Bitcoin Trading Case Study #2: 14% Profit in 7 Days

How I Made 14% Profit in 7 Days by Trading Bitcoin

It’s been a couple weeks since I published my last case study but I didn’t stop trading and keeping track of my results. I have adapted my strategy based on the data that I collected from my last case study and have found some ways to reduce the time it takes me to place my trades. This study was less profitable but I am still quite satisfied with the results since this study was only a 1 week span and I still managed to produce a profit greater than 10%.

Case Study Parameters

Exchange: Poloniex

Case Study Term: May 9th – May 15th (1 Week).

Entry Strategy: Buy .01 BTC every single time I receive a buy signal.

Click Here for Buy Signals

Exit Strategy: For this particular case study, I sold off any given position if it had increased at least 20% but tried to get at least 40% before I sold. I am also holding every coin that is currently at a loss in an attempt to sell it at a later date at a profit.

Total Buy Orders: I received a total of 88 buy signals and bought .01 BTC at each one for a total of .88 BTC invested.

Gross Return: 67/88 positions were profitable. So far, my gross return on investment is 1.07 BTC on an initial investment of .88 BTC. That’s a gross profit of .19 BTC / 21% in 7 days.

Costs & Overhead: I paid .06 BTC for a 30 day membership to get the buy signals.

Net Profit: My gross profit of .19 BTC – .06 BTC for the buy signals = a net profit of .13 Bitcoins in 7 days. That’s a 14.77% profit in just 7 days and I still receive the buy signals for another 23 days.

Moving Forward

In just 7 days, I have learned even more about how the crypto markets work. Here’s a couple things that I noticed and will adapt my strategy in the future.

More Powerful Spreadsheet Commands: When I first started off I only had some basic understanding of how Google Sheets work but now, just a few weeks later, I have learned quite a bit about how they can be used to reduce the amount of time I spend to make trades. I have used the conditional formatting feature to change the color of the cells based on what my profit margins are. On my last study, I only used green and red to show me whether or not a position was profitable. Now, with the help of conditional formatting, I know my profit and loss simply by looking at the color of the cells.

Bitcoin Trading Case Study #2

My next move is to figure out how the Poloniex API works so I can import live price tickers into my spreadsheet for real-time comparison to each buy signal. This will save me so much time when it comes time to sell off a position and might also help me with making some trades without the need for a buy signal. This is going to be very important in the future because one of my upcoming case studies will not be focused on trading on Poloniex.

Hold Currencies vs. Taking Loss: On my last study, my exit strategy was to sell 100% of my positions at the end of the study but this time I took a different approach. I am holding every currency until it is profitable. This might take me a while but I think that most coins will come back around within about 60 days. I can’t be sure so I will reevaluate these positions, around the 9th of June with a follow-up case study.

My Past Case Studies

I plan on doing 2-4 case studies each month with each study using a slightly different strategy. If you would like to learn more about the other studies that I have conducted, please take some time to read through them below.

How I Made 35% Profit in 17 Days by Trading Bitcoin

Thanks for taking the time to read my case study. If you think the bitcoin community would benefit from this article, please share it.

What tools do you use to make the most calculated trades? Let us know with a comment below or a tweet at @BitcoinReasons

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Bitcoin Trading Case Study #1: How I Made 35% Profit in 17 Days

How I Made 35% Profit in 17 Days by Trading Bitcoin

Over the past couple months, trading cryptocurrency has gone viral. After looking at some of the percentage gains on the biggest crypto exchanges, I decided to give trading a try. Before I really got started, I did some research to see if there are any tools for getting buy signals so I can make the most educated trades possible. I found a few tools that showed some promise so I have decided to conduct a series of case studies to see which ones are the best. These are the results of my first one.

Case Study Parameters

Exchange: Poloniex

Case Study Term: April 19th 2017 – April 29th 2017. Liquidated (sold) 100% of holdings on May 6th.

Entry Strategy: Buy .01 BTC every single time I receive a buy signal. I know this is very risky but if I am going to see if these buy alerts actually work, then I need to buy every single one.

Click Here for Buy Signals

Exit Strategy: For this particular case study, I decided to hold everything until I liquidate all of my positions after April 29th.

Total Buy Orders: I received a total of 97 buy signals and bought .01 BTC at each one for a total of .97 BTC invested. You can do the same thing but scale it down to .005 BTC for each buy signal so your total invested would only be .485 which is about $750 USD at today’s price.

