So, I’m thinking... if I buy some bitcoin aiming to profit, does it count as trading? Like, if Bitcoin's price drops, I switch to a stablecoin, and later when Bitcoin's price goes back up, I convert the stablecoin back to bitcoin while keeping an eye on the price, is that considered trading too?
I had a chunk of bitcoin and was actually planning to move it into a stablecoin since I didn’t wanna hold onto Bitcoin. When the price fell, I realized I lost some value. Now, I'm just waiting for it to go back up before I make that stablecoin switch. So, does that make me a trader or just someone who's waiting it out?
If you do not hold bitcoin for at least 6 months or years, but you are converting it to stable coins within short period of time, that can be regarded as trading. It is as very simple as that.
So everything you asked about is not about holding bitcoin for months or years, so you are only trading and not holding.
Definitely thats trading, because youre moving your bitcoin into a stablecoin when you see the price dump, then buying bitcoin back when it pumps again. Youre basically trying to profit from those short-term moves and volatility.
Even if youre a hodler, the moment you sell for fiat and cash out the profit, thats still considered trading.
Trading can be short term or long term. What youre doing falls under short-term trading.
Thats how I see it.
It's hard for you to trade Bitcoin profitable if you are not very experienced and skillful in this market. You aim at buy low, sell high for profit but this market is volatile with a lot of manipulation and fud so they will make you shaking your hands and sell your bitcoin panicly if you are trading in this market.
You only can get profit more easily if you invest and hold your bitcoin a long term like 4 years or longer. By investing in long term, you ignore short term volatility, and fuds won't affect your mind and action so there will be no panic sell. No panic sell means you will not lose your bitcoins as sell low with panic and buy higher with fomo will make you having less bitcoins with time.
You're saying yourself that you're not a bitcoin holder, so your buying and selling is just regular trading. But since you don't have any strategy when trading, you've imperceptibly turned from a trader into a holder, as you couldn't sell BTC at a high price and now you have to wait for the price to return to a higher price in order to sell BTC.
This is trading given that you buy and sell your Bitcoin regardless if you are using a convert feature since that is same on buy/sell that is just simplified like a market order.
Its a simple buying low and selling high which is the basic of trading.
What make you think that you are not trading with the method you are doing?
Yes, this is trading. When you buy and sell in line with the market volatility, it is called trading. In your case, you are selling Bitcoin when the price goes down and buying when the price goes up.
In this case, I will consider you as an ignorant trader and if I am not mistaken, you are a new entrant into crypto. I would suggest you to do some research and gain basic knowledge about trading or investing.
If you continue like this, you may lose your money very soon. I would suggest you to invest, because you may not have enough money to trade.
It can be trading, in fact many people have used this method previously to inter-convert BTC<>USDT and then take advantage of the price changes to multiply their total bitcoin holdings.
Main thing is that you should be profiting from this process. If you are able to get 1.01BTC from 1.00BTC - you have essentially gained something. Make sure that is happening and you are not losing out by buying the stable coin.
Obviously the stable coin carries some risk, that you have to accept while doing this.
If it involves selling and buying then it's trading, keep that in mind. The very basic of trading is to make profit and you already have that in plan and since you're now holding it, you'll be regarded now as swing trader because you'll probably hold that Bitcoin longer or when market condition is good. By the way, that's bad trading there. The very fundamental of trading is to make a profit from where is your buy zone.
Its like a swing trade but you don't know trading so you always going to lose with per buy and sell action.
And if you think bitcoin is a wealth and store of value then must be hold it minimum 4 years or one halving time.
But you are using btc like a share marketing where you want to take buy sell action and lose more time with go in the trading world which means you are doing trading work but you think you are holding btc and not a trader which is harmful and risk for you.
And if you doing this then day by day you lose your btc. You must need to learn about buy /sell trading and bitcoin method first and marketing situation also.
Once you decide to buy bitcoin and eventually sell it for profits, whether its short term or long term, that is certainly trading. Trading refers to the buying and selling of any financial asset with the intention to make profits.
In your case, you are trading bitcoin within a short term duration. But I don't think you are following the basic in trading, that's buying low and selling high. Instead, you do the opposite, buying high and selling low, in which in the long run you will only gain losses, not profits.
