Mods: Please move this thread if you think it belongs somewhere else, this was my best guess.
Hi all,
In the last few days, I've used about 0.05 BTC to get 0.00375 BTC worth of various coins, free (but with some risk). It's working out so well I thought I'd outline the process and maybe see if more experienced traders have some suggestions / tips for me since I still have much to learn.
So far I've got:
0.55 MCO, 2 ADT, 20 XVG, 8 MUSIC, 50 SC, 6 CFI, 30 XLM, 0.005 DASH, 4 BAT and 1 VIA.
Most of those in the last 48 hours, 3 of them in the last half hour. Many aren't worth much at the moment, but who knows what the future holds.
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The method is obvious but here's a detailed description:
Step 1: Find some promising alts. I look for shitcoins with high volume, high volatility that haven't just recently pumped and are not on the slow death spiral of a dead coin.
Step 2: Buy those coins. Either buy one or two at a time with HALF AS MUCH as you can afford to lose if it doesn't work out, and be patient, or buy a bunch all at once and also be patient. Naturally you get more of the coin at the end if you make a larger investment, but you might be waiting a while for it to increase in value enough to convert it. Don't spend all your BTC, you may need it.
Use the (on Bittrex) "Studies" -> "Moving Average" -> "Type"="Exponential" tool to draw a line over the candlesticks that shows the rough value of what the coin should be. If it's way over that line DO NOT BUY. Good time to sell though. If it's way under that line it might be a great time to buy, but do not sell (very good time to buy more if you've already bought in, more on that in a sec).
Step 3: Either watch the coin closely or setup automatic sells. It's unrealistic (in the short term) to try to sell half the coins at twice what you got them for, I've found it's a lot faster to aim for 5-10%. So if the coin cost 1$, and you bought 20 of them, to end up with one free you setup your sell like:
1$ * 20 = $20 buyin (roughly, add the exchange fees)
$20 / 19 = $1.052 or $1.06 to cover it completely plus fees.
So sell 19 of the 20 at $1.06 and keep the remainder for yourself. You can raise the sell rate some too if you feel lucky, then you make money AND free coin.
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If the coin drops in value after you bought it, be ready to buy more so you average your buy price down.
If you bought the 20 for $1, but it dropped to $0.60 (Oh no!), buy more at 0.60 and your average buy per coin price will go down significantly
Ex:
You already spent $20, and got 20 coins
Now price is $0.60, so you spend, say, $24 and get 40 more
Now you have 60 coins you spent $44 for, so your average buy in is $0.73 - That's a much easier target to hit from $0.60 than $1! Make sure you're at the bottom of the dip though. You can do this several times if necessary, and the nice part is as the price goes down, your purchasing power goes up, so if say... the coin totally tanked to $0.20, now you can buy 5x as much for $20 as you could have when it was $1... which will drop the price a lot. So don't panic! On a related note... save some BTC for this emergency maneuver when you're buying the initial altcoins.
If you averaged your buyin per price down to $0.73, and you still only want one free coin, now the sell target is:
$44 / 59 = $0.745 per, or $0.75 to cover the fees too.
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If you are feeling brave, one thing you can do is keep buying and selling the same coin as it dips and raises. I've done this today with MCO to great effect. Big swings! Each time you buy high and sell low, that averages your buy price down even more by the amount you gained from the high/low transition. After selling at a high, wait for the whales to dump! They always will, it will brutalize the coin value, and you can easily lose those gains you worked for by selling too late or buying back in too soon!
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So that's it, pretty simple. Good luck! Any pros care to share their tips? Maybe I could improve this strategy? Thanks!
Topic: How I get free altcoins (Read 481 times)
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