Author Topic: Bitcoin/Cryptocurrency Exchange  (Read 234 times)

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Offline Jurgen Paetz

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Bitcoin/Cryptocurrency Exchange
« on: 25/05/2019, 08:11:12 PM »
Hi Guys,

In the last e-UGM Gary asked if anyone has a broker/platform they use for crypto currency trading, so i thought i would share what i am doing in the Crypto space.

I researched a few USD based platforms but finally opted for a local one called Independent Reserve https://www.independentreserve.com/.  I found them to be "transparent" and uncomplicated and i liked the fact that i did not have to convert from AUD to USD as the coins trade in AUD.  You can fund your account using several Base currencies.  The brokerage was better than most of the others at 0.5% (and occasionally 0.1% for new coins they add)

The prices appear to track the USD prices fairly closely.  The spreads can be fairly wide in some of the less traded alt coins so best to use a Limit order when entering.  I have used a stop loss for Bitcoin only and it works pretty well even when the price is tanking quite sharply.  I have since stopped using stop losses since i found i can get taken out intraday when my strategy is actually based on end of Day (EOD) data.  Hence i would have to re-enter the trade at the end of day if the Close price is higher than the stop loss. 

You can access the following cryptos:  BTC,  XRP,  ETH,  EOS,  BCH,  LTC,  XLM,  BAT,  OMG,  REP,  ZRX,  GNT, &  PLA

I have been using a strategy with the same logic as Gary used for SPA Investor i.e. using an ATR Trailing Stop (so its not intraday frequent trading).  There is a fair amount of data there now so you should be able to get a statistically representative amount of backtested trades for your stats when you test your own system.

In addition to "trading" i have established Core positions in the Biggest Cryptos by Market Cap.  No trading just a "Wait and Win" (or loose it all in the case of Cryptos), as Gary would call it.     

Cryptos are high risk so i would not be "betting the Ranch", rather only what you can afford to lose  Having said that it is my belief (and it may not be useful to you) that there is much potential in this asset class.  A further bonus is that it is uncorrelated to the stock market.  Note I have no affiliation with Independent Reserve.

An international exchange is due to be launched mid year as well as some Crypto EFTs so plenty to look forward to.

Check it out and good luck.




Offline Gary Stone

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Re: Bitcoin/Cryptocurrency Exchange
« Reply #1 on: 27/05/2019, 04:27:55 PM »
Jurgen,

Thanks for this great input. Will follow up with them when a get around to this action.

Regards
Gary
On the journey