While Bitcoin is Continuing to Retreat, This Can Be a Perfect Opportunity to Increase Stake In Other Alt-Coins.
bitcoin·@cryptofreedom·
0.000 HBDWhile Bitcoin is Continuing to Retreat, This Can Be a Perfect Opportunity to Increase Stake In Other Alt-Coins.
<html> <h3>The correlation between the price fall of Bitcoin and many alt-coins over the past few days has been strong, so it could create a prime opportunity to increase stake in alt-coins that up until recently had great support and momentum.</h3> <p>I was able to sell the entirety of my Bitcoin holdings in the 2500-2400 USD price level for tether (USDT) on Poloniex, because I expected the price retreat to continue until Bitcoin returned to a more sustainable level. While there were many coins that have had their price significantly pumped by speculation over the past several months, numerous alt-coins have shown serious promise of gaining even more support and traction in the upcoming future. While days like today may seem like they are awful days for the market as a whole, if we keep a long term perspective these types of market conditions are to be expected after a months long bull market. </p> <p>While there are many coins that will likely take a long time to recover if they recover their previous levels at all, coins such as Steem, Bitshares, ect. have seen significant increases in support and interest over the recent months due to much more than speculation alone.I am not necessarily promoting or endorsing a specific coin, but it can be applied to any coin in which you have faith in the project's long term success. </p> <p>http://www.moneysoldiers.com/wp-content/uploads/2016/02/buy-low-sell-high.jpg</p> <p>While it is very hard to tell when a price retreat will start and at what level it will end, the current market can enable some coins to reach very attractive prices and create the opportunity for a great long term position. Day trading or playing margins at this point in the market is relatively risky, but it is a prime time for increasing the size of long term investment positions. Even if these coins continue to retreat, some of them will certainly regain support and price level in the near future. </p> <p>In my opinion the best way to go about increasing the size of a position in these market conditions is small orders spread throughout the order book. This will give you the best chance of ensuring you don't miss out if a sell dump drops the price dramatically, and won't be over exposed if the price continues to retreat. Never investing too much at a single time, and trying to spread out your investments over the longest period of time possible are also very important in a establishing the best long term positions. Price level isn't as important when we are considering long term buy and hold positions, because if and when these projects attain mainstream adoption the price will be astronomically higher than the highest price level currently. </p> <h3>The price of Bitcoin has dropped 3% since I began writing this post, so the safest option in my opinion is to hold off on serious investment until the market settles down.</h3> <p>The added safety and security that an individual attains from waiting until after the price level stabilizes vastly outweighs any potential loss of profits from missing the bottom of the retreat. For instance, instead of taking a large stake spread through the order book, it can be safer to wait until the momentum appears to change and then begin to establish the position. For the purpose of my long term investment positions I have many small orders spread through the order books currently, but the total is only 1/4 of the total amount I intend to invest before the end of the retreat. This will ensure that I am able to increase my stake at a good level if the momentum changes rapidly, but also limits my exposure at the current price levels because the total investment at these levels is low compared to the total increased investment I intend to take. </p> <p>The only Bitcoin that I am currently holding is for the purpose of increasing the size of my long term positions, but I may very well invest back into Bitcoin once I am convinced that the price level has reached a greater degree of stability and sustainability. I really don't like to trade based on speculation with Bitcoin, which is why when I determined the run was unsustainable I temporarily closed my position entirely. If we remain and objective about the market as a whole in the long term many coins will fail and some will see success, and in my opinion the best way to still reap the rewards of a projects future success is through an 'early' stake in the platform. Although the price levels may be higher than what they were a month ago, if a project achieves success in the long term the price level will be exponentially higher than it is currently. While you may only make half of what you would have if you had invested at a lower level, the price increase will be extremely substantial regardless. </p> <p>https://cdn.smartrecruiters.com/blog/wp-content/uploads/2015/02/winners-and-losers.jpeg</p> <p>The price level of a token or coin after mainstream adoption would be levels that individuals can't even fathom, so even what would be considered a small stake currently could be extremely profitable in the future. For every coin that currently exists that will achieve adoption, there will likely be at least 5 that fail and eventually die. If an individual has a variety of positions in a variety of different coins, the losses encountered from the projects that don't pan out will likely be tiny compared to the earnings from even a single project that obtains mainstream success. While there is no way to know whether a project will actually obtain mainstream and long term success, conducting proper research into any project will give you a better idea if this project is practical, usable, and has a chance for long term success. While nothing guarantees a projects potential in the future, it can become clear which projects will undoubtedly fail in the long term and which offer a project with the potential for serious long term success. </p> <p> <em><strong>I hope you enjoyed reading and as always I urge anyone to leave any comments, discussions, or input below. Thanks for reading and feel free to give me a follow for more upcoming posts!</strong></em> </p> <p>image sources:<a href="http://www.moneysoldiers.com/wp-content/uploads/2016/02/buy-low-sell-high.jpg">1</a>-<a href="https://cdn.smartrecruiters.com/blog/wp-content/uploads/2015/02/winners-and-losers.jpeg">2</a></p> </html>
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