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 $57 is what he entered the market for, then congratulations to him, but most of the time traders FOMO and buy back at a higher price. I don't know where your guy is coming from and what $57 means to him, but I doubt that this was the one big deal he was after. Trading back and forth is the best way to lose in the long run in my opinion. Look he only went for 10%, but with BTC volatility and well known breakouts from the past, I am wondering how this strategy would ever please him.
Does he want to exit the market forever or is he one of those traders who thinks he could catch every 10% movement to his own advantage? It is not going to work out like that and I guarantee there are a lot of people here who will tell you that they tried it and it didn't work. BTC is now at 70k and he would have been better off holding.
You said he is a newbie though and that is what newbies do I suppose. A fundamental analysis of the technology and building an understanding for all the implications BTC can bring about would definitely be the best strategy.
Selling at 10% gain with that amount of money doesn't get him anywhere, because what now? What's next? Has he rebought at a higher price already? I guess if someone goes into the market with $100 million and is trying to make 10%, it somehow might make sense as they can trade info they might have. But with relatively slow amounts trading info is not making anyone a lot of money. You'd rather invest and stick to it because you are convinced of the potential.
I am puzzled bny the majority of comments here and how your friend must be blown away to have made 10%, calling it "massive profit", instead of explaining your friend that he is now stuck and should rather come up with a plan. If trading is fun to him, ok, but would never do it with 100% of my holdings, which seems to be the case here.
