How much should I invest so I can buy back if the price goes down?

[rremus91]

Let's say I have 1k USD to invest in BTC or ETH and I invest the half of it $500 and the other half I'm keeping to buy back if the price goes down (some kind of protection?). A friend of mine has multiple open position in different cryptos and at the end of the day some of the cryptos gives him profit, but some of them losses, so he's at 0 (back where he started). Some days he makes good profit, but other days he's in loss.

- If I'm going in with all of my money and the price goes up then the profit is bigger (50%), but if the price goes down I can choose between: cash out at the moment with a loss or to wait days, weeks or months until the price goes back (can't trade anything because all of the money is already invested) to be back at 0.

- If I'm going in with half of the money and the price goes up, then the profit is lower (-50%), but if the price goes down, then the chances are I can buy back the crypto at a low price and wait until reaches a price that my investments will cancel each other out, so I will be back at 0.

What do you think about this risk management? How do you invest your money (if you're not a holder)?

[1715054461]

1715054461

[MissionPhailed]

I'd go for the second option; chances of significant profits are lower but severe losses are also less likely. If you invest 50% with the initial buying value, then invest the other 50% when value has dropped, you'd already yield a profit if the price goes back to the 'original' buying value. Though personally I might go all-in if those 1k was perfectly expendable.

[muncuss]

You still have another day to make big profit. I had bought all-in and ended up loss because the price goes lower or i lost moment to sell and dump started. Then i must wait again for days or weeks.
Now i always split my money when buy a coin. I won't go all-in unless i very very very sure the price will goes up

[soham]

Let's say I have 1k USD to invest in BTC or ETH and I invest the half of it $500 and the other half I'm keeping to buy back if the price goes down (some kind of protection?). A friend of mine has multiple open position in different cryptos and at the end of the day some of the cryptos gives him profit, but some of them losses, so he's at 0 (back where he started). Some days he makes good profit, but other days he's in loss.

- If I'm going in with all of my money and the price goes up then the profit is bigger (50%), but if the price goes down I can choose between: cash out at the moment with a loss or to wait days, weeks or months until the price goes back (can't trade anything because all of the money is already invested) to be back at 0.

- If I'm going in with half of the money and the price goes up, then the profit is lower (-50%), but if the price goes down, then the chances are I can buy back the crypto at a low price and wait until reaches a price that my investments will cancel each other out, so I will be back at 0.

What do you think about this risk management? How do you invest your money (if you're not a holder)?

It is not advisable to go all in with bitcoin or ETH or any other crypto currency. It's good to have a back up fund for any emergency. So I would go with the second options to keep half of the fund handy with me to be able to buy back if the price goes down. It will help me average out my bitcoin purchase price.

Also always try to diversify your investment. Never put all your money in to a single currency. We have a lot of good crypto nowadays so try to invest in more than two cryptos. IT will help you to protect the capital investment and you will be able to recover the losses you made from another currency.

[john2231]

Honestly you are doing wrong move if you are selling your bitcoin when the price is going down if you seen continues decrease its just a panic selling and anytime soon the price can be increase back or sometimes it takes months before we can see the price was increase back again..
Bitcoin is unpredictable and i think you don't need to invest in ethereum because bitcoin is increase fast than ethereumm
But if you see the price is really cheap like today and yesterday as you can seen the price was increase 10% and i think you already made profit if you buy bitcoin yesterday..
So i think you are late to invest in bitcoin so much better to wait a gain for a good time or buy ethereum or zcash instead for long time holdings.

[DaMut]

as a trader the biggest goal and mindset that you should know is : To get profit.
it's all not about how much you will get profit but instead the biggest goal for trader is to make a profit for every trade.
which mean the best and the wisest ways that every trade should have is to secure their position and always get profit from it.
based on your statement alone i can see most of your trade that you had been done usually used your emotion to make a choice.
because you're comparing the % that you will get if you're all in and not.
you can not all in to 1 asset because it's a gamble,and as a trader you should avoid that kind of action.
the best ways to do the trade is diversify and you should have a financial back up.
for example you have $1000 USD what you should do ?
30% invest in Bitcoin,
20% invest in altcoin and
50% financial back up.

you should understand that the price can will not moving upward forever sometimes you will see another downward movement and that is why you should have a financial back up to support your portfolio.
and never use all of your financial back up when the price is drowning.
always spare some of it to secure your position

[Red Fish]

Better invest in ETH, check price trends, and make your profit. With time you will get more experience, and you will know when to buy and when to sale. In Forex market you can find thousands of people, who make good profit, but you can also find thousands of people, who loose their investment. This all take some time, so be patient.

[HeRetiK]

[...]

- If I'm going in with all of my money and the price goes up then the profit is bigger (50%), but if the price goes down I can choose between: cash out at the moment with a loss or to wait days, weeks or months until the price goes back (can't trade anything because all of the money is already invested) to be back at 0.

- If I'm going in with half of the money and the price goes up, then the profit is lower (-50%), but if the price goes down, then the chances are I can buy back the crypto at a low price and wait until reaches a price that my investments will cancel each other out, so I will be back at 0.

What do you think about this risk management? How do you invest your money (if you're not a holder)?

If you're serious about daytrading and don't want to simply hold -- which, arguably brings better results for some -- you should work with a mixture of both:

1) Cut your losses on pre-determined price levels and cut them on time -- there's no point of cutting losses when you've reached what could be the next bottom.

2) Never trade all-in on a single position. It may be tempting, but it severely reduces your ability to react on market moves. Going all-in you may get lucky at times, but sooner or later you'll be in a losing position and then it's always good to have a backup plan.