One idea that has always been in my head is trying to find a quick and easy way to make money by just keeping your money in your wallet but using trading tactics in order to make a profit over time. I'm talking about converting crypto on a website like coinbase. However, looking on the internet I find out that nobody is talking about this unless they are trying to scam you into sending them Bitcoin and "promising" that you'll get your money plus interest back. (Personally I would rather stake it)
What I'm really trying to get at is using an exchange to change your cryptocurrency over and over for profit. For example, if Litecoin is down 10% one day, you buy it and hold onto it. Then a couple days later it is up by 15% and bitcoin is down 5%. You then convert your LTC to BTC and wait to sell that or start the process over and pocket the difference in profit. Why aren't there (legit) strategies out there designed to educate people to this strategy? Is it just not a good idea? Maybe I just don't look hard enough for this strategy?
Other questions:
Does the conversion rate kill the difference in profit?
Since it's 2020, Does it effect you when it comes to tax season?
Is staking more profitable or just more reliable than this? (Or both?)
I hope I got my point across and I would like some feedback.
Thanks guys!
What I'm really trying to get at is using an exchange to change your cryptocurrency over and over for profit. For example, if Litecoin is down 10% one day, you buy it and hold onto it. Then a couple days later it is up by 15% and bitcoin is down 5%. You then convert your LTC to BTC and wait to sell that or start the process over and pocket the difference in profit. Why aren't there (legit) strategies out there designed to educate people to this strategy? Is it just not a good idea? Maybe I just don't look hard enough for this strategy?
Other questions:
Does the conversion rate kill the difference in profit?
Since it's 2020, Does it effect you when it comes to tax season?
Is staking more profitable or just more reliable than this? (Or both?)
I hope I got my point across and I would like some feedback.
Thanks guys!