Just because prices are high, doesn't mean that is a good investment.

[qwertyup23]

There are too many people who buy when it is going up and sell when it is going down. That is a bit of a problem in the crypto world, I do not know how we can fix it but I believe that it is certainly something that would be a bit weird if you consider what we are doing right now. I mean if we buy when it is going down and sell when it is going up then we are making a profit and that is how trading is done, that is exactly what we should be doing.

However, if we are making a loss right at when we should be making a profit because we are doing exactly the opposite then I am not going to be really sure how to help these people out neither.

I think in general, that is the norm that everyone should follow: "purchase low, sell high" in order to maximize any profit from our investments.

The only problem that I see is that people sometimes mistakenly invest into BTC without even knowing what it is. Then, they start to complain once their investment goes down by 5-10% without even knowing about its volatility. Then, they start to spread rumors and fake information about BTC being regarded as a 'scam' since their friends profited and they lost.

Before you invest, it is advisable to do proper research into any investment. Blindly investing into something without even knowing its nature, history, and currency would lead to one's downfall.

[pinggoki]

I think that's one of the most common mistakes people make when they first get into crypto. They see an asset, they assume it was good because it was pumping like crazy, invest hundreds of dollars, some even putting their life savings on the line, and then at the end of the day fill the r/suicide section of reddit when the asset drops so low. People gotta understand that despite the fact that price determines a lot, you have to also understand that it only determines the current implications and conditions of the asset itself, never what it could be in the future. That is to be decided by its use-case and utilization.

There are too many people who buy when it is going up and sell when it is going down. That is a bit of a problem in the crypto world, I do not know how we can fix it but I believe that it is certainly something that would be a bit weird if you consider what we are doing right now. I mean if we buy when it is going down and sell when it is going up then we are making a profit and that is how trading is done, that is exactly what we should be doing.

However, if we are making a loss right at when we should be making a profit because we are doing exactly the opposite then I am not going to be really sure how to help these people out neither.

That's just something we would have to live with for the rest of our lives I think. A rookie mistake will always happen on rookies no matter what. So what can we do as experienced investors and cryptocurrency enthusiasts you ask? Well easy. Invest more and don't be stingy with the information we gather. Remember that the community's success is our own success so as an individual not only should you think of yourself when you speculate and study an asset, you also want to think about the people whom you would let know of what the asset is and its pros and cons, from there allow them to make an educated decision for themselves.

[Bollexz1]

For me, it's faith in the investment is what we should have so we don't do anything wrong with our investments.

Well of course, one has to have faith on its investments but that hold the thinnest percentage in determining what a good project is. What seem matters most is having to research by oneself so you don't have to rain a curse on yourself in a later time when you get to realise the project plans which may however not favours you.

[wxa7115]

True, however many times that is the only thing many traders are interested in, they see that a coin is going up in value and then they want to invest in it, they do not care what is the vision of the developers or the fundamentals of the coin, they are interested in the fact the coin has gone up in value and they want some of those profits for themselves.

And while I understand their posture as the whole point of a trader is to make money, at the same time that kind of attitude can be very risky as the majority of the times they do not know in what kind of coin they are investing and this can create some problems for them as they invest in coins that are obvious scams for the community and then they lose their money in that way.

This is usually why a lot of traders are getting screwed, if they will only look at the price movement and not the actual development per se.
Because if they are caught in the middle, they can really lose money as they won't know if the price will ever go up again.
So yes, it is important to follow also the updates and progress of the coin you are investing with, because it will give you insights if they have future or not.
Be careful touching pump and dump coins, because you can lose money here and not recover even your initial funds.

Something that traders are missing is that electing which markets to trade is also part of a strategy, if someone selects strong markets like bitcoin and other solid altcoins then at least he knows that even if those coins can crash from time to time when this happens it has nothing to do with some issues on their development and it has to do with some manipulation going on or a natural crash coming to the market due to the decrease in the demand.

But when it comes to altcoins with a low volume there are way more chances for the drop to be simply because there was some kind of issue with the developers or the vision they had for their coin cannot be realized at all or they were scammers, so there are more risks you need to watch for and instead of giving more attention to those coins they give them none, causing all the tragedies we have to read on the forum and outside of it.

[Bitstar_coin]

I think a lot of things are overpriced including btc, can we really say this price at which btc is trading is the actual value base on its fundamental and usage! It is hard to telll, but investors seem to develop more interest whenever the btc price is increasing, it is like a norm especially in the crypto space when people consider a project successful when it's able to attain a high price, the fundamentals always comes last.

