How to avoid losing money when bitcoin price fluctuates?

Discussion in 'General Bitcoin Gambling Discussion' started by NKOTB, Jan 13, 2017.

  1. NKOTB

    NKOTB Member

    I started using bitcoin for playing online poker and sports betting last summer. Over the past few months the price of bitcoin has generally been moving upwards so I haven't always been in a rush to convert my BTC back into dollars after a cashout has been processed. However, at the start of January I withdrew about $2,000 dollars in BTC from my betting accounts to cover some expenses but I didn't covert the bitcoin back into dollars straight away. Over the course of the last week the price of bitcoin fell from $1,150 to $750 so I lost about $500.

    I'm wondering if you guys use any strategies to hedge your losses other than converting straight to dollars as soon as the bitcoin hits your wallet?
  2. Humble Servant

    Humble Servant Active Member Staff Member

    I guess the best strategy is to never hold more bitcoin than you can afford to lose. If you are holding $1,000 worth of bitcoin that you will need at the end of the month to pay the rent then you are taking a big risk because the price in the short-term might go down to $700 and you might find yourself homeless.

    If you are someone who has a decent amount of savings in fiat currencies like the dollar, euro or pound then you are less concerned by these price fluctuations. The general trend is up if you look at the price over a 6 month period so you will likely recover any losses if you can afford to hold onto the bitcoin for a longer period.
  3. 2damoon

    2damoon Member

    Every time I make a bitcoin payout, I keep about 10% in BTC. Overtime I get an average price rather than buying at the top or bottom.
  4. EthHead

    EthHead Member

    Buy the dip and sell the news.
  5. uglymug

    uglymug Member

    I'll be selling most of my bitcoin before the UASF in August. That could be a car crash if the chain splits.
  6. SuckIt

    SuckIt Member

    Are you still selling given that SegWit will probably activate now following the Silbert Accord.
  7. Freddy

    Freddy Member

    this segwit2x fork is going to split the network and create 2 bitcoin. i plan to sell all my bitcoin long before the fork.
  8. EthHead

    EthHead Member

    what if you have a basket of crypto-currencies so that you are not relying on just bitcoin or ethereum. wouldn't a wider portfolio protect you from price drops in one.
  9. SuckIt

    SuckIt Member

    On the subject of price fluctuations, what are you guys planning to do before the SegWit2X hardork? Will you sell your coins or keep them so that you receive coins on both sides of the chain.
  10. Humble Servant

    Humble Servant Active Member Staff Member

    Bitcoin hit a new ATH of $5,500 yesterday. Anyone want to bet we will break $6,000 by the end of the month?
  11. it has already broke $6,000 and if the hardfork fails, it will hit $10,000 before Xmas.
  12. Terry

    Terry Member

    Bitcoin keeps crashing upwards. The best way to avoid price fluctuations is to simply HODL and don't trade. Wait a few weeks and the price will recover.
  13. Toast

    Toast Member

    Sadly bitcoin has been crashing downwards for the past 3 months. I keep wondering if we've hit the bottom yet but it doesn't look like we have. It's trading just over $8,000 right now but I have a feeling it might go to $5,000 before the price recovers.
  14. Hernia

    Hernia Member

    Hodl you bitcoin for greater than 3 years and it's highly unlikely that you'll lose any money.

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