Ive been hearing about situations where someone buys a coin for a certain rate and not quite long after, the said coin drops in value, or someone sells his coin for a certain rate and then it appreciates just after.
What's your take on this? Given the period we're in is it buy time or sell time?
So the big hit is buy and buy most necessarily buying as at when there's a price drop and hodl then after sell when the coin is profitable, that's
what is required of every trader or investors. But looking at the period we're in it could be either of them buy time or sell time we just need to know when the market is favourable inorder to profitable in the end.
You seem to be convoluting the definition of trader and investor, which likely shows that you don't really understand or appreciate what makes an investor different from a trader.
No an investor does not necessarily sell his bitcoin merely because his investment into bitcoin has become profitable.
Let's say that an investor comes to bitcoin and he is in his late 20s, and so he decides that he is investing into bitcoin for at least 10 years, and then sure he will make various assessments of his investment along the way, and he will also consider where he is at in 10 years, to figure out if he might need to reassess his investment into bitcoin and how it has done.. He also may well want to assess where he is at in life based on where he thought that he might be. Whether his bitcoin are in profit or not (at the end of 10 years) might not necessarily affect what he decides to do.
Maybe you (@harapan) need to reconsider how you think about traders versus investors? and consider how well you know the topics, even though within the two categories there could be some overlap and even within each of the categories, there also might be variance from within the category regarding how they approach their trade or their investment, and some folks might have more clear ideas, and others might be like you (@harapan), and they might not even know the difference between investing and/or trading, or whether they have a plan for what they might do upon the passing of certain events, either.
After a few days of discussion, I understood how to spend the earned money in the right way and what kind of fund should be formed with the remaining money.
I have summarized what I understood in this regard below so that it is easy for others to understand -
▪️Proper structure of spending earned money
🔹 Basic needs: In this case, 50 percent of the earned income should be spent.
The areas of expenditure are-
. Food
. Clothing
. Housing
. Education
. Medical care
. Transportation
. Electricity bills, gas bills, etc.
🔹 Savings and investments: Here, a minimum budget of (30-40)% of the income should be kept.
Types of savings and investment funds-
. Emergency fund
. Pension or retirement fund
. Investment in gold or stock market
. Investment in cryptocurrency or Bitcoin
🔹 Entertainment and social expenses: In this case, 5% of the income can be spent.
. Travel
. Eating out at restaurants
. Gifts
. Expenses at social events, etc.
🔹 Some budget can be kept for personal development, donations and social service and other areas.
Now the question may arise, how can those who earn a small amount of money meet their basic expenses with 50% of their income?
In fact, everything is possible if you spend according to your income.
Did you make up those numbers? or did you get them from somewhere?
Do you know that many folks struggle to save/invest 10% of their income, once they have established saving/investing as one of their priorities? Yet at the same time, you expect, as a general principle that 30% to 40% of the income could be aimed at savings/investing?
These are not necessarily bad ideas within a kind of possible framework, even though you are largely characterizing discretionary income as 50% of a person's budget, which surely would be a luxury if folks were to be able to figure out how to structure their expenses so that they are 50%-ish of their budget... so in that sense, even though some guys might be able to achieve such, to describe those kinds of circumstances as applicable to everyone seems to be out of touch with the reality of the situations of many (if not most normies).
Ive been hearing about situations where someone buys a coin for a certain rate and not quite long after, the said coin drops in value, or someone sells his coin for a certain rate and then it appreciates just after.
What's your take on this? Given the period we're in is it buy time or sell time?
So the big hit is buy and buy most necessarily buying as at when there's a price drop and hodl then after sell when the coin is profitable, that's what is required of every trader or investors. But looking at the period we're in it could be either of them buy time or sell time we just need to know when the market is favourable inorder to profitable in the end.
You're wrong, in Bitcoin investment, the big right thing to do is jumping in and buying regardless of the market sentiment as long as you've discretionary income present.
You don't just sell because your Bitcoin is profitable, else you can be going for short-term gains. You sell (if at all necessary) at the end of your long-term holding period in order to get the desired profits.
This is not correct Sticky Bomb.
You think that it is a good idea to spend 10-15 years or more accumulating a bitcoin position, and then you just sell all of it? For what? fiat? or some inferior investment?
A big hit is accumulating a decent portfolio and holding for a long-term ( 4 -10 years or longer) so that you can have a chance to maximize your profits potential and not worry if the price goes low or high since by then the compounding interest on Bitcoin price appreciation would've acted on your holdings and possibly, you'll be very profitable depending on how long you were able to hold.
O.k. Sure.. You are correct that if you hold a longer term, then you are likely to be in profits, yet you still seem to presume that guys transition from buying bitcoin and then into just selling it all at the end of the period. That hardly makes sense to me, even though surely I can understand that some guys do engage in such a practice of selling most if not all of their bitcoin at the end of some period of time and/or target accumulation (or target value appreciation), which surely seems short-sighted, which I am surprised that you (@Sticky Bomb) believe selling most or all of your bitcoin at the end of the period is the bitcoin "investors" way of considering and/or treating his bitcoin holdings.