[mindrust]

This argument also has another side.

It also doesn't mean it is a good investment because it is cheap neither.

So a good investment usually don't depend on the price. High prices and go higher and low prices can go even lower.

It might not be a good investment when it is high already but how do you know it is not going even higher?

[wxa7115]

This argument also has another side.

It also doesn't mean it is a good investment because it is cheap neither.

So a good investment usually don't depend on the price. High prices and go higher and low prices can go even lower.

It might not be a good investment when it is high already but how do you know it is not going even higher?

And we have many examples of this, how many times we have seen newbies in the forum being attracted to XRP or dogecoin because they see the price is cheap for those coins, not understanding that the supply of those coins is enormous which is why their price is so low.

But newbies being newbies do not understand this explanation and invest anyway on those coins, and then when they obtain poor results they comeback to complain about it while ignoring the fact they were warned against investing in those coins.

[Sebas.tian]

Well, bitcoin has a high price, does that mean that bitcoin isn't a worthy investment? Pretty sure that you can invest little by little if you want to or probably you might even try saving to afford the investment but that's not going to be easy.

With your determination, it can be easy for you to save a lot for the future if you really understand the market price right now. Buy when the price drop and sell when the market is suitable for you to make a good profit from the investment.

[Fredomago]

There are too many people who buy when it is going up and sell when it is going down. That is a bit of a problem in the crypto world, I do not know how we can fix it but I believe that it is certainly something that would be a bit weird if you consider what we are doing right now. I mean if we buy when it is going down and sell when it is going up then we are making a profit and that is how trading is done, that is exactly what we should be doing.

However, if we are making a loss right at when we should be making a profit because we are doing exactly the opposite then I am not going to be really sure how to help these people out neither.

I think in general, that is the norm that everyone should follow: "purchase low, sell high" in order to maximize any profit from our investments.

The only problem that I see is that people sometimes mistakenly invest into BTC without even knowing what it is. Then, they start to complain once their investment goes down by 5-10% without even knowing about its volatility. Then, they start to spread rumors and fake information about BTC being regarded as a 'scam' since their friends profited and they lost.

Before you invest, it is advisable to do proper research into any investment. Blindly investing into something without even knowing its nature, history, and currency would lead to one's downfall.

This is how proper investment should be taken, understand the both benefits and risk in order to analyze and balance your investment well, there are many people who lose their investment because of wrong mindset, thinking that they can buy low and sell high not realizing that what they've thought is low to them can probably drop for more due to volatility.

If you are new to this investment, before you invest, better to observe how the market works and how things run around this industry, from that point you'll be able to analyze and have a better anticipations.

[perryxi2]

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

To a certain extent, a high price often means that investors have faith in the fundamentals of the commodity (For example, one of the most expensive shares in the American stock market is Berkshire Hathaway, which has consistently outperformed the S&P 500 since 1965).

However, there is the potential that high prices don't actually show genuine interest in a stock, but rather frenzied speculation on a commodity that has poor fundamentals.

A prime example of this happening was at the dot com bubble in the early 2000s.

What happened was companies that were, to be frank, pretty shit had managed to get multi-billion dollar evaluations because investors believed that the internet had fundamentally changed the business landscape forever.

As a result, people quit their jobs to trade full time, media stoked up the desires of getting rich and everyone believed that this gravy train will carry on rolling on and on forever.

Then the combination of increased interest rates, the majority of the aforementioned companies burning through cash and investors becoming aware of it all lead to the technology and by extension the entire economy to collapse while a few key members making big money.

This entire situation was the very exemplar of the title as companies that had billions of dollars turned out to be worthless at the end.

Be vigilant.

The rule that we should hold in this market is not to invest in coins that have risen too high because I am sure it will fall and you will become a peak buyer with the highest price of the coin. that coin. follow and analyze the price of the market chart wait for the price of DIP then start to be able to buy it this is simpler than you buy the coin with the price trending up and very difficult to control get it, and buying DIP you should buy 2 times and watch at the lowest possible price. I believe those with long-term trading experience will be like me.

[harizen]

There are too many people who buy when it is going up and sell when it is going down. That is a bit of a problem in the crypto world, I do not know how we can fix it but I believe that it is certainly something that would be a bit weird if you consider what we are doing right now. I mean if we buy when it is going down and sell when it is going up then we are making a profit and that is how trading is done, that is exactly what we should be doing.

