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25528273 No.25528273 [Reply] [Original]

Is trading price swings/differences between ETH & BTC a viable way to increase holdings?

My whole portfolio consists of 60% BTC and 40% ETH. Both coin movements are closely correlated, and I don't really care which one to hold - could be 100% of either for all I care (I'm long term holder).
However I noticed that sometimes there's discrepancies between the two - could I take advantage of that?
Let's say ETH goes on a 20% rally while BTC stagnates - for now ETH has relatively higher value than BTC, so I exchange ETH to BTC. Then eventually BTC goes on a rally, or ETH gets hit hard - value balance changes and I turn all BTC to ETH. In return now I have ~3% more ETH. Repeat.
Is this a viable strategy? Anyone tried it?

>> No.25528328

>>25528273
taxman loves this idea

>> No.25528380

>>25528328
I'm from EU and using Binance. Doubt they'll track me down.
Haven't heard a word after my gains in 2017/18

>> No.25528454

>>25528380
We're just building our case so it's a double barrel shotgun in your mouth instead of a single.

>> No.25528478

>>25528273
In theory it's a great idea. What you need is a LARGE pool to make it worth the effort. Calculate in trade fees and the odd times you "miss". It becomes a razor thin line to walk.

Props to you if you can swing it.

>> No.25528852

>>25528273
yes it's a good idea

>> No.25529351
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25529351

swings between the two were pretty wild over past month

>> No.25530082

>>25528273
Sounds like a good idea if you get it right each time but the reality is you won't and I don't know about exchanging but if it triggers a taxable event you may also be doing extra damage to yourself.
Generally speaking, when something sounds too good to be true it is.

>> No.25530629

>>25528273
A way to kinda do this but safer and tax free is to decide your portfolio’s ratio that you want (I’m 75/25 BTC/ETH) then direct your buying to always keep that balanced.
After this ETH run up I’m too high innETH so I’m only buying BTC till that levels off.
You’re not really swinging but you’re increasing your holdings in a systemic way to prepare for future pumps rather than chasing green candles and FOMOing.