Do not ignore the small profits in Bitcoin investments.

[Kakmakr]

A lot of people make the same mistake by being too greedy, and ignoring the small profits and not using the proven recipe for success in Bitcoin by buying low and selling high.

Let's look at the recent price movement of Bitcoin and how this recipe would have put you one step closer to a safe investment in Bitcoin.

https://www.blockchain.com/charts/market-price?daysAverageString=7&timespan=180days  Let's take a quick example of what people could have done in the last 180 days, to secure a very good profit on their investment.

Let's say you had enough money to buy 1 whole Bitcoin when the price was at it's lowest in Mar '19 <$3000+> and sold in May '19 <$8600>, then you would have more than doubled your initial investment. <You could have doubled any investment amount, because the amount does not determine your profit, I just use 1 bitcoin as an example to make it easier to understand.>

The price volatility in Bitcoin in the short term makes provision for a lot of opportunities for people to make small profits, because it is frequently dropping and recovering and if you are just patient and if you time your buying and selling, you can quickly get a good return on your investment. <Buy the Dip>

Some of my friends bought during the Dip in Mar '19, but they are waiting for the BIG payday, so they are hoarding their coins and missing all the opportunities to get a small portion of their initial investment back in their pocket.

There is nothing wrong with long-term hoarding, but when the opportunity is there to take some small profit, then you should take it.   Do not re-invest your profit, because your first goal must be to get back your initial investment. Chip away that initial capital investment, by taking 5% here and 10% there, until you made back 100% of your initial investment.

Hoarding in the long-term might be convenient for some people, but the safe option is to take back small percentages in profits, until you get all your initial investment back. I use that profit to buy some goods and pay for some services in Bitcoin, so that I can show something for the risk that I took and for the effort that I put in to invest in Bitcoin.

This strategy helps to oil the Bitcoin merchants gears, by using Bitcoin as a currency and it also helps me to use Bitcoin as an investment tool.  

[hatshepsut93]

People have different mentalities when it comes to investment, some would just keep regretting that they have sold some coins at low price, even if it was only small amounts. I wouldn't call it exactly a mistake and being too greedy, a mistake would be not selling at all hoping for even higher price, and then seeing your investment turn red, and panic selling. Any selling with a profit is already a success, and what you have described is just one of the viable strategies.

[Onuohakk]

It all depends on the mindset you had when investing. There are some investors that are not ready to sell their bitcoin until there's a huge turn up in price, while some individuals sell immediately when there's a little profit. I deemed it right to always invest with your spare money, so as to withstand whatever that comes out.. The only way to make it through in bitcoin is to sell when you see a little profit and reinvest again

[jseverson]

...not using the proven recipe for success in Bitcoin by buying low and selling high.

To be fair, this is much easier said than done. I wouldn't even call it a recipe as much as a goal -- nearly everyone has their eyes on this, considering an opportunity can arise at any time, but the lows and highs are never easily identifiable in the moment. It's easy to say it's a quick way to profit in retrospect, but as they say, hindsight is 20/20. I'd say simply hodling long term is still a far better course of action for inexperienced traders (so most hodlers lol).

As for oiling merchants' gears, profit doesn't always have to be involved. You spend fiat regardless of whether you have extra, so Bitcoin shouldn't have to be different. To each his own, of course, but I've been seeing way too many people take up the approach of only ever spending their profit.

[HeRetiK]

One common reason for people ignoring the small profits seems to be them trying to go for maximum profits by attempting to call the bottom and / or top (ie. trying to time the market). If people were better at accepting the impossibility of this notion fewer people would fuck themselves over. Just ease your way in and out of the market. It may not be an optimal strategy but it's less risky and more importantly less likely to make you tilt and FOMO.

[NeuroticFish]

Do not re-invest your profit, because your first goal must be to get back your initial investment.

It always depends. This rule is best for people that invest money they don't really afford to lose. And I'm doing somewhat the same.
But the big rule use to be "don't invest money you don't afford to lose". And by that rule it's actually OK to wait for the jackpot.
Imho the "don't be greedy part" matches with another rule of investing: make a target and cash out when you've reached that target, no matter what the market does afterwards.

[Red-Apple]

A lot of people make the same mistake by being too greedy, and ignoring the small profits and not using the proven recipe for success in Bitcoin by buying low and selling high.

and that is for a good reason.
most people aren't traders and are not willing or capable of spending that much time analyzing the market and riding the waves to make some profit in day trading. not to mention the risks that this type of trading has which drives most people away.

on top of that we have the issue with exchanges, they aren't trustworthy!
when you want to make profit by "buying low selling high" you have to do it on exchanges, and all your hardwork of months could go up in smokes in a second as the exchange scams you or gets hacked. we have had hundreds of cases, dozens every year!

and like always bitcoin is a currency not an investment or a speculation tool

[oleg681010]

I must agree with you, but there are some things that prevent you from getting enough profit from trading bitcoin every day. The main problem is the exchanges and their high fees

[BitHodler]

and like always bitcoin is a currency not an investment or a speculation tool

Currencies are investment and speculative tools as well. If we look at the forex markets and their volumes, then it's safe to say that currencies such as the US dollar and the Euro are generating more speculative volume than volume by usage as money.

If currencies weren't used for speculative purposes the demand for them would decrease, and so would our purchasing power. Speculation brings liquidity to the table. Where would Bitcoin be without that liquidity?

