The crypto market grew to a point where I can take profits.
Time to buy that new computer! I have 2 Ethereum. My new
PC costs... $1964.41. FUDGECAKES! I need a new monitor.
Nature blessed me with migraines. That won't be cheap.
The price of RAM and GPUs are ridiculous. But I'm committed
to getting a PC that will last me 10 years! AKA 3 years.
Time to cash out into fiat, USD, the green pyramid.
I go to sell my Ethereum on GDAX. Then I realize they don't
accept PayPal. My bank is being pure evil with double charges.
I'll be leaving them in a few months. There goes that simple
plan. I know! I'll use Coinbase. But Coinbase is to be having
trouble with PayPal. They are temporarily pausing services
Feb 23rd. FUDGE!!!! I tell people on a crypto chat room,
looking for advice. They accuse me of spreading FUD, I list
the links to Coinbase's status section and in big red it says,
"PayPal Down." I get demoted in the chat room by an Admin.
Well, I'm never going back to that crap hole. Time to consult
an expert. The expert reminds me you can pay NewEgg with
Bitcoin, BTC. Yes! Problem averted. That was an adventure.
It's time to crunch the math.
My 2 Ethereum is worth $932. If I cut corners I can buy the new PC. If I step ladder trade I can get
everything I need. With money remaining. I need to determine what to do. When I convert my
Ethereum into BTC. It must to cover $1964.41. If I sell 2 Ether now, at $1000 x 2 = $2000. But
fees will put me at a loss. I can wait for the BTC to grow. NewEgg doesn't accept Ethereum. BTC is
at $10000. How much would it have to grow?
Value $10000, Value 2 $13000 = ?% Solve Equation below, click the link to go to the site. Do not use
, comma in the boxes for the calculators!
Percentage Change Calculator Step 1
30% increase of $2,000 worth of BTC. Solve Equation below,
click the link to go to the site.
Percentage Difference Calculator Step 2
$600 + $2000 = $2600. Easy. But we have a problem. The math won't be that simple. Let's look at a
more realistic scenario. See if you line up with my answer.
If you did the math right, adding in NewEgg fees, it's not enough.
We want a $300 buffer, $2300. What if I hold in Ethereum? If I
move to BTC, and I know it's not growing too much. I'm better off
staying in Ethereum. What would be a good amount?
$1150 x 2 = $2300. My range should be $1150-$1300 per coin.
When it hits that range I move to BTC and buy that new PC.
What was the purpose? I was better off waiting on Ethereum
to grow 20%. It helped me determine holding was the safer
path. If Ethereum was at $900 and BTC was at $9000. That
would be a really good time to sell Ether for BTC. BTC would
have hit $11000 easily. The equation above taught me 10%
difference is where I would sell early.
Go Back to Step 1
$932 x 2 = $1864 BTC is at $11532.70
Value 1 $11532.70, Value 2 $12732.50
Go Back to Step 2
10.40% increase of $1864 = 184.16 + 1,864 = $2048.16
I cut $184.1632 down to $184.16. Why did I chop out anything past .001? It's fractions of a penny,
of a dollar. I'm dealing with thousands of dollars.
This was from early 2018. I used the step ladder method. That's where I drew money out during small
pumps, growth. Put it back in during dips. Rinse, repeat. It takes a while, fees were a factor. After
some time I made money. Meanwhile everyone was losing their shirts. Basically you trade down. At
some point you must decide on a permanent exit if no signs of recovery. Because gains can't be enough
to cover fees. I left around end of May. Overall did I do good? HELL YES!