I dipped my toes into Ethereum by purchasing some Bitcoin and Ethereum from Luno, one of our local exchanges. I'm not entirely happpy with them because they round off selling prices to six significant digits after the decimal, so you can't really fine grain transactions all that much. This while they quote the buying prices up to eight significant digits. Sneaky...
This presents problems for Bitcoin, but it works OK for Ethereum for the time being. I'll be investigating Ice Cubed since they're also local and they offer more currencies. I'm still learning about crypto too. Fortunately, there's a host of information on Steemit if you are totally new to cryptocurrency or if you want to find out about more obscure cryptos like Cardano.
What happened?
As you should know by now, my approach here is as follows:
- Protect the principal
- Ensure an adequate return
- Don't speculate!
How did Ethereum go?
As you can see, it went very well. It's still rallying today!
If you want to buy Bitcoin and Ethereum, then Luno is easy to get into. It's not the world's best platform, but if you just want to try out buying Bitcoin and Ethereum, it is OK. Use this link to sign up or use the promo code 4BPW4 and I could earn some Bitcoin - cha ching!
I got lucky
I followed my initial strategy by waiting for the price to rise until I could get my initial investment back, with some profit. I also had enough profit left over to leave some Ethereum in the market to buy and hold and see where it goes.
But if I left my money in there...
This is true, for this particular case. Had I left my money there, I would've made more money. In this particular case. There's no way of knowing this in general. I believe I did the right thing, since I protected my money, I made a bit of profit, and I still have some Ethereum in there that is still gaining ground. Only now, I cannot lose money.
Conclusion
From all the investment books and day trading books I've read, it's very important not to get emotional and make decisions based on a greed frenzy or a trading high. I've figured out my strategy first, which I explain in my other blog posts, and I stuck to it. This is one way to test my trading strategy and to see if it works. So far, it has worked. No doubt it could still lose me money on other currencies, but so far, at least for Ethereum, it has served me well!
Let us know how ice-cubed works out. thanks
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Last time I checked, they weren't taking any new customers. My mates are using Kraken and Binance as alt coin exchanges. I'll have to check up with them how exactly it works. Might be worth a future blog post or so.
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So would you recommend using Luno? It checks out allright.
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Locally, for Bitcoin and Ethereum, sure. Go to the exchange, though. That way you can avoid Luno's own transaction fees. Unless you're in a hurry, but then you'll have to live with the fees and the quote they give you.
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