I wanted to write an update about my 1BCH goal achieved but my mind wants to write more about buying and selling. Why? Because @bmjc98 is a little bit confused about how spot trading works and also I read an article of @Ruffa that she's a proud holder of BCH. Of course, who will not be proud to hold BCH? It is something that worth holding for than holding to a failing relationship 😂.
What is Buying & Selling?
Buying and selling is how an investor or traders enter a position or exit a position in security such as bonds, stocks, and cryptocurrency.
I want this explanation to be simple as ABC and 123 to be understood easier by those who are confused by jargon terms. So I will use my understanding regarding this matter.
Some time ago, I wrote about escape volatility while holding your BCH via stablecoin (swap features) in Bitcoin.com wallet. Some or most of my readers maybe did not fully understand how it works or maybe they just understand the guide I provided on that article and storing BCH in Bitcoin.com. I stated there my techniques but also said that if you don't prefer it then just find techniques of your own that suit you better, but now that we have a goal to achieve, which is to hold 1BCH or more this year and beyond, I think its best to explain it well to my fellow to help them grow their BCH more.
Buying and selling BCH in Bitcoin.com
I will explain first how to buy and sell in Bitcoin.com. Some are thinking it's only a noncustodial wallet just for holdings, you can buy and sell in Bitcoin.com via SWAP features.
“Lock up only your gains don't lock up all your assets because stablecoins do not move, if you want your assets to grow don't be afraid with volatility it is the beauty of this market you will able to see the movement of the coin, let it float. Always remember any investment always comes with taking risks.” -Eyb
That is what I wrote before, only locked up to your gains, not your whole BCH. For example, you had your BCH at $400 then it pumps up, let's say your $400 became $450, locked up, or sell the profits you gain which are the $50.
Q: Why not sell the whole $450 instead of $50?
A: You are a holder right? So don't sell your capital, my friend, just sell the profit. This is also to lessen your transaction fees and for you not to have a hard time re-entry in the market again (@Yen did that once, she sold all her BCH to USDT then she had to wait long to re-entry or buy again)
Q: So now what will I do with my $50, now that it's already a stable coin?
A: Now that you had secured your $50 gains, wait for the dump or price decrease of BCH when you see that the price is good for buy, then swap your $50 back to BCH. It is the same as buying BCH, you bought BCH using the stablecoin you converted from BCH itself.
Q: So what happens to my profit? Not a profit anymore since I bought BCH again?
A: You can count the $50 as gains, and when you swap it back to BCH count it as additional capital. So your total capital of BCH in the dollar is $450 instead of $400 only. When BCH pumps up your old capital will gain another profit plus your additional capital will gain another profit, this time you will gain more because your profits gain profit. Just like that.
Q: What's the use of swapping gains to the stable coin when the BCH price goes down, my BCH in dollars will still be back to its original value like when it dips for example it gets back to $400? (This is @Ruffa sentiments)
A: Yes, the value of your BCH in dollars will be back to its normal amount when the BCH price goes down but you will have more BCH when you decided to swap back your stablecoins to BCH again if it's good timing to buy (always remember to buy at a lower price). For example, the value of $400 in BCH is 1.01 as of writing this article. The $50 is 0.13 BCH, let say you swap it to BCH because the price is down so you deducted 0.13 to your 1.01 BCH, now you have left 0.88 in BCH, once BCH go down you will rebuy the $50 depending on price if you buy lower the amount in BCH will go up in equivalent to your $50, so it's really advisable to buy low so will will accumulate BCH more. (This is just an assumption, of course, it has some transaction fees but don't worry BCH trans-fee is cheaper).
Buy & Sell or Spot Trading on Binance (Let's used Binance since I used it)
Binance spot trading is very simple, you just buy a coin during sales (dip) then set a limit sell price and wait for the coin you bought until it pumps.
For example;
I bought $BAND at $10.4255 with a total capital of $51.814735. I will just wait for the pump of this coin and set a limit to sell the coin. I set a limit sell of $13 and set 100% then the total amount to be sold at that price is $64.6100, from that I will have the chance to gain $12.80.
(This is just an example, don't buy a coin at a higher price, I bought band at $10.42 not considerable as low, so you should buy a coin at a lower price and a pumping coin, so you will gain more and don't have to wait longer in selling it).
Important Note:
Sometimes swapping of BCH to USDT is disabled at Bitcoin.com, at this time when you have a decent amount of profit you can send some to any exchanger you prefer, to sell it. Then wait for the dip and buy BCH again, you can send it back to Bitcoin.com and add it as your additional capital again.
You can also do the DCA (Dollar Cost Averaging) at your exchanger, set a sell limit price then just choose 25% of your asset to sell. Then when the selling price was hit, you just wait for another dip and buy BCH again. In this way, you are always adding capital to your assets by selling some portion of them. If you wish to hold some BCH at your preferred exchanger. Always remember not to hold all your BCH in the custodial wallet (exchanger) because in crypto, not your keys, not your coin.
Instead of waiting for the bigger price moves before selling why not take advantage of small moves when we can? We are small investors or traders, we are not whales to just wait for big movements, we are small fish in the ocean that longs to grow so we should eat whenever there is a chance. Am I the only one thinking this is amazing to grow my BCH? Lol, I find this very helpful. I gained a good amount from doing it, it's just that I also do the wrong move which is to sell those BCH to do leverage trading, lessons learned but I also never regretted any of my actions because in my experience I gained knowledge from it.
Not a financial advice
This is why I prefer to do this than putting my BCH on a lending platform such as Nexo, Celsius, or Blockfi because the interests given are not that big if my capital is not big also, although I have some on Nexo. I prefer to do buy and sell at the moment to grow my asset, maybe later I will try to put some on the lending platform if I had enough capital to let the coin work for me even without doing anything. I am not saying you follow this technique because I am not a pro trader, if it not suits you then just find the style that suits you better since I am not a financial advisor.
That's all, I hope you learn something. If anything confuses you, do not hesitate to ask.
You might be interested to join the #Club1BCH. The goal is to hold at least 1BCH before the year ends and wait for Marc Demesel's price prediction about BCH which is $30,000. Join the fun and be inspired!
Read this to Start!
I know how to trade na thanks for this, but I prefer hodling padin since busy sa work okay lang naman hodling diba?