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Author Topic: When bitcoin price is low, any slight movement is more profitable. Here is why.  (Read 238 times)
WLtoys V912 (OP)
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February 03, 2020, 07:54:57 PM
 #1

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.
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February 04, 2020, 07:22:46 AM
 #2

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.
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February 04, 2020, 08:21:11 AM
 #3

Calculations is fine, but do you think always markets will recognized according to your calculation? No, I don't think so, we don't know what will happen exactly. Because we should not forget, when you are buying something selling on the other end, so when you are selling then someone buying from the other end. And you should realized that everyone here for get profits. So you might be also be a loser. But if bitcoin start bull run then its profitable or all overs crypto industry. That's why people expecting for increse btc price.

Anyway, some people even can take advantage of btc dump by trading btc/usd pair. So always there will be loser and winner, never mind btc on bull or bear. This is the nature of trading, we can't neglect and can't be winner always.

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February 04, 2020, 09:43:46 AM
 #4

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


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February 04, 2020, 01:26:18 PM
 #5

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
Actually there would be more risk if the person invests major capital. Small amount of funds can easily be recovered by when it comes to huge capital, it really gets almost impossible to recover those funds if ever lost. In this case, I would suggest to go for futures trading.

You can trade with major volume with just some amount of coins as futures gives us the benefits of up to 125x leverage which is really a good number and if we are ready to take risk, we could gain huge benefits. For mid-term trading, bitcoin price can even give us $1000 to $2000 profits in few days or maybe a week if we are trading with huge number but the risk here remains constant.
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February 04, 2020, 01:39:21 PM
 #6

So, if bitcoin's price drops to 1 dollar, all of us can make 20000% profit every day. Also, dogecoin is one of most profitable coins. It costs only 0.002 dollar.
Right?

You are completely wrong,
You cannot expect bitcoin to rise 200 dollar in a day when its price is 1$. But it can easily rise 200 dollar when its price is 10,000 dollar.
If bitcoin's price reaches 1 million dollar a day, you can expect the price to move even 50,000 dollar in a day.

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February 04, 2020, 01:47:31 PM
 #7

-snip-

Now, imagine Bitcoin is $10,000 and it goes up to $100,000 on a day, then how much is your profit?That's actually what most people wants.

What I can get from you is that to stay make money in any condition no matter the price is. So, keep trading and learning!

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February 04, 2020, 03:22:10 PM
 #8

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.
I didn't know if trading was so simple. If you know when price rises, falls and etc, then yeah, such trading will bring you 100x more profit but in reality it's not like that and such trading isn't profitable. You may profit but you need a lot of time to see charts, read bitcoin related news + add luck to all of these.
People dream about that high rise because they want guaranteed profit without any risky movement. You bought bitcoin when price was low, all you do is hold and are waiting for price rise to cashout your profit.
In overall consider this, every investment carries risks and luck. For example luck is when someone got bitcoin in 2011, forgot about it and when they saw price was 20K, then they remembered and sold all of their coins, yeah, it's luck too.

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February 04, 2020, 03:59:04 PM
 #9

This should be a example for the recent traders. We might never see price for bitcoins this low again and now as we are below $10,000 we should continue having profits by day trading with these price changes. In the current times, price for bitcoins is almost changing by $500 per day which is really a good option for a lot of traders to have profits. Major volume of trades can give major profits.

Just imagine, trading with 1 BTC can instantly make you earn $500 per day if you were able to buy at the dip and sell on peak. These profits can be seriously achieved per day if you continue to trade with bitcoins but you need to have immense knowledge about what exactly you are doing because the markets can slip anytime giving you excess loss.

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February 04, 2020, 04:10:49 PM
 #10

Day trading doesn't really care about the smaller investments like 100 dollars but the example is good. However reality is whenever day traders go into stuff like this, they do not care about the actual price but they care about the %, so even if the lower number is better for the day traders, as long as they somehow make a profit that is fine with them. Why? Because, they now have the ability of leveraging their position, they can leverage as much as 100x in some places, which means they may not have a lot of money, the price could be low or high, but in the end if you are right on a 100x leveraged position, you will make a ton of profit.

Meaning that 100 dollar would mean another 100 dollar with just 5% increase if you know what you are doing with the futures market.

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February 04, 2020, 07:39:51 PM
 #11

So, if bitcoin's price drops to 1 dollar, all of us can make 20000% profit every day. Also, dogecoin is one of most profitable coins. It costs only 0.002 dollar.
Right?

You are completely wrong,
You cannot expect bitcoin to rise 200 dollar in a day when its price is 1$. But it can easily rise 200 dollar when its price is 10,000 dollar.
If bitcoin's price reaches 1 million dollar a day, you can expect the price to move even 50,000 dollar in a day.
Volatility will really vary and it do have its own effect neither which path it would take.Swinging price on a low btc value would really have that % advantage yet movement
would really give out impact but as said not all days will really have that movement.If you do earn then you can also possibly loss equivalent into that percentage.
Already been thinking out into this probability but it doesnt work on what are the things on our mind.

R


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davinchi
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February 05, 2020, 02:28:04 PM
 #12

Man, it’s all about how much you’re investing. If the price is $100,000 and you invested $50,000 before the price goes up to $120,000, you’re still going to make a huge profit of extra $10,000. So, it is always profitable at any position it is, as long as the price is moving. Same thing with it being at a lower price. If it’s at a lower price that makes easily manipulated. That’s why most of these cheap coins are being targeted by such people who are into pump–and–dump. So it’s always profitable, even right now that it’s at high price it’s still profitable.

