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Bitcoin would essentially be the same as buying foreign currency or stocks, same risk levels, and the possibility to make a lot as well
I am not a risk taker |
Originally Posted by orange joe
(Post 28796774)
How long have you been doing this for? Ever lost money on it?
As long the price of bitcoin eventually goes above 4% over the purchase price, there will be no loss. Of course, it could take days, weeks, months, or years for the price of a bitcoin to go above the purchase price by 4%. During that time, the money is completely illiquid except at a loss. |
hope you didn't buy 2k this week with a 4% limit lol.
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Originally Posted by hw711
(Post 28792141)
I cycle $2K per week using digital currencies.
I buy bitcoin/ethereum on coinbase. Coinbase charges 3.99% to use credit card (most exchanges don't allow credit card and those few do charge even more) and only allows you to place market order (please look up difference between market vs limit order if you don't know). I then transfer what I bought to GDAX, coinbase's sister site where you can set limit order and set a limit sell order at 4% above what I bought it for so I can forget about it and don't have to keep watching the price. Once sold, I withdrawal the cash back to my bank account. To prevent fraud, coinbase has a credit card spending limit of $500/week for new users, they will move it up to $2K/week once you use them for a couple months. Like other people already mentioned, digital currencies are highly volatile. They can move 20% up or down a day. There are a lot of risks so I wouldn't recommend keeping a large position longer than you have to. |
Originally Posted by Ultraboost
(Post 28815926)
So uhhh....with BTC going straight down 20% for a week, how have you done with this "strategy"?
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Originally Posted by esdot
(Post 28816195)
Uhhh... if you can't handle some float, then you shouldn't be here.
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You edited your response, which shows you have more sense than sense of humor.
Originally Posted by Ultraboost
(Post 28816206)
Sounds like you're losing money and bitter. I think this is actually a horrible way to MS, basically you have outsized losses and limited gains, if any.
Anyhow, I appreciated hw711's post. It got the wheels turning in my head as to whether GDAX issues a 1099, whether a limit order to sell 4% above purchase actually creates a net zero purchase, whether price trends would support setting the limit orders higher than breakeven, whether OP could eliminate some of the volatility risk by also setting limit orders 8% below purchase to cap downside risk. I'm not adopting the "strategy" but am learning from it. Thanks, hw711. |
This is a manufactured spending with 4% cost. Put a 4% gain limit order does not decrease your 4% cost. Gain from trading the bitcoin is not relevant to your manufactured spending cost.
4% cost is a very expensive method that I won't touch. |
lol RIP anyone who was stupid enough to MS with Crypto.
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Originally Posted by f0xx
(Post 28819901)
lol RIP anyone who was stupid enough to MS with Crypto.
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Originally Posted by ICEE45
(Post 28854095)
Agreed although the price has recovered nicely since 9/15/17. So many other avenues you can take for MS. The transaction fee and Coinbase's 1.49% fee is not worth it even if you plan on buying the dip and holding Bitcoin long term. Just set up an account on Gemini and link your bank account to it. The fee there is 0.25% (6X less than Coinbase) with a $500 max per day ACH.
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Originally Posted by ICEE45
(Post 28854095)
Agreed although the price has recovered nicely since 9/15/17. So many other avenues you can take for MS. The transaction fee and Coinbase's 1.49% fee is not worth it even if you plan on buying the dip and holding Bitcoin long term. Just set up an account on Gemini and link your bank account to it. The fee there is 0.25% (6X less than Coinbase) with a $500 max per day ACH.
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Anyone know of an exchange that's reputable that takes Amex?
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Originally Posted by izieh
(Post 28945567)
Anyone know of an exchange that's reputable that takes Amex?
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Originally Posted by savingwizard
(Post 28816862)
This is a manufactured spending with 4% cost. Put a 4% gain limit order does not decrease your 4% cost. Gain from trading the bitcoin is not relevant to your manufactured spending cost.
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