Bitcoin Forum

“What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower.”  William O'Neil

 All traders know that crypto are a risky place.. any noob may be a victim of fudders/manipulators and they steal his money for lacking of knowledge
but also You can ride that danger waves and generate nice profits out of it.. that matter if you understand the game and play it professionally  

[ trading in bear market ] When the markets are capricious.. there’s money to be made..

• Cup of coffee and read the graph carefully.. to understand the full situation where's the coin located right now/the behaviour in the past/where will go next time  
• Don't panic.. and buy when people are selling vice versa.. you need in this point to control your emotion

https://cdn-images-1.medium.com/max/1200/1*5J4Q1rTn-XnlkwPWg063AQ.jpeg

• buy the bottom don't buy the dips.. that case if you looking for safety trade it's helpful.. plus you will buy in bulk..you can also make good money from the dips / scalping buy for small difference in prices with a not much profits  but it works for a  long run..[using trade bots] if we calculate it totally
• buy and forget it (hodl) if you think that it worth investing and you had did your researches... So don't worry about your investments even if it continue dumping.. you have to be confidence that it will recovery soon.. if you think you are brave enough to sell and rebuy again cheaper in next dip to be in pure profits from or near to the bottom.. it's a profitable method as you generate profit while you are waiting the bulls to start move the whole market Up  
• sun will shin soon after a rainy day..  believe that the market will not be only for bears.. the chart will not be always dressed in Red..

P.s if i had forgot any point to take benefits out from [bear market] feel free to share your thoughts below that post.. i will add it to the post rapidly))  

Lol.  I think everyone would do this IF they could easily tell the difference between a dip and THE bottom.  In practice, very few traders ever get this one right--and that's not surprising, since nobody I know of has a functional crystal ball.

When I took corporate finance in college (one of just a few economics classes I elected to enroll in), one of the major points was that for riskier assets, a higher rate of return is expected.  That makes sense.  That's why a savings account in your local bank doesn't pay a lot of interest.  That's why junk bonds pay such a high interest rate.  It's been a long time since I took that course, and I don't know exactly how this principle applies to bitcoin, but it's definitely high-risk.  It has the potential to be high-reward, but that certainly isn't guaranteed.

You feel very optimistic about the crypto market, as The Pharmacist says that a market that has a high level of risk such as bitcoin will make you get rich quick or fall into poverty. Crypto market is currently suitable for scalping, because of the high risk and difficult to set to the moon. the focus is currently buying when rumors and selling news.

This would always be the question since from the beginning when we do engage into these kind of markets where prices do moves out. Neither on forex or on crypto. Identifying dip and bottom would always be questioned since no one can able to predict on what are the things ahead. Most of us do know between the risk=reward ration on crypto market even we do know it do have the higher risk but we do still continue to engage because of the probability on hitting up profits which cant really be find into other traditional investments.

Nice article pal. If you have blog account you may share it there as well. It will be the useful information for the people whoever looking to trade the cryptocurrencies in any trading platform.
Value moniteration and expected growth both will be stay at the same time as you said risk is also involved while you open up the trade St anywhere.

Exactly my own understanding as I was asking myself what is the difference between the two? Can we see a bottom without a dip? And if there is a difference, someone waiting for the bottom in the midst of dip might have to wait till forever because there is no notification anywhere that state "this current point is the bottom. Henceforth, we are going higher". Aside the fact that its a relative term as what could constitute bottom for one, is the point to exit for another.

In basic investment that follows the "natural law", higher risk=higher return but not exactly true in crypto. An example is someone banking on an ICO taking enormous risk because he believes the return would be massive only for the ICO not to reach soft cap or anything close to that which makes implementation impossible. That amount to huge loss despite the high risk investment he took.

Interesting curve you have shown us there. It depicts the entire spectrum of human emotions we all go through every day of our lives, only reflected on the crypto market. It is hard not to be euphoric when everything goes your way. It is hard not to be depressed when things look grim and hopeless. Probably some of us can remain calm, peaceful, and analytical in real life situation as some trader can remain calm and analytical while trading in any market. But many of us can't.

Of course, making market decisions according to this curve makes a lot of sense only in hindsight. And it is almost worthless if you have a real time chart in front of you and have to put a lot of your hard earned money at stake.

That's a nice curve with many of the right emotions people experience during crypto bears and bulls, or as it is for some daily occupation. And I agree, with any investment, the risks are always high when the rewards are appropriately measured.

