its called "averaging down" or "shorting"
buy the dip and hold or buy low sell high="going long"
sell the high buy the correction="shorting"
also if you look more into your "little recap of 3 cycles"
you will notice the bottom of cycle 2 did not drop below high of cycle 1
you will notice the bottom of cycle 3 did not drop below high of cycle 2
so when you use an example of time sell of upto $100k. (then corrects) then buy above $50k..
you might want to aim your target at sell upto/above $140k (then corrects) then buy above $70k
No, shorting is when you bet against an asset and you "borrow" (virtually on the exchange using a perpetual contract for example) at a given price and then pay back the virtual loan later. If the price goes down you make money because you now pay a lower price for what you borrowed and you cash in the difference. You lose money if the price goes up though. It is quite different from what you describe. You need a future contract to do shorting. Also averaging down has nothing to do with shorting. Maybe you should learn trading terminology before telling others what it is.
short is opposite to long... [grammer, logic, physics]
people are not required to obtain extra coin to short if they already have coin
those who already have coin can short their own coin(no borrowing required)
only those without coin need to obtain(borrow) coin to short
you can short without leverage thus not need to use futures contracts..
futures contracts are just the contracts for the borrowers to borrow under contracts..
shorting and futures are different things.
i have hoards of coins myself so dont need to borrow but i can short my own hoard just by selling on spot market, waiting for the correction and buying in cheaper
shorting is not dependant on borrowing. but if you dont have coin upfront to perform a short THEN you need to borrow coin to perform a short
It is grammar.
No, shorting is a very precise trading term. If you sell, you sell, that has nothing to do with shorting.
Yes, with crypto the only to short is doing it with a contract. Shorting requires borrowing in fact if you pay fees to short a coin.
Please check online the definition of the term.
Selling high and buying when the market deeps is simply trading and what any trader should do, lol. What do you suggest buying at the top and selling at the bottom instead?