Bitcoin Forum

For example if your going to make $2,000 this month sell short $2,000 of eth or btc?  Your protected on the downside but your upside is locked in at 2k.  Of course you would have to manage the trade to make sure it doesn't get out of control.

Why not use a pingpong bot such as Sampey's CAT bot to hedge by trading the up and down of the market? Set static orders like 10% each way or so to catch a fall or sell into the rise. May I ask what your setup is to be mining that much per month?

I have 80 gpus 1070s , 470s and some z9s and a F1 Blackminer with .049 KHW power been mining for 2 years.  I'm not making 2k a month anymore lol more like $1400 before electricity 

Do those bots work?  I've traded stocks and futures for 20 years and I could never get any type of bot to work.

Yes. It's a simple ping pong bot. You enter the percent gain and it pings and pongs your orders accordingly. Nothing fancy. I just put buys and sells on each side of the market with a few percent required for gain. As the market moves up and down my orders hit and my bankroll stacks. It's simple and beautiful. If the market runs on an alt you're left with either bitcoin or the altcoin in your wallet. Good for long term and then you can readjust the bot if the market goes stable again. I have it set to just add the gains to the next order so it compounds my alt holdings and then if they all run or decline itll run though my orders so I am left with one or the other. Of course I keep a bankroll of BTC so that I am covered if one or the other falls or rises. It's not a signals bot so it's not faked out with MACD or BBands or anything like that. It just goes on simple numbers of up or down. It's not fancy, but it gets the job done. Hedging with margin sounds hella risky imho. I tried to hedge with margin on ETH back in the day and now I miss my 1100 eth and 7+ BTC that I could have just set up to gain with the market directional movements.

Nah, unfortunately, since BTC (and most alts) are at rock bottom and profitability is dismal there's not much to hedge, basically! :D

In the more profitable days I used to convert my mined earnings into BTC fairly quickly and square that off for fiat maybe once a month.

Nowadays I'm not converting anything I'm mining into fiat. Just not worth it. And I haven't been since spring 2018...

I'm with you. I haven't converted anything to fiat in months. Basically mining to collect BTC, LTC, ETH, and XMR at this point as a long term investment. I look at it as a dollar-cost-averaging type of strategy.

Hobby mining now has become more of a long term investment for me rather than cashing out month-month. It was awesome time when mining could actually supplement some income! haha

The bots you see for sale do not really look.  If they bots were successful the wouldn't be for sale in the first place as the owner would rather use it himself to make profits.  The only ones that are worth anything are private and not for sale.

I've basically been mining anything profitable with the GPUs I have, 1060 3GBs, 1070s, 1070tis and turning whatever coin I mine(CLO, Grin, Beam, Zelcash etc) cash those out for BTC. Then with the BTC i HODL some and put what I can into my favorite coins, RVN and ETH. Personally, I think those will be the few projects with long term viability.

Coins to stay away from would be BTG, ETC, XVG, EXP, maybe some others PoW coins but the lack of develop on those coins plus the 51% attacks (BTC/ETC/XVG) have removed them from my "worth mining" list.

I bought the cat bot and have been testing it.  Its makes trading very easy for me, I set my trade parameters run it and it executes my trade with no human input.  I set my entries exits and stops, it executes and removes my emotions from the trade which is a huge plus.  I think if you tried to use it as a black box you would get burned. 
 

I disagree with you on BTG and ETC.  Those are my favorite undervalued coins I mine and at all time bottoms.  They are at killer deals, BTG is ran by someone that quit is google job to full time on BTG.  BTG and ETC have big brand name recognition and strong purpose.

I like Grin and Beam also but they are also tooo new and they can still lose a lot of value during price discovery.  Zelcash seems cool but seems like another project that's good at copying and pasting everyones work like vertcoin. Not a strong trend setter

There's a few trading bots out there that people have worked with and been more or less successful so...

The only interesting thing about your paragraph above is what you in fact did not write...



How much is it making you?

;D

I’ve been trading RVN and BNB and made about 32% so far.  But RVN and BNB are on tear, so it’s been easy.  As long as you trade an uptrend the bot is good.  

One thing I’m going to try when the trend turns on rvn and BNB, is to setup one trade a day to make a .5%to 3% and be done for the day.  A couple % a week for the long term would be huge.

I think it'll only be good to do that if you really have some extra cash. In fact, mining is considered to be a job for many people and you can't say you're gonna leave all your earnings on hedging in another investment. So how are you gonna pay your bills, rent, etc. It is good to save but not to save all.

