Topic: Making profit with a bubble - page 5. (Read 661 times)

When a bubble occurs in crypto all the altcoins start to rise and more FOMO occurs. Good opportunity for coin holders who bought at pre-bubble prices. When the Bitcoin bubble, there will be many new investors who start to enter so that Bitcoin can reach new ATH. There will be many benefits to be had. Take Profit a few percent to save capital it would be better than having to wait for the highest price which would be very risky flash dump.
use the bubble opportunity well and get out when the money is right. Don't be too greedy.

As long as you can use the moment to make a profit, you will be fine. The price will always go up and down and maybe that could be like a bubble. So when you can sell at a high price and calm down for a while to wait for the bubble to be blown, you will see the right time to buy back again.

That happens not just for bitcoin, but it happens with altcoin, especially the altcoin that can increase back later. But it is hard to know when the price reaches the high price as we can only guess the high price without knowing the real.

It’s hard to predict the top. Did you think $20k would be the top? No we assumed $10K would be the top. Same with $64K, everybody assumed $50 I would be the top. Now it’s no different, people are expecting $100K to be the top and most likely it’ll either go to like $95K or blow right past $100k.

You can use funding basis to predict tops however in a strong trend most of the time you exit way too early. The funding in early 2021 kept increasing and increasing from Jan all the way to the peak in April. Funding was nuts April something like 50% annualized. That means the top is very near.

Just take profit once we think it's the right time to do it. Holding will not increase the number of our coins. It should be circulated so we can get more once the price got dipped. It's not always that a bull trend will happen. There's always a crash in the midst of a strong bull trend. Just a matter of patience on waiting when it will happen.

It's better not to be FOMO during the hype. Rather like to miss that 1st train and wait for the next one instead of going after it where the distance is far.

Yes, there is the time for the end of Bullrun (bullish trend). We have experienced the bullish for many months, some experts have predicted December probably the end of this Bullrun. So, we must prepare to take profits before December comes, or take profits as soon as possible in the early of December. But trading activity can continue even it is in a bearish market, there is always many chances to take profits. Taking profits soon, mostly addressed to people that invest their tokens/coins for a long time.

There are descriptions that whenever the market is too high, there are people depicting it as a bubble. Bubble or not, the fact is that the market has gone through and conservative investors see that there's a likelihood that it may drop a lot anytime soon.
But as we look at the whole year, there's a massive drop that has happened so I think it's able to sustain the high price that we have. The usual pattern we see is when it drops heavily, it will take time to recover. However, for this year, the heavy correction has recovered so fast.

It has to admit that we use to take advantage of the situation and having this volatility makes traders become profitable but somehow, it is also the reason for new traders to lose. This is how important to have TA, a sort of market analysis that could help to identify when to buy and when to sell. Of course, it won't be 100% accurate due to the unpredictable market but at least, we have some basis, and sometimes it works actually. But even without using TA, if we are able to use our common sense, we probably know that buying during the bullish season corresponds to higher risk as well which it was most prepared to start during the bear season.

Everyone took advantage of the benefits according to the conditions that looked quite good. There is no mistaking that when continued fluctuations take profits means ending ownership. There is no need to hold long term if you already predict the market will always vary significantly up and down. As a trader, you have to take advantage of the momentum, and take the opportunity again when there is a correction. It always leaves a gap for traders to see a common ground for buying buy back orders.

It won't ever last, that is the reality. It had a pump now and it will naturally dump someday, find this a usual market cycle, and we don't just know about this but we are truly aware that this certainly has to come whether we like it or not. That is why it is too risky when buying coins during the hype as there is a huge chance that we lose if we don't sell it when it finally reaches its peak. And in fact, many people had missed their time to do this for they are about to think more pumps to come neglecting the possibility of the sudden correction.

It always makes sense to believe that no matter how strong the trend is, there will be a time that its momentum will crash, be it on uptrend (bull trend) or downtrend (bear trend). There's always an event that can trigger the pump or dump and that's always the case.

Any ideas that we think a good strategy is worth testing. After all, we don't know what will be the result without actually using it.

Just don't set too much target price as sometimes it won't happen. In other words, if you think it's the right time to buy, then do it. The same goes for selling.

