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RE: Why cryptocurrency day traders should trade to accumulate shares, not money
Thanks for posting this. I'm interested in the topic of trading and I am following your posts. If I understand correctly, you are trading back and forth with the hope of getting more units. So if I trade back and forth between Litecoin and Steem, my goal is to get more Litecoins and more Steem... not their value in dollars.
I haven't tried this, but if I split my holdings between two crypto-currencies and then traded for the other when I could get more units of the first than I bought the other for... am I understanding that right?
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.