[Strategy of Dr.Bitcoin_Strange] BITCOIN'S SELL TO BUY MORE STRATEGY

[franky1]

its called "averaging down" or "shorting"

buy the dip and hold or buy low sell high="going long"
sell the high buy the correction="shorting"

From what I have observed so far, right from when I started my crypto journey, those terms are mostly used by short-term traders, most especially futures or derivatives traders. But I wish there were other terms that better befit the strategy I talked about since it's still a long-term investment and not just shorting or going long for a short-term profit. (Don't forget you will still have to buy and hold for some years.)

its known by many names depending on technique

to take a loan to then sell those shares and then buy back in when the price dips is leveraged/margin shorting
to just use coins/shares you already have is what some call "bed and breakfast" shorting (standard shorting, opposite of long)
to just buy more at lower price to add more accumulated coins but making average of whole hoard less is averaging down

there are many other names for other strategies. but when trade-fi influencers/institutions promote "shorting" they want to only promote the loaning process as they make money whether if the borrower loses or wins. they dont make money if they are not involved, so they dont promote shorting techniques that dont involve them (independent investor selling his own coin to rebuy at lower price)

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[Ruttoshi]

This is a very good strategy and I believe that this is what most people that claim to be long term holders are always doing on every four years circle, to take profit by selling in the bull run and buy back at the bearish season.

One thing that I don't like about this strategy is that, you will make profit but you will not be able to buy back the same amount of bitcoin you sold at the price that you bought it initially before selling because the price must be higher that the previous circle dip.

Another disadvantage is that, you might end up using the money to solve other emergencies that occur after sales before you buy back. Lastly, you will miss the compounding profit that you are suppose to benefit from, assuming you could hodli for two or more circle because the price at the initial time that you started your bitcoin investment might have risen 100×. Selling bitcoin for fiat is not advisable at this time of high inflation.

[franky1]

One thing that I don't like about this strategy is that, you will make profit but you will not be able to buy back the same amount of bitcoin you sold at the price that you bought it initially before selling because the price must be higher that the previous circle dip.

you still accumulate even if you dont quite hit exact tip of high or lows
imagine having 10btc in 2012
2013 top  $1200 (gets you $10k if selling just before or after peak at say ~$1k)
2014 bottom $130 (gets you 50btc if buying just before or after correction bottom  at say ~$200)


so now having 50btc in 2014-16
2017 top  $20,000 (gets you $900k if selling just before or after peak at say ~$18k)
2018 bottom $3,700 (gets you 200btc if buying just before or after correction bottom  at say ~$4.5k)

so now having 200btc in 2018-22
2021 top  $70,000 (gets you $12m if selling just before or after peak at say ~$60k)
2022 bottom $15,700 (gets you 700btc if buying just before or after correction bottom  at say ~$17.5k)

so now having 700btc in 2024 instead of just 10 in 2012

[Dunamisx]

It's nice to see you come up with something good for yourself Dr.Bitcoin_Strange, this could be something many of us could as well leverage on to build our individual portfolios upon and adopt if we think it's something good for us to start as well, but in every first attempt, we must never forget to take the caution on risk involved because there's no strategy that we can ever adopt that has no risk, this means that we can actually starts from somewhere, using various suggestions you have laid down like buying the dip and holding, DCAing and many other possible ways we feels good to start with, all i could say is that you should keep it up, this may be the exact solution someone needs to apply for his own portfolio.

[franky1]

It's nice to see you come up with something good for yourself Dr.Bitcoin_Strange, this could be something many of us could as well leverage on to build our individual portfolios upon and adopt if we think it's something good for us to start as well, but in every first attempt, we must never forget to take the caution on risk involved because there's no strategy that we can ever adopt that has no risk,

firstly dont "leverage".. ever.. as thats the biggest gamble/risk taker method there is..

secondly.. never sell at a loss.. always sell when you profit.. then no risk because you are already at profit when you sell even if you cant buy back in... profit is profit

thirdly
you dont have to sell all your coins. you can still sell just some of them where individually they make profit from the individual coins purchase price in previous years, whilst hoarding the rest

and if the price correction doesnt reach a corection target that you want POST next ATH sell,  and you cant maximise accumulation. as long as you buy in at some price below the sell price in the correction you are again benefitting**.. or if never buying in again you still know you already made profit by selling at a profit
......
as for never buying back in post the profitable sell..
think about it. bank account interest 5% max
pension ~12% max
if you can make more then 21.5%-57.35% (compounded over 4 years). you are making more then other long term savings/pension plans
EG $42k bought this month, beings sold >$67.5k sell is 60% so selling above $67k in next 4 years is better then any bank/pension 4year compound interest. even if you dont buy back in

however wait for a multiplier of now or well over above last cycles high, to reach near next ATH you gain even more with a chance to buy more in post next ATH's correction


**EG
(numbers are not recommendations. purely for theory demonstration purposes.. you choose the numbers you feel safe with)
if you think next ATH can reach $140k and you sell 10% of stash at $120k conservatively
and you set a hopeful correction to $70k, even if correction only reaches $80k and you buy in at $90k to FOMO. you still gain by having 13.3% of stash back instead of 10% break even

..
other ways to mitigate missed chances and maximise accumulation

dont sell below last seasons high
set a sell % increments amounts.. of above last seasons high to what you believe next season(2025) high will reach

(numbers are not recommendations. purely for theory demonstration purposes.. you choose the numbers you feel safe with)
EG if you presume 2025 ATH peaks $145k target.. where you are willing to sell upto 50% total of stash
$115k:2%  $120k:4%     $125k:6%  $130k:9%   $135k:13%  $140k:16%

then set to re-buy in on the correction if you presume 2026 $80k correction bottom target
$110k:2%  $105k:4%     $100k:6%  $95k:9%   $90k:13%  $85k:16%

(numbers are not recommendations. purely for theory demonstration purposes.. you choose the numbers you feel safe with)

demo math calculated
imagining you had 20BTC and willing to sell just 10btc(50%)
$115k:0.4($46k)  $120k:0.8($92k)     $125k:1.2($150k)  $130k:1.8($234k)   $135k:2.6(351k)  $140k:3.2($448k)
totalling 10btc sold for total $1.321m
on correction
$110k:$46k(0.42)  $105k:$92k(0.87btc)   $100k:$150k(1.5)  $95k:$234k(2.46)   $90k:$351k(3.9)  $85k:$448k(5.27)

totalling 14.42btc bought for $1.321m