You're thinking in fiat savings
You're trying to accumulate in fiat value. Most people do
Hodling vs Trading in crypto
- Thread starter HolyGrailSeeker
- Start date
You're thinking in fiat savings
You're trying to accumulate in fiat value. Most people do
My problem with crypto right now is the volatility as most are still thinking in dollars. That's why the crypto currencies are quoted in dollars.
I suppose you have to think in value. What can I buy for one bitcoin today? what will I be able to buy of one bitcoin a month from now? Today I can buy a new car that has a 70K dollar value. A year from now I might be able to buy 2 new cars or maybe only a 35K dollar value. Since I don't know It's hard to think of it as a savings account.
As long as crypto is valued in currency then it's an asset that has risk and if you don't control your risk you could reduce your wealth significantly.
OK replace crypto with bitcoin. the same argument still applies. It's valued in dollars. It has risk and if you don't control your risk, it could affect your net worth.
We're going in circles
Please read my first 2 posts on the thread. I think the video is great and it's not that long
In addition, you can read the book called "The Bitcoin Standard" by Dr. Saifedean Ammous
Yes definitely circles.We're going in circles
Please read my first 2 posts on the thread. I think the video is great and it's not that long
In addition, you can read the book called "The Bitcoin Standard" by Dr. Saifedean Ammous
I re-read your posts and watched the video.(Haven't had time to read the book)
What I get is that bitcoin is a tradable asset. Driven up and down in value by fear and greed. Not unlike stocks or futures.
What you and the YouTube guy are proposing is a long term trend following strategy with no risk control. Very similar to buying an index ETF and holding until you retire.
I'm a short term thinking trader concerned about protecting the capital I have today.
Takes two to make a market. All's good
The guy died poor by putting a bullet thru his head, considering himself a failure according to his suicide note.
I'm not saying go all in and hold 100%. Like I said before, I do both trading and holding.
If you control your risk you have to put a stop loss and potentially selling at a lower price.
In fact I've never heard of any daytraders who become filthy rich. Max they can make is $1-$2million maybe. More than that you have to move to swing trading and even more a long term investor.
The ones who become filthy rich are the ones that don't use stop losses. In fact they hunt for them selling at where people place their stop losses and then when prices dropped too low on a selling climax they buyback in.
That's the object of a stop loss, to control your risk. Every trader that has ever blown up an account didn't use a stop loss.
Not so sure about those who become filthy rich. Ask any successful trader what the secret is and most will answer keep your losses small.
That all depends on what instruments you trade. If I had kept using stop losses, I would have blown out my account. By not using them, I have been saved from the misery of losses, and now suffer the misery of time-to-recover. Awful stat-line, but it works, heh.