What are the benefits of investing in Bitcoins for long term gains instead of Forex trading or stock market investing?
Does a broker play an important role for this matter?
I have “invested” in bitcoin for long term gains and have yet to see the fruits of any of it haha. #hodl4lyf
In all seriousness though, I think diversifying is what you need to do instead of focusing on just one asset.
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IMO, there is zero benefit of investing in Bitcoins for long term gains as there is no intrinsic value because it’s traded at what millions of price level traders are willing to pay for it. Therefore the price will go up and down as does FX currency pairs trading.
Much better to invest in stocks and index linked funds. Try Dunn Financial Solutions as they are trend traders with a High Water Mark fee. Which means they will only charge clients if profits are larger than the previous one. This is gold dust.
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I’m not sure BTC is a viable investment anymore. The base price, although a lot less than previously is still absolutely ridiculous. The same with ETH and all the other over priced crypto currencies.
I think the only way they can bring in new investors and traders is to do a currency forward split to make the price per unit more affordable and appealing. I mean, who wants to own 0.00001 of a coin?? I like to buy my coin in units of 1’s!
I’ve come across discussions about an 8-year Bitcoin investment. It seems there’s still optimism around it
I have noticed with my crypto investments this last month or so that the bulls are trying to start a run but the bears are keeping them in check.
Just when you think it’s the beginning of a huge run it pulls back.
Let’s see where we are by Xmas.
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I short crypto regularly
You must have made a killing yesterday!
What are they saying?
Benefits of investing into BTC in long term exist, basically, some people proclaim it as a “contemporary gold”, but risks are extremely higher than in case of investing into gold.
Fluctuations are still drastic, and the recent breakthrough witnesses only about the fact that the coin is driven only by events. For me it’s a hazardous adventure, even despite the fact trading it intraday can be profitable in case of working strategy.
So, I have no exact conclusion about investing into BTC in long term. It may work out, but who knows what’ll happen tomorrow? Appeal to the rational sense and the market’s sentiment.
Let me explain to you the numbers, crypto hedge funds target 70-100% per year returns, if you were running a private crypto fund (friends and family) you would look to target that number quarterly, private trading you are looking for that number monthly.
For reference standard hedge funds target 15-20% per year, again for private fund (including family offices) you are looking for that number quarterly, and for private trading (individual) you are looking for that number monthly, very few ever achieve anything above the lowest per year number.
These are your reference points, now of you take the current run of BTC from 25000 to 45000 or 180% in 3mths and used 4x leveraged futures you would see a 720% gain (more or less), give up for the next 9mths and wait for the net move, but obviously you nor anyone else will do that because it had to be planned in advance.
These are all the numbers I work with, and incredibly consistently, for crypto to make a return on investment you need 700-1000% per year return on capital, this is what everyone is hoping by buy and hold, unfortunately the markets know this and don’t play along, which causes stress due to fear of the unknown inducing you to enter and exit at the exact inverse of when you shoud.
It’s purely as simple as this.
I don’t get this. Can you run some numbers as an example or maybe point me somewhere that will explain this?
From March 2020 to March 2021 Bitcoin went from 6k to 60k, 1000%, if you used 10x leveraged futures you would make 10yrs of profits in 1yr, most believe you can repeat this endlessly, you can’t, the next year you have to daytrade for 1000%, move to another coin for 1000%, Crypto requires a risk premium, this is it, anyone trading crypto should make at least 100%pa
Ah crypto futures. Not really familiar with futures. But I think Coinbase just started offering futures on BTC and Ethereum.
I just can’t imagine 1000% gains. I guess my brain is stuck in the spot market.
Thanks.
I am new to this forum, but this post makes no sense. Maybe I am misunderstanding, and I do not know futures, but can you elaborate on the pre year ROC for crypto?
My first encounter with BTC was summer of 2010. I came across this website promoting a digital currency, and an offer to buy x amount (I think it was 1500) for $100. Obviously I thought it was a scam, and passed… Then, my first entry, I believe it was in 2018, BTC was around $4500. I rode that train, on and off, until the peak, sold a big part on the way up, but obviously made a good ROI. The discussion of “benefits of investing in BTC…” is pointless. BTC has no intrinsic value. It is by definition a speculative instrument. There is no “analyzing” BTC, it is only “buy interest” and “sell interest”. It may be an investment. But only if you believe digital coin is here to stay, and that it will have a place. The idea from a few years ago that BTC will become a common means of tender seems dead, due to high transaction costs. So, it is a trading instrument. Yes, it can be an investment. But as it has no value of itself, it can go to zero in an instant. I dont think it will, but who knows what is to come, in terms of technological and financial development…
That one cracked me up, lol.
I appreciate hearing someone else say this. I say it and people look at me like I have a 3rd eye in the middle of my forehead.
Asking specific questions goes a long way to other people helping you, however …
In Crypto
-A private crypto trader with access to sophisticated tools and knowledge can generate up to 1,000% per year, such as the top banks use
-A crypto hedge fund will generate 70-100% per year (most are not very sophisticated)
Obviously not having access to the first point means your target is the second point, anything below this and you can call it failing, futures allow leverage meaning more profits if you get it right, more losses if you get it wrong.
In Forex/Futures/Stocks (non-crypto)
-A private trader with access to sophisticated tools and knowledge can generate up to 200% per year
-An accredited hedge fund will generate 15-20% per year (most are not very sophisticated)
Obviously not having access to the first point means your target is the second point, anything below this and you can call it failing.
If you bought at 6k in 2020 and sold at 60k in 2021 that would be a sophisticated trade for 1,000%, very few will have bought at that level and even fewer sold at the top, everyone would have liquidated on the way up booking profits too early or held too long and dropped back down losing their profits, most will have bought higher and sold lower.
Does it need intrinsic value to be a a solid investment tho?
What do you say to it performing better than USD and gold in 2023?