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757929 No.757929 [Reply] [Original]

Hello /biz/ anyone mind explaining bitcoins to a novice? I'm interested in investing I've already downloaded the mycellium app for android. What exactly is trading. How does it work? I'm thinking of making 100$ investments every month is this feasible?

>> No.757945

Bitcoins aren't an investment. 100 dollars per month is reasonable but it depends on the amount invested. For instance, if you have 200 dollars invested, you're expecting a 50% monthly rate of return, or 12 * 50 = 600% annual interest. If you own a payday loan service, 600% interest is reasonable. For most others, this is impossible.

I would say that a 5% return is pretty reasonable. You might be able to get more, say to the tune of 7-9%, but if you risk adjust these returns, they probably come down, conservatively, to 5% anyway. You can do better, but you'll be taking a big risk (IE bigger chance of losing most/all of your initial investment).

This is a 5% annual interest rate. So we want 100 dollars per month, which is 1200 per year. Multiply 1200 by 20 (1/.05, the 5% interest rate) and you get that you need 24,000 dollars invested to get 100 dollars per month in basically guaranteed income.

>> No.757950

>>757929
If you want BTC explained just google it watch some Youtube videos then try it in practice. There's everything from Khan academy to brief 1m explanations and most of them will leave you lacking a bit, if you are interested in every detail.

>I'm thinking of making 100$ investments every month is this feasible?

It is feasible, but i wouldn't call it an investment. You are basically entering a long trade with no time frame, speculating that the price of BTC will be higher in the future. Nothing wrong with that, if you feel you can profit from it, just make sure you are aware of what you are doing.

>What exactly is trading. How does it work?

Buy low, sell high. Profit.
Short high, close low. Profit.
What exactly do you want to know?

You might wanna check the other thread.
>>749717

and these posts in particular
>>751093
>>751107
>>751229

>> No.757958

>>757929
at 100 a month you are better off investing in a total market index fund with vanguard.

>> No.757990

>>757945
>>757950
Thanks for the info, I'm really How to get into he game as a late player. I figured investing 100 a month would allow my to stockpile some coins to trade or sell. Based on my research so far it seems prices rise and fall like the stock market. Is this accurate? Also can you go more detailed into trading bitcoins? Do I buy some and sell in England or something? I'm a sponge for all useful information

>> No.758004

>>757990

You don't need a lot of capital (USD or BTC) to begin to trade, that's the good part. If anything you should start small and see how you go.
A few hundred bucks is enough as the fees are by percentage everywhere. You don't get a 10/20/25 dollar flat fee if you open a position, you go by percentage. The commission is anything between 0.2% to 0.003% depending on the place and the instrument (vanilla BTC, or futures).

Yes it's just like the stock market, but maybe forex would be a more apt comparison. Except much more volatile most of the time.

Trading means.
1. opening up an account or two
2. transferring in BTC or usd/eur
3. buying 240, then if price goes up selling 250. Or shorting 240, then as price plummets closing 230.

Just like you open up a brokerage account and trade GLD or whatever using it.
There is no off-exchange activity involved in trading unless you mean arbitrage, but that's not worth looking into.

Be warned that this is not easy money for anyone, especially noobs. On the other hand you have to start somewhere, and it's one of the best markets for it when it's volatile.
Liquid, volatile, starting capital can be miniscule, high leverage available.

>> No.758043

>>758004
Thanks for the extensive post I really appreciate it. Any tips for a complete novice?

>> No.758048

>>758004
I currently have two wallets one with myacellium and cex.io

>> No.758057

>>758043

Well first you need some BTC or an exchange to wire money to. It's easier to just buy like 0.5 BTC from an ATM or from localbitcoins than the whole money transfer bullshit because some exchanges need you to verify your account if you send/receive fiat.

So you got some BTC.

I'd recommend trading "futures" because of the low fees. For that there is OkCoin, but they need a passport nr from you. (to check that you are not american, i think, not sure)

If that's out, then alternatively, you can just open up an account elsewhere to trade spot (actual BTC).

You send the BTC to the exchange, you are set.

In the cross-links above you'll find what you need as far as links go.
You have the charting site(s), and the following exchanges should be watched:
-Bitfinex
-OkCoin (you'll find that on btcwisdom under the markets tab)
In addition, if you have the capacity for it you might wanna watch: Huobi + Bitstamp too but MOST of the action doesn't originate from them.

