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RE: When trading Crypto always measure BTC growth not USD growth!
"if there is two things that I have learnt from the experienced traders out there:
Never sell a coin for lower than you have purchased it at.
Always measure your Blockfolio growth in BTC and not USD"
Totally agree with these... I've seen so many people lose a lot of money to FUD (fear uncertainty and doubt) by selling their coins on the way down rather than waiting for them to go back up, as they always tend to do.
Actually, that's quite the contrary to my trading strategy - and I also disagree that it's appropriate to measure the profit in BTC. I used to think so, but now ... no, I'm back to counting in fiat.
My trading strategy is to be a market maker.
I have scripts running towards some exchanges - should probably grow the list of exchanges I run it at. Quite often the local market price deviates a lot from the average market price, it may be because some bigger player drops more coins, or buys more coins than what the market can support - without thinking what he's doing - or it may be systematic differences because lots of people have moved fiat to some exchange and wants to buy crypto all at once. I'm having scripts for this. I'm mostly using my scripts to aquire crypto for the cheapest possible price, I'm not sure how well it would do if I let it trade on its own on any reasonably big exchange - but for smaller exchanges it really rocks. I was earning quite decent amounts of money running this script on some smaller Norwegian exchange, though the API stopped working for me after a while. Too bad for me that I never bothered checking it up, at the 15th of August someone bought 4.661657 BTC for 1 MNOK, my script would for sure have ensured to have some deep sell-orders stacked up making the loss for this customer a bit lower.
I'm also a relatively big market maker in the domestic markets - selling and buying peer-to-peer, for cash or bank deposits. The typical customer wants to have one go-to-guy for selling or buying crypto, and don't mind paying some percent premium for that.
On a good day I can turn over the same money several times earning some few percents on each trade - then it's profitable, whatever way one looks at it. At the other hand, I often find myself holding bigger amounts of cash for a longer time, spending time sending bank money to the exchanges, and when the money hits the exchanges it's not immediately turned over to crypto ... no, it's waiting for the right prices. In fiat terms I've earned good money on this. In BTC-terms, I would have earned a lot more by simply hodling.
I'm comforting myself with the thought that in fiat terms, I'm running at a much lower risk than the hodlers - and after all, in the end of the day, I need fiat for bread and butter and whatnot. One never knows where the market price will go ... I do believe the boom over the last 14 months or so is quite unsustainable. The current price is probably about right if Bitcoin was ready to supercede both cash and credit cards - but it isn't. It's even less ready today than what it was two years ago. Price is booming because people are buying, people are buying because the price is booming, I believe very few of the newcomers are even aware of the capacity problems.