Bitcoin Forum

The crypto market full of opportunities and profits, is becoming stronger and fuller, people get onboarded every single day. Among this people are those that are interested in profits only, they are not ready for the risk involved while some are fully aware and ready to tackle it by taking calculated risks. These are the people that strive to become a better trader everyday, they seek advice from experienced traders and learn from their past trading mistakes.

Investment planning is another advice they seek, they would want to make wise investments decisions, how they should diversify their investments, how much they should allocate to each portfolio. As an experienced crypto trader, what advice would you give them? What is the best way to go about investments ?

 

trader and investor are different.

trader doesn't have portfolio because they trade, they don't hold for long, investor on the other hand build portfolio, you won't do good having advice from trader either, since they usually trade on lower timeframe, while investing sometime mean yearly holding.

I as a trader as well, won't have idea which coin gonna do well in the next few years, because that's not on our analysis.

probably the only advice that's good is to buy when RSI shows oversold and price already gone too low.

Yea it's very true that traders and investors are not the same, they actually have a different mindset no doubt, but thinking that no trader can give him a valuable advice is what I disagree on.
In as much as traders enjoy what they do because they make quick money and they are not patient enough to buy an hold, I can confirm to you that most trader aren't blind in knowledge on what it entails to invest in Bitcoin and any other cryptocurrency.
Though I am not a big fan of alt and meme coin, I am a trader but I also have some coin I am holding, but like 90% of my portfolio is in Bitcoin, The other of other 10% is between dogwif, popcat and pepe.
It's just about interest because I know like few people that are traders, but they still have like few coin they are holding, then talking about a perfect portfolio, I don't actually think their is a perfect portfolio in this crypto space, it's either you invest in Bitcoin or you take a  calculated risk because nothing is certain with alt or meme coin.

I don't believe that ALL traders don't have any portfolio at all. What I believe is that they have funds intended for trading, and they also have funds for holding as well. I also trade (not an expert though), but I still hold some coins just for capital appreciation because I don't want to risk all of my money into trading since we know how risky it is. As for the RSI thing, thanks for sharing as well as it would help newbies like us in our trading journey. :)
Investing and trading are 2 different things like what the above posts said, and I don't also think that I'm in a position where I need to give some advice to these traders about investing because as much as I believe that traders doesn't have any investment portfolio that they're holding in long term, I still believe there are some who has just for safety purposes if things go south.

I also believe that these traders know how to make better decisions when it comes to investing.

Traders' investment portfolio must be having more risky instruments compared to what an investor tries to trade, lol.

I do see even aggressive traders do have investment portfolio but I am not sure that they plan up for long term like a typical investors do. Investment just needs your knowledge which is completely different from the skill set of a trader. You need to study all the fundamentals also for a perfect entry you need to check short term technical analysis as well. For example, to catch bitcoin below $20k level in 2023, you need to understand bitcoin's fundamental and cyclic nature here technical analysis might get you chances to average more around $20k to 25k levels.

Traders' investment might focus on short term plans but such instruments are coming up with more risks. To eliminate risks, we can simply go for long term; this way bitcoin must be a the only one instrument needed for both traders and investors in their portfolio.

Let me respond to you in a trading aspect, because I know that traders are different from investors. As a trader you must settle down first to learn all the basics elements of trading for you to have the knowledge on how traders use to make income from trading without experience losses at the end. Even though you want to take a high risk on  trading your Bitcoin, let it be in the bullish season, because that is the season both new traders and old traders use to increase their income likewise investors too, because the both purchase coins in the bearish Season and hold for a long term before they can release their coins to embrace their target. This is my advice to all newbies, don't plan without having the knowledge of what you are planning to do in the bearish season or bullish season, because the knowledge is just like a light that will show you road to your success.

Isn't that up to the traders themselves personally? Like at most I'd say to diversify, but how much or how little highly depends on what the trader thinks of the assets they're currently trading with. For investments it varies really, getting the top ones usually isn't wrong but if you want to profit more, gotta take a lot more risks as well as a bunch of research to possibly minimize that risk. Other than that I'd say it's closer to just trial and error imo. Trading WILL lose you money, that's for sure. Just a matter of how much before you can learn what works and what doesn't.

Do you know what is wrong with your topic and question?

Traders are not investors and investors are not traders. Traders want active tradings with their capital and investors don't want to be actively with trading, they focus on holding and let the market passively brings profit to their investment portfolios.

Traders have big challenge in themselves to manage their capital like a half split or whatever split of capital for trading and invesment. Most traders will turn their investment part to trading capital after all.

