Buy? . . . Nah, hang on a minute.

[roadrunnerjaiv2025]

We've been told to buy when the price is low and sell when the price is high. This is pretty much the thumb rule in trading.

But that is not without conditions. It isn't absolute. It doesn't always guarantee profit.

Let us not forget the RISK. And risk correlates with volatility. High volatility means high risk. And since the crypto market is a volatile market, the risk is higher here than in the stock or FX market.

So, the "buy=low, sell=high" strategy only works when you successfully manage the risk.

You can do that by:

1. Investing less than 5% of your total portfolio in crypto
2. Prioritizing other aspects of your finances ahead of investing in crypto
       - emergency fund
       - retirement savings
       - high-interest debt payment

In other words, invest only what you can afford to lose.

To sum it up--"Buy when the price is low and sell when the price is high, BUT invest only what you can afford to lose."

It may not guarantee a profit but it can help cut down loss when the bear attacks.

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[Despairo]

I'd say it's better if you not invest on crypto aka shitcoins, but just invest in Bitcoin. The rule of buy low and sell high can't be used on shitcoins because they doesn't have any fundamental and easier to manipulated due to low market cap + centralized. Bitcoin is the only one coin who have fundamental and you can analyze how much it will goes to bottom etc. Looking on 200 week moving average the bottom may likely around $24,500, however no one can know does it will happen or not, but at least it can help your decision.

If you didn't have good analysis, you do Dollar Cost Averaging by buy Bitcoin every day/week/biweekly/month in any prices. So in the long term based on Bitcoin's history, you'll enjoy the profit.

[Darker45]

I fully agree. Unfortunately, this is something a lot of people probably failed to do. I guess there are many of us who seem to have overinvested in Bitcoin or perhaps crypto in general.

In my case, I only have a small savings in my bank account. My retirement savings so to speak is also in Bitcoin. While I don't have debts, I also haven't invested significantly in less risky assets like real estate or government bonds or whatever. I don't have a stable business either. In other words, I am heavily invested in Bitcoin.

I might actually be investing more than I can afford to lose, but since I am not actually losing even a wink of sleep even in the face of this bear market, I guess I'm doing it right.

[Poker Player]

I'd say it's better if you not invest on crypto aka shitcoins, but just invest in Bitcoin.

That's what I was thinking. The OP is talking about "crypto", and applied to shitcoins his analysis makes sense, but if we focus only on Bitcoin, now is a good time to buy and well over the 5% he is talking about, depending on your knowledge and risk tolerance.

If we start from the assumption of being free of consumer debt, having an emergency fund and want to invest in Bitcoin because of its limited, autonomous and decentralized nature, we can have a very important part of our net worth in Bitcoin. What percentage will depend on each one, but I always recommend diversifying a little bit, even if it is 80% in Bitcoin and the rest of premium assets, whether Real State, shares of premium companies, etc..

[mk4]

To sum it up--"Buy when the price is low and sell when the price is high, BUT invest only what you can afford to lose."

Sorry — but bro you pretty much just combined like 2 of the most generic trading/investing advice in existence. You made it sound as if your 'strategy' was some new and groundbreaking lol.

[so98nn]

Oops, it still works for me. Take simple example of buying BTC at the rate of lets $ 100 and selling it when the market is going bearish. Now in this bearish trend the bitcoin market has fallen down to lets say $50! What position are you in now? Profit or Loss?
Now think about it in opposite way. The market has fallen badly, the entry point is $50, and on a fine day the price hits $100. Now what position are you in ? Profit or loss?

I am pretty sure if you are able to answer both of them correctly then you know your claims aint right.

- Simple math.

"Its not a question of altcoin or bitcoin, its question of how you manage your entry and exits in the market".

[mindrust]

When it comes to crypto, only risk the amount you are comfortable with losing. This space is unpredictable and it is definitely not safer than the traditional investments. Because of that, the potential rewards are a lot greater than what you may get from the other investments. The sooner you accept this fact, the better it is for you. If you can't stomach this volatility, buy real estate.

[Jawhead999]

It's true invest what you can afford to lose, but investing less than 5% from total portfolio in crypto is a pennies.

Let's say your wages are $1000/month, 5% from $1000 is only $50/month, you would get charged higher than $50 if you withdraw BTC or ETH network tokens. I don't really understand why does debt is becoming a new normal on the current conditions, if you didn't have enough money to buy non-important stuff... it's better you wait until you have enough cash or don't buy it. It just sad that many medium-low class people really want to have luxury lifestyle, that's why they're fucked of their own debt.

Investing in Bitcoin for retirement savings can be a good idea since we're know how good Bitcoin performance for long term.

[Moneyprism]

yes I totally agree with that.. it's good that we can hold back for a moment to invest our funds in crypto, especially altcoins... we can't predict how the crypto market will be in the future.. and we shouldn't invest our funds not entirely in crypto only ... wisely, we must have investment fund management so that we don't experience huge losses

[Furious 7]

this is actually a basic concept because in this case buying at a low price and selling at a high price are actually words that must be held firmly from the start when you are here.
but on the other hand, many people find it very difficult to apply things like this properly.
There are several reasons when they can't afford the first such as not being able to resist the temptation when the price rises a little they immediately sell and when the price corrects they panic about it.
In fact the people who have the understanding of buying when it's cheap and selling very high are the only people who have experience here and indeed it takes patience and research is needed for this.

