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.
Whenever investors get their funds mixed up with each other, it may potentially result into a sort of a slippery slope. 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.
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. I wouldn’t say it’s easy, but segregating one’s accounts is a very commendable approach towards maintaining a much conducive trading environment and also mindset for the trader.
Yes this is true, and I will also advise you don't use the same wallet you are using for your Bitcoin investment to trade let it be a different wallet and then you use a separate funds, if you use same wallet to trade and invest you will have an issue because you may be tempted to use your investment to trade so is better you use different wallet, and when trading do it for fun, trading for fun those not mean that you are won't also make money from it, it means that you won't take it as your means of survival or your source of income and trading should be done with a very small percent of your discretionary income and then you use a more larger percentage for your investment that is if you most trade.