When people chat about trading bitcoin, I wonder if anyone actually just buys and sells it at the right moments instead of messing around with futures like shorting and all that.
I gave it a shot with Solana a few months ago and had some decent luck, but the risk of FOMO was always there. Like, getting in at the bottom and then getting stuck at the top when the market takes a nosedive.
You can either sell and take a nasty loss or just sit tight for weeks waiting for the price to bounce back.
So, has anyone pulled this off successfully with bitcoin? What do you use to make it work?
Yes, because all of these are available on trading sites, making them a part of the trading services they offer.
You just have to learn from your mistakes. The strategy is actually simple, know your skills and trust the coin youre investing in.
The easiest approach? Invest for the long term. Hold until you see a price that gives you the profit youre happy with.
For example, look at Bitcoin now, its dipping to $84K, while its ATH was $109,350. If you bought at the top and panic sell now, thats a bad strategy.
Thats where trust comes in as it helps you stay calm and avoid panic-selling, even when the market takes a big hit.
Yes, that's pretty much what it is.
Because those that are into trading of futures and shorting, they're mostly trading into an altcoin.
I guess that there is some but they choose not to expose themselves and are only quietly trading.
In bitcoin trading, if you are not leveraging on a higher ratio and having your liquidation price very low or almost impossible to reach make it worthwhile and reduce your risk of losing your money, so year when trading bitcoin you don't lose money but you can lose time.
Just like what you explained above when your losses in bitcoin come, all that is needed is to wait a few weeks or days for it to recover, so ultimately you don't lose money but lose time if the market goes against your predictions for some obvious reasons.
Actually, Bitcoin is much safer than trading with altcoins if you are going to analyze and trade with futures. It would be a good place to put a position if you are short in budget because you can leverage and make profit even in slight spikes.
Altcoin in futures, for me, is risky because of the high price movement compared to Bitcoin. Usually, what I see is that there are more retail traders who do futures with Bitcoin than altcoin because it is less manipulated than altcoin.
If you are one of those who trade with altcoins in futures, you are one of those risk takers, but if they are successful, the potential profit is massive.
That is what I see with most of the traders that are into futures, they're looking for some good entry with the altcoins as their pick and rarely I see one of them chooses to trade bitcoin in the futures.
But I agree with you, if someone is in need of a budget they can always look into BTC futures if they want to.
And just a gently reminder, this isn't for everyone and the newbies even hearing it makes them believe that they can make money out of it easily.
plenty of traders that you can see in transparent platform like hyperliquid, you can even see their funding rate, PnL and their position size, most of them always short when market overvalued and long when market undervalued, in principal it works the same way as just buy and sell with spot if you use leverage 1x, but with prerequisite that there's contract need to be fulfilled when position closed.
most of the trader that I know of always trade with futures, because they think of it as more convenient to manage than spot trading.
while spot trading mostly used for people who buys the dip and hold, not really trading, at least that's from my understanding but both can always works.
Of course there are and generally they are involved in spot trading because after all this kind of trade is far safer.
Not many people can minimize the level of risk of loss using futures trading because the level of liquidation can affect a person's condition while undergoing trade.
The problem is how much our ability to undergo futures trading and whether it can provide certainty about profits if you do not have good knowledge or experience.
One must have control of the trading that is undertaken and experience can provide something important to avoid losses in trade, although not always we can avoid losses in futures trading.
In trading you must need to have your entry and exit strategy and not just getting FOMO sometimes people get ride too much with the market once the market coin they invested in goes up they keep accumulating and holding some of it but after there's a correction they didn't knew what to do which is having a trading plan is a must lets say even that's a short term holding and long term always decide where to take profit and cut losses. Ive been invested with the bitcoin and alts seems 2020 and takes a lot of mistakes and challenges but this bull run this time it didn't happen again because I know what to do. Make a plan to avoid getting lose with your trades.
From the experience I have traded bitcoin, of course I have to monitor the development of the market first, I do that on trading futures in the short method, but the risk of short situation The market like now is very dangerous if the prediction is not right to do correctly can experience losses if the prediction is not in accordance with/deviating from estimates.
So the only way to trade bitcoin for me for now the good method of spot trading, I am not too anxious when the price drops, I need to do several stages of purchasing bitcoin in the long run for example: The price of Bitcoin is $ 85K and I need to wait for the price of $ 90k to sell, or I buy again the next stage and so on, even when I buy the price $ 85k down again to $ 70k I will not lose, because I'm sure Bitcoin will rise again to $ 100K, it's just that the value is reduced but the balance of Bitcoin remains intact not reduced.
People buy and sell at the right times but they will difficult to get the lowest price or the highest price. If they can accept that, they can be happy because they can make a profit. If you think that you buy a high price and the price drops to the lower price, you should not panic and still hold the coin especially if that is Bitcoin. Bitcoin price will be back to the high price so you will have your chance to sell at that high price and make a profit.