Gross Return: 82/97 positions were profitable! My gross return on investment was 1.37 BTC on an initial investment of .97 BTC. That’s a gross profit of .4 BTC / 41% in 17 days!

Costs & Overhead: I paid .06 BTC for a 30 day membership to get the buy signals.

Net Profit: My gross profit of .4 BTC – .06 BTC for the buy signals = a net profit of .34 Bitcoins in 17 days! That’s a 35% profit in just 17 days! That’s an insane return on investment for such a short period of time but I think I can do better on my next study.

What’s even more exciting is that the price of bitcoin rose about 20% during my study ($1,326 USD to $1,597 USD on BitFinex) so not only did I turn .97 BTC into 1.34 BTC, but .97 BTC was worth about $1,286 at the beginning of my study and 1.34 BTC is currently worth about $2,139 so my USD percentage gain is 66%! …in 17 days!

Moving Forward

In just 17 days, I learned a lot about how crypto markets work and the massive upside opportunity for gain in short periods of time however I definitely left some money on the table with a number of my trades. That being said, here are a few things that I learned from this study.

A Progressive Exit Strategy: I will do some experimenting with various progressive exit strategies to see if I can catch some profits on coins that shoot up and come back down before the end of the study. One example from this study is NEOS. I bought .01 BTC worth of NEOS on April 19th at .00076692 and sold on May 6th for 0.00075999 which is a loss of about 1% but on May 3rd there was a spike up to .001250000 which would have been a 63% gain if I had managed to sell at least some above my purchase price. On my next study, I will try to find a way to cash in on some of those sporadic price hikes with some progressive sell orders.

I need a progressive exit strategy to catch gains like this massive spike.

Hold Currencies vs. Taking Loss: When I sold off all of my positions, I took a loss on 15 out of 97 positions. If I simply held all of them, there is still potential for gain with those currencies as the price of the crypto market continues to increase. Moving forward, I will hold all currencies that didn’t produce a profit instead of selling them off at a loss. Maybe I will lose money but I will only find out if I experiment.

Bitcoin Trading Case Study 41% Gross Gains

Thanks for taking the time to read my case study. If you think the bitcoin community would benefit from this article, please share it.

What tools do you use to make the most calculated trades? Let us know with a comment below or a tweet at @BitcoinReasons

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Browse Faster, Safer and Ad-Free with Brave

Brave, a web browser for a better internet

One of the newest and most exciting tools in the bitcoin space is not really known as a bitcoin tool but rather as an ad-blocking web browser. What separates this browser from others is that it has a built in payment mechanism that allow both users and content creators to earn bitcoin from ad revenue. Now everyone can browse safer, faster, ad-free and also earn bitcoin while doing it.

A Brave New World

If you aren’t paying for a service, you are not the customer. You are the product being sold. Currently, the way that most ads services (if not all ad services) work is reliant on monetizing the personal data of the end user. In order to do this, these services need as much of your personal information as possible. This is where trackers, cookies, phishing, malware and any other means to collet and mine your personal data come in to play and Brave hopes to counter this.

Block Ads & Trackers

Ad Blockers are one of the fastest growing services on the internet today. In 2016, ad blocker usage grew substantially and is expected to double by 2020. It seems pretty clear that people want more privacy, less popups, trackers, spam and unwanted ads.

While I personally don’t believe that people are using ad blockers to shave milliseconds off of web page load times, I do believe that ad blockers are playing a big part of preserving online privacy and it seems like Brave team is hoping to position themselves at the center of this.

Replace Ads

Brave is also currently working on a system that not only blocks existing “dirty” ads but also replaces them with what they call “clean” ads that aren’t privacy invasive. Brave Ad Replacements are just part of a new system called Brave Payments that I personally believe is going to change the way we consume online content.

Brave Payments

Brave has not only managed to create a tool that seamlessly increases privacy of all of their users but with the release of brave payments, they have created a tool that allows users to voluntarily pay small amounts of money to the websites that they visit the most and even earn money for browsing the web. Visit the Brave Payments FAQ page for more info on how it all works.

Brave Payments

The way that traditional ad payments work is between the ad agency and the site where the ad is displayed. This is a pretty two sided way to advertise which is why I believe Brave Payments was created.

