Topic: Holding for long might not be the best option. - page 2. (Read 746 times)

The centralization of USDT risks asset freezing, which goes against the spirit of cryptocurrencies. Its like walking a tightrope between fiat's stability and decentralized assets' volatility and independence. Your view of hodling Bitcoin is refreshingly consistent with crypto fans' long-term gains over short-term volatility. Like planting a tree, you dont see results right once, but the growth can be significant.

Using currency as a reserve for DCA is a a good approach adapte. Like hiding a secret weapon until the appropriate moment. This makes USDT more of a hedge against downturns and a temporary shelter in stormy markets. Knowing when to hold, convert, and buy more is a delicate dance. This multifaceted technique, which combines Bitcoin hodling with fiat and stablecoin tactics, shows a deep understanding of the market. Remember, patience is a strategy with cryptocurrencies.

What you're talking about here is BTC investors and holders making a profit which is a pretty good decision but how can you be sure that the new investors are taking advantage of the market ATH price while older investors are not?
I think you're the one that's missing the concept of BTC investment here. There are different types of investment the long and the short.
The short is meant for taking profit whenever the market presents it while the long is purely for holding for years.

What you said is similar to the strategy we are using DCA strategy and it is the best strategy when talking about bitcoin investment. The more the price falls and the more we buy, the more profitable we will be when the price recovers. But if we don't have more money to DCA, and we continue to hold the bitcoins we bought at that high price, what will happen? We won't lose money if we continue to hold, but is that better than selling at a loss and buying back later? For example, if you buy at 69k$ and when the price drops to 50k$, you cut your loss and you buy back at 20k$. You hold until bitcoin recovers and hits 100k USD, which option will bring better returns?

I first started GPU mining in 2013 on Slush's pool and when the first ASIC USB miners were coming out I wanted some, so I ended up buying 30 Bitcoins off eBay which were @130 a piece. People were saying to not mine that I would be better to just hold the Bitcoins and now I know they were right. (first mistake). A few months into my ASIC mining the wife kept asking me about it and would question the value if any the coins I had mined. I decided to prove to her they did and on a trip overnight I was going to pay for our motel thur Expedia with BTC and I did which was @half a coin, @$140 (second mistake).  I spent the next 6+ years selling off out dated miners and buying better ones to the point I was heating my house during the cold winter with the heat the miners were putting off in my basement. I would place selling points, that if Bitcoin ever hit I would sell some, which $1,000 I did, then $5,000 I did, and my last was @$38k. I look back and the people that said to hold were right, but its hard to not cash some in after you ride the wave up and back down a few times.  Now my wife refuses to  sell what we have, unless it become life changing amount, which we are not hurting for money at this point, so I look at my BTC as insurance and its why I have it not on an exchange any longer and keep on holding.

When it comes to investing, you must take risks. There is no such investment platform without risk. But you need to know why Bitcoin is called a long-term inmvestment tool,. There are thousands of cryptocurrencies in the crypto market that make a big ATH and there are many instance to leave the market. Keeping those cryptos in the wallet for a long time turns them into garbage. One of the ways to avoid such situations is to invest in Bitcoin.

Those who invest in Bitcoin are optimistic even if they flip from bullish to bearish and they will definitely benefit in the long run. Bitcoin peaked in 2021 and investors will benefit if it continues to generate new ATH in 2024 or 2025. Can you say why they claim to be long term investors if they can't invest in Bitcoin in this short span of time. Such type of investors must have an idea of what is called long-term investment.

Let's take another example. When people buy Bitcoin at the ATH price of $69,000 with the hope of making a profit when Bitcoin reaches the price of $100,000. The price continued to correct from $69k and has not returned to that price. The purchased Bitcoin is still held until now and the person is at a loss if he sells it now. It's different if the person still has hope of profit if he remains committed to selling when the price has passed $69k.

Let's say now the price of Bitcoin is $37,100, if he had $1,000 to buy at this time, my estimate in calculating might be wrong, he would get almost the same amount of Bitcoin by buying at $69k. When Bitcoin reaches a price of $100k, how much profit will that person make?

Buying Bitcoin at any price will not make the person lose money if he holds it long term. That is what I mean.

