I think you just make it complicated though, there's no such thing as perceived loss, perhaps you can term it as regrets. You sold early take profits, then the price goes up. Obviously, you 'regret' selling early because you could just hold it and wait for the top price to sell.
And I think there is no effective method here, you can only make profit again if the price dip and then that's the time you buy. You don't buy at the top.
Topic: How would you protect your potential profits? - page 2. (Read 316 times)
With that story out of the way, what methods exist, if they even exist, to reduce this perceived loss? Hedging?
Yes, there is a method, it's called trading perfectly - if you buy exactly at the bottom and sell exactly at the top, you won't have any perceived or real losses. But no one trades perfectly, so some perceived losses are inevitable. You can either try to improve at trading to reduce them, or just accept them as a part of the game.
Also, you can continuously sell during the bull market and then continuously buy during bear market - this way you will be guaranteed the average value of the cycle instead of relying on your trading skill. This is probably a good idea for those who are absolutely bad at trading.
You only lose what you wanted to have but won't lose what you might have had.
To clarify, there is no "perceived loss" in my opinion but only loss or gain. For example if you want to accumulate more fiat then if you bought bitcoin at $30k and then sold it at $40k and then price goes to $50k then you have not lost anything because you have your $40k which is now $10k above the initial $ amount you had.
Conversely if you want to accumulate more bitcoin and in the same scenario above you have actually lost a lot because if you buy back you won't get the 1 bitcoin that you initially had but only get 0.8 bitcoin.
To clarify, there is no "perceived loss" in my opinion but only loss or gain. For example if you want to accumulate more fiat then if you bought bitcoin at $30k and then sold it at $40k and then price goes to $50k then you have not lost anything because you have your $40k which is now $10k above the initial $ amount you had.
Conversely if you want to accumulate more bitcoin and in the same scenario above you have actually lost a lot because if you buy back you won't get the 1 bitcoin that you initially had but only get 0.8 bitcoin.
When stablecoins were first introduced, I did not read about them nor understand them,
There really isn't anything special about stablecoins. They are centralized altcoins that promise you to have a stable price and to not vanish suddenly but at the same time they can very well disappear at any moment or have a price that is lower or higher than what they promised. They can also lock your account and take your stablecoins.
You're essentially saying this: Can I possibly construct a position that would allow me to denominate my position in fiat when BTC goes down and in BTC when BTC goes up in value?
Let's rephrase that a little bit: you're essentially asking for free, risk free money.
Common sense tells us that this is impossible. You are either long BTC or short BTC, but not both simultaneously. So the short answer is no, it's not possible.
You can hedge your position, sure, but that would simply reduce your earning potential either way.
But I suggest you check out Binance's savings products - they have something *similar* but not exactly what you describe in terms of giving you the best of both worlds. Note that there is a significant counterparty risk involved since you don't hold your own privkeys though.
Let's rephrase that a little bit: you're essentially asking for free, risk free money.
Common sense tells us that this is impossible. You are either long BTC or short BTC, but not both simultaneously. So the short answer is no, it's not possible.
You can hedge your position, sure, but that would simply reduce your earning potential either way.
But I suggest you check out Binance's savings products - they have something *similar* but not exactly what you describe in terms of giving you the best of both worlds. Note that there is a significant counterparty risk involved since you don't hold your own privkeys though.
Wait what? It's always up to you whether you cash out or take another investment and if your having doubt with your investment remember risk is everything and it is part of your way , what ever happens always protect your profit and if you already multiply then save it for your future trading even those professional they can't even guess what will be the future in long term or short term it was you who experience that thing , bitcoin movement etc, if you want to learn more the thing is we can search it from internet.
I can hardly get your point actually.
Perceived loss is always there because we can never achieve that skill with which you will sell at that particular point where Bitcoin is at its highest price and buy at that particular point where Bitcoin is at its lowest in price.
No trader in real life who has mastered charting and all kinds of technical and fundamental analyses could avoid that perceived loss.
Perceived loss is always there because we can never achieve that skill with which you will sell at that particular point where Bitcoin is at its highest price and buy at that particular point where Bitcoin is at its lowest in price.
No trader in real life who has mastered charting and all kinds of technical and fundamental analyses could avoid that perceived loss.
If you worry about invested money than take out initial investment in fiat and hold only your profits.
You can multiply your holdings with leverage trading but it is very risky and people can get liquidated quickly if they don't know what they are doing.
If you are purchasing Bitcoin then think if you are doing it for long term or for trading, and if it is long term then don't bother so much with price changing up or down.
You can also earn interest from lending your BTC so you will earn more every day, and we could have some Defi solution for Bitcoin.
You can multiply your holdings with leverage trading but it is very risky and people can get liquidated quickly if they don't know what they are doing.
If you are purchasing Bitcoin then think if you are doing it for long term or for trading, and if it is long term then don't bother so much with price changing up or down.
You can also earn interest from lending your BTC so you will earn more every day, and we could have some Defi solution for Bitcoin.
Like your story, because no one knows the movement price of Bitcoin so I think people must stop being greedy, and if they already profit they must be grateful. For OP better to buy Bitcoin and keep hold it, but what happens if the price drops, just ignore it, your BTC amount is not decreased.
Be grateful and stop greedy
Be grateful and stop greedy
You need to think whether you'll be a short term or long term guy. It's about your plan and strategy of selling and buying. But you need to remember those simple phrases that you will usually see from other holders that to buy when it's low and sell at high.
