How short-term market speculations can help small bitcoin holders

[Marykeller]

It is in every newbie's habit to feel excited when they see little profits in their bitcoin investment. That's how I introduced someone to invest in bitcoin, they keep checking their bitcoin portfolio to see how much profit they have made from bitcoin each day.

When their profits in bitcoin had gone up, they became happy. when down, they seemed to be sad and moody, wanting to sell so that they would not be at a loss side. Which I can't advise them to do that. Although every one of us has the right to sell their bitcoin at any time they choose. But I deemed it right for us to keep hodling our bitcoin for long even if we are at profits or loss because the profits we are to make in the long run will be much higher than the profits we choose to withdraw now.

OP, your newbie bitcoin investor wouldn't have withdrawn his profits from bitcoin in the short term. You would have lectured him about the importance of hodling bitcoin for the long term, and what he stands to gain for that.

[Ojima-ojo]

But he didn't grow that initial bitcoin amount though, he just took out the $56 from the increase of the value of his bitcoin holdings, it's not a good thing for him at the long run, maybe telling them to do stuff like buying back when the price is low might be of big help so they don't succumb to something that would make them enjoy short-term gains but end up with almost no profits at the long-term.

At the end of the day, Your goal in trading is to increase your fiat capital since that is the value you are using to purchased using your money. Bitcoin value is being measured in fiat amount and not in Bitcoin quantity since no merchant accepts Bitcoin directly for it value but rather they convert it to fiat value as standard currency.

Also he can still increase his Bitcoin holdings once the price corrects which is highly possible to happened on this very volatile market.

Very well said and I agree with the fact that bitcoin value is measured in fiat and no Marchant accept Bitcoin as payment on the bases of bits without the fiat equivalent or being used to calculate the exact amount of bits to be paid.


To newbies I believe their most favorable action is taking profits along the way as long as bitcoin increase in it fiat value and not minding what amount of bits they are left with.

[bitgolden]

I would guess that if you could make a quick buck and do that many times over the result will definitely be a good one. I do get that we are not going to get a result that easily, but we are going to get something that will make some profit.

I personally believe that if we could try hard enough then making those little profits into a big one is not impossible. Of course you would have to do many of them, and that means hard work and constantly putting in hours, because you won't find them very quickly, so you will have to study really hard to make it work. I hope that people could see how it could get better, we should probably consider how to make some money easily, and that means that we need to make it work by just grinding very hard.

[Gaza13]

But he didn't grow that initial bitcoin amount though, he just took out the $56 from the increase of the value of his bitcoin holdings, it's not a good thing for him at the long run, maybe telling them to do stuff like buying back when the price is low might be of big help so they don't succumb to something that would make them enjoy short-term gains but end up with almost no profits at the long-term.

I think Op has been good at persuading his close friends to invest in bitcoin, and of course Op has mobilized his knowledge and provided this information to his close friends. This goes back to the asset holder, whether he panics when he sees fluctuating prices, so when he sees a profit, he immediately takes profit. Let his friend process, at least he already knows what he's getting beforehand.

[lizarder]

I have a newbie bitcoin investor close to me and yesterday he made his first gains from his bitcoin holding although a small amount of profit considering his total bitcoin holdings, the gain was about $57 which for him is something he haven't experienced before and it got him excited.

That's a great move for a first purchase and I think it will be a great motivation for him to pursue future investments. Small capital will always be an obstacle for all investors because it will be difficult to collect large amounts of bitcoin without sufficient capital support. This is different from investors who try to buy using the DCA method because they can set the rhythm of buying a certain amount at a predetermined time.

He bought bitcoin when the price touched $60k some days ago with a capital of $600 bought bitcoin and when the market price increased to 66k just within days, he made a trade to take the profits which for him was an exciting results and excellent one at that, so I thought sharing his experience here will give us more avenue to discuss some other possibilities as he continue holding and expecting more profits.

I think he masters Bitcoin much better than most beginners because from the information you gave, he has quite mastered it. If he can repeat this pattern, I'm sure he will become a reliable investor, as long as he doesn't panic when the market experiences a correction and he knows how to accumulate properly using slightly smaller funds. Beginner investors do not have much experience and usually they will only utilize long-term patterns for investment strategies.

[sunsilk]

To newbies I believe their most favorable action is taking profits along the way as long as bitcoin increase in it fiat value and not minding what amount of bits they are left with.

If you want to maximize your profit as a newbie, you'll have to hold longer. While it is enticing to sell for profits when you've just bought it and you're in profit.

You'll have to reconsider if you can buy back the sold bits that you have. Because not all sellers can be buyers next, why?

Because we'd feel that it's not appropriate anymore to buy at higher price when we've held it before.

[ShowOff]

I have a newbie bitcoin investor close to me and yesterday he made his first gains from his bitcoin holding although a small amount of profit considering his total bitcoin holdings, the gain was about $57 which for him is something he haven't experienced before and it got him excited.


He bought bitcoin when the price touched $60k some days ago with a capital of $600 bought bitcoin and when the market price increased to 66k just within days, he made a trade to take the profits which for him was an exciting results and excellent one at that, so I thought sharing his experience here will give us more avenue to discuss some other possibilities as he continue holding and expecting more profits.

