With bitcoin as well rest of the altcoins every dip is an opportunity to make an investment. Very few make use of this while majority of the users just keep hold of the assets for the bull trend. To make a good profit out of bitcoin it is a must to move along with the market than just holding focusing on targeted growth.
Very true but basically trading seems tactical unlike any other making scheme because when you're not getting a verified information about the market trends, it tends to disrupt the process of you gaining profits talk more of investing in the long run. Though long term investment are sure jackpots so buying and hodling can be a very taunting decision to make.
Considering how bitcoin moved from $80k to over $100k in few days or weeks, you’ll agree that, someone might buy bitcoin with hopes of making 20%, regardless of how long it will take despite’s the volatility of the market, what this very holder is focused on, is achieving a 20% return and the moment this goal is achieved, it’s at this point, not really a bad idea to take profit or set another goal and as much as holding bitcoin for long term seems safer, that should not mean that, we shouldn’t make use of good opportunities when they present themselves.Their is nothing as short term Bitcoin investor bro, it's either you are a long term holder or a trader period.
Just as your illustration in your write up, anyone that bought Bitcoin at $80k and sold for $100k is a trader selling off his Bitcoin for minimal gains nothing more, a typical holder of Bitcoin will not sell his asset just because Bitcoin rose to $100k when he knows that with the kind of huge potential of Bitcoin, it can go as high as a million dollar or more in the future, so why would he be selling for minimal gains that wouldn't have any significant impact on his financial status forever?
So my brother, their is nothing as short term investor, it's either you are a long term investor or a trader that sells for minimal gains, their is no two ways about it.
It is true that looking at Bitcoin from a business perspective you can either be a long term investor or a trader, but in another word a Bitcoin trader can also be referred as a short term investor. Whether it's long or short term investment, the goal is to make profit, the difference is that trading or short term investment can give quick profits but it is risky while long term investment is not risky. As a long term investor you will not face the risks of traders because on the long run your capital + profit will increase through your return on investment. For peace of mind it is better to buy and hold for the long term instead of selling when price rallies on the short term, your stash in a whole will give you far more profits on the long term than selling off on the short term.
You don't need to sell off your Bitcoin all at once if price skyrockets, rather you can take profits sometimes to reward yourself, afterall it is your money and you have a right to take a part of the dividend and enjoy it. If price increases for example by 20% by all means you can decide to take 5% from the profit to reward yourself, your capital and remaining profit will continue to generate more profits on the long term. If you are on DCA method you will continue to grow your capital and profit will continue to add to it on the long term.