Lessons learned – Matt Does Finance
Recall when I told you to keep transaction fees ter your head while determining when to buy and sell? That is a thing of the past. It is a rite of passage, you voorwaarde suffer Coinbase’s transaction fees before somebody tells you about GDAX.
So, what is GDAX? GDAX is the coetáneo exchange that coinbase processes transactions to. Both coinbase and GDAX are possessed by the same company. However, the difference is with GDAX you can fully avoid buying and selling transaction fees altogether. All you need to do is setup limit orders, that will auto-buy or sell your crypto of choice when it’s market price hits that value. However, to be noted, you cannot set a sell order that is already te the range of someone’s buy order, and you cannot waterput a buy order ter the range of someone’s sell order. Every transaction needs to have a taker and a maker. A maker is someone who is adding value to the exchange, by either making a sell order for their currency or a buy order for someone else. A taker is removing value from the market, by either instantly buying someones sell order, or instantly fulfilling someone’s buy order.
The taker will always pay a toverfee. The visible way to always have 0 transaction fees is to open your orders a few cents above/below the buy/sell orders. This is a much better way to permit people to invest. The charting at GDAX is more in-depth too and can help you explore market trends a lotsbestemming better. If you are still confused about it, leave a comment and I will attempt to explain te more detail.
I have also learned a fresh word. MOONING. Mooning is when a currency (or a stock spil well) starts rapidly enlargening te price and the graph looks like its going to “fly to the moon”. If you can invest te a coin very early te it’s mooning phase, you can make a existente quick profit. I experienced this today, spil Litecoin(LTC) had began mooning at around 8:35 PM EST today. I had purchased ter at 8:41 PM EST, and had already sold at 8:52 PM EST.
So for those keeping score, I am now at a 24% profit on my initial buy-in last week, up from $693 to $861.31.