcoin is best for long-term. Investment cost is something that we must consider when investing.

You even need more than 6 months, especially if you're investing a lot of money and don't earn a lot from your job.

This is the problem many investors face and why poor people have a hard time making money.

If the fear of losing your investment is too big - you have too much invested. Decrease the investment, but stay in.
If you can't forget about the investment for at least a year, again, decrease your investment, you're too involved.
If you keep checking the price, constantly thinking of selling, you're too greedy, or too fearful. 

Keep in mind that you really have to try to lose money on the bitcoin market, but most people continue to do it.

It's surely absurd to return the investment including the profit on the same price that you take profit. Also this problem will be avoid if you will just DCA on your buys to avoid buying on the top without having a chance to average your buy order price.

The reason why people keep falling on this shit scenario is because of no contentment with the profit and aiming for more even if the price is already overbought. Chasing more profit on trading while you are already on profit is what makes trader loss in the long run.

There should be certain amount when we will sell or buy some investment, sometimes the transactions fee were too high that also takes some amount in our supposedly investment. Though in 1st case of OP it’s normal to sell if there is a need for money but if only plans to hold it will be better to hold unless we will be able to sell it high and got a chance to buy back at lower price. However we mist be attentive in the market price to be able to do that. If we’re into trading it is good also to see and trade some altcoins as there might crypto that gets some hype.

No, it doesn't sound logical to me. You take into consideration that I would buy something, it will go up, I will sell it, it will continue to go up, and I will buy it again. When you consider it like that then yeah there is a cost to it and that would be bad. However, how about this, I buy something, it goes up, I sell it at peak, then it goes down, then I buy it again, and it goes up, so I double my profit as well as my initial capital, so my 10k became 20k but then became 40k. Does that make sense?

It's not like that can't happen, it could very well happen and I would love to see that. However, we can't know what's going to happen in the future so whatever we do it is not going to be a great deal and we should just focus on what's real and not something that is hypothetical.

Investment cost is something that we must consider when investing, the mistake that many people or beginners make is usually not paying attention to investment costs, as happens with trading, we must consider trading costs, because some DEX apply expensive trading fees and the initial calculation is profit, it can be a loss .

Let's say to simplify the question you are asking, authorized capital is $10k and net profit is $10k, then on the way you need cash and sell bitcoins. If that's me, $ 10k is used for needs and $ 10k is used to buy, but if this pattern is continuously carried out the profit on your investment will not increase.

Instead investments can be combined with savings, for example if you apply a certain investment percentage and a certain percentage saving, then when you need cash you don't have to sell bitcoins but you can use temporary savings. The choice is not the amount of investment, but you understand the conditions whenever you need cash and if you invest then you sell it back without remaining, it's the same as placing money in the bank on a deposit.

It's just an example you're talking about, right? If that's the real situation, that's okay to consider because the 10k$ you earned is a huge amount. Anyway, if you sold your Bitcoin for that amount, you would appear to be a short-term holder and not a long-term investor.

It should be as an investor because you know whether you are long-term or short-term. Because if you are a long-term investor, you know how many years you will hold your bitcoins and in that year, no matter how much bitcoin you have, you will sell it knowing that you will have a real profit.

I mean, there's nothing wrong with checking prices regularly as long as you don't get stressed. You can use that opportunity to find the best time to DCA your holding, or simply check out if the market is stable or not if you want to diversify into other coins, although that is unlikely based on your description.

But yeah, if you're a newbie, it is easy to get stressed out from daily price movement. Especially if you are so active on social media. Best to avoid them if you want good mental health. Most of the time you'll just see a blown-out issue or repeated 'Bitcoin is death' narrative each time there is a huge dip in the market.

If you have to sell because of an emergency, you're doing it wrong. An essential principle of personal finance is to have an emergency fund of between 3 and 6 months' worth of cash. That if you live in the USA or a similar industrialized country could very well be the $20k you are talking about. In addition you may have other types of assets that you could borrow on at low interest rates if you don't want to sell the Bitcoin.

For example, at your bank you have $20k in an emergency savings account, $150k in pension plans, and another $50k in stocks or mutual funds, your bank will be happy to give you a loan if a supposed emergency exceeds $20k, but I for example in the last 15 years haven't had an emergency that exceeded 10% of that
 
So, if you manage your personal finances well you will not be forced to sell, and you can hold the Bitcoin for a couple of cycles at least, to then consider whether to make partial sales.
 

