Should I trade my BitCoins for a crypto when Bitcoin is high priced so I get more of the crypto for the same amount of BTC?
Or should I trade my bitcoins for a crypto when that crypto is low priced? But then again, IF that crypto is low priced, it would also mean Bitcoin is high to?
If I could directly buy cryptos with fiat money, I would not bother but since I can only fund my exchange wallet with BTC, I’m stuck to trade BTC/crypto
Thanks for your help.
Hi Mario, good question!
One that can make or break your investment actually.
First consideration should be: which one do you see as better investment – BTC or the altcoin you want to buy? If BTC, then keep it. If the other one, then I don’t see a problem with selling your BTC when it’s high.
Or you can expand this strategy to any coin – sell some of the ones that are high, so you can use the funds to buy new ones that are low (but you consider them a good investment). This is the Forest strategy we wrote about.
Second consideration should be – does it make sense to wait until your altcoin of interest is low so you can buy it? Will it go low, or is there a chance it will go higher? The lower the price today (say less than 1 USD), the less of a chance it willl go down if it’s a good project. Therefore don’t over think it – if it’s cheap (but doesn’t have to be lower than it was a month ago), and it still has good potential (it’s a valid project, good team, addresses a real issue, they have a good MVP), then buy now.
Third consideration – most crypto only exchanges accept more than just BTC to fund your account – LTC is cheaper and has lower fees for example.
Fourth consideration – do you have fiat that you can put aside for investing? Then do so – don’t buy crypto just yet, keep the fiat ready in case BTC or LTC or other widley used crypto drops in price. Buy the dips, then sell the highs so you can fund altcoin purchases.
What do you think about these ideas? Let me know in the comments!
Thank you Lukas.
First consideration: I am a day trader so my strategy is to trade cryptos because they fluctuate more than Bitcoin. I buy low and sell high and re-invest.
Second consideration: Well I actually bought cryptos in early January this year when EVERYTHING was high so the coins I purchased then at $2.50US are now at $0.50US so I don’t want to do this error twice. I know now is a good time to buy since all the cryptos follows the stagnating $9,000US BTC position.
Third consideration: I forgot to mention that I’ve funded my Kraken account with CAD, not USD since I’m Canadian. So I could only buy BTC with CAD on Kraken! No way to trade CAD for USD on Kraken.
Fourth consideration: Make sense but since last January 2018, I could only afford investing $500CAD. I want to grow this X10 if not X100.
Thanks again Lukas.
BTW did you know there was a wtf TLD available? I did a Google search with the question I asked here about when to buy cryptos with BTC and blockchain.wtf was at 3rd position! So I’ve purchased cryptoinvest.wtf, coininvest.wtf and cryptocurrencies.wtf. The titles could be: WTF are cryptocurrencies, WTF is trading cryptos, etc. It could be a good fit for your own blockchainwisely.com
haha, thanks for the TLD suggestion, I’ll pass. It’s about the content, not about the domain name or TLD 😉