Flipping Bitcoin

Buy Low - Sell High

Everyone knows this basic principle to make some money at investment. This can be used in the stock-market and the like, but also a fantastic principle to keep in mind when dealing with bitcoin.

Bitcoin has massive volatility like stocks do, but keep this in mind not when you are buying and selling bitcoin, but buying and selling THINGS with bitcoin.

I use this principle when I purchase cloud hash power for instance, let's have an example.

If I have a large sum of bitcoin, let's say 4 BTC, and I want to buy cloud-mining from Hashie.co. They sell at a rate of $4.90/ 10GH.

@ Bitcoin price of $350: 4 BTC X $350 = $1400

You can purchase 2857 GH/s

@ Bitcoin price of $400: 4 BTC X $400 = $1600

You can purchase 3265 GH/s

Now, with the above example you can see a large difference in the amount you can purchase (You already knew that) but when you can resell this hashpower when you're made enough, you can sell them at the lower rate of $350 so you get a larger BTC return. Which, in-turn either allows you a bigger cashout, or a larger re-investment! Win-Win

Comments

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