If you are a trader then that is when you can sell when the price is high and buy when the price is low. If you are an investor who wants a good profit out of your investment, it is better to hold for long before selling. With this strategy,it is a most that you will make a good profit if you sell in a bull run. As an investor, it is your choice to sell your bitcoin for cash at the bull run or better still leave it in your wallet,it will still have the bitcoin value,either the price pump or dump. Remember if you sell off your bitcoin,you still need to buy it back. what's the difference between holding your coins for two bull market before selling and selling in the first bull market,what matters is that
1btc=1btc

You know that there are investors who bought bitcoin at a price of 1000 and still have not sold it, what do you think they would answer you? Your post is just a theoretical suggestion that you bought at the right time and sold at the right time, but it looks nice on paper, it's not in reality.

In addition, bitcoin shows that it can give more than just doubling your investment, it can be x4 or x5, and only in this case it is worth thinking about selling. There are different types of investors, some buy and wait for many years, others try to sell in a bull market to buy more bitcoins in a bear market, but in this case it is more like long-term trading.

Excellent point. I was thinking about this yesterday and you have made this point quite clearly if we want to both secure the initial capital and make the profits as the new investment capital to generate more profits. Whenever in the future we choose to sell, every cash-out is all profit. Thanks for sharing and this makes me more confident.


I am not an experienced trader as you are and thanks for your reminder.  Actually, I have decided to invest in Bitcoin as a long term holder. There should be less trouble if I avoid to check the price update every day.

The simple adage in Bitcoin is buy low sell high. If you bought at $20,000 and was compelled by some reason to sell at $40,000, and you're planning for a buy back, at least choose the right entry point. If you think that $40,000 is still a right entry price because you foresee more increases in the near future, then go ahead. But if instead of an increase the price corrects and even went down below $20,000, do not sell. Sell only, if you must, when the price goes above $40,000. Instead, buy more. It's an opportunity for you to buy back at a much lower price.

On a side note, though. This is why DCA is the better approach. Also, you don't invest all your savings in Bitcoin. Always keep aside savings for emergency and other unexpected expenses. Finally, Bitcoin is best for long-term. Corrections and sell-offs are temporary. In the long run, you will make profit.

That's part of being a trader and an investor, if you're not prepared to miss those gains and have them yours as losses then that means that it is not for you. Every time you think of those missed chance and you do no action on it, this will make you feel regret at most times. But you know what's the best choice is just to be a holder at these times so you won't be taking the whole pressure that you'll get from the market and at the same time you just chill out while waiting for that gain and by that, you won't have those interval losses. Well, when you enter this market, you need to have a plan of getting in and out but for the most of us here, there's no getting out as this is an unstoppable journey and this bitcoin(train) will just keep on pushing forward.

And that's why you really need to understand when to enter the market, when to sell and when to HODL otherwise you might not maximized your profits or at least regret selling early to take that money. I know it's hard to do that, but at least you should picture that mind and learn and re-learn as you go on with your journey in investing in this market.

So in this case, if you buy at the top and then the price goes down, you have 'realized' loss, meaning it's just paper loss on your end unless you really sold at the price, but are you going to do it when you know that you are going to be in the negative? Of course not. So what you are going to do in that case, then HODL and wait for the price to go up again.

Sooner or later you will understand how this variables will affect your profits or what you term variable cost, and so you will have to advise. It's not always perfect here, maybe you will lose some money in the beginning, but the thing is that you have to learn from that experience to make you a better trader or investor.

That's why I don't trade and I don't check the price often. I don't see bitcoin pumps as me making money and bitcoin dumps as me losing money. At some point, when you have a lot of bitcoin and it's worth a lot of money in fiat terms, you stop watching the market. You no longer bother yourself with this little "oh I gained 10k now" and a month later "oh I'm down 2k today from that 10k profit".

Think of it like this:
You have all you want as an average person. A house, a family, a job, cars, bikes, computers, phones, all that normal shit. I'm not talking jets and lambos, but all the average stuff. You once got bitcoin for maybe 1k USD and it's now worth 1 million. It was worth 2 million a year ago, 500k 6 months ago, now it's a million, you no longer care. Your investment was 1k and it's never going back to 1k.
I know a lot of people with a lot of bitcoin and a similar mindset. We just want to have an alternative and we're fine with whatever is happening because when we spend bitcoin, it's because we're happy with the price.

Coming back to the point. You're bothered with the investment cost because to you it's 10k and you have 10k profit. If I had a million and reached a million in profit for the first time, I'd redeem my million in profit and satisfy my need to show the success "on paper" and then kept the other million in bitcoin for the next 5+ years. That's where I'm at right now. The investment cost was redeemed somewhere in 2017 and now there's no more "cost" to think about. It's all profit, whether bitcoin is at 10k or 100k.

Your point appears logical, but not many traders, particularly those who are new to trading, will think of it that way. When you have a plan in place and a specific profit goal in mind, buying and selling at regular intervals will jeopardize your investment and cause you to lose it all as the market fluctuates. You can avoid all of this if you have a target and work towards achieving it without being bothered or tempted by market volatility, especially when the market is in an uptrend.