However, if we are making a loss right at when we should be making a profit because we are doing exactly the opposite then I am not going to be really sure how to help these people out neither.

I think in general, that is the norm that everyone should follow: "purchase low, sell high" in order to maximize any profit from our investments.

The only problem that I see is that people sometimes mistakenly invest into BTC without even knowing what it is. Then, they start to complain once their investment goes down by 5-10% without even knowing about its volatility. Then, they start to spread rumors and fake information about BTC being regarded as a 'scam' since their friends profited and they lost.

Before you invest, it is advisable to do proper research into any investment. Blindly investing into something without even knowing its nature, history, and currency would lead to one's downfall.

Even with research prior to investing in crypto, without actual experience, those new investors won't understand anything. They won't know the pressure until they are now currently in the situation.

To become a good and better investor in the long run, they should experience all the worst things in crypto for them to become more be careful in their next actions. Those worst experiences will also be served as their foundation to minimize their mistakes along the way. And more importantly, that's their test if they really want to continue or pursue their crypto journey for long.

Professional traders nor investors, won't reach their status of being a better one if they didn't experience lots of mistakes while they progress.

[2double0]

Bitcoin is not a company, nor is it owned by own. You are free to keep or sell it. It is people who decide the value of btc.

Your title also applies on coins with low prices and market capitalisations. Bitcoin had been here for more than a decade, its value went up after going dead many times. In other words, it revived. Take out any altcoins from the list and show me if any of them proved to have the potential to do a comeback like btc did? Btc was said to be a bubble before, but now, institutions are putting in their money to incentivise this market and all of its new aspects. Crypto is not btc alone, but crypto is nothing without btc. So this superiority gives btc an advantage over others and gives it a reason to be unique and rule over. Internet changed everything but nobody was ready to get adapted to it, but crypto has given all of us a great opportunity to change our future with our hands. I cannot speak about other coins but btc can give guaranteed* returns on your investment at any price bought.

* Based on historical performance.

[Hippocrypto]

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

To a certain extent, a high price often means that investors have faith in the fundamentals of the commodity (For example, one of the most expensive shares in the American stock market is Berkshire Hathaway, which has consistently outperformed the S&P 500 since 1965).

However, there is the potential that high prices don't actually show genuine interest in a stock, but rather frenzied speculation on a commodity that has poor fundamentals.

A prime example of this happening was at the dot com bubble in the early 2000s.

What happened was companies that were, to be frank, pretty shit had managed to get multi-billion dollar evaluations because investors believed that the internet had fundamentally changed the business landscape forever.

As a result, people quit their jobs to trade full time, media stoked up the desires of getting rich and everyone believed that this gravy train will carry on rolling on and on forever.

Then the combination of increased interest rates, the majority of the aforementioned companies burning through cash and investors becoming aware of it all lead to the technology and by extension the entire economy to collapse while a few key members making big money.

This entire situation was the very exemplar of the title as companies that had billions of dollars turned out to be worthless at the end.

Be vigilant.

It doesn't mean that when the price of bitcoin is too high, it is already good for investment. No, it's not like that, maybe, the price of it is good for now, but we can't predict what will happen in the future. It's better to choose a good coin, a coin with lot of potential for you to invest. Bitcoin is not a company or even owned by us. We all are free to keep or sell our coins. It is us who will decide the value of Bitcoin.

[FanEagle]

No, high price does not determine or mean that an asset is a good investment. Any project can be given any price as long as the team behind the project wants it to start from that price. Developers can decide to set the price of their coin starting from $100 when they launched the project, that doesn’t mean that the project is going to be a good investment.

So when considering an investment to make in the cryptocurrency market, it's not really advisable to be looking at how high the price of that coin is . What you should be looking at is the growth of that coin, the growth of a particular coin is what shows the success. Some coins will have a high price and when you check the chart you will see that it is mostly going down and not even increasing that much. So, it’s not worth it at all.

[Fatunad]

This argument also has another side.

It also doesn't mean it is a good investment because it is cheap neither.

So a good investment usually don't depend on the price. High prices and go higher and low prices can go even lower.

It might not be a good investment when it is high already but how do you know it is not going even higher?

High price does significantly means that there's a demand which is the most important factor where people should really consider on looking on because it wont able to reach out that state if it doesnt really have any potential or real use case on where the community could look upon and decide whether they do tend to engage out or would simply ignore. It is indeed true that everything will not really vary on the price because there are some offerings which are
expensive but not really totally that has potential but we have seen on how bitcoin did reach out this price which do came first from on the floor.