The price of Bitcoin has grown tremendously because people are speculating that the price will keep booming. If we were to solely rely on the currency aspect of it, we could just as easily hover below the $1k mark without problems.

[gantez]

I understand the small profit you are talking about with the scenario of bitcoin in March and bull from May. Yes, dropping off for some profit is cool deal but people get scare of that with the feeling that price will always keep rising without a break. Also, when to buy again is hard to determine, you can buy and it keep diving down more  

[Coyster]

The strategy of buying low and selling high can only work when actually the price increased within that space of time, if it doesn't, then one would be forced to hodl and it could then be deemed long term trading. So I think what could determine how long one holds a coin could be the price movements of the coin during a particular period of time.

[Jating]

That is still a + so it's a good practice not to ignore those small profits. You may even just hold on it for a long time and hope that it will give you some good profits in the future. As others are saying in crypto world, you really need to have a lot of patience here, so can't just go uber rich overnight.

And I'm sure that even those who became millionaires here started very small profits in the beginning, but they didn't bother and just to continue to grind every day until they accumulated so much by buying in the dip and plain HODLING.

[boyptc]

Been doing that strategy.

Taking small profits to spend on the things that I use and utilities that I'm responsible with. Just be responsible to keep something for you and keep your bitcoin investment too.

[FlightyPouch]

I must agree with you, but there are some things that prevent you from getting enough profit from trading bitcoin every day. The main problem is the exchanges and their high fees

I don't think that is a problem since you will not be cashing out your balance that easily right? Let's say that you trade another crypto currency, day passed and you earned $10, will you quickly trade and cash out? That easily? No, obviously that balance will stay at that site and you will continue to trade, continue to buy and sell on that site.

[Herry Toms]

Everyone has his own perspective, some people decide to take profits in a short time frame some prefer to take in the long-term. No matter where you take your profits but keep in mind the longer your profits grow the better your returns are. This way you can create consistency in your trading.

[davis196]

Thank god there are still enough greedy people who prefer to HODL their bitcoins instead of selling them and leaving the crypto world.Without them the bitcoin price probably would have been somewhere around 1000 USD.I acquired about 0.28 BTC last year at 4-5K USD and I sold around 0.2 BTC this summer for prices that are between 8.5K and 10.5K USD and I'm still kinda disappointed of the fact that I made almost 100% ROI.This is weird.

[antisocial77]

Thats what im trying to tell everybody. First goal should be not lose money then its up to market psychology, if its like now (fight against beat and bulls) accept little profits, if its bullish, guarantee your profit then update your stoploss in every up move and check the first strong resistance.

[Lucius]

A lot of people make the same mistake by being too greedy, and ignoring the small profits and not using the proven recipe for success in Bitcoin by buying low and selling high. 

For someone to profit from trading with cryptocurrency, it is crucial to understand what this is really about. We often see people coming from different trading markets thinking that trading with crypto is same as trading with stocks or gold. In my personal opinion, trading with cryptocurrency is much more complex then trading with gold, especially for the sake of security itself.

I agree that in some cases is better to take small profits when the opportunity arises, then to just hold for long-term. But we can do both, just by divide some funds for trading, and rest of coins can be stored as long-term investment.

I would say that this year is very good for trading since price was close to $3000 at the bottom, and almost $14 000 at its peak. It is about $11k profit if you buy low and sell high per 1 BTC. And we can see that only in last 3 months price is drop sharp at least 3 times close to $9000, and bounce back above $10k very fast, so whoever tracks the price movement in recent months has a chance for a really nice profit.

[nankers]

A lot of people make the same mistake by being too greedy, and ignoring the small profits and not using the proven recipe for success in Bitcoin by buying low and selling high.

simple strategy but very efficient 

There is nothing wrong with long-term hoarding, but when the opportunity is there to take some small profit, then you should take it.   Do not re-invest your profit, because your first goal must be to get back your initial investment. Chip away that initial capital investment, by taking 5% here and 10% there, until you made back 100% of your initial investment.

Hoarding in the long-term might be convenient for some people, but the safe option is to take back small percentages in profits, until you get all your initial investment back. I use that profit to buy some goods and pay for some services in Bitcoin, so that I can show something for the risk that I took and for the effort that I put in to invest in Bitcoin.

This strategy helps to oil the Bitcoin merchants gears, by using Bitcoin as a currency and it also helps me to use Bitcoin as an investment tool.  

Personally im 100% agree and honestly I prefer to get a small profit every day than I have to wait for a long time just to get a big profit. because I think if we calculate the total profit we get, maybe the daily profit with a small amount will be greater than the big profit over a long period of time

[romero121]

Thats what im trying to tell everybody. First goal should be not lose money then its up to market psychology, if its like now (fight against beat and bulls) accept little profits, if its bullish, guarantee your profit then update your stoploss in every up move and check the first strong resistance.

Yes, when we loss truly the mind won't think of anything. It just wants to get back the loss. This most of the time triggers to take wrong decisions which once again causes loss. As stated it is always good to go with profit, even if it is very small that what we've targeted. The market is volatile, and there is no need to panic, we get more and more chances to make the buying and selling. Very important thing I prefer is to take decisions depending on the market situation. When it is bullish if someone is selling it is a wrong decision. Likewise certain do's and don't need to be followed.