Hedging in this sense means protecting the values of the coin against fluctuations, so withdrawal into fiat is equally part of hedging. Hedging is very important aspect of this biz, at least one is sure he is not losing any amount he has earning except it is helped with some trading experience, I had got some tokens that is worth a certain amount last year and instead of hedging I used in buying etherium which dumped hugely and regretted deeply

Going short or long entails considerable trading risk. Better to separate your trading portfolio from your mining portfolio so that you'll have a better knowledge which portfolio is gaining/losing and you can cut your efforts or trim down which ever is losing.

Im not considering on hedging my earning yet i do directly make conversion to fiat once i do accumulate some reasonable numbers.

Talking about ping pong strat,im not really into it yet this would be only good if you are on Forex/Stocks market but for Crypto.Its a big No for me.

Time to hedge mining income was 2018 when most minable altcoins lost 95 percent value. Too late to hedge now unless your a puss and deserve no big gains in the future

Not now but next time the market turns hedge 1 years worth of mining income.

Its not possible to hedge your mining income. You can always sell some BTC or ETH futures shorts and you would be locked in at a specific price but you can't control the difficulty.

If price of ETH keeps going up so will the difficulty. So if you sell your ETH futures at the current price of $250 and in a few months it hits $1000 per coin, your issue will be that it will be difficult mining that same ETH at $1000 than at $250 since there are more miners. So your profit per day would be much smaller even though your price is still at $250.

This method would work best if say ETH crashed back down to the $100 range, because the difficulty would decrease and you would get more ETH to sell at $250.

And if you wait for the transition to ETH POS it will be possible to receive passive income, of course if you have 32ETH. It's all theory, and as will be in practice, nobody knows.

Yes your passive income will be in ETH, not in US dollars which is what the main poster is trying to achieve. This is why its not always great to invest in masternodes, because yes you will get more altcoins but if the value of the underlying altcoin actually goes down with respect to the US dollar, you lose money anyways.

And who knows when ETH will actually transistion to POS, they are always slow in development and always miss deadlines. It could be another 2-3 years before we get the full POS.

Half of what got from mining sell. This tactic has been working for more than a year. Thus, even at a strong fall, I can not turn off my power.

Mining + (real) gold & silver IS my hedge against fiat inflation and coming worldwide economy crash.
I'm buying instead of selling if I have spare cash.
And if i see cheap hardware (like 12 vega 56's reference) for 175 euro each. motherboard for 20 euro or less, rig frames for 14 euro etc etc. I'm buying all that **** up!

100 risers with cables for 100 euro, c'mon, they are just giving it away!
(been scammed once though, but luckily was only 72 euro)

An interesting question)) According to analysts, the transition of Ethereum to Proof-of-Stake will not happen until at least 2021. This is because a PoS system is simply not able to prove its efficiency.

I think that the best hedge is when you have money and you do not need to sell your coins for electricity opata. You can wait for the best price.

Yes, now the majority of miners are mining basic cryptocurrencies and hold it in the hope of further growth. The news background stirs up investor interest, soon will be halving the reward for the mined block of Bitcoin. A lot of good news is expected, so very few people withdraw money in fiat currency.

Remember that will be more difficult to earn, POS makes the big players will become a winner and 32eth still a speculation to be the minimum amount to able stake our ethereum in the network. We have so many news and sources said the different thing about that. POS makes block reward of ethereum will have reduced to the 0.5eth for each block and that looks so horrible for a little miners

Current income from mining is not as big as before. many say that the decline in bitcoin prices that occurred in 2018 made many people no longer a hedge of their mining income. well, nowadays most people hold it back, and wait for the right moment to sell it, so that their income can be better than selling it directly.

I checked and in my area the Vega's or the 1080Ti are still expensive and hold their value very well. The only cheap GPUs which I can buy tons of are the RX 470/570, those are even dirt cheap on eBay. The pricing is pretty bad for the RX 470 because I've sold my even older Radeon 7970/280X for almost the same price. No idea why people are paying the same for a 280X than a RX 470.

Motherboards, especially Intel and their CPUs will never be cheap. The only cheap motherboards out there are those China brand ones and the only cheap CPUs you will find are the Celerons. Even AMD seems to be holding their values, unless you are looking at a Sempron.

Rig frames, you can usually just buy the hardware and cut it to your own specifications and build it yourself. In my area, very rarely is someone selling a used rig frame.