Decent strategy?

[jackg]

Hey guys, I've got some money sitting in a savings account making low monthly interest (well below 2%) so I thought I'd invest in some bitcoins instead  



I remember hearing about Bitcoin when it was first released and loved the idea but didn't have the funds to play around with it back then...Now I do. Anyway, I already have a long time friend who is in the bitcoin buying/selling/trading "game" and that is really all I am interested in as well. He strategy is something like this;

1) He buys bitcoins on Circle (from a U.S VISA debt card tied to U.S Bank account) when price is low

2) Holds on to them until price rises (from Circle, he transfers them to a wallet on his local PC for storage, Electrum)

3) After price goes up, he sells them on Localbitcoins

4) For example, in November he bought 5 when price was ~$280....Sold them yesterday for ~$420 each ($700 USD profit in 30 days)



He pays very little sending/receiving/converting fees along the way and everything is almost instant he says, and relatively safe. Any thing wrong with the above? Any better suggestions?

I'm not a U.S citizen but I do have a U.S based bank account and debt card so only want to buy them with USD funds I have on there...No paypal/gift cards/etc. No dealing with chargebacks, invalid codes, etc. Aren't bank transfers the best option anyway?

REMEMBER. THIS IS STILL A FORM OF GAMBLING. Do Not Gamble More Than You Can Afford. If the Price Decreases And Does Not Increase For A Long Period Of Time, And you suddenly need the money: you're stuck!

[larem]

Hey guys, I've got some money sitting in a savings account making low monthly interest (well below 2%) so I thought I'd invest in some bitcoins instead 



I remember hearing about Bitcoin when it was first released and loved the idea but didn't have the funds to play around with it back then...Now I do. Anyway, I already have a long time friend who is in the bitcoin buying/selling/trading "game" and that is really all I am interested in as well. He strategy is something like this;

1) He buys bitcoins on Circle (from a U.S VISA debt card tied to U.S Bank account) when price is low

2) Holds on to them until price rises (from Circle, he transfers them to a wallet on his local PC for storage, Electrum)

3) After price goes up, he sells them on Localbitcoins

4) For example, in November he bought 5 when price was ~$280....Sold them yesterday for ~$420 each ($700 USD profit in 30 days)



He pays very little sending/receiving/converting fees along the way and everything is almost instant he says, and relatively safe. Any thing wrong with the above? Any better suggestions?

I'm not a U.S citizen but I do have a U.S based bank account and debt card so only want to buy them with USD funds I have on there...No paypal/gift cards/etc. No dealing with chargebacks, invalid codes, etc. Aren't bank transfers the best option anyway?

REMEMBER. THIS IS STILL A FORM OF GAMBLING. Do Not Gamble More Than You Can Afford. If the Price Decreases And Does Not Increase For A Long Period Of Time, And you suddenly need the money: you're stuck!

Those that bought into BTC in November of 2013 agree with you wholeheartedly, .

[Rubberduckie]

that is a good strategy but keep in mind lets say you buy now at 440.
Then next week its back at 350. So if your thinking of investing be
prepared to hold for a bit until it goes up, or wait until its back in the
300's to buy.

[larem]

that is a good strategy but keep in mind lets say you buy now at 440.
Then next week its back at 350. So if your thinking of investing be
prepared to hold for a bit until it goes up, or wait until its back in the
300's to buy.

And who says it'll go back to 300s? That's the issue. Nobody knows what's in the future.

[ezak]

4) For example, in November he bought 5 when price was ~$280....Sold them yesterday for ~$420 each ($700 USD profit in 30 days)

this change that happened in 30 day, not happen every month (+40)
it can be in 30 day , go down (-40)

[Amph]

waiting for the pump to begin and start buying is a decent strategy, if you don't know about TA

someone said to dump all the way up through the pump and dump when it end, i like to do the opposite, buying all the way up, and dumping when it stop or they begin to dump

[larem]

waiting for the pump to begin and start buying is a decent strategy, if you don't know about TA

someone said to dump all the way up through the pump and dump when it end, i like to do the opposite, buying all the way up, and dumping when it stop or they begin to dump

The issue with this is you could just as easily buy in at the top and get screwed. Still risky but as long as you use risk management you're good.

[kpitti]

I would not put money from saving account. I have money there, just to be saved for any critical situation in my life or for my future living.
Trading is like betting. And gold rule is to play with amount you can afford to lost.