Dear Readers: I have a show this Thursday I am truly looking forward to doing – with fellow SLOB Charles Fettinger of Doo Doo Economics. Silvio and I will be asking him all about the new currency phenomenon, Bitcoin. (Click HERE this Thursday at 7 pm PST/9 pm CT/10 pm EST for the live show, or later for the podcast).
Charles has a nice synopsis: Bitcoin Trading Ten Commandments
Lets keep this short. Here are the Ten Commandments to make money trading in Bitcoin. Detailed explanations follow where needed.
- Do not follow trollbox advice
- Buy low, sell high OR sell high, buy back low
- Know your break even number
- Never let a Whale (big trader) buy cheaper than you, stack up on their position if necessary.
- Look up and down the orders list and find the big orders
- Cut loses or cost average when you make a bad trade, but let profits run
- Be patient and do not be mastered by market sentiment
- Buy when the market is selling, sell when the market is buying
- Read the chart first
- Do not trade to fiatWhere do you trade Bitcoin? You trade on one of the Bitcoin exchanges, but start small and work your way up to larger trades. Here are the “how to” details…
Also: When To Buy Bitcoin
Recently Overstock, Tiger Direct and many other online retailers have begun accepting the secure internet money known as Bitcoin (BTC or #). Bitcoin cannot be hacked like credit cards because you pay directly with encrypted money instead of entrusting others with credit card account information. It is more like using cash instead of a credit card which limits your vulnerability.
Merchants love Bitcoin for many reasons. There are less transaction fees involved with Bitcoin and unlike insecure credit cards, Bitcoin was designed for use on the internet. That means retailers like Walmart can use Bitcoin securely to purchase goods from anywhere in the world without wire fees and without exchange rate risk.
So, when should you purchase Bitcoin?
The answer is a couple days after a major retailer begins accepting purchases via Bitcoin.
We will also discuss the results of the San Diego Mayoral election, resulting in a rare Republican victory in California.