Realizing the value of holding cash

[tvplus006]

...Have cash after you profit a good sum, but do not have any cash during bear run and buy it all.

This is the wrong strategy to spend all the money to buy cryptocurrencies not only in a bear market, but also in a bull run. If you continue to spend everything on purchases, you will eventually lose your money. In any case, you should have free funds in your wallet that will ensure your financial security.

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[Wexnident]

The only issue here is that no one really knows when the bull run starts/ends. Same with bear runs. Hence why people tend to overestimate and pretty much lose most if not all their investments. Another issue would be the cutting the losses part, if they were to do so they should've done so by setting a stop loss early on, or if not, if it was an asset that performs well in a cycle like Bitcoin, then I honestly wouldn't sell at a loss, I'd just wait for the cycle to repeat itself again.

Always keep in mind to only invest what you can invest. Running out of money due to investment simply means you don't really have a financial plan at all, which is a mistake.

[CuriousGeorge]

People gonna say you must use whole of your money to buy everything during the bearish market but they are all wrong about that. Cash is imporatnt thing. If you didn't have cash and then what will be used to fill your daily needs? You are investors and you need to eat everyday.
Buying asset is good as long as you have enough cash in your hand . that's the main point.

[maydna]

It will depend on how they can take profits during the bull run so that when the market conditions become bear market, they can buy lots of coins and keep them until the next bull run. But if you instead sell a lot during the bear run, it will not give you any profit and you can even get a loss. And I agree with @OP, who said we need to have money now to buy a lot of potential coins so we can hope we can take big profits in the next bull run.

[d3nz]

There are so many people during bull runs that run out of cash because they like to buy all they could buy to ride the wave, which results with them losing a lot of money when the crash finally starts, it could go up a lot, and I mean A LOT, but eventually it will go down, so having a little bit of your profit cashed out could benefit you.

Same people sell a lot during bear run, whereas you should have cashed out at the bull run to take profit, and during the bear run when its low like this, you should go out shopping. Its low right now, and everything is looking delicious to me, I am running out of money from buying all these amazing coins and tokens, because I know they are at the bottom.

Have cash after you profit a good sum, but do not have any cash during bear run and buy it all.

We really can't predict or analyze when the market will go up or down, and all of us are getting the same situation where we are out of cash to buy an altcoin or BTC that is getting much cheaper. The other option now is to buy and sell the assets that we are holding and if we think that the market will get more dip then we need to sacrifice and stop the loss.

Trading is really risky if you don't have a proper strategy and much better to always have a stop-profit or loss that can be triggered when the market gets up or down.

[yazher]

Having cash on your hands always is a good strategy, it can give you buying power and when you see opportunity you can easily get it because you have that extra funds with you from time to time. Also, cash can help you with your emergency needs, aside from having your own emergency funds it can help you a lot once you have other extra funds. Cash management is also important, we should not just buy during bear market, we still need to analyze as well.

Especially today when the time is uncertain to end this current inflation and the war still exists that cost all of disrupts in the world economy. You really need some cash and to be fair, you also need some crypto that is tradable because those two are in demand when the time of crisis, and no it's really best to have more choices than to stick to one thing like what we saw with the banks that are closed when there is a disaster and you can use crypto easily when that happens.

[Yamifoud]

Those who buy on a bull run they should understand it is a short term trend and they shouldn't hold it any longer but what I found they were tempted by the bull run and thought it would continue to go up indefinitely and they weren't targeting profit when it entered so they weren't headed in gain profit as a result only loss.

Because they never thought that drops will come shortly after they bought Bitcoin. Usually, we assume that bull season will stay longer. Though we are aware of the possible dumps, it was not in our mind as we enjoy buying neglecting the risk that one day or even by tomorrow bear market will begin.
Sometimes, we thought that holding during the bull season will give us more profit but instead, this is also a reason for our losses and missing the opportunity to sell them high. I was a victim with this mindset last 2017, that is why I'd never do this last year - I sell them before the change of its course.

[eaLiTy]

~
There are so many people during bull runs that run out of cash because they like to buy all they could buy to ride the wave, which results with them losing a lot of money when the crash finally starts, it could go up a lot, and I mean A LOT, but eventually it will go down, so having a little bit of your profit cashed out could benefit you.

These things happens especially to new investors who are coming into the space after seeing the rally who have no idea about the market but thinking they can ride the market and make a good buck, they do not do their research but start investing in whatever they can thinking it will benefit them but end up burning everything in the end and starts regretting for burning all the hard earned money, only if they make the decision to study the market before investing it would be the difference.

