Trading BTC Question vs Altcoins

[jerry0]

I'm thinking about trading altcoins as in buying a bunch of altcoins when prices dip a lot.  Then sell them when the price goes back up.  I found out if you want to trade altcoins, you have to use btc to do this.  Now if i want to trade btc, how do i do that?  Wouldn't that mean trading btc for usd or tether?  For example someone mentioned btc was like 4700 but then it started dipping a lot and he sold all his btc like at 4500.  Then it dipped all the way down to like 3200 or so.  Then he bought all the btc he sold for around that price etc.


So if someone does this, that means they are selling their btc for usd or tether right?  What im curious about is if they sold all their btc at 4500 and then bought them back again at 3200 or so, where does the profit go?  Usually in their bank account or USD balance?  Or do they buy more btc?  For example say someone has 5 btc.  Sold 5 of them at 4500 for 22500.  Then if they buy back 5 at 3200, thats around 16000.  So here they make 6500 profit but do people like this just buy back the btc plus more?  So instead of owning 5 btc, they have like 7 btc because of this?

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[ipanks]

I'm thinking about trading altcoins as in buying a bunch of altcoins when prices dip a lot.  Then sell them when the price goes back up.  I found out if you want to trade altcoins, you have to use btc to do this.  Now if i want to trade btc, how do i do that?  Wouldn't that mean trading btc for usd or tether?  For example someone mentioned btc was like 4700 but then it started dipping a lot and he sold all his btc like at 4500.  Then it dipped all the way down to like 3200 or so.  Then he bought all the btc he sold for around that price etc. 

as long as you have btc in your balance, you can trading btc for usd/tether. and the result is you have altcoin, btc and tether in your balance account.

in you case, you already sell your altcoin and now have btc, then you can trade btc pair fiat. but if he is buying btc at $4700 and sold all btc at $4500, this mean he is loss. but he might have a chance by buying again at $3200 and hold it for a while because the price will be up again.

So if someone does this, that means they are selling their btc for usd or tether right?  What im curious about is if they sold all their btc at 4500 and then bought them back again at 3200 or so, where does the profit go?  Usually in their bank account or USD balance?  Or do they buy more btc?  For example say someone has 5 btc.  Sold 5 of them at 4500 for 22500.  Then if they buy back 5 at 3200, thats around 16000.  So here they make 6500 profit but do people like this just buy back the btc plus more?  So instead of owning 5 btc, they have like 7 btc because of this?

first they are loss because they sold at low price. but if somehow they can buy at low price $3200 and he is patience to see the price is more than $3500, then he can make profit. their balance is only on the exchanges and its not related with their bank account.

but its different if they deposit their money again to buy bitcoin at $3200.

in your case, someone has 5 btc and sold 5 btc at $4500. if he can buy back 5 btc at $3200, its mean that person have 5 btc + $6500 (this number is from $22500 - $16000 because he can buy bitcoin at $3200). i hope you are understand.

[DaMut]

it all depend on the trader themself,
but most of them used their profit to buy more Bitcoin in order to get a hold of it for the future.
like this ,
why many people trade an altcoin for ?
because they want to get more Bitcoin,and using an altcoin as an item to buy and sell it using Bitcoin,we can get profit from our sales.
and generate more Bitcoin.

Buying back in simple way is buying lower than your sell order before,
so you should heard a lot i bought back at $3000 or something like that,
that mean they are buying Bitcoin back with their money from before(profit or loss) in the bottom in order to get more Bitcoin.
they set their target,for example they are investing their money and bought 3BTC,
as long as his portfolion more than 3BTC,he is profitting from it.
most people doing that in crypto trading.

if you want to trade Bitcoin,of course you need Fiat pair with Bitcoin or Bitcoin with USDT(Tether)

[pendekar cinta]

usually the advantage they get from doing the exchange at the time the value of the highest price by following the movement of each change.so it will never suffer huge losses in trading every time. but sometimes there are also problems that often hamper it like the problem of internet network.

[BitPACK]

If you will hold long term you can buy any altcoin. all altcoins will raise for long term.
but don't forget altcoins moves with bitcoin.

[Reez]

You don't really trade BTC, you hold them for the long term. IF you want to trade alts beware and focus on privacy based ones.

[Wind_FURY]

If you are confused, invest in the sure thing. Bitcoin. The style to invest in it is to buy the dips and hold on to it. That is what I have been doing since last year and I have been doing very well.

Charting and technical analysis do not work and we are not trading experts. Buy and hold is our only choice.

[Zocadas]

I'm thinking about trading altcoins as in buying a bunch of altcoins when prices dip a lot.  Then sell them when the price goes back up.  I found out if you want to trade altcoins, you have to use btc to do this.  Now if i want to trade btc, how do i do that?  Wouldn't that mean trading btc for usd or tether?  For example someone mentioned btc was like 4700 but then it started dipping a lot and he sold all his btc like at 4500.  Then it dipped all the way down to like 3200 or so.  Then he bought all the btc he sold for around that price etc.


So if someone does this, that means they are selling their btc for usd or tether right?  What im curious about is if they sold all their btc at 4500 and then bought them back again at 3200 or so, where does the profit go?  Usually in their bank account or USD balance?  Or do they buy more btc?  For example say someone has 5 btc.  Sold 5 of them at 4500 for 22500.  Then if they buy back 5 at 3200, thats around 16000.  So here they make 6500 profit but do people like this just buy back the btc plus more?  So instead of owning 5 btc, they have like 7 btc because of this?

Yes, mostly to tether, I think. It has the same price as USD, but the advantage, to not needing to be transfered to fiat, if not needed. You can find them on poloniex (if it is still working) or Bitfinex, I think. Or you can trade BTC against stable altcoins, so that there is no need to go the long way.

[jerry0]

I think people are confused with what im asking.  Let say you got 5 btc when it was 1k each.  You saw btc price went all the way up to like 4200.  You then sell it all now because you notice a dip and it will fall.  But your plan is to buy it back after the dip.  So let say it fall to 4000 and you sell all 5 btc.  So here you sell 5 btc at 4000 each which is 20000 total.  You got the 5btc when it was 1k each so that would be 20000-5000 = 15000 total profit.


Now you notice btc price go all the way down to 3200.  Now you want to buy the 5 btc back for 16000.  So now you have 4k left.  Do people here just keep that 4k or do they use those profit to buy more bitcoin.. thus here... they could buy like 1.25 btc and now have 6.25 btc total?


Someone mentioned they sold all their btc because they noticed a huge dip.  Then they buy all btc at a much lower price.  So i want to know if ppl who sell all their btc when they notice a dip and plan to rebuy all the btc at a much lower price... do they buy only the btc they sold and keep the extra money on the side?  Or do they just use the profit to buy more btc then?


So would that be good idea?  If you notice btc price dip a lot and you feel it will drop more... you sell all btc.  Then you buy it all back at lower price?


And if so what is proper strategy?  Buy back all the btc you sold or buy even more btc with your profits that are left?