So, a buddy and I were chatting recently and realized we both love crypto. My friend is all about trading while I prefer to just hold onto my coins. We’ve got different views and knowledge on the whole thing.
Talking about how we got into digital currencies has actually brought us closer. With the market still struggling for wider acceptance, it’s nice to find someone who’s into it as well. Now we can share our thoughts on bitcoin and cryptos based on our own experiences and market predictions.
My friend mentioned he regrets buying some random altcoin when it first came out. It was doing great until bitcoin started to get messed with and its price dropped. He asked me if I thought BTC would reach a certain price and if he should sell. I told him that sure, it could hit that price, but predicting it happening within a certain timeframe is pretty tricky.
This got me thinking about how folks are keeping an eye on altcoin prices based on what bitcoin is doing. He also shared that he lost around $9,000 during this whole bitcoin market mess.
Your friend is trading? It is better you advise him to stop so that he will not miss the coming bull run. The time to halving is still long, he can still gather money together and DCA, average and lump sum.
Trading is more like gambling, he should stop it or only do it with small amount of money which he can afford to lose just like small amount of money that he can use to gamble and lose.
Yes, bitcoin is a very good coin that he can invest on, he should be expecting at least x2 to x2.5 profit or probably more in the next bull run. He can use 70% for bitcoin, 30% for altcoins. From the 70% for bitcoin he should hold 25% for lifetime so that his children can inherit it. 30% of all the altcoins shold be sold when they rise because their fall will be very bad.
Many altcoins only exist to make a profit by coming and then going, not held for a long period. Therefore, research when trading is a must. At the very least, if you want to hold long-term, choose bitcoin and then altcoins that have proven to be able to survive. Then allocate your funds for other altcoins to come and go quickly. This is what I also do, losses are part of the risk of trading in crypto. So, there is no need to regret those who can learn can at least recover their lost funds and even gain more profit.
You sound as if trading is a bad thing. If you know what youre doing and disciplined enough to handle the market risks, then there is a chance that you can be profitable. The problem is people see the so called crypto traders on the internet with flashy cars and assume that trading must be an easy way to make money. The reality is that its not. Youre right about one thing though, the safest strategy for investors still remains hodling.
For many altcoins, in order to buy, you may need first to buy Bitcoin, or a stable coin. Tracking gain/loss vs Bitcoin price is not uncommon, although it's the "what if" (what if I would have kept bitcoin) mentality, which is somewhat unhealthy (the world is moving forward; if one makes a decision, just live with it and move on).
If you look at the altcoins, there are not that many new and useful features they come with, so it's clear that a huge number of them are there only for short term profit.
One has to understand clearly all this and the effect on trading. Sadly most gamble-trade and, while it can bring nice profit for a while (if entering in the right time), it is still very risky if one doesn't know what he's doing.
Crypto industry is not the get rich quick scheme many think it is. The money is there, but one has to be smart, lucky and not overly greedy to make the right choices.
I believe that the friend has already advised him before and even if he did not advise him the one that is into trading will know that is doing something risky and gambling, as far as he knows that his friend is into bitcoin he will know that trading is not a good thing to do but some people are very stubborn and will never listen to you when you try to advise them, i have advised many of my friends who are into trading and buying of altcoins and they did not listen to the extent that one is telling me that i am jealous of him.
When it comes to crypto some people deserve to be advise and some people did not deserve to be advise because they know the truth and understand the risky in trading but they will choose to trade because they think they can not hold bitcoin for a long time, when i see a full grown person that knows about bitcoin and still decides to take risk by using money to to do another i will pretend like i did not see the person because i dont want to be blame because some of them got panic when they see the price of bitcoin going down.
Altcoins are known for quick profits or quick loss, that shows the level of risk involved in trading altcoins because they lack structure and are easily influenced by hype or manipulated by big banks.
There are a few altcoins that could be worthy of investment like Ethereum, Solana, Dogecoin, Cardano, etc as they mostly have their own blockchain so he should rather make proper research on altcoins before investing and not make decisions based on social media hype.
By doing this, he might have been trying to eye those new projects that can pump in the beginning of its launching days.
But not everyone goes well for this anymore and the bear market contributes to whether these newly launched coins will be successful or not.
We are investors and it's a common thing to track the prices of the investments we have for bitcoin and altcoins that we own.
And that's a lot of money for him to recover and I wish him that soon with his holdings, that can cover up his losses once the market rebounds.
That is the keyword there, strange? maybe it's a meme coin. And we all know that they are just pure hype and pump and dump and manipulation. It has nothing to do with Bitcoin market and manipulation.
I do hope that he learn his expensive lessons here. $9,000 is a big money for most of us here and if we ever lose that money, then something is wrong. Not advising, but it could have been better for your friend if he put that money into Bitcoin.
Trading is not easy so your friend must have skills to analyze. If he doesn't have much time to learn trading, you can suggests him to buy and hodl. That will works good for him because he doesn't have to analyze the price but only buy according the time he set.
