Realizing the value of holding cash - page 4.

d3nz

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Quote from: Captain Corporate on October 19, 2022, 03:34:45 PM

There are so many people during bull runs that run out of cash because they like to buy all they could buy to ride the wave, which results with them losing a lot of money when the crash finally starts, it could go up a lot, and I mean A LOT, but eventually it will go down, so having a little bit of your profit cashed out could benefit you.

Same people sell a lot during bear run, whereas you should have cashed out at the bull run to take profit, and during the bear run when its low like this, you should go out shopping. Its low right now, and everything is looking delicious to me, I am running out of money from buying all these amazing coins and tokens, because I know they are at the bottom.

Have cash after you profit a good sum, but do not have any cash during bear run and buy it all.

We really can't predict or analyze when the market will go up or down, and all of us are getting the same situation where we are out of cash to buy an altcoin or BTC that is getting much cheaper. The other option now is to buy and sell the assets that we are holding and if we think that the market will get more dip then we need to sacrifice and stop the loss.

Trading is really risky if you don't have a proper strategy and much better to always have a stop-profit or loss that can be triggered when the market gets up or down.

maydna

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It will depend on how they can take profits during the bull run so that when the market conditions become bear market, they can buy lots of coins and keep them until the next bull run. But if you instead sell a lot during the bear run, it will not give you any profit and you can even get a loss. And I agree with @OP, who said we need to have money now to buy a lot of potential coins so we can hope we can take big profits in the next bull run.

CuriousGeorge

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People gonna say you must use whole of your money to buy everything during the bearish market but they are all wrong about that. Cash is imporatnt thing. If you didn't have cash and then what will be used to fill your daily needs? You are investors and you need to eat everyday.
Buying asset is good as long as you have enough cash in your hand . that's the main point.

Wexnident

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The only issue here is that no one really knows when the bull run starts/ends. Same with bear runs. Hence why people tend to overestimate and pretty much lose most if not all their investments. Another issue would be the cutting the losses part, if they were to do so they should've done so by setting a stop loss early on, or if not, if it was an asset that performs well in a cycle like Bitcoin, then I honestly wouldn't sell at a loss, I'd just wait for the cycle to repeat itself again.

Always keep in mind to only invest what you can invest. Running out of money due to investment simply means you don't really have a financial plan at all, which is a mistake.

tvplus006

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Quote from: Captain Corporate on October 19, 2022, 03:34:45 PM

...Have cash after you profit a good sum, but do not have any cash during bear run and buy it all.

This is the wrong strategy to spend all the money to buy cryptocurrencies not only in a bear market, but also in a bull run. If you continue to spend everything on purchases, you will eventually lose your money. In any case, you should have free funds in your wallet that will ensure your financial security.

cryptoaddictchie

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This is the bittee truth and we deny it or not newbie or even old timer was down right now and failed to profited their gains and instead still down up to now. The only difference is that some are selling at a loss which really not good. If we are down and caught by it. Then just hold, cause it will likely to go back. You cant simply outrun those smart guys or you should have been able to cash out some for the impending bear season.

worle1bm

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Yeah it's better to hold some cash as reserve fund with you to invest when you see some investing opportunities in the market at the time of dump but these principles are applicable to some good coins that can recover afterwards not for shitcoins which will never recover after the dump.But holding cash will improve your situation in the market and beneficial for you.

mindrust

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Having cash is a position. A position which becomes useful in certain situations. Cash loses its buying power against the inflation but stocks/crypto lost their buying power against the dollar since their peak which makes the dollar a good hold since then. Lots of people bought btc when it was $40k+ and not many people want to buy now even though the price is much lower.

bittraffic

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Quote from: Captain Corporate on October 19, 2022, 03:34:45 PM

There are so many people during bull runs that run out of cash because they like to buy all they could buy to ride the wave, which results with them losing a lot of money when the crash finally starts, it could go up a lot, and I mean A LOT, but eventually it will go down, so having a little bit of your profit cashed out could benefit you.

Same people sell a lot during bear run, whereas you should have cashed out at the bull run to take profit, and during the bear run when its low like this, you should go out shopping. Its low right now, and everything is looking delicious to me, I am running out of money from buying all these amazing coins and tokens, because I know they are at the bottom.