Probably you might have forgot one important factor: market also moves in percentage. Like, mostly bitcoin prices will move 5% to 20% up or down or both. It means like you mentioned, moving $200 was not happening frequently when the prices where below $5000 levels. So, catching $200 profits is possible (and easier) when bitcoin prices are above $10k so its percentage is low. Markets always obey the basics.
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February 05, 2020, 02:33:23 PM
 #13

Well, perhaps you are referring to short trading. Short-term trading is really beneficial in a bear market. But it doesn't mean that it doesn't make you a profitable trader in the bull run. Short-term trading has the same benefit for both. It's just that, in a Bull market, the game is more intense and will require you almost all of your time. But first, you must make sure to see if someone would buy what you sell on the market so you can profit. Focus on that point first. Indeed, this is my trick when the Bitcoin price was drastically down, divert on stable coins is the best option if you wanted to cut your losses.









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Mars,           
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February 05, 2020, 05:58:57 PM
 #14

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.
Price swinging range will be high if the prices are higher so if $200 increase when price is $4000 then it will be $800 or $1000 when it is $20,000 so the percentage of price swing is that matters but no one can calculate when the price will increase or decrease so literally your capital is in risk while doing trading.
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February 05, 2020, 11:58:31 PM
Last edit: February 06, 2020, 12:09:13 AM by CryptopreneurBrainboss
 #15

Although your hypothesis isn't wrong, you're forgetting to highlight that, it's far difficult for the price of bitcoin to increase by such percentage on a regular base when the price is low. The $200 gain in the initial $10,000 price of bitcoin is quite achievable since it's just a 2% increase that can be reached repeatedly in a day due to price movement of the market but for such increase to occur with a $4000 It won't be that easy unless some major news trigger a reaction from the market.

Using your example, calculate 2% profit on both price tag that's ($4000 & 10,000) and calculate the profit. While that of $10,000, gives you $200 profit, $4000 will gives you only $80 therefore technically it doesn't matter what the price of bitcoin is but the percentage profit gain plus capital used in trading matters more for you to be more profitable.

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February 06, 2020, 06:53:09 AM
 #16

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.

Those calculations are common sense,but you have come to the wrong conclusion.
200 out of 10K is not equal to 200 out of 4K.Children in school know that,do you really think that experienced crypto traders don't know about simple math?And NO,the amount of price movement isn't the same-it's 2% and 5%,the fact that in both cases it's $200 doesn't mean anything.Percentage ratios are more important than the actual monetary addition to the price.

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February 06, 2020, 06:55:42 AM
 #17

Basically, you're saying; when the price is lower there is a higher chance if profiting when it rises. This can also be worded as; buy the dip and sell the spike. Trading, long or short term has so many other factors that makes it more complicated than that.
Many strategies can be applied to make profit, Bitcoin is unlikely to touch some certain lower prices again and as a trader you have to adjust your strategy accordingly.

Also if the price of Bitcoin is higher, it has a much higher chance of capitalizing on the price increase to reach even higher prices, it has more solid support than when the value is much lower.

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February 06, 2020, 08:33:14 AM
 #18

Basically, you're saying; when the price is lower there is a higher chance if profiting when it rises. This can also be worded as; buy the dip and sell the spike. Trading, long or short term has so many other factors that makes it more complicated than that.
Many strategies can be applied to make profit, Bitcoin is unlikely to touch some certain lower prices again and as a trader you have to adjust your strategy accordingly.

Also if the price of Bitcoin is higher, it has a much higher chance of capitalizing on the price increase to reach even higher prices, it has more solid support than when the value is much lower.

We all know that the price of the bitcoin and other coins are very volatile and many beginners getting lose their income because of having a lack of ideas, knowledge, technique or skills they need to have a right decision about the things they need to do for investing and trading bitcoin, even in a pure market graph it can gives a lot of profit because most of the signs or signals tell the graph is the up and down, there are some prediction that is the market price of the coin sometimes falls they grab the opportunity to invest because there is a chance in the future the amount of the bitcoin goes up come along with their investment. Some people do not wait for the rising of the price; instead, while the rate is increasing; they are now making an investment so they can get their profit or income easily. Still, it depends on the person how do they manage their techniques to earn.

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February 06, 2020, 09:08:35 AM
 #19

Your calculation makes sense, but I am afraid that is not the same as in reality because you cannot get the same profit as your calculation. But the calculation can be a clue on how much profit we can get if bitcoin price is up and down every day so we can determine how much money we can use to trade. Don't forget that we cannot always get a low price and the high price because sometimes, we will miss predicting how much bitcoin price will moves. But it is not a problem if we cannot get the low price and the high price because if we can repeat the trade, I think the profit that we can get will be bigger too.
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February 06, 2020, 10:24:43 AM
 #20

Great explanation but it is not always like that.

The price of Bitcoin and even a lot of other cryptocurrencies are so volatile so you never know what will happen. If you will be day trading, you need to be so alert woth the every movement the price is going. Let's say you checked the price at 2% increase, after an hour the price might be at 5% higher or 5% lower, you never know that. So it is either a profit or a loss that is the reason it is not that easy.
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