Bitcoin Forum
December 02, 2016, 06:20:31 PM *
News: To be able to use the next phase of the beta forum software, please ensure that your email address is correct/functional.
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: Let's say I have about $4k on one of the smaller exchanges  (Read 1081 times)
Topazan
Sr. Member
****
Offline Offline

Activity: 354


View Profile
July 12, 2012, 11:48:29 AM
 #1

In this hypothetical scenario, it's not practical for me to withdraw directly through any means this exchange provides, so I need to convert it all to bitcoin.

What would be the best strategy?

Dollar cost averaging over a couple of months?

Just make a large bid for current market value?

Something else?

What would you do?

Save the last bitcoin for me!
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1480702831
Hero Member
*
Offline Offline

Posts: 1480702831

View Profile Personal Message (Offline)

Ignore
1480702831
Reply with quote  #2

1480702831
Report to moderator
1480702831
Hero Member
*
Offline Offline

Posts: 1480702831

View Profile Personal Message (Offline)

Ignore
1480702831
Reply with quote  #2

1480702831
Report to moderator
1480702831
Hero Member
*
Offline Offline

Posts: 1480702831

View Profile Personal Message (Offline)

Ignore
1480702831
Reply with quote  #2

1480702831
Report to moderator
hazek
Legendary
*
Offline Offline

Activity: 1078


View Profile
July 12, 2012, 12:02:21 PM
 #2

Depends.. If you have some further deeper insights into what the future is likely to hold a single order might be best but otherwise DCA sounds best to me.

My personality type: INTJ - please forgive my weaknesses (Not naturally in tune with others feelings; may be insensitive at times, tend to respond to conflict with logic and reason, tend to believe I'm always right)

If however you enjoyed my post: 15j781DjuJeVsZgYbDVt2NZsGrWKRWFHpp
ribuck
Donator
Legendary
*
Offline Offline

Activity: 826


View Profile
July 12, 2012, 02:02:31 PM
 #3

Make a large bid just below market value, and keep it updated.

The smaller exchanges have considerable volatility, so you can trade at better rates than on the big exchanges if you're not in a hurry.
kangasbros
Hero Member
*****
Offline Offline

Activity: 811



View Profile
July 12, 2012, 02:18:26 PM
 #4

Make bids at market value -1%, -2%, -3%, -4% and so on, and wait Tongue Update the bids each day if you have succesfully bought something.

ArticMine
Legendary
*
Offline Offline

Activity: 1792


Monero Core Team


View Profile
July 12, 2012, 05:20:12 PM
 #5

A simple strategy depending on the market conditions on the small exchange is:
1) Determine the corresponding USD price if applicable using the corresponding FOREX rate
2) Buy at market as much as possible at any price below the MtGox USD market price
3) Place a bid wall at the MTGox USD price price with the balance and move this wall with changes in the MtGox USD market price

A similar strategy can be used by a seller.

Concerned that blockchain bloat will lead to centralization? Storing less than 4 GB of data once required the budget of a superpower and a warehouse full of punched cards. https://upload.wikimedia.org/wikipedia/commons/8/87/IBM_card_storage.NARA.jpg https://en.wikipedia.org/wiki/Punched_card
Elwar
Legendary
*
Offline Offline

Activity: 1932


www.bitpools.com


View Profile WWW
July 12, 2012, 05:43:00 PM
 #6

Dollar cost averaging.


Spend the same amount of dollars over the full length of time in increments.

Perhaps, $100 per day for 40 days.

http://www.bitpools.com
Pool your bitcoins with others. Vote on solutions using the Bitcoin blockchain. Keep your bitcoins in your cold storage until you find a solution you like.
Links and Reviews of useful every day places to spend bitcoins: https://bitcointalk.org/index.php?topic=943143.0
Stephen Gornick
Legendary
*
Offline Offline

Activity: 1988



View Profile
July 13, 2012, 11:45:38 AM
 #7

In this hypothetical scenario, it's not practical for me to withdraw directly through any means this exchange provides, so I need to convert it all to bitcoin.

"Hypothetically" the primary reason one would consider not withdrawing fiat is because the account has someone else's name on it.  But with Mt. Gox having delays with their withdrawals, it is conceivable someone would want to want to convert to bitcoin, move the funds to another place where they can be cashed-out.

So, the first question... does the exchange support redeemable codes or account-to-account (A2A) transfers of USDs? 

Mt. Gox,  Crypto X Change, Bitstamp, BtcTree and BTC-E all offer redeemable codes of USDs.
 - http://en.bitcoin.it/wiki/Redeemable_code

If so, then consider doing a trade by finding  a counterparty that wants to move their cash to the exchange that you use.  You exchange your redeemable code for your counterparty's cash -- whether it be Dwolla, or Western Union, or whatever. 

If redeemable codes are not offered, then you can try another widely used other approach.  Generally if you announce the size of your intended order in advance, you might find a counterparty willing to put up an opposing offer at a cross price that works for both of you.     You'll occasionally see this with BitFloor or Camp BX where someone has a large order that won't clear without pushing the pice significantly one way or the other.  But after pre-announcing that an order would be placed, by the time one is opened there is sufficient interest in unloading a batch of bitcoins for your slightly above spot price.

Topazan
Sr. Member
****
Offline Offline

Activity: 354


View Profile
July 16, 2012, 02:09:15 PM
 #8

So, dollar cost averaging is the way to go I guess.  Should I do it by day, by week, by month, or does it matter?

@Stephen Gornick- I can give you some of the details of this situation by pm if you like.

Save the last bitcoin for me!
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!