Trading Cryptos For Quick Cash and The Math For Beginners
Trading Cryptos
Good morning fellow Steemers! I dipped my toes into trading last night and it was a learning experience! Did some math and traded some BTC/STEEM and made about 7 dollars US. Not much, but it's a start to learning fast trades. Simple equation to use to see if you make profit (it's easy to just make up if you know your maths haha):
P = S[F - N(1+R)]
P - Profit
S - Number of coins purchased
F - Final Price (In desired currency, BTC for me)
N - Initial Price (In desired currency)
R - Rate of Tax (percentage the company charges or "rake")
A comment on this... You see in the parenthesis F - N(1+R); well if F=N(1+R), then you made what you bought back, so anything past that is profit!
Now, my experience last night was this:
Purchase 300 Steem at .00044 BTC each ======== Total = 0.13435200 BTC
Sold 300 Steem at .00046012 BTC each ======== Total = 0.138036 BTC
This is an increase in BTC by about 0.003684. The equation for me looked like this 300[.00046012-.00044(1.0025)], with Poloniex's percentage. Seems better than mining to me! Haha. Now, this is a bit more risky, but if you know the price will go back up you are in good shape!
My trading today has been with #poloniex. Learn this math Steemers, it can make you millions! Hope all is well Steemians! Happy Trails!
@hansenator,
Trading is an art of maths. Indicators are made by great mathematical equations. So you know maths, that means you know how to indicates. That also means you can make a new indicator as well. And it also mean you can be a great trader too.
Thank you very much for sharing your experiences with equation. As I said before I like maths, but it seems like maths don't like me. Anyway sometimes we might see a "Hansenator indicator " in near future as well.
Appreciate your effort!
Cheers~
You never know. Haha. Thank you for your comment @theguruasia! You are awesome!
Yeah when you go to sell they want that .25%! Bastardos! lol just kidding. This is good to know. Really, all you should do if making big purchases is just keep the price in mind you bought for and not settle (not sell) until the price goes up (for me 10% is usually good enough). Poloniex will do the math for you on the 24hr but not from the exact time you bought, which I think some people don't understand. They might think "ohhh look! Ethereum is up 25% I will sell!" But in reality they might've bought 3-4 days ago for more than what they're about to sell for. For this it's a good idea to view your trade history for that crypto, which will show up at the bottom of the Exchange page on Poloniex. You already know this, but it's more for people that might make the mistake of thinking they're making a profit because something is in the red, when in fact they might've bought higher than what they're about to sell for! Nice post dude.
Yeah. I think doing the math is easier. This is where we make the real buck if we get good. It's like FOREX trading.