Hello. In this video, I will tell you how to buy and trade expensive Bitcoin and other cryptocurrencies. Many people are afraid to buy coins due to the fact that the price is now expensive, but the next day or month BTC rises again and becomes more expensive … I will tell the point of view of an investor and a trader on how to be in such a situation. Here We Go!
Should I buy expensive Bitcoin?
The concept of “high price” in cryptocurrency is abstract. Any asset can skyrocket in a few days or even hours, for example, the Doge token, or depreciate. Here you should think in terms of the percentage of your profit. Consider the point of view of the investor or holder first. It is worth taking BTC or another crypto if it falls by 30%, 70%, or more after growth. Of course, there is a possibility that the price will drop even further after your purchase.
However, you can never pick or guess the complete movement. Expecting the fall of the token below, you may simply not wait and will be forced to buy at a higher price or refuse to buy at all. Therefore, it is ideal for an investor to take any crypto after falling by 30% -70% of the growth by the same amount of percent. Accordingly, the investor should also sell after 30%, 70%, or even 100% growth of the coin.
Should I buy expensive altcoins?
The negative side is that you will have to wait for the growth of Bitcoin or other tokens from several months to a year. The positive side is that the investor just bought and forgot, not wasting more time, effort, and nerves on the daily trading that traders do. However, the risk that the asset will grow slowly or even fall further remains. Traders, on the other hand, do not care about the price of cryptocurrencies, even if BTC is worth at least $ 1,000 or $ 10,000.
For traders, the main thing is the price movement up or down in percentage terms within 1 hour, several hours, or days. A trader is able to make money not only on the growth of tokens but also on their fall, using margin leverage in the Spot market or leverage in the Futures market. Unfortunately, a trader will have to spend time, nerves, and energy every day, studying graphical and technical analysis, trying to catch the correct price movement.
How to trade expensive bitcoin and altcoins
On average, it is enough for traders to catch from 0.5 to 1% of profit and open from 7 to 20 transactions per day – this is the scalper’s approach. For traders trading on 1 or 4-hour charts, it is enough to take 2-3% percent of the profit, opening 3-5 transactions per day. For traders trading on 1D, 1-2 deals per day are enough, from 7 to 20% on the day of profit. And if it is important for an investor to buy and keep only the TOP 30-50 cryptocurrencies, then traders trade even shields, which are often pumped.
For this reason, the trader is generally not interested in the price of the asset – the liquidity and volatility of the token are important. To buy and trade Bitcoin and other crypto efficiently, I recommend using the 3commas platform. This will allow you to reduce your risks as a trader during the opening of transactions, to average them, to exit the investor’s position. And if you want to be an investor, then portfolio auto-balancing will definitely come in handy!
The video on how to buy and trade expensive Bitcoin and other cryptocurrencies is coming to the end. I talked about the position of an investor and a trader, which are fundamentally different. You can even combine the two approaches, buying some coins for the holding, and other coins, or trade the same ones every day and get the maximum profit. That’s all untill the next videos on botcryptotrade.com