The 4 Brave User Types

At first glance, most people probably won’t understand why Brave is such a powerful tool. To make things easier, they have provided some press content to help users better understand how they will turn traditional ad systems upside down while simultaneously increasing the revenue generated by content creators and publishers.

Who uses the Brave browser?

Donating Ad Share with Brave Ads – Andy

Some users who want to block ads are not concerned with making money from their browsing so they opt to donate their brave payments earning to the sites, publishers and content creators. This results in sites and publishers receiving 70% of revenue which is higher than most existing ad networks.

Keeping Ad Share with Brave Ads – Beth

Your attention is worth money to advertisers. This is where I personally believe that Brave changes the way that we will browse and monetize content. Brave ads enables users to get paid to browse the web by allowing them to earn a percentage of the ad revenue that they generate. Yes, this means that you can earn money for browsing the web. Think about that for a minute.

Ad-Free Browsing – Cathy

Some users do not want to see any ads at all and would rather contribute some of their own money to the sites they visit most. This type of user has the option to make a small payment with bitcoin or credit card for an ad-free browsing experience. This user sees less ads but also contributes to the sites that the visit the most.

Ad Blocking – David

The fourth and final type of browser loathes ads of any kind and as a result has opted to block any and all ads and chooses not to contribute in any way. This user just wants to browse the web with increase speed and privacy.

Do you think that Brave has the potential to change the way we consume online content? Let us know with a comment below or a tweet at @BitcoinReasons

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Money Badger – Bitcoin via Email, SMS & Reddit

Money Badger

Have you ever wanted to send bitcoin to someone who doesn’t have a bitcoin wallet or maybe to someone who doesn’t even know what bitcoin is? Well, now there is Money Badger and it don’t care who has a bitcoin wallet. It sends bitcoin where it wants and it doesn’t need usernames or logins.

Sending Bitcoin with Money Badger

If two people already use bitcoin, Money Badger doesn’t offer any new functionality. If you are trying to get more of your friends, family and co-workers to understand, adopt or even use bitcoin, it is one of the most useful tools in the bitcoin space.

Let’s take a closer look at how it works.

Sending bitcoin with Money Badger is easy and only takes 3 steps.

1. Enter a phone number or email address.

2. Select the amount that you’d like to send. Currently, USD, EUR, GBP and BTC are supported.

3. Complete the captcha and under “Additional Options” you can enter a short message and a return address in the event that the recipient doesn’t claim the coins that you send. This is important so you can get any unclaimed bitcoin returned to you.

How Money Badger works

Receiving Bitcoin

When someone sends you bitcoin, you’ll receive a notification with a voucher code to redeem your bitcoins. In order to claim your bitcoins, you just have to visit money badger and enter your voucher code, your email or phone number and the bitcoin address where you would like to receive your bitcoins. That’s it.

Once you have sent someone their first amount of bitcoin, the rising price of bitcoin is usually enough to incentivize them to do some research about bitcoin and how to use it.

If the recipient doesn’t claim their bitcoins within 7 days, they are automatically returned to the sender if the sender included a return bitcoin address. This puts coins into the hands of the most relevant users and also eliminates the risk of the recipient not claiming their bitcoin. So, now you can send bitcoin to your friends, family, co-workers and anyone else you want and if they don’t care to claim them, then you get your coins back. It’s a win win.

Costs and Limits

Every time that you send bitcoin with money badger there is a $.50 service fee that goes to Money Badger to ensure that they can keep providing this service.

Since Money Badger is primarily for getting new users to adopt bitcoin by incentivizing them to download a bitcoin wallet and learn how to receive their first bitcoin transaction, there is a minimum limit of $1 and a max limit of $100 that can be sent through Money Badger. So if you are looking for a way to send large amounts of money both the sender and receiver will need to already be familiar with bitcoin.

Conclusion

If you are looking for a free and easy way to send anonymous bitcoin tips, giving the gift of bitcoin and helping new users learn about bitcoin then Money Badger is a great tool for you to experiment with.

How would you use Money Badger? Let us know with a comment below or a tweet at @BitcoinReasons

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10 Bitcoin Privacy Enhancing Tools

Bitcoin Privacy Enhancing Tools

One of the driving forces behind bitcoin adoption is its amazing privacy features. The ability to store and transact value without your identity directly attached to your money or spending greatly increases your individual freedom and personal privacy. While not all bitcoin services and tools protect your privacy as much as others, using these 10 tools will help to increase your own privacy, the privacy of the entire bitcoin network and also increase bitcoin’s utility around the world.

