Making money by trading Bitcoins, Litecoins, Darkcoins and other virtual currencies is a profitable business. But it has a high risk for people who have no strategy and just randomly trade. In the long run they will surely lose their investment. But I managed to double my Bitcoins in 3 month with a trading strategy that I am about to share with you!
I made up a rather complex but very effective trading strategy that will always work, if applied correctly. You will be able to trade virtual currencies with (almost) no risk and you will know how much exactly you will earn every time. I have programmed a trading bot in PHP for the Bitcoin Exchange, Trading BTC USD, BTC EUR - CEX.IO market that does this automatically and I will publish the source code for free download!
The basic concept behind the virtual currencies trading strategy is quite simple:
You calculate how much you can earn from a trade.
If the profit is more than 0, and if it is enough for you – then you trade. If the profit is not enough, you skip.
You wait a few minutes and start from point 1.
I am lazy and I don’t like to calculate at Step 1, and I don’t like to repeat thing over and over. The bitcoin trading strategy requires some simple math every time you trade and that is why I use a bot to automate the process.
The idea behind the bitcoin trading strategy
To explain how my strategy works I will build up the idea in steps – starting from the basics
Step 1
Imagine that you have 1 Bitcoin. You sell your Bitcoin to buy Litecoins. You sell the Litecoins to buy Darkcoins. You sell the Darkcoins to buy Bitcoins. If you pay no transaction fees and taxes, at the end you will have 1 Bitcoin again.
So basically you trade:
1 BTC → LTC → DRK → 1 BTC
Step 2
The statement in Step 1 would be correct in a perfectly balanced, high demand market with no taxes. But the real market is not like that. Imagine that the market has no taxes but the supply and demand on the market will change over time and this will cause a dis-balance in the prices at certain moments. So at the end of the trade you will not get exactly 1 Bitcoin. You will get a little more or a little less. For example:
1 BTC → LTC → DRK → 0.998 BTC (in this case you lose a little)