Edit: It seems several indicated I have mistaken short trading etc. Nevertheless, I will lock this thread because of the misunderstanding I wrote about in the message below.
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Hello, I am relatively new to bitcoin. I first visited bitstamp when the price was 1000+ (Late November).
I made this post for the flood of new accounts (which I assume mostly new members, of course some trolls but lets assume these new accounts are new members)
Now, you might be worried about the current bitcoin situation because of all the China FUD, the negative comments people say (that bitcoin is tanking). You also may just have all these mixed notions of bitcoin. I say do not worry because this is what stopped me from investing when it hit 500 (after the drop from 1000) = the biggest mistake I have made.
I want to help you guys out with some advice (I learned the hard way)
My advice is to hold long term and not be greedy (like I was) Do not put all your funds into an exchange just to short trade (buy like 6 btc at 500 and try to sell at 510 repeatedly, unless you can take the risk of being forced to buy in at a higher price if there is a rally or something.
Now let me explain why. First (I am speaking to mainly the noobs) when I got into bitcoin, I
only wanted to short trade on bitstamp. This is because at the time, it swung 50-100 dollars a day. Now, personally, I do not short trade and I
only recommend short trading for experienced members Because, for example, lets say you buy 6 bitcoins at 500. You then deposit it into bitstamp (and immediately sell) and lets say it goes up to 510 and continues to go up and you are forced to buy at 550 or something. Then this is how you lose money.
But I know that a noob could be successful at short trading, but I would not recommend this unless you have
been involved long enough to spot when it goes down etc If you do want to short trade, buy when there is no activity (in the a.m) and sell in the p.m and repeat. Use bitfines to short trade (but what videos on youtube about bitfinex because there is a lot)
For the noobs, if you want to risk it,
Lets say you do what I said above, but with only 1 bitcoin this way you can make a small income (20-40+ dollars a day) that adds up to a few hundred a month to buy whatever you want.
Do this until you can depost 2-3+ bitcoin
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Now, I mentioned I think holding is best, because just look at the trend timeline on stamp. It took about 2+ years for it to go from like 10 to 200+ (april 2013) Then it took like 7-8 months to go to 1000+. If you believe in a trend, we could see a rally by July-August (but this is just my natural bull(shit
) speaking.
One more very important thing I know you may go on ebay or bitcointalk auctions or good and be tempted to buy those cool looking coins (from various brand), you may be tempted to buy mining equipment, you may want to put all your money on exchanges. My advice is not to really do any of these things. The famous coins that hold btc are a good buy if you want to collect, but they seem to be overpriced, hard to take out, unless you want to rip the hologram off and ruin the cool looking coins value. For example, if you buy a 10 btc xxbrand coin
for 2k extra (meaning it hold 10 btc which is worth 5k (ish now, lets just say) and you paid an extra 2-4k just for the coin. That extra 2-4k or 4-8btc is potentially worth so many thousands in the future. Just save in cryptos to be honest (hold).
I would say avoid exchanges to keep large sums of btc (use for short trading) just to make sure your investment is safe. Do not buy mining equipment unless you have like 100k-1 million or something because the difficulty goes up like a son of a bitch and it really is not worth it unless you have vast resources.
In conclusion, I welcome all the new accounts that I see and I suggest you all hold Feel free to message me for any advice if you are about to make a decision or something and you need advice from someone who has learned the hard way about various things.
