Topic: Brand New Trader, Question About Multiple Tiny Transactions (Read 208 times)

There are 2 things that concern me.

1. How are you sure that the new coins you invest in would definitely yield you guaranteed profits.
2. How are you sure that many of your trades will turn out to be successful.

Both of the above are very hard to achieve and so I don't think you should go with this strategy.

That's because you're only measuring from the very top of the last bubble. Compare that to buying micro caps during the first 5 months of 2017. Big difference; timing is everything. Also, "months and months" can imply years potentially. That was the point.

I'm not touching altcoins personally until I see signs of strength on BTC pairs. Not seeing that yet. Once we see a move like December 2016 - February 2017 again, it's time to take a serious look at altcoins.

There is a guy in this forum that claims that he turned about $50 or  $100 to $5000 in 5 days and I think that it would be better that op makes him his mentor because it would take a guru that has the eyes of an eagle to be able to trade with 20 cent and then build it.

I am this type that use to believe that nothing is impossible but this particular one, I think I will say to myself and to the op that is not possible to trade with 20 cent, I am sure that it would even disappear without op knowing what happened to it when he first pay trading fee with it, because I think binance charges 0.1% which is still the cheapest, now let us imagine how much will still be left after removing such, and I don’t think he would even be able to leverage on that tiny amount which would have helped.

I think it's not too feasible. because if you make too many trades on multiple pairs of coins, you will get really tangled and trading really won't work.
You should only trade 2-3 pairs at a time, choose a reasonable time to buy and then we will probably have a higher profit than making hundreds of transactions.

Hey
humm you have good strategy your thinking is great BUT you have to do some math Bro , trading with 20 cents (for me) is hard to make good amount of money it will take you so so much time and energy... so if your goal just to test, learning about trading and bitcoin or have fun & enjoy its ok you can do it.
but if you'r serious about trading you should invest time (for learning) & some money minimum (100$) to start and then grow it slow, by creating a trading plan (strategy Technical Analyst, Risk management...)

Wish you all the best Bro..

OP, even if your cost of mining is negligible, and a loss through trading isn't that big of a deal for you, the fact that you lost time in the process makes it a not viable method. Time is an asset people not nearly appreciate enough, which honestly doesn't surprise me reading through everything you wrote. Hodl = no loss through trading = long term price appreciation of your coins.

Months and months? More like years. What coin after its peak in Q1 of 2018 did a 1000x? I don't recall any coin having had a performance anywhere near that. More people ended up losing money than making money by investing small amounts left and right. No altcoin bull run means no 1000x party.

I am sure that any bot would even reject your transaction because of the tiny little amount that you want to trade with and I have read your post over and over again to be sure you did not mistake dollar for cent but then I realized you really meant what you were saying, I don’t see how you can trade with such amount of money mate and I think that you should think of a more reasonable figure because even a tutor will advise any newbie to start trading with $1000, but cent. I don't know the magic that you intend to do about that for now.

Have you even considered the trading fee and how many time that you want to scalp in a day before you can take that tiny little profit and then compound it, before you even get to increase the compounded amount, an holder of such amount would have even made more than you.

If you're only using a few cores to mine and you're not running the cores at full speed, you'd likely minimize the potential damage over time done to the processor you'd likely be running 24/7, but at the end of the day you're much better off just saving money wherever possible and investing whatever you've got saved into the lower cost coins you're talking about.

If you don't need the computer, you could also just sell it off locally or online at a place like eBay and use that money towards trading. Otherwise you're best just using the thing as is.

If you can use all the money you make from mining as an investment (the more investment, the faster you reach the summit), the right choices will help you reach the summit you want. $ 0.20 is small money, but everything on the volatile market is possible. If your allowance is not dependent to this money,  perhaps progress will be slowly, but it will.

But you should always keep in mind that not all of the coins will be profitable. That is enough if you lose in one coin and get profit in the other two. In short, the coin you will invest is the main factor, and should be carefully selected.

This method is possible but somehow this would really take a long time even lets say that you dont matter with electricity cost on earning those small amount of coins being mined but surely sooner or later you would get tired on dealing with these micro transactions and you would just realized along the way that you are just
wasting your time and effort even you do accept it wont give out big profits but this method wont really put you out into those things you are hoping for like some sort of bull run of the coins you are holding on.Its much better to find alternative ways which is more productive and worth for your time.