From then on it's basically trading like every other thing. Forex, futures, stocks. Look into technical analysis, but don't worry about elliot waves, fibs or the like. What you really need to learn to identify are support and resistance, "triangles" and the like.

>>758048
cex.io has no volume, don't bother even trying to trade there.

Which country are you from?

>> No.758063

>>758057
American. Are bitfinex and okcoin like the s&p 500 and nasdaq or what little confused here

>> No.758076

>>758057
So in theory would I make a profit trading my Hutchins to people in England using my American coins since the pound is stronger than the dollar? Is that basically the point of trading bitcoins?

>> No.758079

>>758057
Also where should I go to buy?

>> No.758088

>>758063

I think i'd still give Okcoin a try. They do take americans and it takes nothing to open up an account. https://www.okcoin.com/?invid=2035771

>Are bitfinex and okcoin like the s&p 500 and nasdaq or what little confused here

Bitfinex and Okcoin are separate exchanges. Think of it as separate stock exchanges in different countries trading the same stocks. If one begins dumping the rest usually follow, and vice versa. It's interesting to watch.

>>758076
No. The price moves up and down anyway. The differences between exchanges is usually minimal.
See, open up a chart: https://bitcoinwisdom.com/markets/bitstamp/btcusd

Click 1d (1day) and see how volatile it is. You don't take BTC to sell in a different country, you don't even sell at a different exchange (unless you want to move). The only thing you do, is you buy low and then sell high. Or conversely short high, cover low.
Example: you go long (buy) at 238 if you think it's gonna go up, and sell at 244. Your profit is 2.5% if no leverage, 25% if 10x leverage.

Also please take my advice and don't start trading with more than a couple of hundred dollars (worth of BTC) until you get the idea. The best way to learn is by practice but you dont want to lose money.

>>758079
Check if there is a Bitcoin ATM nearby
http://bitcoinatmmap.com/
http://coinatmradar.com/

If there are none in your city then go to localbitcoins and find a seller.

>> No.758092

First, decide how fucking retarded you actually are.

If you decide that you're really fucking retarded, then bitcoin is a great "investment" for you.

The goal of bitcoins, or shitcoins as we in the financial world call them, is to be what is known as a "Bagholder"

Here's how it works

1) Use USD to buy bitcoins
2) Go to your favorite Cantonese basket weaving hentai forum
3) Spend your entire day talking about how worthless fiat currency is and how shitcoins are the future
4)When the price bubbles, cash out your bitcoins for worthless fiat USD.
5) If you choose not to cash out, then you are now officially a bagholder. Repeat #3 until you are given the chance of finally cashing out your shitcoins for useless fiat USD

Hope this guide helps

>> No.758097

>>758088
Ok I understand, what do you mean by leverages?

>> No.758105

>>758092
I'm just a novice trying to get information. Why are you so angry?

>> No.758120

>>758097

Leverage, to put it simply, means buying 10 BTC when you have the money for 1, for example. That's 10x leverage. Price goes up 10%, you have 2 bitcoins. Price goes down 10% you lost the one you had.

https://en.wikipedia.org/wiki/Margin_%28finance%29
https://en.wikipedia.org/wiki/Leverage_%28finance%29

In Bitcoin exchanges you cannot lose more money than you have. Not so in Forex, futures or simple brokerage accounts (if they are margin accounts).

>>758105
Because he thinks BTC has no future and is simply a speculative fluke.

>> No.758129

>>758120
Thanks, I appreciate all of your help. I have alot of studying to do lol

>> No.759143

>>757929
Holy fuck this entire thread is just the OP and his shill GTUFcdDk wanking each other off.

>> No.759154

>>759143

I just had too much free time since BTC was going sideways.

>> No.759161

>>757958
>$100 a month for ~10% annually with significant market fluctuation

What's the fucking point? Market funds are great if you're investing tens of thousands a year and plan to hold for decades, but for what the OP is talking about, he might as well buy bonds or start a CD ladder or something. At least then he'll have stable returns, albeit probably only enough to barely beat inflation.

If he lives in a Jew state he could get into p2p lending.

