Topic: Converting large amount of BTC to fiat (Read 747 times)

It's good to see that someone does not get caught up in the emotion,FUD advice / manipulation threads around here.

Your strategy is good, but it can be tweaked more:

If I continue your example, consider that exchange rate increases more than $100, then you are out and have to buy back higher the now extremely expensive Bitcoins!

A better way to do it is to always maintain a 50/50 hedge; When the exchange rate goes up from say 29 to 30 your 100 BTC are now worth $100 more so you sell $50 in BTC and maintain you 50/50 hedge.

Simmilar, if there is a giant crash you have cash to buy with and in a rally you have BTC to sell.

You are also prepared for the unlikely: If Bitcoin is outlawed or Apple tomorrow announces that their products only can be bought with Bitcoin.

So in worst case you you loose only 50% of your balance!!
That might seem like a lot, but if you trade like this, you'll be up 5% every week and soon have doubled your original investment.

About crashes: Crashes are short and often in steps, so the way to take advantage of them is to use a martingale strategy on them. BTC suddently drops $5 you buy 5 BTC, but it doesn't recover and drop another $5 so you buy 10 BTC the second time. That way you compensate for the previous 5 BTC you bought before.
 
If you are cocky, you double your buy aqain when the crash turn around or BTC drops another $5 and buy another 20 BTC.

When the market has reached it full bounce back after the crash you sell 50% to maintain your hedge.

Cheres

I should have held my bitcoins damn it!

http://blockchain.info/charts/received-per-day?address=1DkyBEKt5S2GDtv7aQw6rQepAvnsRyHoYM

There is nothing wrong with the exchanges and people who trade. They, people who trade, define and add value to the product.

If you push the market down, at some point of time it will find its resistance. If you push the market up, then you can only push as much as your bank balance, or credit limit. Finally, these all makes bitcoin and bitcoin marketplace stronger.

Yes, it is difficult for people to understand bitcoin, and store it securely for long time. There are ways, like paper wallet, but I don't thing more than 1% of people can do that on their own.

This is kind of scary. I actually have access to the USD equivalent of 50k BTC.

I'm tempted to look into how I could pull a good old american "get something for nothing" mentality scheme, since apparently this seems to be enough to influence the market and profit.

But I will refrain. I like BitCoin. And the idea of a bunch of angry hackers running after me with lasers shooting out of their eyes, gives me the creeps.

Not really. Mine was just an hypothetical situation. I wanted to understand where are we standing at regarding the trade of large amount of BTC. I guess the trade volume in the market is still very small.

Thanks for your useful insights.

Ah, that's pretty much going to have to go OTC or get dumped at Gox. Smaller trades might be smarter, but unless you are willing to spend a decade pushing out single BTC trades, with stepped trades trying not to scare the bull awakening the bear is a concern. To avoid that you can make one large OTC sale with someone going long, or you can just check the Gox orderbook and make sure nothing in the volume about to drop out of your rectum is objectionable.

good to know that.

this person (Rampion) already has about 50K BTC, and trying to encash.

Up until last week buying on Sunday and selling on Thursday seemed like a sustainable trend...

There may be better trading strategies which would give you much more profit.

Per day mtgox USD market volume is ~75K BTC.

As you already have 50K BTC, you can push the market  the way you want in short term, for profit .

No,  I am not converting.

Just saw this message from, Bitcoin Forum > Economy > Trading Discussion >  forum, by Rampion, and answering here as I am new to bitcointalk. 

https://bitcointalksearch.org/topic/converting-large-amount-of-btc-to-fiat-142156
https://bitcointalksearch.org/user/rampion-80216

so,  here is my answer,

1. trade no more than 1BTC at a time
2. you can startwith 100BTC for first time (only once), so than you will have some fiat money in your account
3. choose an optimum amount, like, $0.1, $0.2, or $0.5 (this is difficult, but if you are in hurry choose less)
4. lets' say you have chosen, $0.2
5. If BTC/Fiat exchange rate is up, (like, $25.5 to $26.7), place 1BTC sell order
6. If BTC/Fiat exchange rate is down, (like, $25.5 to $26.3), place 1BTC buy order
7. in the end you would have got much better exchange rate

this is not the quick way, but you would earn much more profit this way. 

all the best.