Making profit with a bubble

[PercT4b]

We all know that this upward move won't last forever, even if a real spot ETF is gonna be approved (that would cause another big rise, in my opinion), one day we will reach an unsustainable point of extreme overvaluation and a single fundamental event will trigger a huge dump.


I'm not trying to predict the future, I'm just trying to be honest myself considering that this cycle will come to an end (as always did before), but that could represent an opportunity too, for instance, with a short position opened at the right time (I know that I could appear like a complete fool who is trying to imitate Michael Burry in 2008).


What's your idea about that?

[mk4]

Using long and short positions when confident that the prices will move a certain way isn't really anything new, and is being done for a while now. But yea, it could be profitable if you could actually do it correctly, but it's been shown time and time again that most people aren't built for trading. It's going to be completely up to you to prove if you're actually better than most people or not.

[Oshosondy]

This is my idea, one thing about bitcoin is that ATH is what that will later happen, it depends on how early you want to make use of your money, know that I am not talking about other cryptocurrencies but only bitcoin because other cryptocurrencies can give you opposite result, many altcoins are shitcoins.

If someone needs his money very early, it is good now to convert his bitcoin to fiat and use it, but if the person have altcoins, he can still consider to make use of altcoins for the fiat and use it for what he wants to use it for. But if the person is not using money for anything and can hold for more years to come, this will be the best to do, to hold regardless of the market situation, bitcoin price will again and again get to ATH.

[crwth]

I knew some people who have profited with the dump during the 2017-2018 bull run and amassed big profits, and they have probably made a lot more with the current trend that we are in now. Back then, I wasn't looking at the bigger picture and understand why it's happening now, but now at least you will be looking ahead instead of just a couple of steps. Look at cryptocurrency now; it's big.

Do you think it will get back to that level soon? If you can time that, good for you. For me, it's going to be the long run.

[danherbias07]

If you can do it right then use that knowledge to make a profit out of it. You don't look like the type who is doubting himself and that is your first step with taking advantage of the bull market. Buy the dip and sell it if there's a chance. I think that's why this is in the trading discussion for that purpose and not in other sections of the forum.
There are hardcore holders who won't agree with the method but we have our own ways if we are impatient on waiting for the bubble to explode.

[bitLeap]

Using a method that you understand and taking advantage of the market situation to make a profit and being more careful from the arrival of a bear market is a good decision. When all can control decisions, it will not harm you and your finances. As long as the market provides an opening for you to enter, do some shorts that can be taken back in no time. However, most of these trades are of greater consequence and not worth the gain.

[livingfree]

We're worried because we know what has happened during 2017-2018. A long bear market but it seems too quick.

I wouldn't mind thinking about worrying the next bear market and would be focused only at the current market that we're having. It's been a year since the start of this bull run.

It may end anytime soon but as long as the momentum is there, you take that chance.

[so98nn]

We can't be sure until the year 2140 pops in and the last bit is mined by the miners. The bubble will surely last until then we are safe or either most of us will be buried and burnt somewhere at the corner of morgue. Lolz. So lets think about the current cycle may be for next 40 years on an average we all be trading it. Until then I dont see any problem. May be most of the countries would have supported the bitcoin legally, may be by this time StarLink is active and we are able to send and receive the bitcoin from every corner of the world. May be this will increase the bitcoin value enormously and its already trading at 1 bitcoin equal to hundred thousand USD or more. There are multi-bubble theories for this. I would say lets focus on the current times and keep gaining as much profits we could!

[Oceat]

I don't know if everyone noticed it but a bubble is also an opportunity when you expect the price won't get down you might lose your will to hodl but instead you sell it to recover at least small amount of your losses. But in Bitcoin, it's different when there's a bull run you can sell some to make some profit and when there's a bearish market you accumulate first and hodl until the price goes bull run. That's how investors/traders do it, they wait for the opportunity. But sadly, some of them are too greedy, they tend to that when there's a time to get the profit they hodl instead of taking some profit and mostly ended up losing more instead.

[otundebis]

I am  definitely in agreement with the fact that the bubble will burst at some point, what is unknown is when! But I believe short bitcoin at this time is self defeating! I don't know what your trading objectives but I now is the time to make them come true. Bitcoin price projection is not over yet, bitcoin is likely to reach another ATH before the bullish circle runs out!

