Bitcoin

Another bull run currently, 1 BTC is well over £10,000 for the first time this year. £288k predicted sometime in next 4 years. PayPal are on board now and more public companies are investing their cash on hand in it. Basically, it's happening.
 

Leo

Well-known member
so, when are you going to get off the roller coaster and cash out? you know what they say about people who try the time the market.
 
so, when are you going to get off the roller coaster and cash out? you know what they say about people who try the time the market.

The aim is not to cash out, that would be a terrible idea. Cash out the hardest money ever to exist and buy thoroughly debased dollars and pounds? The aim is to acquire while it's still in the process of consuming and reordering the global economy. Here's an artist's depiction of that process

DigaNO6UwAAvxQy.jpeg
 
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Leo

Well-known member
but if you invest in something, it's just throwing money away if you never do anything with all the money you've earned.
 

constant escape

winter withered, warm
Do you think cryptocurrency arbitrage is worth practicing in?

Granted I only have $65 I'm practicing with, most of which I earned from the quizzes at Coinbase. The site lets you convert between currencies at a low conversion fee, but if you convert to or from DAI then theres no fee. So I've just been measuring and tracking minute differences across exchange rates, and mediating every conversion through DAI, which is a dollar-stable currency so it has a very narrow margin of change.
 

constant escape

winter withered, warm
I've measured slight increases across the dollar conversion value, but I can't tell if thats really attributable to what I'm doing.
 

IdleRich

IdleRich
Can you explain a bit more? You have money in one currency and then you change it to another via DAI if you think they're out of whack?
Won't you have to pay two fees on each transaction that way?
 

constant escape

winter withered, warm
Normally there would be two fees, but there is something about DAI that doesn't require a fee. Unless either the site is somehow burying the fee, which I think is unlikely, or I am overlooking something. You get a little confirmation window whenever you prepare a conversion of units from Coin A to units of Coin B, and there appears a conversion fee that Coinbase imposes onto the user. But when you convert to or from DAI, that conversion fee is nothing.

So I would just default the value that I have, around $65, to DAI, and then convert it to another currency that is experiencing a dip, wait for that currency to rise, however slightly, then convert it back to DAI, and I don't seem to be suffering any loses from doing so. Its all very low stakes, so its tough to really pin down if any increase in value is actually due to successful arbitrage, or if it is due to something else.

edit: there might be other currencies that don't require a conversion fee. Not sure if it is a stipulation that is inherent to the currency, or if it is a condition agreed upon by the currency and Coinbase.
 

constant escape

winter withered, warm
Its a "stablecoin" I think they call it, which means they calibrate its value to a given currency, in this case the dollar. So any amount you put into DAI will more or less remain stable, sometimes rising to $1.01 and sometimes dipping to $0.99, but rarely farther in either direction.
 

IdleRich

IdleRich
Ah ok. I wouldn't call that arbitrage though really, just day-trading isn't it? I thought it was arbitrage only if you were recognising that two securities were essentially the same and then buying one and selling the other eg Royal Dutch and Shell shares can be converted into each other so if one is significantly more expensive than the other (taking into account the exchange rate) you can simultaneously buy one and sell the other risk free and pocket the difference... but you're just trading on short term highs and lows aren't you?
 
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