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The cryptocurrency sell-off has exposed those swimming naked
11–20 of 179 posts
Re: The cryptocurrency sell-off has exposed those swimming naked
#12,,The crypto slump has been brutal’’ I’ve been holding Bitcoin since 2013, and this 50-60% retracement from the all time high was nothing compared to what I (and other people) were living through. I advise people to look at past volatility of Bitcoin before making an investment decision.
Indeed, Bitcoin spends quite a lot of time at say 40% dropdown. And an 80% crash is typical.
Re: The cryptocurrency sell-off has exposed those swimming naked
#13This is a particularly bad time to trade crypto if you don't know what you're doing. Even if you think you do, it's dangerous in a bear market.
That includes having short positions? Why would that be particularly bad if the momentum is downward?
Shorts risk unlimited potential losses.
You might owe more than you own, if the price rises, you fail the margin call, and they liquidate.
Re: The cryptocurrency sell-off has exposed those swimming naked
#14,,The crypto slump has been brutal’’ I’ve been holding Bitcoin since 2013, and this 50-60% retracement from the all time high was nothing compared to what I (and other people) were living through. I advise people to look at past volatility of Bitcoin before making an investment decision.
Also bitcoin != crypto, those are not even subset/superset for the most part. Bitcoin solves one single problem of "digital cash" with the most robust and boring mechanism (known to mankind so far). While the "cryptos" aim at satisfying demand for all sorts of p2p apps and moneymaking schemes that can be funded with the digital cash to avoid getting regulated out of existence.
It’s practically impossible to use Bitcoin as digital cash because it’s so slow and expensive. That was the original problem it purported to solve, but it failed miserably at that.
Re: The cryptocurrency sell-off has exposed those swimming naked
#15[deleted]
Re: The cryptocurrency sell-off has exposed those swimming naked
#16This is a particularly bad time to trade crypto if you don't know what you're doing. Even if you think you do, it's dangerous in a bear market.
Lol, what does "knowing what you're doing mean?"
Re: The cryptocurrency sell-off has exposed those swimming naked
#17Earlier quoted context omitted.
That includes having short positions? Why would that be particularly bad if the momentum is downward?
It includes shorts because you don't know when the market will turn around. It does, however, exclude DCA, which is almost always a sensible investment strategy.
> DCA, which is almost always a sensible investment strategy.
It might make more sense to lump-sum invest, if volatility is small relative to the return.
At least for the stock market, it's not often worth sitting on cash.
Re: The cryptocurrency sell-off has exposed those swimming naked
#18Earlier quoted context omitted.
Also bitcoin != crypto, those are not even subset/superset for the most part. Bitcoin solves one single problem of "digital cash" with the most robust and boring mechanism (known to mankind so far). While the "cryptos" aim at satisfying demand for all sorts of p2p apps and moneymaking schemes that can be funded with the digital cash to avoid getting regulated out of existence.
It’s practically impossible to use Bitcoin as digital cash because it’s so slow and expensive. That was the original problem it purported to solve, but it failed miserably at that.
So far. If you spend any time in the research community you’ll realise that those problems are very likely to get solved. Lightning alone probably gets us there.
Its volatility and UX, as well as how negatively it is perceived currently (by some people) look like bigger blockers to me.
Re: The cryptocurrency sell-off has exposed those swimming naked
#19Re: The cryptocurrency sell-off has exposed those swimming naked
#20,,The crypto slump has been brutal’’ I’ve been holding Bitcoin since 2013, and this 50-60% retracement from the all time high was nothing compared to what I (and other people) were living through. I advise people to look at past volatility of Bitcoin before making an investment decision.
Do you have a strategy of selling on the peaks (possibly even buying on the lows with some of the proceeds) to eventually exit while ahead or are you just holding because you have a strong belief that it can only rise in future and it's not worth following the day to day drama (as many do with stocks)?
Either way, you personally benefit from belief in Bitcoin and crypto being generally positive, which has implications for your objectivity even if well meaning.