There is no magical strategy that will work for everyone, it depends on every individual based on lots of variables such as how much capital they have, how much they are willing to lose, can they choose risky strategies and willing to make big or nothing?

For example someone invested hundreds on random coins and made millions overnight, while there are thousands others tried and failed.

A trader giving advice to others about investing is a bit of a no brainer, maybe the trader will teach how to trade with their strategy.

As for investors, just buy bitcoin and HODL it's done.
Continue accumulating if you want to increase your portfolio.

Maybe some traders will diversify their assets for long-term investment, but their main focus will be on trading and this is quite risky.

The thing is there are many trades who started as just investors then added spot trading then went ahead to start future trading, most of these traders are very qualified to actually advice anyone to invest. Trading most especially spots isn’t only about technical analysis skills but very much requires the knowledge of Fundamentals, this fundamentals is what investors uses as an edge to have better investing knowledge than traders so when a trader combines this two skills he is on par to be both investor and a trader

So for OP I usually say this your best bet to getting maximum profit as a trader is to invest most of your profits made from trading so that you can minimize the risk of losing if the trading goes bad sometimes. The portfolio ratio depends on your preference, but my strategy is to have 75% been in bitcoin then 15% in top ten coins base on market cap and then 10% on section preferences like AI, RWA, Depin, Memecoins and Gamefi

If they choose to use Bitcoin as their investment, I will suggest them to use DCA method to start. They can buy using schedule so they will not miss the time to buy Bitcoin for some term. But they need to allocate the money that they will use to invest in Bitcoin and not mix that with their daily needs. But before they start the investment, they must learn how to be a good investor and have a strong hand to hodl Bitcoin.

But trader and investor is different so you must know about that. Traders search for the profit in a short term and middle term but they can also search for a long term profit if they turn to be the investor.

The advice we usually see here is that your portfolio should have BTC as your priority in your investment, 80% if you are also interested in altcoins. from what I have read the old users were saying at least ETH as the 2nd largest percentage in your portfolio.

As for me, I would keep some L1 projects just to get big profits, especially in the bull season. You won't lose money in bullo season when you only take the top tokens to be among in your portfolio.

Listed on coinmarketcap and or coingecko, there are so many crypto coins/tokens. Not all crypto coins/tokens are listed on reputable exchanges or exchanges used by their users.
Opportunities and profits are only obtained by those who have been in or active in trading and investing for a long time.
Find the definition of trading and investing yourself so that the meaning of opportunities and profits in the two types of words can be obtained because of experience and knowledge.
Not everyone can get profit from trading and investing because they do not know which coins have profitable opportunities.

The only way of making consistent profit from the crypto market and minimizing lose is to have a solid knowledge about the market and knowing the risk that is involved and how to manage the risk and reduce your rate of losses. The market is very volatile and dynamic and no matter the strategies a trader is using, there will always be losses but the ability to understand minimize  those losses is what can make the trader successful on the long run.

People who are not ready for the risks of trading should not stay in the market for too long and this does not only include the crypto market, but also other markets because every trade always has a risk involved. So for those who only like profits but do not like risks, it is better not to stay in any market too often, unless they are willing to seek more knowledge from people who are already experienced enough in any trading field.

As for the best investment, everyone can choose it based on the perspective they already know before they take one or several assets that they believe are good for the future and you must also be able to separate it from trading. Because not all investment assets must be traded in the market, which means that there are also investment assets that are more suitable to be stored after being purchased in any amount so that you do not need to consider trading them regularly because there are still other options that are also suitable for you to trade in the market for short-term profits.

Trading is very risky and not for people who are planning for their retirement, because whatever strategy a trader comes up with, he will run at loss in the long run. This is because a little mistake can make you lose all the profits that you have made for long in one trade. An investor is that person who is buying bitcoin regularly weekly or monthly to grow his bitcoin stash and hodli for long. Investing is more easier than trading with low risk.

Trading is not most favorite choice of the elderly who want something safe because if they make mistake, lose money, they will not be able to work and get more money to recover from it.

The elderly are different than the young, who have a lot of time, and strength to work for fixing their mistakes. Consequently trading is not for the elderly and they will look for something safer like investment into pension hedge fund for example. It's can be one of explanations on Bitcoin and cryptocurrency demographics that are very skewed to the young, because the elderly don't like Bitcoin and cryptocurrency as in their view, these things are too volatile and risky.

Yes the crypto market is filled with opportunities, but you need to know your risk tolerance to be able to achieve something and don't be greedy. You can start with initiatives that are almost risk free like this>>Bg auto invest programme (https://www.bitget.com/support/articles/12560603819638) before going for more rewarding methods like trading(have knowledge first.