[Lanatsa]

Using a method that you understand and taking advantage of the market situation to make a profit and being more careful from the arrival of a bear market is a good decision. When all can control decisions, it will not harm you and your finances. As long as the market provides an opening for you to enter, do some shorts that can be taken back in no time. However, most of these trades are of greater consequence and not worth the gain.

Taking action whether on an upcoming bear or bullish run would always be good yet this could be considered out to be an analysis which you do really need to take up some action for you to make out some

advantage which might result for you to make some profits which we are really trying to do in here as a trader/investor here on this market.If you could really make some profit in a bubble then go ahead,

even though it isn't an assurance but at least you are much aware that it could really make things possible to happen if market turns out to be good.

[Silberman]

We all know that this upward move won't last forever, even if a real spot ETF is gonna be approved (that would cause another big rise, in my opinion), one day we will reach an unsustainable point of extreme overvaluation and a single fundamental event will trigger a huge dump.


I'm not trying to predict the future, I'm just trying to be honest myself considering that this cycle will come to an end (as always did before), but that could represent an opportunity too, for instance, with a short position opened at the right time (I know that I could appear like a complete fool who is trying to imitate Michael Burry in 2008).


What's your idea about that?

You are not wrong, we all know that at some point the current bull market will end and if you are willing to short it when a correction or crash is about to happen then you can even obtain profits under those circumstances, however it is very difficult to actually take advantage of the downwards movements of bitcoin because as we know all markets have the tendency of growing slowly while they go down way faster, and this is even worse in the market of cryptocurrencies, so it is difficult to take advantage of the corrections unless your timing is perfect.

[Zilon]

The market moves in three direction upward (upsurge), downward (dump), and range market and none of this market move last forever. Each phase of the market comes and fades away. Understanding each market move and trading in line saves alot getting each trader ready for the next move

Now it's an upsurge which wouldn't last forever. Taking profit at each stage in preparation for another dump should be what a wise trader should consider at this moment to avoid been taken unaware

[Johnyz]

There’s no market that will always go up, you should anticipate the dump trend and do the necessary actions so taking profit is advisable and this is how trading works. If you do short, know the risk same thing with holding because the only certain in this market is that, it will always go up and down.

[shield132]

We all know that this upward move won't last forever, even if a real spot ETF is gonna be approved (that would cause another big rise, in my opinion), one day we will reach an unsustainable point of extreme overvaluation and a single fundamental event will trigger a huge dump.


I'm not trying to predict the future, I'm just trying to be honest myself considering that this cycle will come to an end (as always did before), but that could represent an opportunity too, for instance, with a short position opened at the right time (I know that I could appear like a complete fool who is trying to imitate Michael Burry in 2008).


What's your idea about that?

No, no, you are right, even fall is the advantage if the trader is open minded but you know, futures trading comes with leverage. When the users start to use leverage higher than 1x, then here comes the problem. The more leverage you use, the higher your profit can be but the riskiest your step can be. Yeah, with 7K USD right now and with 10X leverage, you can trade like you own 70K bitcoin and open short position on futures but if you open it at btc right now, then 10x rise and you'll end up with nothing, i.e. from 63K to 70K, you lose everything but if you open right now with 1x leverage, then the following scenario will happen:
1. Open short position right now at 63K with 1x leverage.
2. The price that will liquidate me will be 126K.
3. Even if bitcoin reachs 100K and then starts fall and lose 50% of it's ATH, you'll end up with the price of btc - 50K and you'll profit.

Maybe a bad example because I highlighted the positions at the moment but just wanted to say that short position with 1x leverage is great option on bitcoin because it's less likely to have massive gains or falls but still it offers ok profit but safer.
On coins like LRC, XTZ, QTUM, Matic, opening of short and long positions even with 1x leverage is very risky because these coins can rise enormously at any moment like they fall the same way too.

One thing that I sometimes do is wait for the massive rise and then open high leveraged short position (which is very risky but very instant rewarding too). Or another best profitable option is to spend days and nights on massive dumps and try to catch the best price to open long positions with high leverage, the profit will be unbelievable.