Have cash after you profit a good sum, but do not have any cash during bear run and buy it all.

It might just not be a good idea also to keep buying right now while the market is very uncertain. Remember that big names had come out to open telling 100% recession is coming.

While those new users of crypto come to buy at the top because they ride the bullrun, they might also do the same mistake in buying today while the prices of the crypto can go further below. Just a warning. Hold your cash that is enough to survive if the recession will take longer.

danherbias07

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The question of "when" is the crucial part here.
When are you going to sell? I always have my own rule of selling whenever I see the right profit during a bull run. I tell myself to deny greediness as it may lead to fewer profits than what I could've gotten if I did it earlier.
So far, it's working right.
The bear run question is also when you should buy. Is it the bottom to maximize the cheap price or will it still go down after a week/month?
Analyzing the market is such a pain in the ass but it's worth it once you reap the rewards.

GreatArkansas

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Quote from: Captain Corporate on October 19, 2022, 03:34:45 PM

There are so many people during bull runs that run out of cash because they like to buy all they could buy to ride the wave, which results with them losing a lot of money when the crash finally starts, it could go up a lot, and I mean A LOT, but eventually it will go down, so having a little bit of your profit cashed out could benefit you.
(....)

This is a common mistake of people, especially those people who are new in this space. Most of them are came from hype, social media, and content creators who lure them by greed.
Emotion is a big player also when it comes here because everything is happy in the bull market so money is flowing everywhere because they are happy, they don't think about the downside, they are thinking it will go up. For sure it will be always a lesson for them.

Jawhead999

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Actually everyone still holding cash since almost countries doesn't accept Bitcoin as a legal tender, if you don't have cash, how you can buy food, pay electricity cost, household, and other daily expenses?

Holding a coin in bear market isn't bad at all, as long as the coin have a fundamental and it will recover after the bear market end, I don't regret to spend my money to buy that's coin even though the price is higher than now. The only problem is when you buy shitcoin and during the bear market, your coin are delisted on various exchange.

Silberman

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Quote from: Captain Corporate on October 19, 2022, 03:34:45 PM

There are so many people during bull runs that run out of cash because they like to buy all they could buy to ride the wave, which results with them losing a lot of money when the crash finally starts, it could go up a lot, and I mean A LOT, but eventually it will go down, so having a little bit of your profit cashed out could benefit you.

Same people sell a lot during bear run, whereas you should have cashed out at the bull run to take profit, and during the bear run when its low like this, you should go out shopping. Its low right now, and everything is looking delicious to me, I am running out of money from buying all these amazing coins and tokens, because I know they are at the bottom.

Have cash after you profit a good sum, but do not have any cash during bear run and buy it all.

You are right when you say that people do it backwards, they sell during the bear market and buy during the bull which is never a good idea, but it is almost impossible to teach people to not do this as they are trading with their emotions and not with their minds, and when that happens it does not matter how persuasive your argument could be, they are not going to listen and they will simply panic when there is a crash and sell their coins for a massive loss.

samcrypto

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Quote from: Captain Corporate on October 19, 2022, 03:34:45 PM

Have cash after you profit a good sum, but do not have any cash during bear run and buy it all.

Taking profit is advisable and yes we should reinvest it if we want to earn more.
The market is very unpredictable, in this bear market having an extra money is ideal because you can get cheaper coins and the possible return is good especially when the market recovers. Cash is still good, have this always with your wallet and be prepared for everything. I do have my funds for this, it's not that big but I'm making sure to chase the cheaper market, I can't afford to miss that opportunity.

Questat

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Quote from: Captain Corporate on October 19, 2022, 03:34:45 PM

There are so many people during bull runs that run out of cash because they like to buy all they could buy to ride the wave, which results with them losing a lot of money when the crash finally starts, it could go up a lot, and I mean A LOT, but eventually it will go down, so having a little bit of your profit cashed out could benefit you.

It is because we usually do not think about the future but of just today. Mostly we did no preparation as we thought money is easy to get. People are sometimes blind to see the reality that once the bull season end, the bear market starts, it is usually out of our mind while enjoying the bull party and making a lot of money during that time. Most of us are financially illiterate and have no control over spending money which makes no wonder why we don't have a money reserve.