[gantez]

And I agree with @OP, who said we need to have money now to buy a lot of potential coins so we can hope we can take big profits in the next bull run.

This is the cheap times to buy true of it but buying a coin just listed is still risky because it is either it will rise or will be pull down. To buy coins in existing market with caps and volume is better investment. Like in buying of bitcoin, we are aware that it has to go above ATH and investment there is worth the wait.

[TimeTeller]

~
There are so many people during bull runs that run out of cash because they like to buy all they could buy to ride the wave, which results with them losing a lot of money when the crash finally starts, it could go up a lot, and I mean A LOT, but eventually it will go down, so having a little bit of your profit cashed out could benefit you.

These things happens especially to new investors who are coming into the space after seeing the rally who have no idea about the market but thinking they can ride the market and make a good buck, they do not do their research but start investing in whatever they can thinking it will benefit them but end up burning everything in the end and starts regretting for burning all the hard earned money, only if they make the decision to study the market before investing it would be the difference.

This is the usual problem in this market, many newcomers thought that they are going into gold digging project.
However, once they got in, they usually don't know what to do and how to earn profits.
This is why, most are tempted to buy pump and dump coins, hyped up tokens or other seemingly popular projects but with superficial promise of high returns.
People need to learn their lessons before they realized what they are getting into, as it is hard to advise newbies in this market.

[Luffygroove]

Saying that is much simpler than really carrying it out. Some of us are learning things the hard way, and yet many of us still can't put it into practice when we're in a sticky position. Emotional stability and greediness are two of the most important characteristics. It's almost impossible to pinpoint the limits of the top and the bottom. To keep oneself in check, we must first accept the earnings and then practice gratitude. I also think we need to have some cash on hand and not risk everything. It also involves the management of investments.

[naira]

There are so many people during bull runs that run out of cash because they like to buy all they could buy to ride the wave, which results with them losing a lot of money when the crash finally starts, it could go up a lot, and I mean A LOT, but eventually it will go down, so having a little bit of your profit cashed out could benefit you.

Same people sell a lot during bear run, whereas you should have cashed out at the bull run to take profit, and during the bear run when its low like this, you should go out shopping. Its low right now, and everything is looking delicious to me, I am running out of money from buying all these amazing coins and tokens, because I know they are at the bottom.

Have cash after you profit a good sum, but do not have any cash during bear run and buy it all.

The point of this thread is simple and general, namely buy when it goes down and sell when it goes up so don't let everything reverse. Due to the current phenomenon, novice traders and investors rarely do research beforehand. They go into certain coins after the hype rises to the surface. Then the pope threw it away and the beginners who thought it would be profitable turned into big losses. DCA in this case needs to be emphasized, always consistent in dropping money in crypto.

[maydna]

And I agree with @OP, who said we need to have money now to buy a lot of potential coins so we can hope we can take big profits in the next bull run.

This is the cheap times to buy true of it but buying a coin just listed is still risky because it is either it will rise or will be pull down. To buy coins in existing market with caps and volume is better investment. Like in buying of bitcoin, we are aware that it has to go above ATH and investment there is worth the wait.

And that's the reason why we don't need to take the risk by buying coins or tokens that have just been launched into the market because there will be pump and dump moments happening in the market. If we keep following the moment in hopes of taking advantage, we must be very careful and not try to push ourselves because it will be dangerous for our funds. We should keep buying coins that have the potential to increase like bitcoin, because we have seen the power of bitcoin when it gets a rally.

[CuriousGeorge]

Saying that is much simpler than really carrying it out. Some of us are learning things the hard way, and yet many of us still can't put it into practice when we're in a sticky position. Emotional stability and greediness are two of the most important characteristics. It's almost impossible to pinpoint the limits of the top and the bottom. To keep oneself in check, we must first accept the earnings and then practice gratitude. I also think we need to have some cash on hand and not risk everything. It also involves the management of investments.

Smart people will always try to give some percents from their portfolios as a reserved funds. You didn't know what's gonna happen tomorrow and so anything will have need to be prepared. that's how market works right now. I meant look at the fact that if market is still unpredictable for now. The fact that if market may go bearish can't be avoided by us.