[Fredomago]

No, high price does not determine or mean that an asset is a good investment. Any project can be given any price as long as the team behind the project wants it to start from that price. Developers can decide to set the price of their coin starting from $100 when they launched the project, that doesn’t mean that the project is going to be a good investment.

So when considering an investment to make in the cryptocurrency market, it's not really advisable to be looking at how high the price of that coin is . What you should be looking at is the growth of that coin, the growth of a particular coin is what shows the success. Some coins will have a high price and when you check the chart you will see that it is mostly going down and not even increasing that much. So, it’s not worth it at all.

You have to consider everything behind. Following your statement, developers can easily place the price and they can also hype it up. That's how most scammers are doing, they alluring investors to believe that the project are good as it's getting attentions and hypes are really moving the value up, unknowing that's it's just an artificial pump where at any moment dumped can happen right away.

Make sure to deal with good research, investigate deeper and not just follow or invest in the project without doing your homework.

Most of those who perform all these precautions are succeeding from this investment venue.

[dothebeats]

This is what newbie investors think: high price equate to the performance of an asset. While it holds some degree of truth to it, it still isn't enough since some are just partially inflated and are pumped temporarily to attract more and more people. I've been asked by some of my friends on whether or not buying bitcoin, or any other crypto at X price is smart. I just say that if their wallet can afford to lose the money they want to invest, and if they have done their research well enough, that is when buying such crypto becomes justified.

[adzino]

No, high price does not determine or mean that an asset is a good investment. Any project can be given any price as long as the team behind the project wants it to start from that price. Developers can decide to set the price of their coin starting from $100 when they launched the project, that doesn’t mean that the project is going to be a good investment.

So when considering an investment to make in the cryptocurrency market, it's not really advisable to be looking at how high the price of that coin is . What you should be looking at is the growth of that coin, the growth of a particular coin is what shows the success.

If it's a decentralized currency, then no, the developers don't set the price. The market decides the price. But if most of the supply/coins are held by the developers, then yeah, they can decide/control the price. They can manipulate the price for their own advantage. And no, you shouldn't look at the "growth of the coin" (not even sure what that means) when considering the  price and investment. You should be looking at the supply and the market capitalization. A coin having a high value doesn't mean its a good coin. The supply might be very low causing the price to be very high. Look at the marketcap.

Some coins will have a high price and when you check the chart you will see that it is mostly going down and not even increasing that much. So, it’s not worth it at all.

So according to you, when the price starts to crash, the coin is useless?

[SquallLeonhart]

you shouldn't look at the "growth of the coin" (not even sure what that means) when considering the  price and investment. You should be looking at the supply and the market capitalization. A coin having a high value doesn't mean its a good coin. The supply might be very low causing the price to be very high. Look at the marketcap.

Even you are sounding like having all the valid arguments, when we are considering the case of bitcoin, it is valuing high today because people feel and find it is a good investment and moreover it is time proven. Bitcoin is consistently growing higher and higher for every four years which makes it is a good investment and being a good investment helps it to have higher value; an interlinked reaction.

Basically bitcoin is having higher value because of it limited supply. Yeah, limited supply must be a initial trigger for attracting investors and then higher value again attracts investors to have further higher value. So, a chain reaction happened and will keep happening in near future as well. Hence, these higher values are not due to manipulation but for a reason which means bitcoin must be a good investment unlike what OP argues.

[wxa7115]

I think a lot of things are overpriced including btc, can we really say this price at which btc is trading is the actual value base on its fundamental and usage! It is hard to telll, but investors seem to develop more interest whenever the btc price is increasing, it is like a norm especially in the crypto space when people consider a project successful when it's able to attain a high price, the fundamentals always comes last.

Technically speaking since the price of everything is always determined by supply and demand this means that the price that something has is always its correct price, you may think the price of bitcoin and many other assets is overpriced but if this is what the market dictates then that is its true price, as if the price is currently at 63k you are not going to find anyone willing to sell for a price much lower than that.

However even if you are correct and the price of bitcoin is too high compared to its fundamentals now we need to wonder why this is the case? And I think that people are not really confident the economy is going to recover at the speed governments want, and this means they are looking for a way to protect themselves and this means they have to buy bitcoin for a premium as many people are thinking and doing the same thing.