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RE: Why cryptocurrency day traders should trade to accumulate shares, not money

in #finance7 years ago (edited)

Yes, that is one way to work with this strategy. With this strategy, you basically believe that one day down the road, it doesn't matter when, the main cryptocurrency/cryptocurrencies you're accumulating will be at a higher price than they are today when you begin trading.

With this in mind, through accumulating shares you're not as worried about pull backs or anything, but rather excited about them because it's an opportunity to grow your holdings quickly.

Personally, I have a base currency of Bitcoin. I would like to use Ethereum as my base currency, but unfortunately there are far more coins that can be directly traded into Bitcoin and this minimizes the fees. On any given day I'll move my Bitcoin around into different currencies that I believe will go up relative to the Bitcoin based on technical analysis (chart reading). Then when I'm done trading, to limit my risk, I will transfer back into Bitcoin and take my coin profits, or hold Ethereum over night as it is also a safer investment.

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