USDT isn't the best stabecoins to use for holding your profits. They're centralized and been controlled making it not any different from fiats currency. Your assets can be frozen when held in USDT and the price is been manipulated constantly. Hodling your Bitcoin has always been the better option as it gives you a long term profits when compared to trying to catch the top of the market to sell and bottom to buy back. These targets looks achievable on paper but hard to execute. The volatile of the market makes it impossible to target the exact bottom or top of the market. When you HODL Bitcoin you don't lose even when the market is declining, you only lose when you sell but if you keep on Hodling you'll still be having the same quantity of bitcoin that you had and when the market recovers you profits.

When Bitcoin corrects, you should DCA and buy more Bitcoin and that's why it's very important we hold reserve fiats as they're useful in times like what the OP is describing. You shouldn't regret Hodling your Bitcoin as it's better than losing it to the market when you try to outsmart the market by selling at the top and buying at the bottom. You can't always be lucky to get this price always and at some point you might lose to the market and then you start doubting yourself and finally miss out of buying Bitcoin or buy when the price is above the range which you sold and you get lesser quantity of Bitcoin than you previously owned. Hodling for long term is always a better option don't let any person tell you otherwise.

Hodling is a relatively straightforward long term cryptocurrency investment strategy bitcoin is a good long term investment if you want to save for the future after meeting your needs. It should only be considered if you have a high risk tolerance, a strong financial position and can afford to lose any money you invest in it. If you want to invest it's important to maintain a diversified portfolio that includes a variety of investments to reduce your overall risk exposure. Every investor holds bitcoin when the price goes down and sells it when the price goes up. When it comes to holding bitcoins everyone proceeds according to their own plans.

Hmm that makes sense, as we see the price trend that is being formed on bitcoin, so far bulish still continues to dominate and there is no indication of a price reversal in the near future, so with conditions like this it is very possible that bitcoin will go down first to make corrections and form new support, but I am not sure that in the near future bitcoin will experience a significant decline or even up to 50% as you said, because there are several other factors that make bitcoin will survive enough in this new bulish area. Honestly I would not say that this is a good enough time to buy, I have planned that I will buy when the price is correcting in the near future, maybe there are some people who will do the same.

On the other hand there are several factors that will be quite a big driver for the rise of bitcoin, if only the ETF is approved then obviously there will be good potential for a fairly significant bullish phase, and also on the other hand it is only a matter of months until the beginning of 2024 to enter the halving phase, so with that I think it is not wrong if some people assume to hold or even increase their accumulation amount. True, this is indeed one of the intermediate factors that will / can affect long-term planning, the level of concern will always be there even though for example there are quite a lot of positive potentials that we see in bitcoin, so of course I agree with your assumption that it would be better for us to use a budget amount that is not excessive, or means that we can be responsible for any risk opportunities that can occur there.

The essence of bitcoin investment is to keep accumulating it and hold for a long term, in expectation to cash in on any bull run. An investor can have a target price before selling, maybe he wants bitcoin to hit $1000k before selling, and if he's ready to wait till that happens, then it's his  decision. So if he has the opportunity to accumulate more bitcoin while he's waiting for his target price to materialize, then it's a good business decision. Reason why it's best to invest in bitcoin with your savings, so there'll be no pressure to sale.

The good thing about bitcoin investment is that the power is in the hands of the investor, if there is any important need that arise and warrants him to sale earlier, then there's nobody stopping him to do so. I'd rather focus on bitcoin, that has proven it's worth, than diversifying into USDT.

I only think that Bitcoin wouldn't be good for long-term investment when it comes to emergency purposes, cause despite having emergency funds, we can't tell that we won't be needing soon the money that we invested. You will be unlucky if you will be needing to sell your holding Bitcoin's value lower than the price you bought it. As we know Bitcoin's potential, is literally for long-term investment we know when bullrun comes, and Bitcoin reaches its ATH once again, then that's the good time to sell your holdings, still, it is up to you if you want to make a profit already, cause some of the people has their own plan for their target price. Still, we can't still predict Bitcoin's outcome due to its volatility so investing for long-term investment is not for everyone unless you use some method such as DCA method.

Thanks for reminding me with my past experience with this one that you shared.

Brief history of mine. It wasn't BTC per se, but an altcoin that I bought at it's peak, and instead of selling it since I don't want to incur losses, I choose to hold it for a very long time. Fortunately, I sold that altcoin, but after 2 years, and the profit isn't worth it knowing I can make more money if I just made a stop loss, and invested it into other assets. I was newbie back then, and I learned from it.

Back to what you said, converting it to USDT would be a good choice, but I guess that it would be better to just sell it at a loss, and then re-buy it at a lower price. Take that mistake of yours as a lesson, and promise to yourself that you will make better decisions in the future.

