If you invest in bitcoin with the motive of selling it when the price get to a sating level it then mean you are a semi trader, and you are the gambling at the same time, you are not an investor, because a real investor we keep accumulating bitcoin and hold unto it for long period of time, 5 to 10 years or more depending on your target, because every investors must not have the same target and the same mindset when it comes to bitcoin investment.
If you buy bitcoin and decide to hold for 1 to 2 circle do you also consider such person as a semi trader? Because holding for that long period might be for different purpose but making profit is always part of that reason, for that 5 to 10 years period a holder can actually have a speculated price in mind where he picture bitcoin to be at that point in time even if it don’t get their or get above that expected price, holding for long does not restrict the investor from having a selling price target.
Many of us are not referring to bitcoin investment targets as a way to sell most if not all of our BTC, since that probably would not be considered investment, even if it is a long period of time. If you invest into bitcoin for a long time, then you likely don't need to sell all of it, even though you would likely have more options by having had built up your bitcoin investment , including shaving off bitcoin from time to time in sustainable ways whether done based on price based parameters or time based parameters. In other words, there should be no reason to invest and save in bitcoin for 10 years or more and then all of a sudden become a no coiner, even if at some point we might transition from no longer accumulating bitcoin as much or we might transition into a maintenance stage or sure we can start to liquidate our BTC holdings, yet we still might not need to rush to liquidate unless we have age and/or health related concerns that might contribute towards our needing to cash out more quickly than otherwise justifiable.
It's not every investor that will have the time to start analyzing the market because they're busy making money to keep their bitcoin investment ongoing. This is why if you care about buying more bitcoin at a cheaper rate, you should plan for it by building up a reserve funds , so that when there's a dip, you can buy. However, new beginners shouldn't bother about market analysis because it's useless for an investor. If you are an old investor and want to study market analysis, that's your choice. No one can know the bottom line of the dip, but with your active DCA ongoing, you will be privileged to buy at the bottom line of the dip.
If you are not a trader, why do you need to analyze the market? What does an investor do by analyzing the market where he has to buy regularly? Does an experienced investor need market analysis to be aggressive in investing? I would say, no. He does not need market analysis. Because, he may have a fund with which he can be aggressive in investing. A newbie or an oldie does not need market analysis if he does not feel the need. But I do not consider it as part of the crime.
An investor should always be focused on buying. He should analyze how he can improve his source of income or how to make his holdings bigger and safer or how to keep the backup funds strong. Market analysis is the most necessary thing for a trader. Because their core skill is on market analysis.
Although, accumulation of Bitcoin is a decentralize investment but irrespective of that the importance of market analysis in Bitcoin investment cannot be undermined because it motivate investors to have more passion for investment and help to have good understanding of Bitcoin investment or even trading.
Market analysis also enable investors to evaluate the performance of their investment to enable them make good decision that will enhance the efficiency of their investment to generate good return that will optimize the sustainability of their investment in the future.
So, considering the
significant role of market analysis in trading and investment I will say that market nalysis is very important to both traders and investors.There may be some need to figure out what traders might analyze versus what investors might analyze, and surely there sometimes can be some overlap in the kinds of things that they may look at and even some of their practices might be confusing regarding if they are trading versus investing.
Frequently traders are looking at technical analysis rather than fundamental analysis to try to figure out short term BTC price moves, yet some of the traders are playing longer periods rather than short periods so they may be trying to time their bitcoin exposure within the cycle to try to catch the top and the bottoms in terms of longer timelines. Whether they trade with their whole stash or parts of their stash might also cause them to overlap with investors, in the event that they might ONLY be selling small percentages of their stash, yet with intentions to buy back cheaper in the event that the BTC price goes down from the point of their sale.
Longer term investors might not necessarily get worked up about short term BTC price moves, yet the still may want to analyze various bitcoin fundamentals and they also may spend time analyzing their own budget so that they figure out ways to ongoingly invest within the parameters of their own budget and their own psychology, perhaps with intentions of having more options later down the road, such as 10 years or longer. An investor might also assess and reassess their bitcoin investment from time to time, to try to figure out the extent to which the strength of their investment thesis (reason for getting into bitcoin) is becoming stronger or weaker, and so a longer term investor could abandon their investment into bitcoin based on their assessment that bitcoin's investment thesis had gotten weaker, and that they felt that it was no longer warranted to buy bitcoin or to stay invested in bitcoin. That would still be a different kind of an assessment than what a trader might be doing, yet an investor still might decide to try to exit his investment into bitcoin by using trading analysis in order to try to time their exit in a more profitable kind of a way, to the extent that might be possible to accomplish, unless they end up panic exiting based on their changed assessment of the strength of bitcoin's fundamentals.
