chiropteran (OP)
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April 13, 2013, 11:22:44 PM |
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I don't know why people think it's so hard or think you need some special trading platform to do it.
Step 1: buy bitcoins at price A, as an early adopter
Step 2: lend bitcoins to yourself, and sell at price B
Step 3: buy back those bitcoins lent to yourself, preferably at a lower price than B
If you didn't already buy bitcoin as an early adopter, buy coins now, and then wait 2-3 years before moving on to step 2, as I am certain current coin prices will feel like early adopter prices by then.
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dadrizforshizz
Newbie
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Activity: 42
Merit: 0
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April 13, 2013, 11:28:38 PM |
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ehh, maybe not... as an economics student that chart looks real bubbly
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ElectricMucus
Legendary
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Activity: 1666
Merit: 1057
Marketing manager - GO MP
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April 13, 2013, 11:30:57 PM |
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LOL @ OP because interest rates on bitfinex are still way cheaper in BTC than in USD.
you fail.
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chiropteran (OP)
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April 13, 2013, 11:32:57 PM |
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LOL @ OP because interest rates on bitfinex are still way cheaper in BTC than in USD.
you fail.
I have no idea what you are even talking about. I am describing a way to short bitcoin, that doesn't require bitfinex or any other service. It also has 0 interest
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ElectricMucus
Legendary
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Activity: 1666
Merit: 1057
Marketing manager - GO MP
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April 13, 2013, 11:34:31 PM |
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LOL @ OP because interest rates on bitfinex are still way cheaper in BTC than in USD.
you fail.
I have no idea what you are even talking about. I am describing a way to short bitcoin, that doesn't require bitfinex or any other service. It also has 0 interest No you are trolling.
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Kazu
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April 13, 2013, 11:36:49 PM |
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I don't know why people think it's so hard or think you need some special trading platform to do it.
Step 1: buy bitcoins at price A, as an early adopter
Step 2: lend bitcoins to yourself, and sell at price B
Step 3: buy back those bitcoins lent to yourself, preferably at a lower price than B
If you didn't already buy bitcoin as an early adopter, buy coins now, and then wait 2-3 years before moving on to step 2, as I am certain current coin prices will feel like early adopter prices by then.
Honestly this is how I've been playing the market since Wednesday. -Sell Coins -Buy back Lower (hopefully) -If it goes up pick a "stop loss" and buy back in again at that price. -think of it like shorting.
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ruski
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April 13, 2013, 11:41:38 PM |
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Step 1: Buy bitcoins. Troll/11.77487461
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chiropteran (OP)
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April 14, 2013, 12:24:37 AM |
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Step 1: Buy bitcoins. Troll/11.77487461 Why is that a problem? Look, here is how the math works out. You pay $95 each for 10 bitcoin, 950 total You sell your 10 bitcoin, gain 950 dollars. When finished with your short, you buy those 10 bitcoin back. If you were a smart bear, you can buy the 10 bitcoin for less than $950, and see a net gain.
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Kazu
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April 14, 2013, 12:34:26 AM |
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Step 1: Buy bitcoins. Troll/11.77487461 Why is that a problem? Look, here is how the math works out. You pay $95 each for 10 bitcoin, 950 total You sell your 10 bitcoin, gain 950 dollars. When finished with your short, you buy those 10 bitcoin back. If you were a smart bear, you can buy the 10 bitcoin for less than $950, and see a net gain. Or if you were a smart bull, you could buy more than those 10 bitcoin back
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dadrizforshizz
Newbie
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Activity: 42
Merit: 0
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April 14, 2013, 12:42:02 AM |
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the only TRUE way to short bitcoins would be to issue guarantees or contracts (options contracts) stating you will pay a certain number bitcoins and interest. bitcoins fall below contract price, you scoop em up on the cheap and you have made a profit shorting.....
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bitcool
Legendary
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Activity: 1441
Merit: 1000
Live and enjoy experiments
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April 14, 2013, 12:47:02 AM |
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Sounds like financial masturbation.
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Ichthyo
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April 14, 2013, 01:38:24 AM |
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gentlemen, we're nitpicking here.
OP is right insofar you can profit from falling rates by selling an asset/instrument and buying back more at lower rate.
but OP is using the term "shorting" in a sloppy way. Used more precisely, "going short" means to engage into a short position, which is constructed in a specific way (some derivative, contracts for difference, futures, options,...) and typically includes some degree of leverage.
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Spaceman_Spiff
Legendary
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Activity: 1638
Merit: 1001
₪``Campaign Manager´´₪
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April 14, 2013, 09:03:37 AM |
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Once again the term 'shorting' gets misused by talking about simply selling your assets, instead of the real term which implies borrowing an asset you don't own from somebody else...
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