[Leviathan.007]

During this time when prices or falling on the market and people can buy bitcoins with some discounts that are pretty much tempting people to buy bitcoin and increase their bitcoins when they got a good chance for it while I can see beside bitcoin, some people made decision to buy some other cryptocurrencies just because these are lower than the usual price they have on the market, while I prefer to stay away fro these altcoins, especially during this time when we don't know how deep is the market going to go. But regarding buying bitcoin, I would say the best option is to place buy orders in different lower price levels because these days the price does lots of spike movements to lower and higher prices.

[NeuroticFish]

But that is not without conditions. It isn't absolute. It doesn't always guarantee profit.

Actually buying low and selling high always brings profit. The condition is to indeed buy low and sell high and not the opposite.
And in order to avoid buying high when you thought you buy low, easiest is to DCA. As simple as that.

[southerngentuk]

One of the principles I learned when participating in the cryptocurrency market is to balance between profit and risk. When it is clear that our lives are full of things that are affecting us, we can see that investment choice is a way to find easy profits, but it comes out when people have financial basics as well as control over their own capital. But whenever the market shows signs of comfort in terms of money in investment, we can easily spend money to participate in anything that is talked about because they can only see what has happened but not the creation process that is the result. I also remind those around me to be satisfied and grateful for what life is going on, not to dwell on things that are not my own and see it as a goal that I also have to achieve. 

[traderethereum]

I agree to only invest with money you can afford to reduce the risk involved.
You can invest in any coin but always keep those limits in mind so that if you lose, you won't regret it too much.
Also, don't invest in unknown coins because that can give you a risk that you yourself will never know how big the risk is.
If you invest in bitcoin, even if the price fluctuates, there will be an opportunity for bitcoin price to increase again.
But it will all come back to the results of your analysis so you will know what you will invest in later.

[btc_angela]

To sum it up--"Buy when the price is low and sell when the price is high, BUT invest only what you can afford to lose."

Sorry — but bro you pretty much just combined like 2 of the most generic trading/investing advice in existence. You made it sound as if your 'strategy' was some new and groundbreaking lol.

Perhaps he still a newbie as far as investing and just 'rediscover' this old adage, 

Anyhow, this is no secret, and for sure majority is practicing it, just a question on when they are going to sell those to make profits because that's one part of the equation.

Wait for the next bull run? or sell when you think you have good enough profits already?

[palle11]

Most of what you have said are not new to investors here and traders. However that cryptocurrency may be volatile more than stock but not forex. Forex trading carry same risk as cryptocurrency trading, they wear same clothes of risk pattern. Trading with low risk leverage is advised. You lose and your funds are gone in both trading and the level of risk is even higher in forex compared to pairs that are not btc.

[mk4]

Perhaps he still a newbie as far as investing and just 'rediscover' this old adage, 

Yea, I wouldn't really be surprised. Nothing more classic than Bitcointalk newbies and giving over-generic merit/investing/trading advice. Also knowing that OP just learned about stagflation literally just a few days ago.

[The Sceptical Chymist]

OP, the vibe I get from your post is that you, like so many other investors in bitcoin, stocks, what have you, are afraid to actually buy when prices are depressed.  I'm reading what I see as rationalization as to why one ought to be particularly careful about buying during times like the present, when basically the entire market got flattened over the course of 48-72 hours.

If you're looking to make a profit (and especially if you're a short-term trader), now is the time to be jumping in with both feet.  What we're seeing looks as close to a flash crash as there's been in a long time, and when I woke up this morning some of the coins I follow had already started to recover from the worst of it--so if you'd just bought any ol' shitcoin yesterday (or bitcoin at $28k)--you'd be in the black by now with more profits (hopefully) to come.

The rule of buy low and sell high can't be used on shitcoins because they doesn't have any fundamental and easier to manipulated due to low market cap + centralized.

No to the first part, and no to the second as well.  "Buy low, sell high" can and should be applied to anything.  Why did you even write something like that?  And bitcoin doesn't have any "fundamentals" either.  If you can tell me what fundamentals it has that a coin like ETH, LTC, or any other coin doesn't I'd really love to know.  On top of that, not all altcoins have low market caps or are easily manipulated.  Some do, but definitely not all of them.  

Care to revise any of those false statements?

Actually buying low and selling high always brings profit.

Christ, I'm glad I'm not the only one here who's not just writing nonsense and not giving a single logical thought to this discussion.  Arguing against the "buy low, sell high" model is akin to screaming at a room of geologists that the world is flat.

[Kakmakr]

I honestly think you are under invested in Crypto currencies, if you only expose your total portfolio to Crypto currencies, with only 5%

You want to make a decent profit when the market recover after a small dump, so you should at least make it worth the effort to invest say 10% to 15% into Crypto currencies (Bitcoin BTC) when the price are dropping hard.

A 10% to 15% exposure to high risk investments like Crypto currencies, will not destroy you if something goes wrong... but it will give your total investment portfolio a decent bump if it succeed.

I made more than 800% on my investment in Crypto from coins that I horded since 2013.... so I re-invested some of those profits into low risk investments and safe havens... and it gave my total investment portfolio a massive boost. 

[batang_bitcoin]

The most common strategies, you buy low and sell high. That's always the case but the problem starts when you think that you're probably low but it isn't the actual low because there's a lower price.
And in that manner, that's where the DCA comes in. Not just for the accumulation at any price that's probably a good time to buy when an increase is about to come. The same goes if the price is uncertainly low.