Buddy, trading needs discipline and intense patience. Without that, you cant be a successful trader. Op can also look about staking, launchpools etc.

Both advice I will give to a crypto trader and investor is staying smart and patient even when the market is difficult to predict. Both trade and investing can be done by an investor but it’s kinda difficult for those who still don’t know the system and there’s still a long way to go, without experience it’s a most knowledge is needed even if it’s the least which involves learning and practicing. To be honest I will prefer investing because trade is risky even with the necessary requirements there’s no guarantee you’ll succeed definitely traders who perform nicely while trading don’t get it all the time.

First of all, I am saying that trading and investing are not the same, trading and investing are different things. However, if you are asking for advice about trading, then I will say that while trading, you should not think of the trading platform as easy because the trading platform is not an easy way to earn money. The trading platform is a very risky platform, you cannot be overly greedy, you cannot trade based on emotions and you cannot lose patience. Moreover, when the market drops a lot, you have to buy and when it increases a little, you have to sell.

The best way to invest is to invest for the long term. You should never lose patience while investing and you should not invest when you need it i.e. when you are in dire need. Investing will be successful only when you can hold on for the long term.

I think you need to differentiate between traders and investors, because they are two different things, but I understand what you mean. A trader should have a plan in their trading, they can diversify which coins they feel have the potential to grow, not too much, a few coins should be enough. And also traders should pay attention to how they manage the risk in their trading and how much money they allocate to each coin they trade. Each person may have a different risk tolerance, but if the coin has a higher risk, then the allocation of funds to it should be less - don't be too greedy so you don't lose badly.

honestly that's fair, personally I don't consider a short term holding such as 1-3 month as building portfolio at all but some trader might do, and difference like that is pretty normal.

I also invest in some like SOL, BTC, and ETH, been doing DCA lately since market for alts also looking pretty weak which means good opportunity to buy and only intending to hold until feb, personally I don't consider my alts that aren't big three and only for short term holding such as 2 month as portfolio at all, I consider them trading, but my big three that made up majority of my investment are definitely my portfolio. I also have 5% of my money for margin trading. basically it's relative to each other's opinion.

i do agree that my take about trader not having portfolio as too simplistic of an opinion. someone can always do trading and investing at the same time which i'm pretty sure what majority of people are doing. but definitely, different purpose of bag, different analysis.

The crypto market is full of opportunities but it's also full of risks. It's hard to give someone advice about their portfolio because we can have a different strategy. I prefer to stick with Bitcoin, Ethereum, BNB, BCH, LTC, XRP Solana and sometimes with a few other coins. I would suggest you to stick with Bitcoin but if you are looking for a huge profit, Bitcoin is not going to bring that, good old 2016s are gone but if you want stable profit, then stick with Bitcoin. I'd suggest you to include meme coins in your portfolio but it's more dangerous than gambling because the pump is fake or artificial but it can bring amazing profit for the luckiest people.

I believe that you have to do it yourself. Play with a few coins and you'll understand what you want to include in your portfolio. Maybe you are more risk taker than me cause I stick with well-established coins but always include two risky coins for fun.
Btw I always save 40% of my money in Bitcoins, the rest goes into altcoins.

I think knowing how the market works is only basic or only requires less knowledge. I mean because the concept is only buy low and sell high. This is made possible because of the ups and downs in the price. The only hard part is control and then our emotions.

There is a risk (different volumes). If the risk is high, chances is we won't deal with it. It is also the asset is the one that we manage and not really the risk. Yeah, there are losses apart from the winnings but other than minimizing the losses, it is also better if we can learn from it and try to completely avoid some mistakes, to avoid a whole loss on some of our trading sessions.

Trading and investing are two different things. To trade, you need to be able to lose money and have a strong will to take risks. Because traders' money is always at risk. I don't trade for long, but I have been watching some coins and trying to understand the market. I am not sure if I will make a profit or not, but I have planned and decided to trade with the new coins that have come to the market. I don't know if it is wrong to call it trading, the first 24 hours of the new coins registered on Binance can bring you big profits. When Binance lists a new coin on their trade list, from that time on, it is able to give you about 10x -30x profits in the next 24 hours. I may trade with the next new coin. I am not sure if I will lose or not, but I will use as much as I can afford to lose. Because here my chances of losing are high. To be an investor, you need to have the patience to hold on for years and invest in trusted coins, such as Bitcoin.

Buy low and sell high, is easier said than done, else everyone will be doing it. Although it depends on the type of trader you are, for traders that are just averaging, it could be a bit easier but for future traders, you just need to identify the trend of the market which you need to properly learn how to do so.

