Bitcoin Forum

I have been telling everyone to HODL Bitcoin as a safer strategy, but I believe many of you don't have the patience for a long term, low time preference form of investing. Then I believe if you're a losing active-trader, indexing might be for you, https://pandaanalytics.com/index

It's less active, more passive than day-trading, and I believe safer. 8)

It becomes harder to wait especially if one bought when the price was at its all-time high. Maybe people should learn to buy Bitcoins when the market is at it's worst like when it was a 4K in 2019 or most recently 5K in March after that dump rather than wait when the price is up, and then they start thinking about buying. It becomes less risky and easy to cash out gains in case money is urgently needed.

I don't really understand the indexing of things, I went through the website and it was confusing although, I don't think indexing is for me because I haven't missed out on the bitcoin holding.
Most traders are simply jump in traders at price hyped, been patient is hard task so they missed out when its perfect time to get some.

Well, --can you elaborate on the indexing? I did not understand what it is and perhaps we need to join first the conversation on telegram before we know it.
That is true, holding for a long time and waiting at the right time is the hardest part especially when the time comes you will badly need a financial assistant and there's nothing left aside from you bitcoin that perhaps save you on that day. HODL, for the long term was kinda hard to achieve these days, people are still a recession due to pandemic. Perhaps if you have time to elaborate indexing it will give us good insight on holding.

I didn't click the link due to security reasons but I am pretty sure what he means by Indexing is that you are buying some ETF type of fund which has certain type of different coins in different sectors.

Pretty much how many people these days instead of buying a single stock in a sector they buy a blanket of stocks in one sector and that way if that industry survives they will make a good return. The issue with buying a certain stock is that due to bad luck it can go bankrupt and you lose everything. And this is the issue with some type of alt-coins. Many can go to 0 and the entire investment would be lost but if you invest in some index crypto fund then you don't have to worry about that issue.

I guess I don't need it because I can hold bitcoin for the long term, and even I can buy more bitcoin if the price is down for more. Patience will be needed in holding. If you almost lost your patience, I think perhaps you need to leave the market for a while and don't watch at the market with your devices. That helps me to moves my mind from thinking about the crypto market, and I can back to the market after I finish doing something. Patience will give rewards to you, and I am sure that your losses will be back to you.

I've been reading quite a lot of news recently about crypto indexing, I mean it's an old product and I've even read about tokens that do baskets of crypto for a type of crypto index but didn't Galaxy Index and others all also lose money even though they spread it across different crypto? Since it was the entire market that went down in 2018/19 anyway.

Do not treat HODL as the safer strategy because it have still risks. I always telling to other people that HODL is not a basic and easy as what they think because it requires knowledge especially when it comes to validating trend. I will agree to if you said that HODL is good in uptrend but you mentioned that it is good in overall trend. HODL requires a lot of mastering, it is not just about holding without prior risk management. Patience is not what matters, it is the proper planning especially when it comes to stop loss and entry and exit points.

Actually there are people who incurring more losses because of HODL, this is the proof that it is not the safest strategy out there. I am not a hater of HODL I just want to clarify to you guys that do not expect that you can guarantee profit by just holding your coins.

I'm personally a fan of indexes too; but if I would invest in an index(I currently don't yet as I'd like to focus on high risk high reward assets while I'm quite young), I'd most definitely invest in something like an S&P500 index fund(probably the $VOO Vanguard S&P 500 ETF) and no way in hell would I invest in a cryptocurrency index fund. There's just so much temporary-hype projects out there.

What do you mean by "indexing"?Diversification/creating a portfolio of cryptocurrncies or investing your coins into index funds?
Crypto index funds are a pointless business model,since almost all cryptocurrencies are basically following the same price pattern.There's no real diversification and the risk level remains high.
I would never trust such "crypto index fund" since it's so easy just to diversify and create a crypto portfolio on every crypto exchange platform.
It seems to me that such "crypto index funds" look like potential scams,that will steal the coins of the lazy traders,who don't want to learn and practice day trading on a legit platform.

Clearly if you visited the website, you'll realize that index them yourself is not. It's also better than people trying to "predict"/"day-trade" the market through "technical analysis", which truthfully, they do not really know what they're doing a majority of the time.

Though long term holding ain't easy as everybody thinks since you need to have atleast basic market knowledge and a good find of exit and entry point, but in contrary to your statement, holding is indeed the safest form of trading than short and day trading. Because you're just basically holding Btc for example, and wait for the price to go up to your satisfactory range.
Day trading is very risky, so does short trading. I haven't tried cryptocurrency indexing or investing in index funds, but holding is the safest.
And lastly, patience matters when you're holding longterm.

I think, there are also lot of different between day trading or any kind of tradings that is on short term only compare to buying a specific coin and hold it for a long time, like years, decades or more.
Yes, you are right here that holding is much safe compare to day trading but the holding of a coin for a long time is also a risky, especially if you don't have a plan when you will sell or take profits, or take a loss, like on which levels or price will you sell your coins if a certain price is reached.

Traders already made their decision not because of what people say but because they believe on their strategies and skills, and that's what matters the most because you take responsibility on every decision that you've made.

Indexing might seems working for some of us, but traders sees this as boring one and they know that they can earn more if they actively trade on the market. If a losing traders have no strategic plan then I also suggest for a more passive way to earn profit. We can hold bitcoin or trade bitcoin, depends on how you see the market.

Losing is normal for a trader, and if you can't handle the risk then better to look for alternatives. I haven't tried this indexing because I'm just buying and selling on a price that I believe is enough for me to create profit. If a trader is not effective anymore, then better to revisit your strategies and look for the errors that you've made on your trades, then be better on your next trade and of course you can also try many strategies especially this indexing.

It is difficult to be patient for those who buy BTC based on other people's advice rather than their own knowledge of BTC and it usually happens to people who have recently experienced a loss from online business (they say so but it's actually just a Ponzi scheme). Index not suitable for people who want to get rich quickly nor do they try to understand the investment they are making.

It also should depend on the talent as well, think about it I mean we are talking about people who are barely new to something and people who have been doing this type of trading even before bitcoin was created, I have met with a guy who has been a trader in forex for about 15-20 years and he has been a stock trader before that on his early career.

So, we are talking about people who are moving their experience in regular trading towards bitcoin nowadays (well that and other coins). And people who have never done trading in their life, so at the end of the day I would assume that if some people like indexing they could index but if they want long term investment they could do that, if they want short term regular trading they can do that, it is all personal decision.

It's not "normal" normal, because there are only 10% of day-traders who maintain a long term profitability over everyone in the market, and I believe only a small percentage of the 10% winning-traders are profitable enough to do it for a living.