Brave

Brave, a web browser for a better internet

Brave is a new privacy focused web browser that is going to change the way we browse the web as well as how publishers monetize content. Brave creates a safer browsing experience by blocking ads and trackers that violate your privacy and slow down your browsing experience. Brave also converts all http connections to https connections for more secure browsing. But Brave’s most revolutionary feature is something called Brave Payments. This allows content viewers to directly contribute to site publishers and also block ads and trackers. The end result is users seeing less ads and publishers make more money than they would if the monetize their site with Google AdSense. Brave has the potential to change the way publishers monetize their online content.

ShapeShift

Shapeshift
ShapeShift is probably one of the biggest names in the bitcoin space because it enables anyone who already accepts bitcoin to seamlessly accept all of the other cryptocurrencies without any personal information. ShapeShift is integrated into a number of services like CoinCap.io, OpenBazaar, KeepKey and others. If you don’t already use ShapeShift, you should be.

OpenBazaar

OpenBazaar is the one and only e.commerce platform of its kind. It is a distributed network which means that none of the product listings are stored on any single centralized server. This means that your listings cannot easily be censored or shut down. What makes OpenBazaar even more awesome is that you can only pay using cryptocurrency. OpenBazaar also recently integrated ShapeShift so that buyers can pay with the cryptocurrency of their choice and the seller receives bitcoin. OpenBazaar will compete with eBay, Amazon, Fiverr, UpWork and dozens of other online retail sites.

Blockonomics

Blockonomics is my personal favorite block explorer. Their landing page has a simple call to action to enter a bitcoin address or transaction ID so you can view the history of any given address or transaction. You can also use blockonomics to create invoices that are pegged to fiat currencies so if you accept payments, you do not have to worry about volatility issues because you are always invoicing in a fiat currency. In my opinion, blockonomics has potential to become one of the most useful bitcoin tools in the world.

Anonymous Ads

Have you ever wanted to put ads onto your website but the whole signup process with Google AdSense requires too much of your personal information? Well, now you can have ads on your site in a couple minutes with no usernames or logins. Anonymous Ads allows you to select an ad size and then you just paste a bitcoin address to receive payments without giving up any of your personal information. Users also have the option of creating an account if they so chose. You can create an ad in about a minute. This is what their 748×90 ad looks like:

Money Badger

Money Badger

Money Badger is a service that enables you to send bitcoin to people via phone number or e.mail address without revealing yourself as the sender. This service is primarily for incentivizing people to learn about bitcoin. You also have the option to have your funds returned in seven days if the recipient chooses not to claim them. I predict that MoneyBadger will integrate ShapeShift so that you can send any a cryptocurrency of your choice and the recipient will receive bitcoin.

RushWallet

RushWallet is a web wallet that can be accessed from any computer or mobile device with an internet connection and doesn’t require any personal information. You just go to the website and move your mouse or finger around to create a random string of numbers and letters to generate your private key. Once you have done this for about 10 seconds, you have a public key which you can accept bitcoin. No app downloads, or logins. Just pure math based freedom. It is one of the best services for new users to learn about public and private keys with the least amount friction.

BitAddress

BitAddress is probably the best way to generate paper wallets in the least amount of time. Paper wallets are very important for bitcoin security because they are the least vulnerable to being hacked. Paper wallets are not stored online so hackers and cybercriminals cannot access them via the internet. This means that each paper wallet that you generate is its own little swiss bank account that can fit in your pocket.

Piper Wallet

Piper Wallet was the first hardware wallet to offer offline paper wallet creation. This simple device is just a RasperryPi computer that attaches to a printer for generating paper wallets at the push of a button. Since this computer is never connected to the internet, it is one of the most secure and private ways to make your own cold storage wallets anywhere in the world regardless of whether or not you have an internet connection.

Bread Wallet

Bread Wallet is a mobile wallet and it is without doubt the cleanest user interface in the entire bitcoin space. It does not require any personal information of any kind to send, receive or store funds. No usernames, passwords, phone numbers, e.mail addresses. Just pure bitcoin privacy on a mobile device. If you are looking for a wallet for your phone, look no further than Bread Wallet.

Do you know of some other bitcoin tools or services that increase privacy? Let us know with a comment below.

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