I have a problem with people even having to use part of their Bitcoin holdings to trade. I believe in separation of concerns and precision which spurs effectiveness.
Why will you even be trading with your bitcoin holding? It doesn’t make send to me, if you are planning to hold your bitcoin, then it’s better you hold, but if you want to trade, then just focus on that, and if you are planning to do the two, just split the money you are having, leave some in your investment wallet, and be trading with one part on exchange, but touching your investment money frequently doesn’t really go well.
For anyone who is going to trade, it is likely important to keep some separate accounting and separate accounts, so that the trader never taps into the investment account, and if he wants to build his trading account, he need to accomplish that through building his trading balances. It can be quite difficult for traders to sufficiently/adequately segregate their accounts, especially since they likely devolve into gambling behaviors, even if they had previously not been so much of a gambling type.
Yeah this is very true. It is of utmost importance to separate your trading account from your investment account. It just like you’re placing a blockade between money for playing around and money for serious business.
Trying to have a separate account for Bitcoin investment and doing trading might look really good while saying it untill you get started and discover that what you call investment is just a reserve that you will certainly run to as a source of refueling your trading account whenever you've ran out of funds for your trading. If you want to be a good bitcoin investor, your priority should be to avoid anything that will stands to push you into touching your asset at any slightest opportunity.
They may actually begin to rationalize some risky trades and be like, it’s okay, it’s just a little bit dip into the investment account, it’ll be easy to recover the losses. And before you actually realize what’s going on, they’ve activated a full blown gambling approach, resulting to loss chasing and other stuffs.
this is literally what I was saying, it's a risk you don't want ti get into by trying to engage in any form of trading while your plan is to invest for the long term. If you're at loss, the psychological effect it will have on you might push you to making some decisions you would not be too proud of. Just imagine you lost it big in your thread and the need to recover your loss hits really hard and the option that looks really good that will help you recover your loss is to use your Bitcoin holding for your trade, you go on to use it and then everything start going down. Do you know how devastating that will be?
But when these funds are well separated, and not interchanged, it gives the investor/trader more control and some form of discipline and help them focus more on building their trading account with actual trading skills and not to rely on their investment for backup.
You want to know what real discipline and focus demand of you, it requires that you do what you're at least certain of it outcome and use the rest of your energy into something else that can even help you in building your investment portfolio.