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.
The truth is that, there are two type of holding which includes the long term holding and also the short term and what typically matters is that we achieve our set goals at the end of the day.
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.
Most newbies in Bitcoin and crypto space believes that when a trader buys Bitcoin at a particular rate and takes profit immediately the target is met only to witness
the price of Bitcoin surge even higher than the target, such trader have lost money for being impatient. That's not how trading works. When a trader is trading short-term, a target is set(sometimes automatically set) and when the targeted market price is met, the trader is expected to take take profits immediately. What happens after taking profits shouldn't be used to judge or determine the trader's experience in the market. Bitcoin just like other coins is volatile and that's why you can't be too sure of movement of the market. But for long-term traders, the price movement most times doesn't influence their actions rather they invest and lock their trades for a particular period of time with hope that by that time, they'll getting more asset value that what they used to invest and in most cases, they do end up with significant profits.