Mining vs Traiding profitability | Bitcointalksearch.org

coinerer

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Quote from: CoinBuzz on December 04, 2013, 05:36:42 AM

Quote from: alexroz on December 04, 2013, 05:30:28 AM

Is there any difference between traditional currency "forex" and cryptocurrencies trading?

You can use most of that techniques. BUT coin market is sooooo volatile now (because it's in early stage). So people get panic very fast or buy wildly very fast.

You should see this market for a while to know it better before put you step in it.

Bitcoin trading and forex trading are similar probably. Because of the liquidity.

alexroz

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Now, when I begin to realize the difference between trading and investment, it would be interesting to hear your thoughts about this matter.

monsterer

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Quote from: alexroz on December 04, 2013, 05:30:28 AM

Is there any difference between traditional currency "forex" and cryptocurrencies trading?

Yes, a massive difference. People who trade forex are basically just gambling; you'll find a lot of detail about technical indicators and candle patterns which really aren't very helpful in predicting market movements, but forex guys don't have anything else to go on.

In bitcoin world, thankfully things are very different. We have market depth information. This is massive - it lets you see the market sentiment straight away. Check out bitcoinwisdom.com to see what I mean:

http://bitcoinwisdom.com/markets/btce/ltcbtc

The red/green lightning looking things on the right of the price are the depth information for the market - that shows you not only where all the orders currently sit visually, but also the quantities in those orders, which is really really important.

You can learn a lot just by sitting and watching the graph and how the depth causes the candle patterns, which forex traders go on and on about, to form.

Cheers, Paul.

Jamievs

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Quote from: alexroz on December 04, 2013, 07:12:32 AM

Quote from: Jamievs on December 04, 2013, 05:02:16 AM

I made 0.4 BTC past hour with trading. My ~10 ghs mining equipment can't make me that lol

0.4 BTC is an amazing profit for such short time.
But more interesting not the absolute value of profit but % of investment.

I'm playing around with 2 BTC, so it is a 40% profit.

alexroz

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What can you say about this article: Lessons I Learned While Losing Money in Bitcoin Trading.

alexroz

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Quote from: Jamievs on December 04, 2013, 05:02:16 AM

I made 0.4 BTC past hour with trading. My ~10 ghs mining equipment can't make me that lol

0.4 BTC is an amazing profit for such short time.
But more interesting not the absolute value of profit but % of investment.

alexroz

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I am the IT guy, new in cryptocurrencies field.
And recently I have just realized the potential of cryptocurrencies.
At the beginning I thought that I can use my knowledge in IT in mining field.
But when I'm thinking about practical steps toward mining - I see it likely to be weary low profitable.
In other hand I have no experience / knowledge in trading at all.

roozifus

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My advice would be this.

If you already own some hardware go for it.

But never buy hardware just for mining, the money is better spent just buying coins. Basically this is because you are getting the coins now rather than slowly over time so you get any growth in the coins from now, rather than when you mine them.

I mined btc when gpu mining first became available, some scrypt when gpus started on that, and I have a butterfly little single. In the latter two cases I would have been better off just buying some coins. In the first case it was still quite hard to buy so I had no choice but to mine (if it were possible to buy and I had of sold my graphics card and bought $200 worth of bitcoins I'd be a millionaire now Tongue

) . The only example of people doing better off mining than buying are the people who got in first on the ASICs, i think they actually made more mining than buying, but I can't think of a single other case.

The only benefit of mining is that if crypto-currencies collapse you've still got some hardware you can sell, but really if you think that's going to happen the smart thing to do is not spend any money on anything.

CoinBuzz

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Quote from: alexroz on December 04, 2013, 05:30:28 AM

Is there any difference between traditional currency "forex" and cryptocurrencies trading?

You can use most of that techniques. BUT coin market is sooooo volatile now (because it's in early stage). So people get panic very fast or buy wildly very fast.

You should see this market for a while to know it better before put you step in it.

alexroz

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Is there any difference between traditional currency "forex" and cryptocurrencies trading?

iampingu

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Quote from: alexroz on December 04, 2013, 05:16:56 AM

So the obvious question is: How one can improve his trading skills?

Practice with small amounts, or even just write stuff down on a piece of paper and predict what youd invest in etc.

alexroz

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So the obvious question is: How one can improve his trading skills?

kelsey

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Well depends on your ability to trade, but i think greater profits can come from trading rather then mining in general.

With the recent bull run traders are more liking to be holding larger stashes of coins, most miners sell quickly to pay electricity bills etc. They'd be exceptions to the rule, traders who lose lots and miner who mined early on and kept significant amounts.

Jamievs

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So Far I like trading.. Getting in on time in an alt coin is though, and you also need a lot of patience for it. (3-6 months of waiting till it maybe rises).

I made 0.4 BTC past hour with trading. My ~10 ghs mining equipment can't make me that lol

alexroz

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I am wondering what may be more profitable cryptocurrencies mining or trading.
Does it worth to invest in expensive hardware and slowly mine (with growth difficulty) cryptocurrencies in hope that one day they value will rise?
Or just invest the same amount of money in cryptocurrencies mining or trading?

Topic: Mining vs Traiding profitability (Read 877 times)