You don't sell at losses because if you do, then you shouldn't be investing if you're just for the losses. Like if you have $50k then it had gained $10k for which you bought at $50k and then the price suddenly goes up $60k. Luckily, you purchase @ $50k or below that then if you're too conservative, take your initial capital and just play around with your profits.
You don't sell at losses because if you do, then you shouldn't be investing if you're just for the losses. Like if you have $50k then it had gained $10k for which you bought at $50k and then the price suddenly goes up $60k. Luckily, you purchase @ $50k or below that then if you're too conservative, take your initial capital and just play around with your profits.
Potential profits are a myth in crypto currency; it is either you take profit or you do not; and until you take profits in a trade or on a transaction; you cannot be a profit. The best way to protect your profits is to it and have it saved up in usdt; that way you can re invest your capital into another project or token.
LoL, Nice story to elaborate your way of crypto protection in current environment. But trading platform we have rights to fix the auto trading in any investors, So we can fix some limits and it will exchange automatically in our wallet. My plan setting is it will reach 5% growth, I just exchange the 5% profit amout and again I monitor the market so we can see the both pump and dump in market. These are all really useful to increase the profit ratio.
So you must focus on the BTC pair, you can buy altcoin using Bitcoin and sell it for profits also using Bitcoin, This step does not just protect your potential profits but also can make increase your BTC amount. And 2 important thing you should hold tight
1. Never cutloss, This is the most important
2. Diversification
You should be patient because BTC pair need more patient than USD pair
1. Never cutloss, This is the most important
2. Diversification
You should be patient because BTC pair need more patient than USD pair
There are a bunch of things you can do.
The first would've setting a stop loss or trailing stop loss. If you don't think the price will go below $32k you could set it as a stop loss or set an alert to transfer your coins at a slightly higher price. Of course, you're still taking on some sort of loss but it may be a loss you're happier to incur.
The other options that are similar:
Start selling at certain predetermined limits. If you're confident the price will go to $90k, sell some then (just an example price target). Then sell some at your next target and continue.
As an improvement on the last idea, sell half at a certain price and 2x leverage the rest (it's riskier but if you have a stop set fairly high - unlikely to be triggered - then it might work). But also note that selling anything will raise your liquidation price.
The first would've setting a stop loss or trailing stop loss. If you don't think the price will go below $32k you could set it as a stop loss or set an alert to transfer your coins at a slightly higher price. Of course, you're still taking on some sort of loss but it may be a loss you're happier to incur.
The other options that are similar:
Start selling at certain predetermined limits. If you're confident the price will go to $90k, sell some then (just an example price target). Then sell some at your next target and continue.
As an improvement on the last idea, sell half at a certain price and 2x leverage the rest (it's riskier but if you have a stop set fairly high - unlikely to be triggered - then it might work). But also note that selling anything will raise your liquidation price.
I want to preface this post by saying that I have not studied economics, and these are just my blissful wishes.
For a while this little scenario has been playing in my head:
Say you have 1 Bitcoin. The price is say $50k. At any point in time you sell, you will get 50k, if the price, however, drops below to say $40k, you have a perceived loss of $10k, yep you still have your 1 BTC, but you can buy less USD than you could before. There will come a day when Bitcoin is not valued in USD, but until then, we will stick to the basics.
When stablecoins were first introduced, I did not read about them nor understand them, and ignorantly thought it was a tool to lock the price of a pair such that if the price did drop by $10k, you'd not be unaffected but if it increases, your portfolio would still rise. Because trading is a zero sum game, this is impossible but I still want to continue.
The same goes if we reverse the situation. If I sell 1 Bitcoin at $50k, yes I will have $50k, but if the price increases of Bitcoin to $60k I still have a perceived loss of $10k. The reason I say perceived is because you cannot lose something you never had, right? But some people like me don't experience situations like this as simply perceived loss, for me it's a real loss.
If I decide to buy back Bitcoin with $50k, while the price is $60k, I can only buy 0.83btc, all of a sudden I have a 0.1666 btc perceived loss.
Wouldn't it have been great if my money would still somehow buy me that 1BTC? It's just a dream because if this was possible, you'd have a way to infinitely multiply your holdings.
With that story out of the way, what methods exist, if they even exist, to reduce this perceived loss? Hedging?
For a while this little scenario has been playing in my head:
Say you have 1 Bitcoin. The price is say $50k. At any point in time you sell, you will get 50k, if the price, however, drops below to say $40k, you have a perceived loss of $10k, yep you still have your 1 BTC, but you can buy less USD than you could before. There will come a day when Bitcoin is not valued in USD, but until then, we will stick to the basics.
When stablecoins were first introduced, I did not read about them nor understand them, and ignorantly thought it was a tool to lock the price of a pair such that if the price did drop by $10k, you'd not be unaffected but if it increases, your portfolio would still rise. Because trading is a zero sum game, this is impossible but I still want to continue.
The same goes if we reverse the situation. If I sell 1 Bitcoin at $50k, yes I will have $50k, but if the price increases of Bitcoin to $60k I still have a perceived loss of $10k. The reason I say perceived is because you cannot lose something you never had, right? But some people like me don't experience situations like this as simply perceived loss, for me it's a real loss.
If I decide to buy back Bitcoin with $50k, while the price is $60k, I can only buy 0.83btc, all of a sudden I have a 0.1666 btc perceived loss.
Wouldn't it have been great if my money would still somehow buy me that 1BTC? It's just a dream because if this was possible, you'd have a way to infinitely multiply your holdings.
With that story out of the way, what methods exist, if they even exist, to reduce this perceived loss? Hedging?
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