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This 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.
by jasfi 4y ago
This 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.
- babyshake 4y agoThat includes having short positions? Why would that be particularly bad if the momentum is downward?
- StopHammoTime 4y agoYou shouldn’t really be shorting if you don’t know what you’re doing, so the parent still applies.
- syzygyhack 4y agoIt 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.
- danuker 4y ago> 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.
- nieve 4y agoBut with cryptocurrency (the investments in question) volatility is quite high.
- tobltobs 4y agoIt includes DCA because you don't know if the market will turn around.
- Bayart 4y agoTrending downwards doesn't mean it can't retrace 24% and liquidate your position before going down again. And that's if it is trending downwards.
- danuker 4y agoShorts risk unlimited potential losses. You might owe more than you own, if the price rises, you fail the margin call, and they liquidate.
- rvz 4y ago> That includes having short positions? Yes. > Why would that be particularly bad if the momentum is downward? That is why. You are too late for justifying a short position if it is already going down as you can still get yourself liquidated quickly if the price jumps in one day after a correction.
- rabite 4y ago@BXRekt on twitter shows liquidated short positions on Bitmex in realtime. https://twitter.com/BXRekt/status/1527462460457984000 https://twitter.com/BXRekt/status/1527462460457984000 Here's a million dollar short that got liquidated all of seven hours ago. Shorting Bitcoin is madness, partially because no regulation prohibits most exchange operators from frontrunning their own customers (besides the ones that voluntarily signed on to become the benchmarks for CME's Bitcoin futures price). Exchanges and market makers will collaborate to artificially push prices around to optimally liquidate shorts -- it happens all the time. They love people shorting Bitcoin.
- puranjay 4y agoThe crypto market is unregulated and manipulated heavily by whales (most of whom operate on bitfinex which itself has close ties to Tether). Holding a short position can be profitable, but also know that a short squeeze is easy. There was an incredible shorting opportunity with the recent Luna fiasco though. Literal millions made overnight.
- frozenport 4y agoLol, what does "knowing what you're doing mean?"
- Closi 4y agoIt's dangerous to play roulette, unless you know what you're doing...
- netsharc 4y agoMissing the word "Russian" there...
- Al-Khwarizmi 4y agoFor most purposes, it's enough to know that the money you put there could go to zero. Which means that you shouldn't invest in crypto anything whose losing would take a psychological toll if you lose (let alone investing money that you need for mortgage, etc. as seen in the Luna subreddit). Then beyond that, the more information, the better, but the rest is not essential.
- weavie 4y ago1. Don't put your life savings into crypto.
- zahma 4y ago2. Don’t expect to get rich quick.
- grapeskin 4y agoKnowing that you’re literally gambling. Don’t put the money in unless you’re okay with the possibility of it being wiped out.
- anm89 4y agoJust because many people foolishly trade crypto doesn't mean there aren't savvy people quietly making huge amounts of money. I know one of them well, an individual who is up 9 figures over many years while staying market neutral. Don't be fooled into thinking there is no such thing as knowing what you are doing.
- scotty79 4y agoFollowing 6 months will be a great time to buy crypto.