[piebeyb]

if people are not greedy and can control their emotions by taking advantage of every bullish or bearish moment of course they can get rich, when a bull market they should play short term with a fast tempo making quick profits and when entering a bear market they should be able to take advantage of waiting time buy again cheap, unfortunately people never take advantage of it and my advice is to make sure to use cold money for crypto investments

[Jackl87]

There are so many people during bull runs that run out of cash because they like to buy all they could buy to ride the wave, which results with them losing a lot of money when the crash finally starts, it could go up a lot, and I mean A LOT, but eventually it will go down, so having a little bit of your profit cashed out could benefit you.
Same people sell a lot during bear run, whereas you should have cashed out at the bull run to take profit, and during the bear run when its low like this, you should go out shopping. Its low right now, and everything is looking delicious to me, I am running out of money from buying all these amazing coins and tokens, because I know they are at the bottom.

Well in general i definitely agree with your statement here. I also think that a bear market like the one we are having now is usually a great opportunity to buy into big and established project because now they have lost at least 50% or even more compared to their all time high from last year or so. The big problem is that we just don't know what will happen in the future. If the prices start to climb now and we are having a price of 5k$ per ETH in a year or so everyone will say "why did i not buy ETH for 1300$" but it could also happen that we are having still 2 or more years of bear market ahead of us and that ETH could also go down below the 1000$ mark.

[irhact]

There are so many people during bull runs that run out of cash because they like to buy all they could buy to ride the wave, which results with them losing a lot of money when the crash finally starts, it could go up a lot, and I mean A LOT, but eventually it will go down, so having a little bit of your profit cashed out could benefit you.

You can sell some coins for cash when you start noticing the crash or already have been caught in the first crash. The good thing about the market, is the crash happens in stages and not at ones so if you noticed you'll be out of cash then just take some profit and hold cash as cash is very important in bear market. It'll prevent you from selling your other important coins or give you an opportunity to buy more coins at discount price.
Also as you DCA into coins so shall you do the same out of coins you have invested in. Don't be greedy, when you're in profit, take some profit and not mind if the price of the coun rise more. Many people invest blindly and this affect them in the future.

[justdimin]

The point of this thread is simple and general, namely buy when it goes down and sell when it goes up so don't let everything reverse. Due to the current phenomenon, novice traders and investors rarely do research beforehand. They go into certain coins after the hype rises to the surface. Then the pope threw it away and the beginners who thought it would be profitable turned into big losses. DCA in this case needs to be emphasized, always consistent in dropping money in crypto.

I can understand the "when is low? when is high?" mindset, because there are a lot of people who are willing to buy when it is low, but not sure if we are at the bottom already or will it go down even more? Like for example if you check the 40k price saw a lot of people buying during that time, they were wrong and it dropped more, and people are afraid if they buy around 20k and it drops to 10k they would be losing money too.

That's understandable. Or when it goes up, if you bought at 10k and sold at 35k that was a good increase, but it went to 60k+ how could you know that? Which is the difference and the problem, and I can definitely understand that.

[justdimin]

Having cash is a position. A position which becomes useful in certain situations. Cash loses its buying power against the inflation but stocks/crypto lost their buying power against the dollar since their peak which makes the dollar a good hold since then. Lots of people bought btc when it was $40k+ and not many people want to buy now even though the price is much lower.

I have to say it's not really that much of a big deal if you are holding cash when it is going up, it matters when you have the cash. If you have the cash after you profited a ton, then it doesn't matter, but if you have cash even before you try to make money then it's going to hurt you. That's why it shouldn't really be a big deal based on when you sell. Always try to have some cash when you are at the top, and always buy bitcoin at bear market.

Right now, I am buying as much as I can afford to, and that's a lot better, because right now is discount prices and I could buy a lot more right now this period so that I could profit later, so I agree with what OP is saying, I have been doing exactly that for a long time now.

[chaser15]

There are so many people during bull runs that run out of cash because they like to buy all they could buy to ride the wave, which results with them losing a lot of money when the crash finally starts, it could go up a lot, and I mean A LOT, but eventually it will go down, so having a little bit of your profit cashed out could benefit you.

Being in a FOMO is part of an experience in crypto-trading. Sometimes it works, and sometimes it does not. Weak hands are just usual and common to see since that's how unpredictable crypto is. That's the challenge here.

Everyone is a genius during the bull run while during a bearish market, those geniuses are nowhere to be found.

Let's just build experience and try to go with the flow of the current market trend. People will be soon used to riding any trend that they will encounter.