This is what average Investors or new traders think I mean, or they dont know how to even short Bitcoin to either hedge or accumulate more bitcoin. Bitcoin crashing to $2000 or even $1200 has potential to make a person extremely wealthy, especially if the realized return on equity remains in bitcoin as market recovers, the actual value of the profits earned on the short are arbitrarily an abstraction of actual value earned on the downside trade, who knows, the next hour the market could completely recover or even continue to new all time higher prices. How much did the short make you now, see? LESSON TO LEARN HERE, TELLING MYSELF HERE AS WELL AS OTHERS WHO MIGHT KNOW WHAT I MEAN BUT NOT REALLY KNOW WHAT IM SAYING, UNDERSTAND? You really should never, unless in an emergency, ACTUALLY SELL SPOT BTC TO FIAT. I dont even mean sell it for Tether (USDT) and wait for a dip and try and "Buy" the dip, not saying that isn't profitable at all it's just not the strategy I intend in this post. A properly managed compounded short or long, on cross margin strategy has the ability to allow positions on margin to become significantly larger than the initial position size capable of achieving with initial margin balance. Also regardless of profits obtained VIA leverage from either futures or options, long or short or even neither with options, There are methods to still AVOID selling the underlying asset ( actual Bitcoins not derivatives) where it's either used as collateral or loaned out for cash earning interest. Even more advanced money market strategies to enable compound interest and never really actually selling to dollars directly, putting returns on equity to work for you earning even more while keeping your Bits. Hope this clarifie my post to anyone who doent fully understand, or thinks they do.
Komentarz:
Bitcoin diving down to 2,000, throwing a dramatic possible dead cat bounce, then dig down to $1200-$1300 then heading to new all time highs afterward, just looks to make more sense structurally rather than fundamentally. Remember things can move quick in this market. The last thing you want to find yourself doing is underestimating Bitcoin period. Bitcoin likes to do the extreme of what majority thinks impossible. It likes to go places the crier says it wont and return and exceed expectations from those who lose hope and faith in it, Or create the novice bottom sellers of unsavvy gamblers, while the unfortunate ones at the right place but at the wrong time, get forced out of the market from unfortunate circumstances.