Before you can minimize losses in trading, that equally means you have learned from your past experiences which could have caused you more losses than present.

Yes, not all traders usually do the same thing, indeed in trading it is always related to two things in the crypto market, namely buying at a low price, selling at a high price. It is difficult for us to determine the right time or exact moment when you sell, most of the crypto market prices cannot be predicted according to our wishes even though we have done good research, the point is to focus on market movements, be careful of your emotions when trading.

Complicated and big. Do not consider there is a single correct method because every trader comes up with their own idea and they should be fine with it as long as they do it right and correctly. There is no single correct way to do this, and there is no single correct portfolio overall.

There will be some people here who will tell you to "must have this coin/token" and do not believe them, there is no must in this market, you could do whatever you want and could potentially make a lot of money, do not look at it anything differently. As long as you do your calculations correctly, there shouldn't be anything further to handle this, you could make it work and I do not see how that could be any different neither.

I totally agree with because from my experience i found out that  thriving in the crypto market isn’t just about luck. it is about strategy and discipline. Over time, I have learned that diversification is key. Spreading investments across different assets reduces risk and helps balance the inevitable ups and downs.

Recently, I came across Bitget’s zero-fee auto-invest event while researching better ways to automate and simplify investment strategies. It is a tool that promotes consistency through dollar-cost averaging, which has been proven effective in volatile markets. Personally, I think using tools like this makes it easier to stay on track with long-term goals. 

What is your take on automated plans like auto-invest? Have you found them helpful?

This has always been the case but unfortunately not a lot of people understand that, it's just not that easy to keep being consistent and having this type of approach to it, so in the end we end up with a bad result without a doubt. I think we are dealing with something that has been the case ever since crypto was created, because we ended up with same thing once again over and over so it looks like it's the same thing.

We need to consider how if you have a good strategy and stick to your strategy and keep doing what you always reach to do then you are going to end up with much better approach without a doubt. I know that it is going to be hard because not everyone reached to low levels and that is why I believe we can make sure that we could do it but then many people get into panic emotions, so it's not that easy at all.

Be careful and learn more that is the key to trade. Maybe that is not a good advice but with carefully, they will not waste their money without analyzing the market. While learning more can be their solution to improve their skill in trading, that will makes them analyze better than before.

But if they want to be an investor especially Bitcoin investor, they must know what it needs before they start. A strong hand will be needed because Bitcoin price will go up and down and that can makes them confuse and desperate seeing the price like that. But if they can have a strong hand holding their Bitcoin, they can calm down and search for the opportunities to buy more in the low price. They can use DCA method to buy Bitcoin and stick to their plan to accumulate more Bitcoin.

Bitcoin investment is always simple the major thing is to have the knowledge about what you are venturing into, the next is for you to have a security knowledge on how to protect your investment because today we are recording series of people becoming victim of hack or scam.

After you might have known how to secure and safeguard your funds, you can map out a specific amount of money to be buying Bitcoin every weeks/months depending on how your incomes are paid, you can DCA with specific amount as i wouldn't encourage a buy off sometimes you could incur dump and as a newbie you might panic and sell.

To be at the safer side, do not invest in altcoin or any shitcoin be it meme coin that are being sugar-coated to give you any specific amount at a particular period of time, stick to only bitcoin and even if you must hold other coin then 10% allocation to it will be better while 90% to bitcoin holding. Note do not invest with the amount you can't afford to lose.

In order to invest, you must first learn how to trade so that you have at least a minimal profit, otherwise you will have nothing to invest. And if you already have money to invest, you need to allocate it in such a way as to minimize the risks. And don't focus solely on cryptocurrencies, you can invest in real estate, gold, or securities.

Yes, trading is very risk but if you can embark on it, it will open your eyes to see opportunity in every risk you take in crypto trading when you have the experience because you don't trade when you know that is not time to trade in the market unless you want to experience losses.  No matter how good you are in trading, you will experience losses in your beginning before you will become very good to know how to avoid losses in trading.

Traders and investors know that there are benefits in risk taking in crypto which is the reason why you see some traders and investors always use what they can afford to lose in crypto trading and investment because they  know that one day they will achieve what they want to recover their losses.

I'm not sure if you are talking about it right because I believe that all people who do crypto and trade (or even just invest) are aware of the risk. If you come to crypto without knowledge, I'm certain you won't stay long and will quit. 

They don't just seek advice and learn from their mistakes but rather prove to themselves that they will become a successful trader. And the reason why they stay despite the risk is because they are comfortable doing it and see their bright future. 

Why do some traders quit? Because they never find themselves suitable for this, especially those who just want an easy life.