[newb] Buying Bitcoin strategy

[jusplayin]

Hello everyone

I just started with Kraken and have a few questions.
I have bought some XBT at a price of $2000 usd before and it is dropping quite a bit today (11 june)

My question is..
1) Lets say the $2000 has dropped to $1000 and i foresee that it will drop even more.
Wouldn't it be wise to tell all XBT now and wait until it is actually at its lowest (to my point of view) and then buy in XBT again with $1000?

2) When people say they are holding onto their XBT regardless of the price, does it mean that they are just letting it ride and hope it just picks up later?
So for example, someone bought it at $2000 and they just let it sit there even if the price goes to $1000 or $0.01 cents (i know this won't happen but it's an example:) )

Thank you

[pooya87]

1) if you really foresee it then yes, you should sell now and buy back at that price you are currently foreseeing.
but the real question is "are you really foreseeing that price with absolute certainty or is it just a guess because price fell 8% today and you are scared?"

2) because many people don't foresee what you foresee and they give a higher chance to a rise after this drop ends.
also many have invested in bitcoin when it was low so an 8% drop is not really a big deal for them
and double also because many don't just see bitcoin as a short term get rich quick, they invest in it for long term and don't get involved in the short term headache of day trading the small fluctuations.

[Minecache]

Read and learn about dollar cost averaging.

[Wind_FURY]

Hello everyone

I just started with Kraken and have a few questions.
I have bought some XBT at a price of $2000 usd before and it is dropping quite a bit today (11 june)

My question is..
1) Lets say the $2000 has dropped to $1000 and i foresee that it will drop even more.
Wouldn't it be wise to tell all XBT now and wait until it is actually at its lowest (to my point of view) and then buy in XBT again with $1000?

That would be good to save you some fiat losses. But the better strategy is to get more fiat and buy more cheap Bitcoins to hold.

2) When people say they are holding onto their XBT regardless of the price, does it mean that they are just letting it ride and hope it just picks up later?
So for example, someone bought it at $2000 and they just let it sit there even if the price goes to $1000 or $0.01 cents (i know this won't happen but it's an example:) )

Thank you

Yes. Most of the holders here do not care about the fiat value of Bitcoin. All we want is more Bitcoins. If the price goes down to $.01, I would buy and be the happiest man on Earth.

[watemp]

You are right. The best strategy is buy bitcoin lower and lower, again and again with higher goals.

[jorneyflair]

Hello everyone

I just started with Kraken and have a few questions.
I have bought some XBT at a price of $2000 usd before and it is dropping quite a bit today (11 june)

My question is..
1) Lets say the $2000 has dropped to $1000 and i foresee that it will drop even more.
Wouldn't it be wise to tell all XBT now and wait until it is actually at its lowest (to my point of view) and then buy in XBT again with $1000?

2) When people say they are holding onto their XBT regardless of the price, does it mean that they are just letting it ride and hope it just picks up later?
So for example, someone bought it at $2000 and they just let it sit there even if the price goes to $1000 or $0.01 cents (i know this won't happen but it's an example:) )

Thank you

The answers to your questions

1. Well sure, if you are certain that XBT will drop even lower, I would totally sell it at 1000 and wait until say it drops even lower to say 800 and repurchase it again and then make profit. But the thing about this, is that it is hard to foresee right now, especially with cryptocurrencies growing strong, looking like it won't stop. There was also a strategy used by people who, when bitcoin would drop, they would also sell to keep adding to the drop and then would rebuy the bitcoin for a cheaper price, thus profiting.

2. I am one of the people who constantly just holds a portion of their bitcoin and just rides on the profits, so yeah your definition is pretty accurate.

[Kprawn]

Only short-term speculators are worried about these mini-dumps. I was around when the price was $400 and the people were worried about the

same thing. I was also around when people bought at $1000 and it went down for nearly 1 year... before it recovered. { Some people sold at a

loss, because they needed the money and were not willing to wait... most of them would have doubled their money, if they waited a bit longer. }

You buy Bitcoin for the long term investment, not the quick in and out profits. 

[Iranus]

To be honest, trading is very overrated for people who aren't extremely good at it.

If you really know about why the price would move that way, and you've traded other things for a long time (or analysed Bitcoin price movements for a long time), then following your own advice might be a good idea.  But if you're here asking us to confirm or deny your advice, you're probably not very confident about your prediction.

If you're just panicking about your holdings because the price is dropping (which is likely), you just need to either very deeply analyse Bitcoin's price movements for a long time (and even then you're likely to be wrong), or just stop thinking about it.

A well researched investment is always worth holding on to when the price drops.  Personally, I think that if these are the thoughts you're having, you should forget about your investment for a while.

[rifatrony5]

1) If you really think that it will drop more then it is better to sell now.
You can buy again when the price reached at Lowest position that you already guessed. But it's very hard to foresee actual position.

2) yes this point is really true.

[jusplayin]

Thank you all for the very valuable insights and tips!

I did eventually sell at a point that i thought was needed and saw the price drop even more.
So bought it back again when it was 'recovering' a bit.
Although i do see it is dropping even more and am speculating if it is going to hit $1800.

This time i will just let it ride and buy more at a low price instead.

[jorenpo]

Hello everyone

I just started with Kraken and have a few questions.
I have bought some XBT at a price of $2000 usd before and it is dropping quite a bit today (11 june)

My question is..
1) Lets say the $2000 has dropped to $1000 and i foresee that it will drop even more.
Wouldn't it be wise to tell all XBT now and wait until it is actually at its lowest (to my point of view) and then buy in XBT again with $1000?

2) When people say they are holding onto their XBT regardless of the price, does it mean that they are just letting it ride and hope it just picks up later?
So for example, someone bought it at $2000 and they just let it sit there even if the price goes to $1000 or $0.01 cents (i know this won't happen but it's an example:) )

Thank you

if you forsee that the price will go down. then wait for it to go down and buy and sell it when the price goes pump.
thats the best strategy

[piloder]

2) When people say they are holding onto their XBT regardless of the price, does it mean that they are just letting it ride and hope it just picks up later?
So for example, someone bought it at $2000 and they just let it sit there even if the price goes to $1000 or $0.01 cents (i know this won't happen but it's an example:) )

Yes most of the optimistic bitcoin holders will just hold whatever amount of bitcoin they have and keep buying more when there will be huge drop in price.

You have to remain calm and don't let your emotion override your trading strategy, don't sell below the price at which you have bought your bitcoins.

[aesma]

I have done what you're proposing several times and what will happen is that as soon as you sold your coins, the price will go up. It will go up for one hour, it will go up for one day, and then you'll reverse course and buy at a higher price. Then it will go down. Soon you'll throw your keyboard at your screen.

Hodling is a much simpler strategy. Buying some BTC every month, whatever the price, is my strategy.