I suggest you study more about trading and learn more of its basics so you won't suffer from prolong losses. Although losses are part of trading, but consistent losing is already another story to tell. And you will definitely suffer from that if you keep trading the wrong way.
This is actually trading, you dont have to ask about this anything that will make you buy bitcoin and sell in a short period of time, because there is just a small porfit is called trading. Hodlers hodl for years, before they even think of profit, if you are investing its a long time duration before withdrawing the investment, at least 4years or more. So for your question you are trading.
You dont wait, if you do you will get your money back with profit. I think you need quick money in the space which is impossible, even in trading that you are participating if you need it quickly, you will keep loosing you need to be calm and do it the way it suppose to be done.
Bitcoin investment is for people who are not in rush to make money, people who have patience of waiting, leaving their money in there looking at going down without touching, at the same time looking at it without touching when going higher till it reaches their target.
As far as you are buying and selling back within a short period of time with the aim of making profit, you are a trader. So what you are doing, or what you are planning to do, is considered trading. You always have a target before converting your Bitcoin to stablecoin and also converting your stablecoin back to Bitcoin, so it is clear that you are timing the market,therefore, it is clear that you are trading.
But instead of doing all this, why cant you just hold? Bitcoin is unpredictable, because the time you convert it to a stablecoin may be the time the price of Bitcoin continues increasing. So, if someone is not that good in technical analysis, I always advise holding for a long time like 4 to 10 years then taking profits once and for all, rather than constantly selling and buying back, which can even make someone miss great opportunities.
If there is buying and selling coins happening, that's already trading. You start buying your coins when its low-priced and wait until its value grows, and when you've seen impressive price to sell, you'll eventually sell and make profits. That's how trading works.
However, what you are doing is not actually the right way to trade. If you really aim for profits, stick buying low and selling high, and not buying when the price is high and selling when the price drops, that's already panic buying that may lead to inevitable losses in the long run.
Yep, thats trading in a nutshell. What else could it be? You are trying to outsmart the market by guessing when Bitcoin will go up or down, and using stablecoins (which dont change much in price) as a place to park your money for a bit.
But honestly, that this strategy is extremely difficult to run successfully over the long term. Most folks would probably make more money if they just held onto their Bitcoin.
Yupz this is trading - you are converting BTC > Stablecoins and Stablecoins > BTC, this is a short-term trade that you are doing because you want to make a profit especially since you said you don't plan to hold BTC here.
Do you consider this as holding bitcoin in the first place?
It's simple - as long as you hold bitcoin for a long time, you are not a trader.
The act of buying and selling Bitcoin within a relatively short term basis is basically trading. If instead you're holding Bitcoin for long (over one to two years at least), then you're a holder. To be brief, taking advantage of short-term price movements and manipulations in order to achieve profit then you're actively trading. The same rule applies to other assets as well, such as stocks, bonds, etc., it's not necessarily a "cryptocurrency" term.
Aslong you are doing it for short term gain, thats definitely trading . And such method to make profit is quite risky because is possible that you can convert your funds to bitcoin and it endup deeping more , but the good thing about this is that you are not using leverage, so you are safe from liquidation. And if you are able to hold for long you wont make any loss but if you cant hold for you long you definitely make countless losses .
People need to understand that in both trading and investing there is buy and sell which can be regarded as trading but its just that the differentiation comes from the duration of the transaction, anyone who buys bitcoin and holds it for any time until its reaches some certain profit level and sells its is regarded an investors while some who just buys with intention of immediate sell and doesnt wishes to hodl is considered a trader but the thing is that all the the categories you must buy/sell (trade) which I what confuses others.
As for OP he is simply just scalping or rather a scalp trader, this trader can buy and sell in space of a very short term, its the most risky form of trading and its one trading option that I advice people to avoid. The second one is OP got cut out of scalping and his simply force holding which isnt investing here but swing trading
Simple put; buying your Bitcoin at a low price and selling at a high price consecutively in a short period of time for the purpose of making profit during the little or massive swings in price can be called trading. Maybe others have proper definition for it but based on what I have learned, I gave you this simple definition. What you are doing is trading.