The Bitcoin price is currently in a legal unspannenden sideways movement on the USD 9,000 mark. Although there are many reasons to be long term bullish on BTC, speak some of a “Post-Halving-Depression”. It is different, however, in some Altcoins this year. Just this week, Dogecoin has made “” in the entire Crpyo-Space in the headlines, as the rate was pumped by TikTok solid. But other Altcoins could outperform Bitcoin (+28%) this year: Ethereum (+83%), Tezos (+92%), Cardano (+258%) and Chainlink (+236%).
With this Win, some already speak of an Altcoin Season. Some sell parts of their BTC Position, in order to buy Altcoins, the higher the profits “to take”, and then again more buy Bitcoin. How promising this strategy is? We give you in this article some food for Thought to this.
Risky strategy – Bitcoin experts agree
The above-mentioned strategy to increase its Bitcoins due to a temporary Altcoin buying, of course, sounds promising. In reality, the strategy is to be implemented, however, difficult, because it requires that you know beforehand which of the more than 5,600 Cryptocurrency better than Bitcoin will perform.
Investing after a Pump like Dodgecoin this week, it is usually too late for the gains, and risking more money to lose by a subsequent Dump.
Many experts from these reasons, agree that there is no reasonable strategy is to sell Bitcoin to buy Altcoin Win then back to Bitcoin. The well-known Analyst PlanB this strategy this week on Twitter as a “strange logic”.
Interesting poll result:
– 84% is holding/buying/DCAing bitcoin
buying:selling = 4:1 .. should result in higher prices, but sellers are obviously not among my followers
– sellers indicate they are trading or selling bitcoin to buy altcoins to get more bitcoin (weird logic, IMO) pic.twitter.com/N1astjGHzX
— PlanB 🔴 (@100trillionUSD) July 10, 2020
The large profits it makes when Hodln
Jason Williams, a Partner at the Crypto company, Morgan Creek Digital, the Bitcoin-Altcoin strategy as “super risky”. In his opinion, the most gains are made when long-term Holding of Bitcoin:
People are selling BTC to buy Altcoins and complete s**t Coins. I think this is super risky. I’m sure that if a truly honest historical analysis would be carried out, would show, that Hold is a superior strategy. In the same way as individual share buyers are losers compared to those that use an Index.
This opinion is also Matt D’souza, the CEO of the Mining Startups block-product Mining. According to him, it is completely irrelevant at which exact Bitcoin exchange rate you get currently when you go out, anyway, that the Bitcoin exchange rate reached in the long term, 20.000, 50.0000, or even $ 100,000.
The purchase to $8500 compared to $9300, has 0 relevance.
If you think about it even longer, or according to this article, a purchase of Bitcoin and your own Research did you do for us, here are 2 important tips for you. Read you belong to you before you buy one of our counselors “Bitcoin savings plan: The best to buy and safest strategy Bitcoins – The Cost Average effect” by, in order from the beginning to the professionals.
Bitcoin savings plan: there’s Always the question after a good Investment is made strategy for BTC. With the help of the Cost Average effect and minimize you to sleep your risk, can better and benefit long term from the long-term development of Bitcoin and co. – it’s that Simple! As a Bitcoin savings plan works.
If you’re looking for you sure should be, and only after a secure exchange, we can recommend you according to your own extensive testing eToro. Here you can not only rising, but also falling share prices. Give it a try!
75 % of private CFD accounts lose money. No EU investor protection.
(Image Source: Shutterstock)
The comments in this article do not represent any trading recommendations or investment advice.