Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy Buy Buy or Sell Sell Sell?
by
Dump3er
on 03/06/2024, 23:15:56 UTC
⭐ Merited by JayJuanGee (1)
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DCA is going to be quite problematic for any coin or project that is generaly trending downard in its price... One thing about any asset with strong fundamentals would be that even if it is trending downward for very long periods of time, if the fundamentals are strong enough, then the downward trend should end up reversing, and sure it is not guaranteed to reverse, and sometimes we might not know that something is a shitcoin until it never ends up recovering.

Surely there are some shitcoins that end up having second lives, and so there could end up being some value in DCAing into them and then getting out during one of their recovery periods... but yeah, would we call that investing?  Probably we would call it trading and/or gambling... depending on how wild the coin is and if there might be some reasons that the coin/project actually has meaningful/substantial value beyond pumping and dumping.

Which in all honesty is probably more gambling than trading. I mean it is probably not that simple as there could be an extended debate about what is trading or gambling, but when it comes to catching these shitcoins with "second" lives, I think that's more gambling. There are coins though where someone might consciously not trade the fundamentles because they are trash, but herd behavior and market psychology. If I am quite certain that something will go up in price despite knowing that it is a shitcoin, then you could probably call it gambling and trading. I trade the sentiment instead of any fundamentals. But given how often these shitcoins have failed (or rather how many of them), catching these second live things has become very rare. I can tell that the last time I bought something other than bitcoin is a very long time ago. Except for coins I used for quick transfers, like USDT on the Tron Blockchain or TRX, but I don't really own it as an investment. Sometimes I have some because I pay for my VPN or something and bitcoin is definitely not always the best option for that kind of payments.

But JJG the difference is that we do some analysis here and know that sometimes you trade fundamentals or you can trade the sentiment or information you have. Too many people are still stuck with terms like market capitalization or coin price. They have no idea, don't read basic material about bitcoin, fall for the most fancy techn language and check coinmarketcap for low market cap coins in hopes to see those rice to bitcoin levels. That is where it becomes stupid. You know these sentences "but bitcoin very expensive, trashcoin only $0.05, much potential". Some don't even understand the concept as mentioned above. When there is a coin that costs 1/1000th of bitcoin, but there are 1000x the number of bitcoins, they still think that it takes less money to push the price of that trashcoin that to push bitcoin upwards.

Lots of people lack the most rudimentary fundamentals and then I would certainly call it gambling when they buy something other than bitcoin. If someone really puts effort into following a certain portfolio of coins and identifies some pattern, then I would more lean towards calling it trading.

Whenever someone asks me to do what to do to get involved first, it is bitcoin and then go from there, see how the market works, what kind of news might have an impact, take time to get into the little details, and if somebody then decides to give some other coin a shot because the person now is able to contextualize any coin within the bitcoin ecosystem, then feel free to do so. But people wasting their money on some coin from page 288 from coinmarketcap because they hope there will be some dead cat bounce or so, please no...