[Sterbens]

The opposite question is how to make profit on dump market conditions? Profits come for you to take big discounts and take a lot of percentages. Instead of risking your portfolio in a bubble, you're better off taking advantage of the altcoin's massive correction. If the trading strategy you are currently implementing is much safer. So what can make us smile for the future when the bubble bursts again?

[el kaka22]

We all know that this upward move won't last forever, even if a real spot ETF is gonna be approved (that would cause another big rise, in my opinion), one day we will reach an unsustainable point of extreme overvaluation and a single fundamental event will trigger a huge dump.

Yeah, you can make profits out of bull and bear run even if you are trading only on spot markets. Just buy now and hold until bitcoin prices showing rapid movements like daily 10% upward and then if you notice it reaches $100k or $180k or $380k then you may sell from there and hold your fiat or stablecoins and wait for another 6 to 10 months to buy back. Bitcoin's this bull run's ATH may occur by end of this year or by mid of next year and from that point you may sell and hold fiats or stablecoins.

If you have reacted to sell by December 2017 and would have bought back by December 2018 or March 2020 then you might have got 5x more bitcoins for your same investment. I am sure already many people might be into such a practice.

[bitLeap]

Using a method that you understand and taking advantage of the market situation to make a profit and being more careful from the arrival of a bear market is a good decision. When all can control decisions, it will not harm you and your finances. As long as the market provides an opening for you to enter, do some shorts that can be taken back in no time. However, most of these trades are of greater consequence and not worth the gain.

Taking action whether on an upcoming bear or bullish run would always be good yet this could be considered out to be an analysis which you do really need to take up some action for you to make out some

advantage which might result for you to make some profits which we are really trying to do in here as a trader/investor here on this market.If you could really make some profit in a bubble then go ahead,

even though it isn't an assurance but at least you are much aware that it could really make things possible to happen if market turns out to be good.

And if the market otherwise isn't good, then you should be prepared as a long term holder without ever being convinced of the potential of a traded altcoin. That's the risk, but with many options in investing you must have many diverse alternatives. It's like having different options with two volatile market conditions every time.

[teosanru]

We all know that this upward move won't last forever, even if a real spot ETF is gonna be approved (that would cause another big rise, in my opinion), one day we will reach an unsustainable point of extreme overvaluation and a single fundamental event will trigger a huge dump.


I'm not trying to predict the future, I'm just trying to be honest myself considering that this cycle will come to an end (as always did before), but that could represent an opportunity too, for instance, with a short position opened at the right time (I know that I could appear like a complete fool who is trying to imitate Michael Burry in 2008).


What's your idea about that?

Even though pretty hard to do but this thing is obviously very much practical and many people have been doing this a lot of time. But as shown in the realities of the movie do differ a lot, predicting a phase of overvaluation is obviously possible but predicting an exact time or date of the pump is impossible, and if you put a short in overvalued market there are good chances that market might show some spikes upward in form of wicks to display it's weakness, after every try to break resistance it will go south but might try to break it once again, this is where traders either get their stop losses hit or close their trades due to the funding fees they have to pay during this sideways phase, some better traders pick positions at every high to ensure they are averaging short positions at highs and therefore would eventually win someday but then their profits might not be that attractive. So these are the two reasons why it's pretty hard to make a lot of money by shorting from the exact top of this big cycle.

[harizen]

We all know that this upward move won't last forever, even if a real spot ETF is gonna be approved (that would cause another big rise, in my opinion), one day we will reach an unsustainable point of extreme overvaluation and a single fundamental event will trigger a huge dump.

I'm not trying to predict the future, I'm just trying to be honest myself considering that this cycle will come to an end (as always did before), but that could represent an opportunity too, for instance, with a short position opened at the right time (I know that I could appear like a complete fool who is trying to imitate Michael Burry in 2008).

What's your idea about that?

It always makes sense to believe that no matter how strong the trend is, there will be a time that its momentum will crash, be it on uptrend (bull trend) or downtrend (bear trend). There's always an event that can trigger the pump or dump and that's always the case.

Any ideas that we think a good strategy is worth testing. After all, we don't know what will be the result without actually using it.

Just don't set too much target price as sometimes it won't happen. In other words, if you think it's the right time to buy, then do it. The same goes for selling.