One of our regular readers took a gander at trading Bitcoin
ForexFlow reader John B has had a look at trading Bitcoin. Here’s his review;
“I have been fascinated by the whooplah surrounding Bitcoin. So I decided to have a gander at it on my Demo account and this is what I found. Fundamentals = there are none. Technicals, well the only one I found was an exponential curve on the stairway to heaven.”
Bitcoin
“The cost of entering a trade is prohibitive, ranging between $250 – $375, depending on the time of day for a full unit. Plus if you left a trade on overnight the cost of a swap was the weeks grocery bill. So for me, I’ll stick to what i know best, FX. Tulips have never been my strong point”
Just for you JB;
Psychedelic chartist extraordinaire. Have your shades ready.
Philosophy: “Don’t be a Dick for a tick”
Read how Ryan got into trading here
Philosophy: “Don’t be a Dick for a tick”
Read how Ryan got into trading here
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Hello …. Did John B. mention the name of the broker, that he use ? Anyhow…..from my observation (without real trading the stuff) BTC respects quite good some technical tools, like 100 and 200 MA on 1H, 15Min and 5 Min charts and even Fibb. retracement levels, as well as horizontal S&R levels.
Hi Prutar. How’s are you?
I’ll ask him but he’s gone to bed for a bit as he’s in Oz. He’ll be back for the Fed later.
I’m very sceptical about the techs. If you didn’t see it, here’s a post about it I wrote the other day. https://www.forexflow.live/2017/12/05/education/how-i-made-millions-trading-bitcoin-and-how-you-could-too/
I’m fine Ryan….I’m glad to be able to continue to follow you here.
I’have read your post, yes. Nevertheless, it’s very easy to see, how many times BTC bounces exactly (to the pip) from 100 or 200 HMA (5 or 15min) or from FIbb levels (in the past, since in last weeks it hasn’t retraced enough) or even from trendlines.
I think TA will grow more and more as traders come into it but it’s tough. The TA might work when it’s quiet but when you get those volatile moves…
Are you trading it yourself? If so, how are you finding it with spreads, slippage & costs etc?
No, I don’t trade it, just observing PA from now. My broker has 30% yearly interest rate as swap on BTC CFDs and it seems like robbery. Of course, nobody complains until it goes up 100% every few weeks… 🙂 BTW, I wonder why our following conversation just disappeared from the post.
The brokers are scared of it so costs are very high.
The comments are showing for me. Maybe give the page a couple of refreshes.
just a thought on crypto currency seems there appeal is the black market as revenue and cash can be hidden from the authorities on a global scale if that is the case then if there was a serious move to using crypto currency Governments would be unable to collect taxes/revenue which would really screw the economy so government will just have to sort out some regulation to ensure they get their pound of flesh if that does happen and regulation works then maybe crypto currencies may have a future but knowing how long it takes Governments to sort anything out don’t think that will happen anytime soon
It’s twofold FXJ. The way the blockchain works (in my limited knowledge) is that there is a strong paper trail with every transaction. The issue comes at the wallet end and identifying the person holding the wallet. But even then, at some point any realised cash has got to be moved somewhere leaving an easier paper trail, and that then opens the door for the regulators/tax officials to track it.
Be under no illusion though that the tax authorities aren’t on the case https://techcrunch.com/2017/11/29/coinbase-internal-revenue-service-taxation/
cheers JB good post mate
Look who I found today !!! Congrats RL!
Hey Umbeluzi, how are you?
I’m fine thanks, always trying to survive in this minefield. Hope you are well too. So, from now on, your site is already in my favorites 🙂