When bitcoin price is low, any slight movement is more profitable. Here is why.

[Ucy]

I realized this a long time ago when I started to trade because I had little capital and the daily profit was very little and whenever the bitcoin price increased a lot my daily profit became less. It irritated me and forced me to increase my capital to trade and make a good profit.

Only a few would benefits from little changes in price.

If your capital is very high, the person will have more profits and will take less risks

The most important thing is to invest what you can afford to lose. Adequate or good profit is probably what matter for both the wealthy and small/medium traders. What seems like large trading funds for small traders could be small funds for very wealthy traders. Profits from such funds may be  inadequate for wealthy traders.
So good profit is what matters, and it is quite relative.

[Sebas.tian]

What I can assume in this case is, the more the capital the more profit comes inot play through increase in the price of Bitcoin. Proudly to be a trader and trading with a minimal capital, but am still making the needed profit from my trade, sometimes, manyntraders forget the rules in trade, "trade what you can afford to loose". Several times in trade, I have been at a profit of 2-3% and am okay with what I have. The cryptocurrency market is volatile, with this, we should be more careful to incur lose while trade because we need more profit (greediness).

[LogitechMouse]

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The logic is there I know. The question is do you think that traders can predict what can happen to the price of Bitcoin? Are they capable of profiting all the time?

The strategy that you shared really can help those traders but the problem is, not all of them can predict the price of Bitcoin. All of the traders know this simple strategy that you shared but the number of people who can do this is very low since we know that the market is unpredictable. Anyway, thanks for sharing a common strategy. Maybe this can help a bunch of traders out there .

[SquallLeonhart]

We are forgetting the fact that when price goes up it creates some sort of attention from a wider audience so the increase becomes bigger as well. So, just to give an example, when price is 100 dollars nobody really cared, there wasn't people around that much and we were pretty alone, I remember it vividly that I knew almost everyone who wrote on this forum frequently, I was chatting with them as well.

However, as the price went up there was more and more people coming in and there was more interest as well, which indirectly resulted with us going to 20k eventually. So, the calculation is correct but more hype means more profit as well and more people equals more % too, that is why I honestly think that price going up is a good thing even if it means less profit on same % increase.

[Bagaji]

Most people dream of bitcoin to reach $100K or $1 million dollars value but according to my calculations low prices can bring more profit when the price movements are small. Let me tell you the reason.

Suppose bitcoin price is $10.000 and it increases by just $200 to reach $10.200 during a day. This is 2% profit (excluding fees). In other words, it is $2 profit with $100 investment.

Now Suppose bitcoin is $4.000 and it goes up by the same $200 and reaches $4.200. This is 5% profit! (excluding fees). In other words, it is $5 profit with $100 investment.

So, the amount of price movement was the same in both examples, but you will get 2.5x more profit in the second scenario! That's a big difference. Therefore, when bitcoin price stays low it can be more profitable for daily trading with small changes in price.

Interesting...
 Price movements cannot be easily predicted by most people though.  I think only traders would benefit more from this. Holders will benefit more from big upward movements.
Trading isn't that easy by the way. Only a few would benefits from little changes in price.

Most of the Bitcoin long term holders are afraid of losing their money if they should into trading for reason been that the risk is very high as compared to holding and waiting for possible future growth. Those who are good in trading always benefit from their trading while holders will continue to pray for market to skyrocket so that they can make reasonable profit from their long term hold.

[Findingnemo]

Literally you can't take advantage of the price movement as you said because it's not possible to predict the values in the crypto market. But the market movement will depend on the value if it is in sideways so less price means the price will move near to that value and if the high price the price swings a lot in fiat USD value so you can make more profits if you buy at the bottom and sells at top.

[imstillthebest]

Literally you can't take advantage of the price movement as you said because it's not possible to predict the values in the crypto market.

yes it isnt possible to predict the flow but its obviously given that once the price of btc fell down , it can surely be followed by a small up or sometimes the increase will continue to grow higher  . its  because people wil buy once btc price is low  . that is the logic here on the crypto market  . so people are taking advantage of these    .

low price or high price   , the profit potential will only depend on the user that do the command  .  if he can react fast on the changes , he can earn but if he is slow then he will be missed out  .

[wozzek23]

Suppose bitcoin price is $10.000 and it increases by just $200 to reach $10.200 during a day. This is 2% profit (excluding fees). In other words, it is $2 profit with $100 investment.

Look when price is $10k and it goes up by $200 that means the change for the day is +2% which means a small swing in price.

Now Suppose bitcoin is $4.000 and it goes up by the same $200 and reaches $4.200. This is 5% profit! (excluding fees). In other words, it is $5 profit with $100 investment.

Now let's consider both cases and you will actually notice that in case the $200 swing happens in the negative way then you will have bigger loss too. I really laughed when I first read this post but then I stopped by and thought of explaining this to you. In simple words, you cannot say if price of bitcoin is $1 and it swings $200 you make 2000% profit .. you have to be realistic because lower the price of asset lower will be the swing.

[nicolas1979]

If you have a lot of money, play in down trend is more profitable than up trend, in that moment your calculation is correct. The problem is market is unpredictable and many people will push market in up trend for long term period, that's we all hope. Down price can make us buy back but higher profit is what we need, imagine if you only have few dollars, I believe you'll always hope up trend not down trend.