NicNacCoin

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Quote from: Captain Corporate on October 19, 2022, 03:34:45 PM

There are so many people during bull runs that run out of cash because they like to buy all they could buy to ride the wave, which results with them losing a lot of money when the crash finally starts, it could go up a lot, and I mean A LOT, but eventually it will go down, so having a little bit of your profit cashed out could benefit you.

Same people sell a lot during bear run, whereas you should have cashed out at the bull run to take profit, and during the bear run when its low like this, you should go out shopping. Its low right now, and everything is looking delicious to me, I am running out of money from buying all these amazing coins and tokens, because I know they are at the bottom.

Have cash after you profit a good sum, but do not have any cash during bear run and buy it all.

There are many people who invest their money and lose all their money when the market is good.Later, if the market is good, they think of holding it for longer and don't take home any cash.After that when the market goes to crash again they become very desperate and at one point when the market is completely dumping they have no money to buy coins from the dumping market.Such cases have often happened but I myself am a good witness and example of it.

Baofeng

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Definitely, we need cash right now more than ever, we can't really rely on full crypto or at least just bitcoin in our wallet.

And in the scenario that the OP has said, yes that's one case, when suddenly the price goes down hard, lets say $10k-$12k, so that is a good buying opportunity, but if you don't have the cash right now then, obviously you can't take that advantage.

As for when to sell, yes it should be in bull run, or if you are lucky, you can time the market and make huge profit when you sell it in an all time high like in November 2021.

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Quote from: Captain Corporate on October 19, 2022, 03:34:45 PM

There are so many people during bull runs that run out of cash because they like to buy all they could buy to ride the wave, which results with them losing a lot of money when the crash finally starts, it could go up a lot, and I mean A LOT, but eventually it will go down, so having a little bit of your profit cashed out could benefit you.

Same people sell a lot during bear run, whereas you should have cashed out at the bull run to take profit, and during the bear run when its low like this, you should go out shopping. Its low right now, and everything is looking delicious to me, I am running out of money from buying all these amazing coins and tokens, because I know they are at the bottom.

Have cash after you profit a good sum, but do not have any cash during bear run and buy it all.

Whether in a bear market or a bull market, we should leave at least 10-20% cash on hand, never all in any market. This is how I invest because we never know what will happen in the future and opportunities often come very unexpectedly so there is always cash to spare. Although in the bull market most coins will increase in price continuously, but when it comes to profits, we should also take some profits, not hold them all, taking profits is never wrong.
In the bull market, we should also limit our buying, especially the coins that have pumped strongly, we better ignore it. Don't be afraid to miss out because opportunities will always appear during the bull season.

Wakate

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Quote from: Captain Corporate on October 19, 2022, 03:34:45 PM

There are so many people during bull runs that run out of cash because they like to buy all they could buy to ride the wave, which results with them losing a lot of money when the crash finally starts, it could go up a lot, and I mean A LOT, but eventually it will go down, so having a little bit of your profit cashed out could benefit you.

Same people sell a lot during bear run, whereas you should have cashed out at the bull run to take profit, and during the bear run when its low like this, you should go out shopping. Its low right now, and everything is looking delicious to me, I am running out of money from buying all these amazing coins and tokens, because I know they are at the bottom.

Have cash after you profit a good sum, but do not have any cash during bear run and buy it all.

So many things had happened to traders in this bear market and some persons might have lost a lot from buying at the top and selling at the dip. The market is doing whatever it likes so we don't need to bother yourself about it but to keep waiting so things can finally stay in place. We should not lose hope in the market now that everything is just getting well and some persons have seen that truly the market does not move in a single direction but always try and reset to take another direction or to continue.

JeromeTash

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Quote from: Captain Corporate on October 19, 2022, 03:34:45 PM

I am running out of money from buying all these amazing coins and tokens, because I know they are at the bottom.

Not all coins/tokens will go up again in the next bear market. Remember that. I have some ugly experience from the previous bear market, trying to hold onto shitcoins that never saw the light of day in the 2021 bull run.

But yeah, the best time is buy is when the market looks unattractive, the best time to sell is when the market looks very good. Do not be so greedy.

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