>> No.759245

>>758120

> Because he thinks BTC has no future and is simply a speculative fluke.

As anybody should.

>> No.759276

>>758105
He bought bitcoins at $1100.

>> No.759505

>>759154
how long do you think we'll remain in this channel for?

And how will you know when its breaking out?

I've lost a few trades in the chop so far, buying and selling into fakeouts

>> No.759524

>>759505

No idea whatsoever.
Volume and breaking local highs/lows usually confirm a move, but the stability nowadays is uncanny. We might continue these ledges down. Watch 1435 on okcoin as it's likely that we get a shakeout if that breaks, but I don't expect a 20 dollar move.

In case we move up i'd like to see a break of the previous ledge and then i'll play a long on the pullback, unless of course it's news related.

6h bband squeeze sort of got me to pay attention yesterday. Played a short as we were keeling over and then played the bounce immediately, but those were basically the only trades this week I've put volume into.

Not holding coins except those needed for forex trading, futures and the like.

With these sort of tight markets it's important to stay disciplined and not to trade for the heck of it. I've heard of people losing 50+ coins just the 5-6 days trying to trade the sideways chop.

I usually do small time frames, so with that in mind, if you are good at catching knives, the obvious trade would be playing the bounce after a 1435 break. Works best on futures with low frees and all though, where you can play a ONE dollar bounce profitably.

There is a lot of support below us so take care not to open shorts if/when we are already crashing as the bounces might rip you a new one.

>> No.759539

>>759505

Checking bfxdata for swap statistics on Finex can give you a general idea.

https://bfxdata.com/sentiment/longshort

Longs are keeping up and short volume is generally low, which is usually not a great indication of upside potential.

People love shorting the bottom, until a green dildo wrecks them, and go margin long at the top until they all panic sell.

I got to say though that, for now, this seems to be a different market than what we had the past 6-8 months. Volume and volatility are decreasing, no scary support/resistance nearby. Remind me of mid-2014. It's all very compressed. I'm more biased towards the down side right now and the only thing that can change it is a 238-240 break.
Lot of bounce areas below, but if we continue "ledging" i wont build up longs for longer-term trades.


Keep reminding yourself that you wont miss any boats as this is more like a train station. Opportunities come and go, you'll be fine with just trading the obvious. Easy to build up big positions in a sideways market, but even easier to get shaken out or be proven wrong.

>> No.759551

>>759245
then why is the NYSE now tracking bitcoins with an index?

>> No.759565

>>759551

The same reason they dropped a few dozen mill on Coinbase.

Because they are idiots.

>> No.759568

Bitcoin is not real currency, it is more like playing the stock market but for neckbeards and basement dwellers instead of real businessmen.

>> No.759577
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759577

“Bitcoin values are quickly becoming a data point that our customers want to follow as they consider transacting, trading or investing with this emerging asset class,”

NYSE president Thomas Farley said in a statement.


I am become hype

>> No.759590

>>759577

Hype gets you wrecked.

I mean, sure, bitcoin is fantastic, but there's still over a million BTCs to go until the next halving. Some of the Gox coins still need to be liquidated, Australia will have an auction for 20-30k coins or so, etc.
Then next year block size increase, block time debates, sidechain and lightning network arguments. Ethereum will come online, so will Storj and probably Maidsafe too.
21 inc. will unveil wtf they are about exactly.
And these are just the things we can actually see on the horizon.

So yeah, it won't be a smooth ride even in the best case scenario, which is actually great if you know how to trade. I still look at this low volatility as an anomaly.

>> No.759616

>>757929
When will the 21 millionth bitcoin be mined? I'm not using them until they're stable.

>> No.759635

>wanting to invest into a pump and dump

top fucking kek

>> No.759681

>>759616
2140

>> No.760089
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760089

bumping every bitcoin-related thread on /biz/ to make nocoiners slightly upset.

Daily reminder that Janet Yellen and the Federal Reserve keep the printers-a-printing and USD is slowly becoming worthless.


Daily reminder that digital currencies are the future (read: bitcoin) and nocoiners will mass an hero when the train leaves the station.

>> No.760098

>>760089
whats the point to this shit. Bitcoins are already becoming more scarce. Eventually they will just be another e-currency.