He can follow your step but you should teach him the step. Buying altcoin is risky since he need to analyze to find the right coin and not all coin he buy can gives profit. If he buy and hodl Bitcoin for certain time, he could makes a nice profit in the future.
Holding an altcoin the same way bitcoin investors holds Thier bitcoin is one of the riskiest thing and investor or to put it the right way, a trader will ever consider doing. With bitcoin, you can buy and let it stay for long and even if the price comes down, you're still certain of a recovery but that's completely far from what's the case with an altcoin.
Altcoins and meme coin are something you get involved in on a temporary basis just like how you go about gambling and don't neccesarily have to monitor the price movement of bitcoin with the hope that it will have a direct effect on the way altcoins react. You can't compare investment to trading because trading demands a lot of guts and the ability to bear the loss that will eventually come with it.
As an indicator, we can say this is true, but the altcoins index represents several million cryptocurrencies. Therefore, the further we move away from the top 10 altcoins, the more difficult it becomes to predict their direction, as their price movements will be random or dependent on the available liquidity. Investing in such tokens/coins is foolish.
Many influencers hype many altcoins as if they are guaranteed investments to change your life and if you're not careful you will put a lot of money into them and lose everything if you didn't time your exit very well. There are more scam altcoins than there are genuine projects so you're in the market to make profit from the token that you're holding while the devs are planning on when to exit and the project will die. A lot of people are losing money in altcoins that they are holding like Bitcoin, they don't know that these shitcoins don't have what it takes to recover because their creators have intentions to use them to scam the holders.
Crypto trading is risky so it's not for everybody, if you don't have what it takes to understand the technical and fundamental aspects of it then you should simply buy and hold Bitcoin for the long term. If you are comfortable with buying any altcoins you should do yourself a favor by using small amounts because it might not live to maturity when you want to take your ROI.
Altcoins also have specific fundamental factors apart from following global market trends. In general, they only have a low adoption rate compared to bitcoin, this has an effect on total liquidity to keep price movements within expectations. The internal team situation also greatly contributes to the level of trust in its community.
He only offers advice, and we have to advise our friends, otherwise who are we ? Similarly, the OP is already saying that the friend has lost a sufficient amount, as he is probably not talented in trading. Do you agree that out of a hundred people who try to trade, only a few get positive results, since everyone else only suffers losses? Trading is done by those people who have good analytical knowledge, people with good self-control, and those who do not lose heart. There are many of us who tried to become a trader, but decided to remain an ordinary investor, saving not only their funds but also their nervous system.
it seems that your friend are into meme coin, this coins are just a pump and dump cycle, some really stay in the market for a while but if he will just invest into something that is like mushrooms that pops up, i suggest you tell him not to do investing with those kinds of coin, instead try to hold bitcoin, but don't be too happy when the price goes up, since its a cycle you will experience bear market, its okay to have conversation with other people because we can get info inputs, but also we can help them if they messed up into something and give our personal suggestion, its up to them to apply it.
All of your opinions are positive as much as I know, trading is profitable but that is if you have acquired the necessary skills and resources.
Yes basic knowledge is not enough otherwise you will loose too well that it will look like gambling as most of us may assume it is.
Well all are also tasty of making the every day profits as the traders but because of the risks, we choose not to be faster than our shadow and chooses to hold.
Nevertheless, it is a kind gesture to share ideals with friends especially when you find them stuck and frustrated.
Not only meme coins, it also happens to other altcoins that offer their services, and not many have increased after launch, his friend may hope that after the launch the price will increase greatly like those on the gainer board on the exchange, I am also sometimes interested in seeing it have an increase of hundreds to thousands of percent after launch, but I don't touch it at all because the risk is very high on newly launched altcoins, someone might be gambling and hoping like that.
I think Bitcoin must be included in our Portfolio and should be mostly included in it, some traders also speculate on altcoins and trade in them, the results of their trading are aimed at collecting more bitcoins.
Sharing like that is a good decision for his friend or for us because we can exchange experiences and good advice to improve each other, even when we know how the problem happened to our friend it can increase our knowledge of how the best solution we can take today is the right decision for someone who doesn't like to speculate too much.
That's not entirely true. Bitcoin can go down, dragging others along with it but rises without those it has dragged down rising. I guess your friend is a spot trader and that's why he's perturbed with falling Bitcoin price. Otherwise, it shouldn't bother him. A Futures trader makes money whether Bitcoin is falling or rising.
His loss is the price he has paid for experience gained. It's not a bad thing. We all also passed through that.
this a really good advice for anyone out there, whether you newbie pro, dont blind buy altcoin if you didnt understand that is why lot of people always said Do your own research and do with your own risk. It means you need to do research before buying it. In crypto, you can speculate on price, or you can speculate on time, but trying to predict both simultaneously is a mathematical trap.
altcoin dumping alongside Bitcoin is a classic lesson in Crypto, and today altcoin is very hard to get pumped