While we are in a bullish wedge, it is going to take a while to play out.
I'm predicting a drop to around 6600 before it starts going up.
The way I'm playing this is Dollar Cost Averaging. Just buying 0.05 BTC a month. Half of it goes to BitFinex where i short BitCoin with a stop-loss. So, if it drops, i make money. If it goes up, i get stopped out... and i still make money. Kind of a weird setup, i couldn't do this with stocks.
I wonder if this will work....
I'm predicting a drop to around 6600 before it starts going up.
The way I'm playing this is Dollar Cost Averaging. Just buying 0.05 BTC a month. Half of it goes to BitFinex where i short BitCoin with a stop-loss. So, if it drops, i make money. If it goes up, i get stopped out... and i still make money. Kind of a weird setup, i couldn't do this with stocks.
I wonder if this will work....
So, it doesn't really work. What happens is if BitCoin drops, i don't lose as much, and if BitCoin goes up, i make money.
So for the above to work, i have to put all my BitCoins into BitFinex and do 2x leverage on a short....
Unfortunately, putting your coins in an exchange is risky as the exchange might get hacked like Mt. Gox and then everybody loses their coins. So not sure what to do. I wish there was such a thing as an unhackable margin exchange....
Oh well. Need to think about this some more.