You are in luck today when you saw this post!
This is a simple plan to accumulate as much BTC, LTC and HIVE that comes with minimised risk. Supposing you wanted these three as you believe in them.
In a nutshell, after ensuring we have enough to eat, pay for rent etc... saved aside for emergencies, and bought a stash of BTC and HIVE for hodling. We can carry out this plan.
The figure shows the relative price between the three assets.
For example, LTC/HIVE stands at 194.36. This means that to get 1 LTC, we need to give up 194.36 Hive at the current market. Vice versa.
You can make the same interpretation for the rest. By the way, these values are gotten from Trading View phone app. You can use the "=" sign to get the relative price of two designated assets.
Suppose you start with 1 LTC, and zero Hive. If you want to change that to Hive, you get 194.36 Hive. But if you waited, and if LTC goes to 200, you can give it up for 200 Hive. That is a difference of about 6 Hive.
With the 200 Hive, if LTC price in Hive goes back to 194.36, you can get more than 1 LTC.
Now you have indeed gained more in LTC from when you started.
In theory, the whole strategy can be applied to other pairs with their dedicated budgets and separate accounting to gain more HIVE or BTC. I mean just treat it as different you doing the trades for different pairs and overall your collection of BTC-LTC-HIVE trio will grow.
Of course, patience is needed. It may take a long time. Months or even year for the target price to reach. That is why this is a strategy for those who already have everything taken care of.
What do you think of this strategy?
What is the Brief Random Posts about?
Disclaimer: This is not financial advice, and you should always do your own due diligence before investing!
Posted Using InLeo Alpha
is it kind of staking or farming?
Some kind of DIY farming...
Well, it is not bad - in theory ... but it is far riskier than just staking/farming and on top of that it would take more time. Just my 2 cents.
Just like that the market starts to go up so we're seeing all of these coins that are and these three coins that are going up very well with each other so invest in these coins. Should do that go up with Bitcoin.
It depends on what you believe in more. Personally, I believe in Hive but BTC is more safer. I don't think it's a bad strategy though.
Can we categorise this as arbitrage trading?
Yes, I think so.