Topic: How do you turn BitCoin profit into more Bitcoins without cashing out? (Read 1419 times)

You're basically asking to do arbitrage, or forex exchange

Well, you can sell off the 5 bitcoins and still have 1000$ left in your account and 1000$ in your pocket. Then you can do the same thing again.

But really... nothing guarantees you will double your money... or even make any profit.

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   I decided to remove that listing and create a newer one.  Sorry for the inconvenience but I need to build some trust first.  Cheers.

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This could all be automated by the variable not matched would be the time it takes per transaction.

Nah, my first thought was that he was asking about margin trading.

My next thought was that he could look into purchasing merchandise at a discount (wholesale?) using bitcoins for the purchase and then sell that same merchandise with a mark-up (retail?) accepting bitcoins for the sale.  In this way (assuming there was no lost, damaged, or stolen inventory) if he managed to sell everything that he bought, he would increase the amount of bitcoins he was holding without ever cashing out to fiat.

Anyone else facepalm at the Q? 

Interesting read

Good stuff, DannyHamilton!

You can't buy "more" bitcoin with that $1000, because while you have more dollars worth of bitcoin, bitcoin costs more to buy as well.

You buy 10 bitcoin at $100 per bitcoin with $1000.

Later bitcoin is worth $200 per bitcoin, so you now have $2000 worth of bitcoin, however since bitcoin is now worth $200 each, the $1000 you originally spent can only buy 5 bitcoin, the other $1000 that you earned has bought the other 5 bitcoin at the current price, so you still have 10 bitcoin total.  You can exchange some of the bitcoin that you have for dollars if you want some dollars instead of bitcoin.

One option you could consider at that time is offering the 10 bitcoin (worth $2000) as collateral to someone for a $1000 loan.  Now someone else holds your 10 bitcoin (worth $2000), but they will return it to you when you pay off the $1000 loan.  You can use the $1000 to purchase another 5 bitcoin.  If bitcoin increases in value to $400 per bitcoin your 5 bitcoin will be worth $2000.  You can then sell 2.5 bitcoin for $1000 and pay back the loan.  The lender will then return your 10 bitcoin to you.  Now you have 12.5 bitcoin worth $400 each for a total of $5,000 instead of the 10 bitcoin for a total of $4000 that you would have had if you hadn't taken the loan.  (the previous example did not take into account any interest you might pay on the loan or any risk you might be taking if the exchange rate drops while the lender is holding your collateral).

This guy might have some advice.

satoshidice "less than 32,000".     the problem is, half the time it works and you double your money, half the time it doesn't and you lose it all.

You are describing the desire to profit from timing the bitcoin market.    I take it you believe you can know when to sell, then using the proceeds of that buy back at a later time at a lower value.  [Edit: Oops, I missed the last part of your question, which said "in a rising market".  My suggestion is assuming you are thinking there's a declining market.]

I tried that and am still waiting for $20 to return so I can buy those coins back.  Same for more at $40, then $75, etc.

However, if you want to put your money where your mouth is, there are methods to use bitcoins to short bitcoins.

What you can do is buy BTC/USD PUT options (or write BTC/USD CALL options) on MPEX.  Or sell BTC/USD futures contracts on ICBIT.se for example.   With ICBIT how that works is you sell a contract (currently above spot price, e.g., $115) and then buy it back at any time before settlement (e.g., June 14th, 2013 for BUU3 contract).   The risk is that you buy it back at a higher price, in which you get back less than you paid. If it drops in value, you get back more than you paid.

[Edit: If instead you are thinking the market will be rising, then you can buy CALL options or sell PUT options on MPEX.  You could also buy BTC/USD futures contracts on ICBIT.  You'll be overpaying there, as the price is in contango (above spot).]

There will be more methods to short coming -- as Coinsetter.com, Kraken.com and others launch.

When the market goes up you get more dollars. When it goes down you get more Bitcoins!

Trading to get more Bitcoins is difficult when the market goes up, but it can be done: The cash you have from selling a Bitcoin buys back say 1.1 Bitcoin in a dip, but dips are far apart and fast when the market is rallying as it is now. Don't calculate with a dip down to the right price, it never works. Rather buy some Bitcoins when the unexpected dip pushes down the price down for a brief moment. You can then sell 0.9 of them on the way up and get 0.1 Bitcoin that way. So general not a trick to make you a lot more Bitcoins, more a way to have a second chance to sell the same Bitcoin at a higher price.

If by investing into Bitcoin you mean exchanging your USD for BTC, then the only way to arrive at 2X the amount you invested is to exchange the BTC back to USD once the exchange rate has doubled. The USD has to come from somewhere.

I used to collect Silver and sold my Silver for BTC. There's not much difference between watching Silver try to make a dollar and watching paint dry on a wall. You can call trying to make money out of money anything you want. Bottom line is, I like technology and I don't like government. BTC is perfect. I'm not here trying to buy Starbucks with my BTC, I'm here to make money. To each their own. Selling BTC because it's at an all time high? My friend, BTC has a long way to go. Good luck with your Silver.

I'm not arguing your point, but just making an observation. Everything I've read over the past few days indicates the price of BTC will keep going up in line with the increase of difficulty. I'm not sure I'd want to be selling my coins right now.

Sounds very interesting, hope you get it all set up.