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RE: VLOG8-What do real estate and crypto currency have in common?

in #realestate7 years ago

I've been a real estate professional for 28 years and I see no similarities between real estate and crypto currencies.

Unlike real estate, crypto currencies do not yield a cash flow. No one has a legal obligation to send the owner of a crypto currency every month. Instead, crypto currencies rely solely on appreciation of the currency in relation to other currencies.

A simple dollar cost averaging strategy is very effective in such a markets. A trading strategy, however, can yield even greater profits. I think that developing a bot for such a strategy would require heavy reliance on technical trading. This would involve a trial and error period of testing various algorithms in order to discover which ones perform best.