Not only in the cryptocurrency market that this is accurate in all of the currency market, risk is always proportional to the profits.
Even in business, like you open a small shop and a large chain stores.

well that chart is only true for real assets not for altcoins! in reality what that chart looks like is a series of small rises on an over all big down trend which is also called a dead cat bounce. in other words most of the coins that are currently going down will not stop until they are dead and gone.

as for the "don't buy the dips, buy the bottom" i have to say it is a wrong suggestion when it is talking generally. buying the dips is one of the common ways of making profit. for example an altocin that is dropping from $1000 down to $200 gives you a lot of profit if you buy its dips. for example after it dropped to $800 (a dip) you buy and dump it when it recovers to $850 and then stay out until it is dumped more to $600 then repeat and so on.

These analysis according to the normal natural analysis are good and these are the conditions of the markets that happen in real, by watching the previous year price you can get good earning with high risk and high reward by buying right now.

The formula is seen from the viewpoint of someone who is optimistic, those who are viewing the situation through a positive spectrum. However, through the lens of a pessimist, to the one who is looking at things with negative implications, high risk would mean high loss and therefore worth avoiding or abandoning. There is therefore a need to realize that investment in crypto is only for those who have brave hearts, patient, and unflinching.

The article was very much helpful in my opinion. Many persons might not know where the bottom is. This is specially for people that understand technical analysis. Every newbie needs to understand this market, make thr right decisions and be able to control his emotions

but at the same time high risk = high loss.

and you should never forge that, because forgetting it means being blinded by greed of that possible high reward and losing a lot of money.
lets take two extreme examples: gold and some shitcoin worth 10000 satoshi.
if you buy gold as the low risk low reward thing the chance of losing a lot of money is low because worst case scenario it will drop 10%.
but if you buy that high risk high reward shitcoin it may drop down to 1 satoshi and you can simply lose 99% of your investment. and that has happened enough times in the past to make you wonder about it.

Almost always true. If you invest into something that has high risk it doesn't always means it will have high reward though.

Like you can put your money into some scam coin that is run by people who look like they are out to scam you and you just put your faith in it for small return yet you may get scammed like you assumed and in the end you were not in it for a high reward at all.

High risk doesn't really mean high reward all the time, but low risk usually means low reward almost all the time, there is no low risk high reward investment at all. Hence, if opposite of this is said, its 99% true but this one is like %80 true because of the scammers. Take scammers out and its 99% like the opposite.

You made a good point on that, its really hard to differentiate dip and bottom. I think it's better to buy in a series of dips. From there, the average low will be achieved. Don't buy in a single transaction, better to distribute.

Yes that's true. And if you see where is the bottom/dip, you will be a richest man easily. This article does not make much sense, in my opinion.

Yes hold is one of the best and easy way to make money from crypto market , we just need patient wait for bottom price to start buy some potential crypto. Buy and forgot it in 6 to 1 years will be promising high profit, we should be know more about situation of the market when start to buy and how many the target profit. And when reached the target profit sell it all, just by this way we can make huge profit, we need only keep patient waiting for bull market.

Risks always go with chances. Smart people is the one who can pass risks to get profits. They always see the long way not the near future. After that, they have some plan to do.

The good thing about this world of trading is you don't really know where the bottom and the peak. Even some manipulators and whales. They exit if more and more is getting hype and enter when alot are in doom. This is the fairness in trading ladies and gentlemen and due to our emotions we forget to be as objective as looking into this cycle.

I don't think long term plan is a smart move. It can be a very common person who get to know that long term will benefit him and he can only hold. Honestly speaking only holding and waiting that a time will come that I will get profit is not smart in my opinion. Those who don't have any other option will hold. Smart are the one's who get benefits in the tough time.

it depends on what you are investing your money in for long term. for example if you invested in Apple or Microsoft, ... or companies like that then the long term outlook have been awesome for you. but if you invested in some company that disappeared and died then obviously your money vanished in the long run with it.

I also want to disagree with this in OP that is saying:
“What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower.”
When majority thinks something then that thing will definitely become true. for example if majority thinks a certain price is low and cheap then the majority won't just stop at thinking it, they will act on it which means they will buy it at the price where they think it is cheap and as a result price won't go any lower than that.

When assessing any prospect, it's best to consider all possibilities, gains and losses.
While high risk can potentially give high rewards, it can also incur huge losses and bring you out of the game early

It will give you huge losses if you don't know how to work with it. Being a trader is not just a simple task, it really needs strategies and wide open knowledge. A lot of instances that you will loss, but if you work it and don't let it happen, definitely you won't go that thing.

Nice graph. Actually, this is really true. Buying a dip could be a help but it is more effective and profitable if we buy at the bottom. Those emotions are actually i have experienced. Funny, but i am still experiencing it whenever i buy or sell at a wrong entry price.  I also agree that a Higher risk makes a higher profit or income but also emphasize the higher losses.