Even though pretty hard to do but this thing is obviously very much practical and many people have been doing this a lot of time. But as shown in the realities of the movie do differ a lot, predicting a phase of overvaluation is obviously possible but predicting an exact time or date of the pump is impossible, and if you put a short in overvalued market there are good chances that market might show some spikes upward in form of wicks to display it's weakness, after every try to break resistance it will go south but might try to break it once again, this is where traders either get their stop losses hit or close their trades due to the funding fees they have to pay during this sideways phase, some better traders pick positions at every high to ensure they are averaging short positions at highs and therefore would eventually win someday but then their profits might not be that attractive. So these are the two reasons why it's pretty hard to make a lot of money by shorting from the exact top of this big cycle.

And if the market otherwise isn't good, then you should be prepared as a long term holder without ever being convinced of the potential of a traded altcoin. That's the risk, but with many options in investing you must have many diverse alternatives. It's like having different options with two volatile market conditions every time.

Yeah, you can make profits out of bull and bear run even if you are trading only on spot markets. Just buy now and hold until bitcoin prices showing rapid movements like daily 10% upward and then if you notice it reaches $100k or $180k or $380k then you may sell from there and hold your fiat or stablecoins and wait for another 6 to 10 months to buy back. Bitcoin's this bull run's ATH may occur by end of this year or by mid of next year and from that point you may sell and hold fiats or stablecoins.

If you have reacted to sell by December 2017 and would have bought back by December 2018 or March 2020 then you might have got 5x more bitcoins for your same investment. I am sure already many people might be into such a practice.

The opposite question is how to make profit on dump market conditions? Profits come for you to take big discounts and take a lot of percentages. Instead of risking your portfolio in a bubble, you're better off taking advantage of the altcoin's massive correction. If the trading strategy you are currently implementing is much safer. So what can make us smile for the future when the bubble bursts again?

No, no, you are right, even fall is the advantage if the trader is open minded but you know, futures trading comes with leverage. When the users start to use leverage higher than 1x, then here comes the problem. The more leverage you use, the higher your profit can be but the riskiest your step can be. Yeah, with 7K USD right now and with 10X leverage, you can trade like you own 70K bitcoin and open short position on futures but if you open it at btc right now, then 10x rise and you'll end up with nothing, i.e. from 63K to 70K, you lose everything but if you open right now with 1x leverage, then the following scenario will happen:
1. Open short position right now at 63K with 1x leverage.
2. The price that will liquidate me will be 126K.
3. Even if bitcoin reachs 100K and then starts fall and lose 50% of it's ATH, you'll end up with the price of btc - 50K and you'll profit.

Maybe a bad example because I highlighted the positions at the moment but just wanted to say that short position with 1x leverage is great option on bitcoin because it's less likely to have massive gains or falls but still it offers ok profit but safer.
On coins like LRC, XTZ, QTUM, Matic, opening of short and long positions even with 1x leverage is very risky because these coins can rise enormously at any moment like they fall the same way too.

One thing that I sometimes do is wait for the massive rise and then open high leveraged short position (which is very risky but very instant rewarding too). Or another best profitable option is to spend days and nights on massive dumps and try to catch the best price to open long positions with high leverage, the profit will be unbelievable.

There’s no market that will always go up, you should anticipate the dump trend and do the necessary actions so taking profit is advisable and this is how trading works. If you do short, know the risk same thing with holding because the only certain in this market is that, it will always go up and down.

The market moves in three direction upward (upsurge), downward (dump), and range market and none of this market move last forever. Each phase of the market comes and fades away. Understanding each market move and trading in line saves alot getting each trader ready for the next move

Now it's an upsurge which wouldn't last forever. Taking profit at each stage in preparation for another dump should be what a wise trader should consider at this moment to avoid been taken unaware

You are not wrong, we all know that at some point the current bull market will end and if you are willing to short it when a correction or crash is about to happen then you can even obtain profits under those circumstances, however it is very difficult to actually take advantage of the downwards movements of bitcoin because as we know all markets have the tendency of growing slowly while they go down way faster, and this is even worse in the market of cryptocurrencies, so it is difficult to take advantage of the corrections unless your timing is perfect.

Taking action whether on an upcoming bear or bullish run would always be good yet this could be considered out to be an analysis which you do really need to take up some action for you to make out some

advantage which might result for you to make some profits which we are really trying to do in here as a trader/investor here on this market.If you could really make some profit in a bubble then go ahead,

even though it isn't an assurance but at least you are much aware that it could really make things possible to happen if market turns out to be good.

I am  definitely in agreement with the fact that the bubble will burst at some point, what is unknown is when! But I believe short bitcoin at this time is self defeating! I don't know what your trading objectives but I now is the time to make them come true. Bitcoin price projection is not over yet, bitcoin is likely to reach another ATH before the bullish circle runs out!