Hello Steemit Community,
After pulling the trigger on bit connect, I have started to go further and further down the rabbit hole to research more bitcoin bot trading. Thankfully there appears there a few legit start ups and I will be investing in them soon. However it got me thinking, is the crypto asset similar to real estate? yes and no.
Before I further explain my answer I wanted to pump the brakes and talk strategies. There are two (and may more) approaches that are very common in the crypto world right now.
a-Buy and hold
b-Bitcoin+altcoin generation through mining then spending the revenue on bot trading.
Many of you know bot trading has been around for a while with FOREX and other financial product. However, this time its different because when someone combines bot trading with a crypto=MASSIVE ROI.
Back to my original point. What does real estate and crypto currency have in come? CASHFLOW.
A huge trend right now in the USA Commercial Multifamily real estate is for investors to focus on Cashflow and not the cap rate or asking price of the asset.
Are cap rate and asking price important? Yes. Is the asking price of bitcoin and or all other digital assets important? Yes.
However there is more to the store and a whole another world out there when it comes to Bot trading. If you don't know where to start-google is a good place. Or you can keep following me to see how my strategy is working out.
Note* This is not financial advise, and I am not soliciting or selling anything*
Thanks,
Ryan17
Great post !!!
Follow me and i will follow you !!!
and lets do the upvote and comments exchange !!!
Thank you for your kind words!
Done and done.
Now lets make some money!
Cool comparison. Interesting way to look at it. Passive income is where it's at.
Let me know if you ever want to chat. I like sharing good or bad info Bitconnect Chat & Info Here
Thanks @joeyrocketfilms! Also-ty for the info. I will follow and take a look that chat info!
Anytime. Feel free to share BCC related posts
long time crypto investor and code dabbler here. Always wanted to get involved in making and/or using a bot to trade on various exchanges. For your bot, are you thinking an arbitrage type trade on alt coins?
Hey Vintagevan! Thanks for sharing your thoughts
Not necessarily. I have not thought about it from that stand point. I guess its possible. Do you have an example?
I was focusing on bot trading specifically related to BTC
What I am thinking is, say for simplicity sake, you have 2 exchanges you deal with. Call them x1 and x2.
Assume, and rightly so, that prices fluctuate significantly between exchanges, although they will regress to a mean. If you you want to trade btc, you will need another unit of account (an alt coin. ) Lets use LTC for the examble.
So you create a bot that trades BTC to LTC and visa vespa. Both x1 and x2 each have an API (application programming interface) so you can just make api call in the code. If the btc/ltc ratio is higher on x1 vs x2 (to the point of being profitable) then execute a buy on x1 (ltc to btc) and simultaneously a sell on x2 (btc to ltc) and pocket the difference. Rinse and repeat.
This will also work alt to alt.
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.