Traders can always exploit bitcoin price fluctuations in the market to gain profits in the short and long term. If your friend really understands the market and is capable enough to develop an interest in analysis, then I'm sure he will be happy to trade.

Expecting more profits basically has to be adjusted to the amount of capital you have. If you only have $600 as capital, then you will not get $600 in profit unless the price of bitcoin rises 100% from the price you bought it. Of course there is a possibility of that, but you have to wait a long time and have to be patient.

In essence, the capital and potential profits that will be obtained will be worth it. The higher the capital you have, the greater the return percentage you will get even though the price of bitcoin only rises a few percent from the price when you bought it.

[lombok]

To newbies I believe their most favorable action is taking profits along the way as long as bitcoin increase in it fiat value and not minding what amount of bits they are left with.

If you want to maximize your profit as a newbie, you'll have to hold longer. While it is enticing to sell for profits when you've just bought it and you're in profit.

You'll have to reconsider if you can buy back the sold bits that you have. Because not all sellers can be buyers next, why?

Because we'd feel that it's not appropriate anymore to buy at higher price when we've held it before.

That's right, we can see the price of Bitcoin from when it was first created until this year, the price has been very high and it is impossible for us to get the Bitcoin price in 2010 again. Because so far the demand for Bitcoin is very high making it difficult for us to get Bitcoin at low prices.

[YOSHIE]

How short-term market speculations can help small bitcoin holders.

In my experience in investment or trading, if you speculate using short-term methods and market speculation, it takes a long time to make a profit on Bitcoin, especially in small amounts.
The problem lies in Bitcoin's movement, increase and decrease.
For example: you buy Bitcoin at a price of $67,000, with capital of $600, you only get 0.00894 bitcoin in the next three or five days rising to the level of $70,000 very little profit you get and so on.

However, if you have a large amount speculating on the short term market it may be promising, $67k and $70k short term, at least if you have 1-2 Bitcoins you have already earned $3000-$6000, that's real speculation.

So the lack of capital for Bitcoin is short term, it takes too long to rise, like a snail walking.

[GigaBit]

The feeling of getting return from the first investment is different from the others. Because a person dreams and tries to make his investment in business in the future when he can earn money from it after becoming a newbie. He tries to make his career in trading with many dreams. Here the feeling of a new trader is completely different. An investor is satisfied with an investment only when he gets expected returns. Although he has profited by short term trading, I don't give much importance to short term trading. Because short term trading is quite risky. I do long term planning in investments. An investor's long-term planning will reduce his risk. Moreover, long-term planning will always lead to profit.

[Jatiluhung]

I have a newbie bitcoin investor close to me and yesterday he made his first gains from his bitcoin holding although a small amount of profit considering his total bitcoin holdings, the gain was about $57 which for him is something he haven't experienced before and it got him excited.


He bought bitcoin when the price touched $60k some days ago with a capital of $600 bought bitcoin and when the market price increased to 66k just within days, he made a trade to take the profits which for him was an exciting results and excellent one at that, so I thought sharing his experience here will give us more avenue to discuss some other possibilities as he continue holding and expecting more profits.

If your friend is not ready to hold for the long term then I think taking advantage when you get profit is also a good thing. And I'm more curious about whether the capital he used was short-term or long-term capital in the beginning?
Did he change his mind to short term after seeing the profits even though he originally intended to be long term?

If he is not ready for the long term risk then he has done the right thing. But if he had initially prepared the capital for the long term. So he must first confirm whether the capital he is using is really cold capital that he doesn't need in the near future. And he must also be prepared for losses which are the risks of an investment. If he is ready for all that, then your friend must strengthen himself in holding the bitcoin he has bought. Because I'm worried that he will be drawn back in when Bitcoin continues to rise to a higher price than when he sold it. Usually hasty decisions can make investment planning a bit chaotic. and can disturb the investor's psychology. But if he still believes in the long term and is still holding on to it until now then that is a good thing.

If your friend has limited capital. Then DCA can be done. Try introducing your friends to DCA.

[Dunamisx]

If we can understand the logic behind starting small and growing big, then we may know the reason why many of the bitcoin traders uses such approach as means to stay safe on their trades especially when they were just starting, they uses such means as to reduce the rate on loss and uses the same approach on building on their capital to use for trading and they will wait till they find the appropriate time for them to enter the market before buying and then hold to sell at the right and perfect time as well.

[BITCOIN4X]

~Snip

I think he masters Bitcoin much better than most beginners because from the information you gave, he has quite mastered it. If he can repeat this pattern, I'm sure he will become a reliable investor, as long as he doesn't panic when the market experiences a correction and he knows how to accumulate properly using slightly smaller funds. Beginner investors do not have much experience and usually they will only utilize long-term patterns for investment strategies.

I'm not sure if he could repeat the same pattern after he exited and made his profit. But I can confirm that his capital budget had become $1k which would have allowed him to earn more bitcoin had he re-bought at the same low price.

Swing trading can be used by traders to multiply their capital, which will most likely be even greater if the trader succeeds in doing it very wisely. I have seen so many traders start with small capital and turn it into large capital over a period of time, but this is never easy because you have to be able to analyze the market and take advantage of its volatility. Such a trading strategy is good, but I think the trader must be active enough in monitoring price movements or current market conditions to be able to get opportunities.