Cashing out to NMC (and back)

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domob
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Cashing out to NMC (and back)

Post by domob » Thu Oct 24, 2013 12:30 pm

Considering that it is possible that we might form a new bubble in Bitcoin soon, I thought about cashing out at least some BTC during the rise (following a simple target proportion of holdings in BTC of the overall holdings, for instance). Since I want to try my luck at long-term holding, it won't be too many coins, but maybe some. However, I'm not sure whether I want to do that in fiat. Gold would be an interesting option, but the stores I have seen that allow BTC <-> XAU are all not Europe-based and have bad rates (IIRC). PoS would be even better, but seems even less likely at the moment.

So, another idea are alt-coins, and here of course mostly NMC (because it has a value by itself not related to speculation only). The BTC/NMC price has seemingly followed the USD price more or less during the last time (ignoring the crash because of the bug), so it seems like it would be possible to buy NMC during a rise of BTC, and possibly buy back more BTC after it crashes a bit.

What do others think about this, is it a good approach? Do NMC (and alt-coins) indeed hold their value in fiat terms when BTC rallies or crashes?
BTC: 1domobKsPZ5cWk2kXssD8p8ES1qffGUCm | NMC: NCdomobcmcmVdxC5yxMitojQ4tvAtv99pY
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virtual_master
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Re: Cashing out to NMC (and back)

Post by virtual_master » Thu Oct 24, 2013 1:20 pm

I was also thinking a lot about it but unfortunately price developments are unpredictable, especially for short terms.
If you have a good vision at least for long term you can somehow foresee some market developments.

Generally you can win (especially by short term speculations) only if you have an informational advantage over the others. You know something important connected to that market what the others don't know. Or you are even controlling the information flow(what the others know).

But one thing is sure. It is easier to trade cryptocurrencies to each other than trading to fiat. (quicker, safer, less regulated)
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domob
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Re: Cashing out to NMC (and back)

Post by domob » Fri Oct 25, 2013 5:34 am

Yes of course, I do not intent (or do not think I would be able to) beat the market. But I think that if I follow a rule like "always have a 10% to 90% split in value between NMC and BTC", this could help to reduce volatility and risk (at the cost of lesser profits if Bitcoin rises and stays high, though). This seems like a good trade-off, in particular if there is fear of a bubble crashing. It won't, however, ruin exponential growth of the portfolio value if BTC rises exponentially, only the constant in the exponential is changed (at least I think so from quickly thinking about it).
BTC: 1domobKsPZ5cWk2kXssD8p8ES1qffGUCm | NMC: NCdomobcmcmVdxC5yxMitojQ4tvAtv99pY
BM-GtQnWM3vcdorfqpKXsmfHQ4rVYPG5pKS
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domob
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Re: Cashing out to NMC (and back)

Post by domob » Thu Nov 07, 2013 6:33 am

It seems that the NMC price (as well as other alt-coins) is holding relatively good up with the rising BTC (i. e., NMC/BTC is more or less constant so that NMC went up in fiat terms together with BTC). This is nice, but probably answers my question here, that this is not a possible strategy. ;)
BTC: 1domobKsPZ5cWk2kXssD8p8ES1qffGUCm | NMC: NCdomobcmcmVdxC5yxMitojQ4tvAtv99pY
BM-GtQnWM3vcdorfqpKXsmfHQ4rVYPG5pKS
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phelix
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Re: Cashing out to NMC (and back)

Post by phelix » Fri Nov 15, 2013 3:54 pm

domob wrote:It seems that the NMC price (as well as other alt-coins) is holding relatively good up with the rising BTC (i. e., NMC/BTC is more or less constant so that NMC went up in fiat terms together with BTC). This is nice, but probably answers my question here, that this is not a possible strategy. ;)
Not so sure about that. ATM it works better than I would hope for. Some exchanges are NMC/USD nowadays so to some extend we are plugged to the $...
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