I know, I know, it's my mistake that I held during the 2021 Bull run. Please don't remind it for me.  

Like you said, I don't know my reason either why I choose not to sell all of the assets that I'm holding then wait for the bear market that happened a few months after the bull market. I believe that making the mistake once is still good as long as you learn from it, but doing the same mistake twice then there's a problem for you that's why I already decided to wait for the bull run then sell all of my assets at near it's peak. Whether it's my cryptocurrencies, or my stocks that gives me dividends, I will sell all of them when the bull market happens.

What you have explained is nothing but a contingency plan in case Bitcoin fail to keep its resistance. That’s how we work when we invest in Bitcoin so it’s highly unlikely we are looking at something new here. Bitcoin has been volatile all the time and its deep rooted nature for it. I wouldn’t be surprised if I am seeing Bitcoin falling by 50% in single day because we have seen that already.  What comes after that is nothing but FOMO and FUD. We shouldn’t care about it at all because it is also proven that there is no benefit of going nuts when Bitcoin is failing.

These are middle factors that can affect long term investments. It’s far better to avoid such mindset and have our cold wallet ready all the time. Keep holding.

I understand the Op but I would still want the Op to understand that as long as bitcoin is concerned, holding for a long term still remains the best way as long as the investor enters the right time. The people that enter the bitcoin market during the bull run are definitely people that used to see the wrong side of  bitcoin.

However, even if anyone buys at $60k which is the region of the ATH, with more patients they will recover their capital and definitely be on profits. It is the people who invested with what they are not able to lose or what they will be needing in few weeks or months ahead that will feel the impact anytime the price deeps.

Also what I do not understand is why people hold for more than one bull run. I think if any investor witnesses one bull run, they can sell and wait for another deep.

You lose money only when you actually sell whatever amount the previously bought, if you are willing to hold while waiting for the price to go up again then you're fine. Of course if you buy after we make a new ATH you need to be conscious that the risk you are taking is big, very big. If we're talking about bitcoin, and not some random shitcoin, I would never sell while at loss, it's just a matter of time before the price will go up again.

I think in this case it depends on the initial intention, whether you want to invest long term in BTC or not, but for people who intend to invest in BTC for the long term of course there is no such thing as exchanging it for USDT, because for those who invest long term of course they only sell when There are benefits no matter how long it takes.

but everyone has various ways of securing their assets. Managing risk and securing assets is also of course very necessary as long as we can set a strategy because BTC prices fluctuate and are difficult to predict, so in this case there are pros and cons, but what is clear in this case is that it comes back to each investor, whether they will be strong enough to withstand it. and sell it when there is a profit or carry out a risk management strategy.

There is nothing wrong when someone makes long-term holding for a certain period of time. It doesn't have to be a few months. Some have even done it for several years. when they buy at low prices, especially at the lowest rates during the bullish era and they make long term investments until the next bullish era. wouldn't the results be much more valuable? because the concept is investment, so yes it can be done over a certain period of time. Instead of saving it in stable coins and then buying Bitcoin when the price has gone up and up with only a small profit.

Of course it’s gonna come from someone named Pi Network lol.

What would you rather have these people do? Sell all their shit at the first sight of a price increase? This isn’t your local flea market where everything’s a bargain, people are in here to maximize their profits and it’s up to them to hold for as long as they want to. Besides, when it comes to bitcoin even if you’re at a “loss”, as long as you don’t sell your shit you’re pretty much saved by the next upcoming bull run. Which is also why there are effective whales in this industry and why it’s trillion dollars in market cap.

Perhaps you should get over your head and actually look for cryptocurrencies like bitcoin and ethereum, that Pi Network copium’s getting to your brain I can smell it.

It's easier said than done. You never know if a price fall is the bear market or just a correction. In the last cycle Bitcoin reached $60k and than crashed to $30k and then went to the ATH of $69k. Those who sold when it was on a road to $30k thought that they will buy back at a lower price, but the price bounced back and all they achieved was realizing their loss.

Also, you're using an extreme example of buying at ATH. ATH lasted only for a day or two. Most people bought way below that.

Holding back is determined by the motive of the investor before investing in the asset class. Whether Bitcoin or any other.

If you consider Bitcoin a store of value then it won't be a consideration to sell it before time, but if its just for profit and reinvestment then it's ideal to sell when it's in profit.