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Author Topic: Altcoins underperforming against BTC because...?  (Read 761 times)
voidmain (OP)
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January 05, 2014, 02:42:13 PM
 #1

Over the past few months I've been trading at cryptsy with a simple strategy.
"BTC rising, altcoins rise higher against BTC. BTC dropping, altcoins drop deeper".
The idea was the volatility of BTC and how that might affect greedy/fearful investors.
People would cash out when BTC is dropping, by their fear. To do that, they need to convert altcoins to BTC, then cash out.
People would be greedy for altcoins when BTC is rising coz those look cheap and likely to outperform BTC.
Especially I traded LTC, XPM, QRK, FST, ZET, DGC.
LTC - Second best. The most reliable among alts.
XPM - 3rd trade key currency at cryptsy. The prime number idea might be mathematically great. Sunnyking might have had good reasons to create another coin.
QRK - MD5 looked secure when it first came out. Double-SHA256 looks secure nowadays, but it may look insecure later on. 9 rounds SHA3 could be spotlighted.
FST - The fastest. Some people don't want to wait at all.
ZET - don't know much, just the chart trend looked good.
DGC - the idea "40 seconds is the best" might be true. although I don't know much about it.
It worked. I was able to increase my total BTC amount just by scalping(couple of hours ~ weeks) altcoins.

But over the few days the principle seems to be broken. I want to find the reason here.
My guess is hedge fund is joining now, they're doing sth complex, too complex for me to understand somehow making changes.

How was my strategy? Why altcoins are underperforming now?
lnternet
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January 05, 2014, 02:44:46 PM
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I think it's cause BTC is getting real life traction, but no alt does.

Pizze deliverey, Zynga, Netflix, Ebay, Colorado Kush, etc, all allow spending BTC, but no notable alt service yet

1ntemetqbXokPSSkuHH4iuAJRTQMP6uJ9
coinerer
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January 05, 2014, 02:53:51 PM
 #3

Underperforming? Where?

Did you see the charts from the last summer? Every altcoins made bigger growth than Bitcoin. Tell me if you find which altcoins did not.


voidmain (OP)
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January 05, 2014, 03:40:18 PM
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Underperforming? Where?

Did you see the charts from the last summer? Every altcoins made bigger growth than Bitcoin. Tell me if you find which altcoins did not.



I mean just over the past few days. say 1st Jan 2014~today.
LTC/BTC 0.031 -> 0.028
FST/BTC 0.000027 -> 0.000023
QRK/BTC 0.00014 -> 0.00010
ZET/BTc 0.000050 -> 0.000037
XPM pretty good though,
PPC, NMC very good... (I didn't buy at all, I didn't like 10 minutes block gen time...)
BTC is going up up same period.

My bad choices of coins?
StewartJ
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January 05, 2014, 04:59:19 PM
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Yes, that was a good investment strategy at one time:

A few months ago you could of bought 1 million Zetacoins for
under $200 and after the big btc spike up over $1k per btc, one would have made
a staggering $60k to $70k profit.

Looks like those days are long gone, unless btc were to actually double and triple again.

The inundation of altcoins for pump and dump is all the rage now.

Holding zet, fst, qrk, mgc, eac, doge, ifc, etc...are most likely not going to make anyone
Rich except the ones who  own the premine for those coins. If they haven't already, they will
Dump these coins on the exchanges and let their value decline, possibly forever.

As for the others, their value may be attributed to btc rising and btc-e daytrading.
Ppc, xpm, nmc were never really premined and have innovation.

As for LTC being detached from BTC, this is a sign that litecoin may actually be leading bitcoin trading. 2014 could be a huge breakout year for ltc, too many positives for it not to
Double, triple in value yet again.

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January 05, 2014, 07:12:42 PM
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Underperforming? Where?

Did you see the charts from the last summer? Every altcoins made bigger growth than Bitcoin. Tell me if you find which altcoins did not.



I mean just over the past few days. say 1st Jan 2014~today.
LTC/BTC 0.031 -> 0.028
FST/BTC 0.000027 -> 0.000023
QRK/BTC 0.00014 -> 0.00010
ZET/BTc 0.000050 -> 0.000037
XPM pretty good though,
PPC, NMC very good... (I didn't buy at all, I didn't like 10 minutes block gen time...)
BTC is going up up same period.

My bad choices of coins?


It seem none choice of altcoins was bad Smiley Now you can calculate how much your coins made from the last summer, and you will see what I said. Smiley I think altcoins are capable to do much bigger growth than Bitcoin. Reason? For 1 BTC i can buy thousands and thousands altcoins of all kinds Smiley Some are really good opportunities, I think.


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