Discussion in 'CryptoCurrency' started by Ignorant, Apr 19, 2017.
Do you buy alt coins for cheap then trade for btc to flip?
Can you define your question?
It's usually easier to buy BTC and then go into alts. Although it's getting easier to buy some of the bigger alts (ETH and LTC) then go from there.
What is the blue print in making money with bitcoin?
Should I purchase 1 bitcoin for 1350. Hold the coins and resell to a person or the owner of the wallet?
Should I buy some bitcoin and work with a partner so that they click on my affiliate link and purchase btc off me resulting in a cut of the share?
Those are just some side questions. What I mean by flipping bitcoins is that I don't understand how the pricing works between alt coin and bitcoin.
Does the price for alt coin raise quicker than bitcoin? If so, does that mean I should buy 1350 worth of eth, hold it then trade it for usd or bitcoin?
Would you happen to know how this process works? I only have tried trading bitcoin on peer to peer sites and have lost money.
Thank you for help
First, I'd say the most important thing to remember right now is that cryptocurrency is total speculation. Don't put more money in it than you can afford to lose. It is too volatile in all aspects. However, this volatility is also a big advantage.
I do exchange trading between currencies. It's basically the same concept as fiat FX trading, except it's 24/7, more movement in the markets, and less fees. It's as simple as buy low, sell high. I put money into BTC when it's low. Whenever BTC rises, look for an altcoin that has dipped, but that is solid enough and has enough validated tech potential to rise in the future. Rinse & repeat.
The past few months have seen a lot of movement, and the market cap of alt coins has risen exponentially, so I'm not sure you can use it as a template for the future.
I stay away from coins that are being pumped & dumped (usually these are the coins you see people randomly promoting on message boards) and stick with the top 10-15 alt coins in market cap. Usually these are established ones with good reputations like LTC, ETH, ETC, XRP, or GNT.
Just remember that if it seems too good to be true: it is.
When bitcoin rises, which it usually has been weekly, you purchase alt coin when it is low? Then flip that for usd when it raises? Or do I have to do the math and somehow trade it for btc and make profit? I haven't calculated anything yet.
You can usually count on most higher-volume alts seeing fluctuation of 5-10% in the course of a week. Bitcoin is more stable, but sees 1-2% fluctuation. Say for example, when Bitcoin sees a +2% raise and an alt sees a -3% dip, make the exchange and hold until the reverse is true (maybe Bitcoin sees a -2% dip and the alt sees a 3% raise. Make the reverse trade. You've made 10%. This is entirely feasible to do in the course of a week!
I'm not saying it's always going to be as volatile as it is now, and there's always going to be some bad calls that cost you some money, but it's a whole lot more lucrative than the fiat stock market is now.
I sorta get it. If you don't mind sharing, are online websites that support trades/peer to peer trading reliable? Or do you deal with it through btc wallets and their rates?
I still have to research where and how to trade directly bitcoin to alt coin rather than bitcoin -> usd -> alt coin -> usd ->btc
Not all exchanges are reliable as there have been some well-publicized hacks. However, Poloniex and Kraken are generally considered to be the best for altcoin exchange. You can't really exchange between wallets with yourself...at best you'd see a fraction of the gains you could when you're trading against someone else.
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