How to Get Rich Trading Bitcoin, Hacker News

Let’s say you began very lately on this spel: You bought on Oct 08 at 588. You then sold after a 20% build up: That is, you sold at 708 around Nov 12. Now the price of bitcoin doesn’t juist, it goes up utter retard to 1160. Then keurig to 850. You buy there and ",Boom",, bitcoin still dump again to 740. Now you are faced with a hard choice: Hold the trade until you make profit, or dump it and ",get the fuck out",.

My practice is: Stress and uncertainly will play a meaty role and you’ll make the mistake of dumping at 740 and only see the price rises zometeen.

The OP’s suggested trade is simply a retarded market making strategy. If you are down for some business, at least do it right.

I bought late, I’m wondering why watching it real time druppel ter rice by potentially hundreds, at least I consider it disposable income

edit: what I’m considering is selling if it goes up twice what I waterput into it, to at least get what I waterput te then keep what I have, and let it fluctuate. But I realize I’d miss out on the ",compounding rente", by having more to increase than less.

",This suggests my fresh Bitcoin trading strategy, which I admit I have only attempted so far on paper. [. ] Bitcoins go down ter value when the request for them spil transaction instruments decreases. When that Russian oligarch sells his shiftload of Bitcoins for US dollars, Bitcoin value goes down. When that happens — when Bitcoin prices druppel by 20 procent or more — BUY! The price will inevitably come back up, I assure you.

When Bitcoin prices rise by 20 procent or more — SELL! You just made 40 procent on your money.

Rinse, repeat, automate, get rich.",

This is also known spil gambling. I’m not judging gamblers, but if it were so effortless, the author of this postbode would have implemented it te a few lines of code and actually gotten rich instead of writing a muddy, unclear chunk of trivialities.

Buy low, sell high.

It can be proven that you can’t make money trading martingales, no matter how sophisticated the ",trading strategy",. You can make money if the process is not a martingale, but exhibits momentum or the opposite, mean reversion. What the author of the article suggested (buy after druppel) would make money if there is mean reversion.

Te mature markets, wij should not expect much of that.

1. I have 0 bitcoins, price is $1250

Two. Price druppel 20% to $1000

Three. I buy 1bitcoin for $1000

Four. Price rise to $1200

Five. I sell at $1200, earning 20%, not 40%

Am I missing something?

He claims with his method he commenced with $100 and bought Bitcoins valued at .05 which means he could have bought Two,000 BTC at this time.

He claims his method netted a profit of toughly $20,000.00. BTC is trading at $1143.00 right now.

If he would have bought those Two,000 coins and sold them right now he would have proceeds of $Two,286,000.00, essentially all profit spil it commenced from a $100 investment. Plus he’d be paying a long term capital gains tax and not the many brief term taxes he’d have paid by day trading BTC.

I suppose buy and hold would have bot the better strategy.

>, those poor sods who think it’s a store of value and the price will go up for unknown reasons

. followed by an entire article based on the unfounded premise that Bitcoin will proceed to rise.

The only worthwhile advice ter the entire article is nothing more than ",buy low, sell high",. Beyond that, you could effectively substitute the word ",Bitcoin", with ",AAPL", or ",AMZN", and it would be identically accurate. Any security which hasn’t crumbled yet certainly looks like a good bet.

That said, spil one of those ",poor sods",, perhaps I’m just being a tad defensive.

If you are operating however with an edge on the market, that is to say you have skill you think some percentage of the market does not have. For example you profoundly believe that Bitcoin will increase te value, spil the author of the article does.

Te that case, buy and hold is only a mediocre strategy. At most you will make whatever the percentage is that the asset will grow.

If instead you make use of the idea that inbetween now and the mystical future bitcoin value increase, it will go both up and down, you can come up with strategies that make you more money than that value increase.

I think it’s possible to come up with a strategy that are ensured to make you more money, based solely off those two assumptions ",Eventually it will increase", and ",there will be fluctuations",. Some elementary ones I’ve come up with I think come close to it, but I’ve never dared to execute any of them. I wonder if there’s people here who have.

If you have an edge on the market there’s a good chance you’re either violating the law or deluding yourself. Not that some people toevluchthaven’t found legal edges and made vast fortunes from them – sophisticated mathematicians have for example. But there’s many more who confused dumb luck for alpha and ended up underperforming the market or broke overheen time.

You’re right tho’ – buy and hold is generally best applied to a diverse set of assets. If you’re making ongezouten plays on companies and have little capability to influence the houtvezelplaat and leadership then that’s a loterijlot of unhedged risk. Warren Tapkast’s advice is often confused with making directional stock plays. He buys enough to get houtvezelplaat seats and can influence the direction of the company and has a track record of doing this well. Regular people will never have enough of a bankroll to qualify for a houtvezelplaat seat or have influence on the management.

And yes, many day traders and sway traders have some strategies based on brief term switches te an asset but taxes are the killer. Brief term capital gains are taxed the same spil labor but with considerably more risk.

Wouldn’t be nice to have crypto-currency where the concentrate is simply spil a sturdy and secure medium ter which to exchange goods and services? Am I missing something fundamental about currency te wishing this?

Their perspective is not the only one, but certainly the sexy one that media can profit from.

Spil for the exchange of services, that is the voet of ethereum. Instead of computing Sha(Sha()) overheen and overheen again, the mining network is a global turing-complete pc designed around arbiterless smart-contracts.

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