While electricity is free, consider the fact that hardware costs some money and the more you use it, the less value it has over time, so in overall your coins aren't free. Mining of 20 cents and then investing them in altcoins doesn't worth to my mind, waste of time and energy, it's like when child tries to collect some money and finally he can't get more than 5.
You know, higher the money, higher the reward and risks. In your situation reward is almost nothing, so is the risk.

Mined coins are not really free money. Your machine loses its quality and value quicker when it is overtasked. Its true condition could deteriorate quickly and get the whole thing damaged. Then you'd have to spend lots of money to buy more GPUs which would translate to financial losses.

As regards trading below 1 dollar, i doubt you can do that on centralized cryptocurrency and token exchanges. There minimum trade and withdrawal limits would make trading below 1 dollar almost impossible. You'd probably be able to trade that low on token exchanges, especially the Ethereum-based exchanges. Withdrawing from such exchanges on tiny fees would take a little longer though.

Your strategy is a good one though but the concern here is how are you willing to wait to achieve the target set. The continual staying on the goal which you have set is predicated on the assumption that your your winnings in terms of the decision made on the coins invested is consistent when this is not guaranteed, I am certain that it would be difficult to continue. I have done some trading with such assumption too.

My opinion, is that instead of investing about 20 cents or thereabout, you can increase as much as you can afford to about 20$ with that, if you are lucky, a simple event might turn out a profit that might take a while for it to be eroded due to some ineffective decision making.

Literally you can't trade those 20 cents due to minimum trade limit and withdrawal fee on the exchange so eve if you reach the minimum withdrawal limit you can't withdraw the converted coin until it reaches certain value so it may take years to make the transaction fee on your mining process so better get some money out from your pocket then invest it into the trading.

First off, even if your electricity is free, it still wouldn't be "free money" because the hardware you're using will deteriorate A LOT faster when mining than when using your computer normally. It probably won't take long for your hardware to die out and the coins you've mined wouldn't probably cover even half of the hardware you've used.

Due to the current state of the cryptocurrency markets whereas most altcoins are in a downward trend, I don't think this is really going to be viable. You'd need to be really lucky in picking new coins. Only a small percentage of the new coins have a chance of rising in price. Personally, I'd put all the money on bitcoin instead and do something else to earn money.

Also, do you mean 20 cents per day or what? Why not wait for the 20 cents to accumulate more before attempting to trade using it? Probably wait for it to reach like $50 first then attempt to trade?

Viable in what sense? It's profitable (especially since your cost is negligible) but compounding something worthwhile from 20 cents will take a lot of time......too long.

I like to take very small positions in micro cap altcoins. $50 here, $100 there, and wait. Every once in a while, you might hit a 1000x. But there's months and months of waiting involved. I think you need to be willing to put more resources/capital into it, otherwise it's sort of a waste of time and energy.

So, I recently got into the idea of mining. I unfortunately don't have enough CPU or GPU power to actually be able to make much (with my CPU, about 20 cents, possibly more if I use the GPU as well). I've been thinking about the idea of crypto trading, however.

The logic is that any coin I make from mining is essentially free money (the cost of electricity can be considered negligible for me). For that reason, if I use that coin to trade, then even if it's lost, I've done nothing more than lose free money. That got me onto the idea of trading new coins and taking advantage of frequent market fluctuations. Basically, I'd use that 20 cents to invest in a variety of new and low cost coins. If any of them reach a certain amount (perhaps a dollar, or perhaps if it the value of the coin increases by 25% or something like that), I'd immediately sell it. That probably wouldn't make a lot of money at all, but if I were to conduct many many transactions like that, I might actually be able to slowly make a profit with that 20 cents. The profit I make can then be set aside to be invested in more relatively stable coins (monero, bitcoin, dash, etc), which I could do long term trading with. After that, I continue to repeat the process.

There are a few problems I see with this: I would probably have to make hundreds of transactions based on relatively small fluctuations for this to work. For that reason, I'd probably need a bot, and a free bot probably wouldn't be able to handle this sort of thing. The tiny gains from I make from the few coins that do rise in value also might not be able to offset the losses from the coins that don't increase their value, especially considering that the particular market I'm looking into will be extremely volatile. Beyond that, the costs of currency trading could also make this non profitable.

My main question is whether or not this strategy could be viable. If it can't, is there a way I can alter the strategy in order to profit, or is it a lost cause?