RE: Lets look at my recent trades, and where will I buy BTC, BCH, ETH next? Wheres the bottom???
Luc, long time lurker/watcher, first time poster.
Could you tell me what base currency I (you) should be trading in? I am down here in the states and would think to use USD, but most exchanges have us use BTC or ETH.
With both of those currencies fluctuating, I think it would be hard to tell if one actually made money on a trade. Even if the trade did make 30%, what if the exchange rate is not there when moving the money back to USD? If I would use USD I would know right off whether I made money. All the coin earnings eventually have to get back to USD anyway....to pay the rent, less the investment coinage.
Could you do an information video on exchanging your USDs (CAD) to a useful currency coin to trade with, and then back to the original USD? Can you point out where one should be watching the exchange rates to ensure they are keeping their winnings/profits?
Thank you for your what you do. MNBen
You are way way way overthinking this process.. You should just trade the chart you are trading.. Forget about trading it back into fiat after every profit.. just keep some ETH and some BTC and some USDT and trade all those alts that pair against them.. and if the BTC/USDT chart breaks a base and panics, then trade that pair independantly too.. let the market decide which base currency your working with.. but avoid unecessary commissions and over complications (moving money from alts to fiat unecessarily) I think thats all to stressful and complicated.. As long as you are making profit on every trade your account will grow very very fast, no matter what coins your holding
I am very new to this, and for whatever reason I am the most confused about when it is smart to trade ETH/BTC vs waiting for a good time to trade BTC/USD or ETH/BTC. I think I'm just not used to translating the values of the currencies in my head easily. But if I understand correctly you are saying not to overthink it, and if on my ETH/BTC chart people are selling in a panic, just treat it like I would any other chart and buy at the bottom when it seems good, and not worry about "well, but what is BTC to USD right now?". Maybe I am not even making sense. Thank you!
What Luc is saying is you don't need to convert the currencies at all when you're trading. Look at one trade-pair at a time. You buy something low, you sell it high relative to where you bought it. You either sell everything you bought or you just sell your capital and keep the free coins.
Sometimes ETH/BTC will break a base but ETH/USD won't, so trade ETH/BTC that time. Don't think about the amounts in USD, except to make sure you're within your overall risk tolerance.
Sounds like what you need to do is pick a priority: Are you trying to generate cash income, or are you trying to earn free coins to hold long term?
If you're mostly trying to earn income, then stick to USD trade pairs, and always sell your whole position at the end of the trade. You won't keep any BTC or ETH to do many alt coin trades, so you'll be limited to whatever you can trade against USD. Careful: lots of alt coins that trade against USD do so at very low volumes. That can sometimes be good for volatility, but bad for liquidity: you could get stuck with something you can't sell at the price you want because there aren't enough buyers.
If you're mostly trying to build a crypto portfolio, then start with USD trade pairs, but leave your profits in as free coin. So if you buy $150 of something, sell $150 of it when you complete the trade and leave the profits as free coins. Eventually you'll build up a stock of BTC and ETH (and DOGE, LTC, BCH, etc) all for free. Then, when you trade those against alt coins, again leave the profits in the alts, and you'll be in them for free too -- if they crash, you didn't "lose" anything, but if they go to the moon, you'll be along for the ride free of charge!
If you keep your coins but still want money to pay the rent, you'll have to wait for bull markets that will allow you to sell little bits here and there without compromising your position. Or just keep your day job.