If you buy Bitcoin at a low price, you need to be patient and wait for a while because the price may not directly increase after reach the low price. It need some time before the price increase and related to this situation, you can buy Bitcoin at the price now and hold your Bitcoin until the situation is back normal.
This is where most people don't understand. Can you elaborate on this point one can't lose on bitcoin trading? But before the loses comes, probably you have already lose some amount you unless you are to pause the trading at the time of losing and wait for the rise again before continue the trading and before then you have already lose in the previous trade so I don't know in what way you will not lose bitcoin trading .
Literally what Wiwo is trying to explain is simple avoiding liquidation will simply minimize your chances of losing and in the long run even make you avoid losing. How does this work, simply as long as you dont set very leverage or in my opinion do not use leverage at all there is no way the market will liquidate you because your liquidation will be very far from entry point and bitcoin isnt the kind of coin that does -50% without pumping.
So say you long bitcoin at $90k and the leverage doesnt brings your liquidation close and bitcoin dips to like $70k there is every tendency that it will get back to that $90k as your break even after a time (which he meant by you losing time) and even possibly go higher and give you profits. But should you use high leverage then you might have to be stopped out before even the $70k by liquidation and end up losing everything.
This is the reason why you dont see spot traders who hold for a very long term losing
OP, just Buy and HODL. There's not actually a need to "buy" then "sell". That requires that you out-trade the thousands of counter-parties in the market who are faster, smarter, richer, and who are better traders than you.
Denominate most of your capital in Bitcoin, zoom out, lower your time preference, and invest LONG TERM. Because 90% probability you might not outperform Bitcoin.
Fear Of Missing Out have been the orders of the day when it involves good projects. One will sights good trade but base on Fear, Uncertainty and Doubt, he will miss out on the trade, when he noticed about the trading volume is higher and massive appearance of long green candles in the chart, he become confuse and FOMO steps in. There's more to learn in the market, stand still and learn the basis of the market inother not to get trapped.
Bitcoin is top project, not everyone have an idea or experience in the market, so little setback got them panicked, before the blink of an eye, they trigger the sell order thereby resulting in losses. Trading is risky, we're all aware of the high volatility of the market when it comes to seasonal changes. Be specific, what season do you prefer to trade? For me, I like playing my cards in the bear season, mainly for routing out solid investment for these prominent projects.
In trading, human psychology is of great importance, since people are subjective. Understanding the psychological characteristics of people, you can predict their behavior with a high degree of probability.
For example, people attach undue importance to round beautiful numbers. So, the price of Bitcoin $ 100,000 is perceived completely differently than $ 99,000 or $ 101,000.
Therefore, when the price of Bitcoin reaches $ 100,000, you can say with a high degree of probability that for some period of time, all purchases below this level will bring you a profit if you sell these bitcoins at a price above $ 100,000. This is exactly the situation, in my opinion, that is happening in the market now. Those people who are now buying Bitcoin at a price below $ 100,000 will sell it in the future at a price above $ 100,000 and fix the profit.
At the same time, it is very difficult to say when exactly the price of the first cryptocurrency will grow. However, a trader who knows how to wait will certainly make a good profit.
It's a simple strategy, buy low and sell high, I don't know for future trading and I'm kindly advise you to stay away from it if you don't understand it fully.
It would be good to learn future trading from many experts and stay clear with yourself.
If you buy and price dips on you, stay calm as that's an opportunity for you to accumulate more if you have more Fiat especially if you are dealing with Bitcoin. Be strong enough to never panic, don't sell at loss.
Buying is easy, but holding is very difficult with most people in this young market. With this market, fud can harm newbies a lot and with high volatility, people can easily feel panic and lose control very quickly in mass FUD days.
To be strong, people need to have deep knowledge about this market, how it works, how it survives well through fud and previous bear markets, and they also have to secure their bitcoin by themselves in non custodial wallets. Another thing is don't use leverage or futures trading, because when they use leverage or futures in trading, emotion will appear more intensively than with Spot trading or with investment, pluses liquidation risk from exchanges.
Holding your bitcoin is key to succeed and get profit in this market.
But do you know what's more actually difficult for plebs like us? - Losing our savings because we gambled it believing that are "trading". Plus there are people who may believe that they are making money, but if they denominate their profit in units of Bitcoin, they actually lost money denominated in units of Bitcoin.
How do we fix this? It's to HODL Bitcoin. If you can't outperform it, HODL.
I think it is your experience that can determine your future in investing. I think you already know well that trading in futures is very risky. Yes, everyone has experienced buying at high prices, I think it is very common, as we know, it is very difficult for us to know when the best time to predict a decline will occur, no one can predict it. Get used to investing in the long term, I think you already understand which assets have good enough fundamentals, that's your plus point.
If you trade, whether daily or weekly, you have to think about the costs of each trade, the more you trade, the more fees will be determined by an exchange. This will affect the profits you get. It's best to change the method you are using as soon as possible. This long-term method is much better than your previous method.