Anyone that's on the same mining pool as me, CEX.io, you should definitely be leveraging the trading capabilities that they service.
The basics of trading on CEX.io is a couple basic principles; buy low and sell high, and that the market changes due the the value the people THINK THEY ARE WORTH. So the first point is very simple, take some time and watch the market. As the markets trend up and down it will eventually become second nature to you how they operate.
Now, these trends are not determined by time or value, since this is virtual currency it isn't governed by anyone but the users/consumers. For instance, when a bitcoin was worth $800 USD, not one person chose that it was worth that much it was governed BY ALL TRANSACTIONS.
Please refer to investopedia for a good writeup on supply and demand in investing.
(All my currencies are in trading at the moment, so the balances read "0")
Referring back to CEX.io, here's what one of their charts look like. Before you begin to trade here, make sure you read through the last months trends and study how the data is visualized so you fully understand the data as it's presented.
Keep in mind fees on services/trading on CEX.io, there is a base trade fee on currencies and GHS there is a fee of 0.2%. Any transaction you make to make profit, you need to incorporate this into your calculations because percentage based fees always seem to add up to more than you think.
Let's have a little example, you own 0.5 bitcoins (BTC). Now you've noticed that namecoins (NMC) price has dropped, and you want to make a profit. First thing you need to consider for a trade, is the price going to rise back up to a higher price to a profit and if so, will there still be a profit post-fees.
So if you want to buy NMC with your BTC, you're already cutting 0.2% off your balance so really you're buying 0.499 BTC worth of NMC. To buy NMC and sell it, you have to pay out 0.2% fee twice, so just keep that in mind when planning to flip some currency.
If you're also intereseted in Cloud Mining (using CEX.io' hardware to mine bitcoins for you) you need to also be aware of the maintenance costs per GHS unit.
Current per GHS unit has a $0.26 USD a month which is .00042 BTC (At current rate $625.3). The profit of this 1 GHS is about $0.92 USD then we take off maintenance fees, you have 0.66$. Keeping in mind, in my opinion a good deal of this is just a convenience fee, you literally click on a button and you get hardware to mine for you.
The Basics
The basics of trading on CEX.io is a couple basic principles; buy low and sell high, and that the market changes due the the value the people THINK THEY ARE WORTH. So the first point is very simple, take some time and watch the market. As the markets trend up and down it will eventually become second nature to you how they operate.
Now, these trends are not determined by time or value, since this is virtual currency it isn't governed by anyone but the users/consumers. For instance, when a bitcoin was worth $800 USD, not one person chose that it was worth that much it was governed BY ALL TRANSACTIONS.
Please refer to investopedia for a good writeup on supply and demand in investing.
(All my currencies are in trading at the moment, so the balances read "0")
Referring back to CEX.io, here's what one of their charts look like. Before you begin to trade here, make sure you read through the last months trends and study how the data is visualized so you fully understand the data as it's presented.
Applicable Fees
Keep in mind fees on services/trading on CEX.io, there is a base trade fee on currencies and GHS there is a fee of 0.2%. Any transaction you make to make profit, you need to incorporate this into your calculations because percentage based fees always seem to add up to more than you think.
Let's have a little example, you own 0.5 bitcoins (BTC). Now you've noticed that namecoins (NMC) price has dropped, and you want to make a profit. First thing you need to consider for a trade, is the price going to rise back up to a higher price to a profit and if so, will there still be a profit post-fees.
So if you want to buy NMC with your BTC, you're already cutting 0.2% off your balance so really you're buying 0.499 BTC worth of NMC. To buy NMC and sell it, you have to pay out 0.2% fee twice, so just keep that in mind when planning to flip some currency.
Maintenance Costs
If you're also intereseted in Cloud Mining (using CEX.io' hardware to mine bitcoins for you) you need to also be aware of the maintenance costs per GHS unit.
Current per GHS unit has a $0.26 USD a month which is .00042 BTC (At current rate $625.3). The profit of this 1 GHS is about $0.92 USD then we take off maintenance fees, you have 0.66$. Keeping in mind, in my opinion a good deal of this is just a convenience fee, you literally click on a button and you get hardware to mine for you.
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