QUESTION
Hi Carter
I have a quick question for you, I am trying to get my head around what you said the other day in your video about making small profits by not being to greedy and selling Altcoins once they have made a profit against Bitcoin
Anyway below is the current exchange as of 11.15 in New Zealand (Thursday) your time would be 4.16pm Wednesday afternoon.
So Ether and Civic are way down against bitcoin – so If for instance I bought these now say 1btc worth then waited until it swung the other way say it went up by 10% that would be a 23% increase(on ETH) then sold the profit only and kept the original purchase amount.
Is this what you were meaning in your video?
Look forward to your response.
Regards
Jerry
ANSWER
Hey Jerry,
Yeah pretty much. Scenario is:
1. Buy CVC when it’s -10% against BTC
2. 2 days later CVC goes up against BTC by 20%. Meanwhile, BTC has gone up 5% against USD.
3. CVC thus has gone up up against USD by 25%+
It’s kind of a multiplier effect. If you assume BTC is going to go up over the long term, if you can trade profitably against BTC inside the Bittrex platform, you’re actually compounding your earnings when you look at the USD conversion (because everything is going up at the same time)
Part two:
1. You buy 1,000 CVC at $1 each
2. Goes up 20%
3. You sell 800 CVC at $1.20 each
4. You now have your original $1,000 back PLUS 200 “free” CVC that you can keep forever in case they go big
Some people will harvest all their profits but in crypto it’s typically better to build a warchest since some of these coins will go really big.
Hope that helps.
Carter