There surely can be overlap in the kind of assessments that might be made, yet if a person is investing for the long term, he may not need to engage in any analysis beyond being convinced that bitcoin is a good enough investment for him to buy regularly, and sure the more confident that he has in bitcoin, then the more aggressive he can be in his bitcoin purchases, yet he still may have a timeline that is way into the future, such as 10-20 years or longer, and even the shorter term investor that might be looking at 4-10 years, they might merely be planning shorter investment timelines based on their age and/or health considerations, yet they might not need to do much analysis beyond considering that the bitcoin price should be higher in 4-10 years when they will need the money, while knowing that they are not guaranteed to be in profits when they need their money, yet they are willing to take their chances based on their overall assessment that bitcoin is an asymmetric bet to the upside with decently strong fundamentals that gives them confidence to put money into bitcoin..
Traders are way more focused on short-term price moves as compared with investors, even if they might have timelines that are longer such as a year or two or even if they might be wanting to play a bit longer of a timeline, such as more than 4 years, but they still might be considering bitcoin as a trade, even though they might get mixed up with investors and overlapping with investors in terms of their having a longer than usual timeline in terms of their planned trade.
Anyone one who is doubting bitcoin is an unbeliever to bitcoin potentials and if the person intend to invest in bitcoin with double mimd the person we never get it right, for the fact that bitcoin is highly volatile in nature it is not advisable for someone to invest in it with double mind, because bitcoin investment required someone to be committed and focus for that is the only way you can accumulating bitcoin properly using any other strategies.
Every good venture like Bitcoin tends to have a lot of critics to it's cause, when there's nobody against or attacking an innovation, it sends a negative message about that invention. You cannot force everybody to like Bitcoin, funny enough most of those who used to fight Bitcoin now saw it's value and invested into it. For example JP Morgan once said in 2017 that
Bitcoin is a fraud that would ultimately blow up and same JP Morgan owns about $731,246 in spot ETFs. Signaling he just turned believer.
Nobody comes into a new innovation fully convinced, they always give it a try and increase their conviction along the way, it's fine to have some elements of doubt at the beginning of your investment into Bitcoin, but as you learn more about Bitcoin and advance in your accumulation journey having the long-term mindset. Your conviction and appreciation of Bitcoin would improve considerably.
You just nailed it Sticky Bomb. Yea. Critics is right and accepted as it is another means of keeping the new inventor on his or her feet inorder to make things right and also ensure quality and good sustainability for a long run if such inventions are genuine. And about doubts, I think it's a natural phenomenon. I think it's more like been careful, been skeptical in full participation, yea! This is something you have not done before. So it is only natural you may not believe the process since you have never experienced it.
Imagine someone getting into Bitcoin investment for the first time, He should fear and have doubts. Even though
he has seen its workability, or heard of its goodwill. Even though such a person has made all the needed research about Bitcoin, knows about its volatile nature, learns about how to study the market, how to buy and hold for long time, etc, so long as it's investment or trading as the case may be, since it's a new person in the business, doubts must be there. When one experiences everything first hand, only then can one build confidence in the process.
Bitcoin investment especially for a long term is a great deal. It's okay if one doubts, but the process if involved fully with future plans will clear the doubts completely.
The more doubts that any newbie has about bitcoin should result in his adjusting his position size to reflect his doubts, so in that regard, if the newbie bitcoin investor has a lot of doubts then maybe he would invest on the lower end of the scale, such as 5% of his income rather than 25%, and surely there are some who might even choose to go below 5% based on their having a lot of doubts rather than being based upon their financial abilities. Many folks will choose not to invest into bitcoin based on their doubts, which many of us know is the wrong solution, so instead of investing aggressively, they should still choose to invest, but merely to invest more conservatively in alignment with their doubts, which we frequently had referred to a need for everyone to invest something into bitcoin and to get off of zero, which continues to be a pretty BIG problem with and overwhelming majority of the world's population (perhaps close to 99%?) being in the status of no coiners (aka pre-coiners) and low coiners.