One question bothers me a long time and I am not sure if there is anyone that thinks about this before. Let's say you invested $10K in Bitcoin when the price was $20K, and some time later the price pumped to $40K, which means the initial capital is now worth $20K. For some reason, you need cash urgently so you decide to sell the Bitcoin you own for cash. You do it and now you have that $20K on hand.
In this process of trading, your profit is $10K for sure, regardless of whether the Bitcoin price will pump or dump. If you won't invest again, this beautiful success should be what you are proud of. However, 99% of us will choose to buy again and hope for the next success. However, now you buy at $40K and the price may drop to a new low below $20K later, and the profit you gained from last trading may be eaten up gradually by the market dump.
Connect the two dots(two extreme conditions) and draw a curve, high chances are that at last, your profits from all investments may not be that much, at least much less than what you expected when you first gained that $10K. Therefore, all the occasional profits between investments may become fixed or variable costs that these investment must pay.
Does this sound logical to you ? What do you think of all the interval losses from the investment gains ? Please let me know.
In my opinion, it is a very bad strategy to sell at a low price ($20,000) and then re-buy an asset that has already doubled in price ($40,000)....
You need to buy bitcoin in a bear market (at a low price) and sell it at a bull market (at a high price). Now that's a good trading strategy!
If you are selling bitcoins to buy things that are vital to you, then this has nothing to do with trading. In this case, Bitcoins perform the function of money (monetary, payment function).
Bitcoin is both an investment asset and money, it can perform both functions.