Bitcoin Forum

Hi folks. Coin prices are going very high recently for Bitcoin & altcoins as well, so I sort of wondering what is usually your acceptable threshold for an investment in this area?

Would appreciate any insight from your expertise, thanks guys.

Only ever trade with what you can afford to lose.

I always go with the rule of making more winning than losing trades. If you for example make 5 winning trades, you'll have some sort of a buffer that will allow you to catch up 1 or 2 losing trades without any problems. If you manage to keep that ratio more or less consistent during your trading sessions, you'll be doing fine. But the main point is that you should understand how the market works, and especially in current circumstances where the price bounces up and down heavily in a regular fashion.

it depends on what you are talking about, bitcoin or altcoins and which altcoin and when!

there are a lot of factors to consider.
for example for bitcoin, any loss is tolerable because in the long term bitcoin will ALWAYS be profitable. right now and in the foreseeable future price will be cheap no matter what that number is. you may think $2000-$3000 is a lot but it really isn't even half big.

as for altcoins since i always invest in them for short term, the situation depends on how the market was before i went in. for example if the price has already risen some amount and then i go in, the loss that i tolerate will be small, if price shows signs of dropping i will dump it ASAP. but if it is in the very early stages the loss i will tolerate will also be bigger. i can't give you any numbers because it is always different and i have to see an example to come up with it.

For me, 20% from my fund is limit I must cut loss, but of course, if I use martiangle strategy. Coin trade I believe more effective if we use long term period so we don't need extra time to watch & analyze market. Stay with my strategy is the best I can do, hope can make more profit. Have a nice day.

The loss term will defer from person to person as its being very subjective. If you talking about a particular intraday trade than may be it may range from 10 - 50 % depending upon risk appetite of individual . And for short term like say 10 days - 30 days buying btc for trading then again it will change as btc prices fluctuates a lot.

I don't have specifics in that aspect because I'm focusing on gain. As for bitcoin, I don't consider any loss because I don't sell lower than the price when I bought it. I believe that it will always be profitable, all you need to do is to be patient. As for altcoin, I just dump when the coin seems to die or doesn't have any update from dev but when I think there's a potential for it to sustain its price, I stay calm and wait.

I trade alt coin, and i can bear up to 20% loss, more than that , i will cut lose. But i divide my asset into 2 part, one for long term investment which probably about 1 year until i open it again, and the other one for my daily trading. the 20% is for the daily trading, for the long term one, i don't care as long as the project itself is still going well.

It depends on how much you put in trading. If the loss is half the amount you put in trading do you think it is still tolerable for you? It's really up to you on where you set your profit and loss of when it's still tolerable. Mine would be around 15% and that's it.

If I lose more than 5% of my account in a trade, I will exit. its different for everyone. your loss preferences are dependent on your account size, financial status, and most importantly personality type. some people dont even blink at 5% loss but others might lose their minds. to each their own.

you will never be able to come up with a number while trading altcoins because to put simply the altcoins are extremely volatile. sometimes they drop 10-20% in a blinking of an eye and then get pumped back up. so if you are looking to place some stop loss you will see that there are a lot of problems with that. a pumping altcoin is not a real market that you can come up with logical scenarios!

for bitcoin however things are a lot better. it is not comparable with big markets like gold market but it i still is a lot better and easier to speculate and place stop losses than it is for altcoins. but i usually am a long term holder so i can't give you any real numbers here.

I usually set my stop limit at 50% of my principal amount traded. But if I feel that there is just a squeeze, I am willing to expand it more in order not to be squeezed out from my position. And I only trade what I can afford to lose. I am more calm trading and remain in perspective if I do not think too much of the amount I am losing.

Speaking frankly, any kind of loss is not tolerable and kinda feels shit. But we all know there is risks and should could in all probable losses. For bitcoin i wouldn't say i would face any loss, cause if i see a price drop i would just hold it instead of panic selling. But for alt coins, I would consider 25% of my initial investment as a threshold to exceed my tolerance level.

Trading is just like gambling if you don't know what you are doing and putting your money in wherever your emotion goes. Don't trade any coins with no any good trading volume and don't buy when they are in peak price.

I am currently holding around 50% of my total life saving in cryptocurrency. Out of which 50% is in pure bitcoin and I have invested around 30% in multiple alts and I use remaining 20% for short-term trading.

Only risk what you afford to loose.
ATM crypto trading is insane as insider trading and market manipulation are allowed as there is no rules. So i dont tollerate ANY loss, i choose to hold whatever bag i have. I can tell you in the last year i think im bag holding less the 1% worth of all my BTC.

For me, loss isn't and always wasn't tolerable. Well, loss isn't tolerable but there is another fact, it depends on your level. When you are newbie, you have to endure loss but don't tolerable because if you tolerable, than trading has no meaning. You have to fight against loss and wotk on win and if you achieve good profit regularly in trading, than only small fall is tolerable hete because no one can to profit always.

It's up to you how will you define the loss that is under the range of your "afford to lose" amount. Since loss is part of the game, I tend to not set a definite range but trying to get back the previous loss I made since the target here is mainly the profits.

How is that possible? This needs a serious study about how the price behaves around the moment I did some loss then creating some possible things that can be made to recover the loss. It's like doing some gamble but worth to try. We just need some extra funds on hand in order to increase the success rate.

The lost can't be tolerable in the crypto investment or trade. But if you want to take some coins to be your portfolios and I can say just try to analyze it before.
The best decision if you can accept the bottom chart to become your time to buy the coin.
So, my thought if any loss can't be tolerable. At least you must make a comeback for yourself to recover your lost.

Everyone invest their money in these coins according to their budget if a person is rich then he will invest more and a poor person will not invest very much in these coins. In this way the lose in these coins of these people also depend on their financial situation. The wealthy will afford more and poor will afford lower.

For my insights, I can give three things. Firstly, invest/trade what you can afford to lose. Secondly, read multiple articles and news so that you can choose which is the best coins to trade/invest. Thirdly, only invest when volitality occured so you can buy it cheaply and sell it high.

This must be a good topic for discussion but one thing I would like to mention is that when it comes to loss bearings then it varies from person to person. Every person involved in trading may have his own mark from where it will not be possible to bear anymore and may start panic.

Like recently we observed a dump in the prices and some of the traders got panic with it and sold the Bitcoin they were holding. I am pleased that I didn’t get panic at all and today I am very happy with my decision. So, I was ready to bear more than those who did. Simply I will say it was not a stage where I had to be panic, some may have feel it the same as I and some the other way.

Depends on you. For a daytrader, it's 10% loss cuz anything above that, you must profit substantially more for breakeven. A $100 capital, $10 loss (10%) means you are left with $90 and need 11% gain for breakeven ($100).

Now, if you buying altcoins for long term, that depends on the coin development and the whole crypto market in general. It happens often that you lose 50% and gain back breakeven and then 20% within months.