Hi,
I'd like to know what do you think is a good strategy when BTC price shoots up and you feel it's going to come down again.
- hold on to your Bitcoin?
- Sell it for USD hoping to buy it again cheaper?
- Sell it for other crypto (in this case which would you choose)?
The method you mentioned is a well-known method of trading when there is some measurable volatility in the price of the bitcoin. One can get even 1.5X or more returns in serious price fluctuations if he knows when to enter and when to exit. Its like selling bitcoins when it is $1,000 and then purchasing again when it falls to $700 or $600 so ultimately the overall quantity bitcoins and the price of it increases significantly.