Topic: Sharing my simple BTC purchase plan with newbies, and clueless holders (Read 211 times)

I have been awash with this but I guess you guys didn't read what I wrote insightfully. My points are based on three parts, the second part is to move it between BTC and USDT frequently, so is it not an exchange that could do that for me cost-effectively? Even though the third part has justified it already, I still move my earnings to fiat and non-custodial wallet in addition to the first point. So, an exchange does not hold my money for so long, which is a good and safe deal for me.

I quite understand you, but this is not only for newbies, it is for those that want to effectively maximize their dealings with BTC. They could opt for the one/ones that are good for them.

No one is quoting "rules of usage" here, you are the one overbearing with your response. I can't force anything on anyone, it's an advice to those that want to replicate. There is no wrong in trying to maximize our utilization of BTC, which I tried to explain above just the way I do mine. Some could do less, while some would even do more than I explained above. Life is by choice, just my way of doing it, you can ignore it if you want.

Leaving your coins on an exchange is a high risk, make sure you move out your gains after every successful trades because we are in a bear market and in a bear market something bad always happen, you are a newbie so you might have no idea, every bear market many crypto projects including Defi and exchanges fold up and announced been hacked, some will be true about it and some will be inside jobs.

Remember you are suggesting to the newbies so with the buy and sell according to the market movements so they can make more profits is simply asking them to take higher risks. If I am there then I would choose the safer option which is buy and HODL. And FYI, most people who bought and HODL became richer for example if someone bought at the peak of 2017 still in the profits even at the lowest price of now which is around 19500.

It is good to know that people were asking the same thing about those who bought at $5,500 when price had fallen to $3,100!

Both of these are very risky for many reasons.
For starters using centralized exchanges and leaving funds there is a great risk since they can get hacked, scam or run away with your money.
It is also risky obviously because you are talking about short term trading in a volatile market specially in futures market that is even more risky.
Another risk that may be overlooked by most is usage of stablecoins that is using centralized shady coins that could disappear or drop down to 0 at any time. Even the biggest ones like Tether. That's not to mention the risk of the company freezing your funds.

It is 'effectively utilized' by you because that is what you want to do; you are using your BTC the way you want and for the reasons you bought it, but others may not do their own things the way you do yours, bitcoin practices will defer amongst users because the community is a big one, so there shouldn't be 'rules of usage'.

Things a bitcoiner should hope others do are things like: dumping centralized exchanges for decentralized exchanges like Bisq, holding their BTC in their noncustodial wallet, holding their BTC in cold storage and not in online or mobile wallets, avoiding centralized altcoins that can freeze their funds even in their own wallets, etc, if you as a bitcoiner do these things and hope others do the same, then your hopes are a good one.

That mainly depends whether that person bought bitcoin for the first time, or its a seasoned veteran who buys bitcoin in regular intervals, no matter the price ( I fall into the 2nd category as I bought some bitcoin around that price but I also bought it when price was only few thousands.

I think that situation is different compared to 2018 and even newbies are more willing to hodl bitcoin through bear market as I know a couple of those who bought bitcoin for the first time during recent bull run are still (afaik) hodling so people are slowly realizing that this is just temporary and that there will be another bull run and that they will profit if they suck it up.

Yet, they are now richer. Some people trade instead and lost all.

And you left it an exchange. Best to have the coin on a noncustodial wallet, when you want to convert it, move it to a reputed exchange and convert it to the fiat or stable coin of your choice and move the fiat or coin to your bank account or a noncustodial wallet of your choice.

Never leave coins on exchanges unless you are using the coins to trade frequently.

It's worth to mention holding your coins on exchanges increase many risk of losing your coins, so it's better to transfer the coins from your own non custodial wallet to the exchanges and convert it to stable coin rather than hold it on exchange.

I think most people who bought Bitcoin at $55,000 already cut loss since Bitcoin price doesn't increase over than $22,000. But don't forget people who bought Bitcoin at $19K on 2017, if they're very patient, they already multiply their capital for 3x times since the highest Bitcoin's ATH is $69K on the last year.

This simple write-up might educate those that are confused or unaware of how to effectively utilize their BTC, particularly the new adopters. The reason why we bought it in the first place should have told us what we want to use it for unless we just bought it without a plan. But don't be surprised that some only participate in HODL (buy and hold) strategy, which makes me believe they are underutilizing it.

Imagine those that started buying it at $55,000, what could have been their fate now? Also, opportunities must have been missed by waiting for it to return above the level. Personally, I bought my BTC for reasons to maximize the benefits, and the reasons are in three parts as shown below;

1. I bought the ones I hold in a separate non-custodial wallet and nothing would ever make me touch them in decades (HODL).
2. I bought the ones I hold on an exchange when I speculate a bullish market for it, but exchange them for a stablecoin when a bearish market is detected (I repeat the process often).
3. I bought the ones I use for spots and futures trading, and I exchange part of my profits regularly to fiat, pay for external transactions and add more funds to my non-custodial wallet as explained in reason 1.

With these, BTC is effectively utilized by me, and I hope others could do the same.