Friday, January 20, 2012

Bitcoin Trading

I've been carefully watching my 3 URBN shares for the past few days, and so far it's been a roller coaster. One day they're up 2%, the next they're down 5%. As of right now (and this most definitely will change) I'm +1.3% on my initial investment. Which nowhere near the 20% I was hoping for, but I can be patient!

As I said in an earlier post, I bought those shares of URBN for $75.00 total. Leaving me with $29.82 left over to play with. I was initially going to invest all of it in the stock market, but the way things have been going makes me second guess that idea! I've decided to instead invest some of that money into the online currency Bitcoins (if you don't remember what those are, scroll down and you'll find a post about them). The fees for buying and selling Bitcoins is minuscule in comparison to those levied on stock market accounts. What that means for me is that I can invest a small amount of money and still make a decent return on it. Below is a graph on the USD/Bitcoin conversion.
The graph shows high and low trends (black) and the conversion's estimated moving average (red). Towards the end of October there was a breakout that I highlighted which signified that the USD/bitcoin conversion rate was going to stabilize and start increasing. Simply put, it's a good time to buy!  If I bought in today at the current exchange rate of 6.31 USD/1 bitcoin I have no doubt that in a few weeks it should get up to around 7 or 8 USD/1 bitcoin. I turned to my old friend the spreadsheet to see what that could mean for me.
I mere 70 cent increase in the conversion rate would result in me making an almost 10% return on my initial investment! That is an offer too good to pass up. I've already set up an account with the Internets largest bitcoin trader Mt. Gox, and now all I'm waiting for is my bank account to get verified. I'm going to convert $25.00 into bitcoins which will give me almost 4 of them. After a few months I'll swap those ~4 bitcoins back into USD and make a nice little profit!

More blog updates to come this weekend, I believe I've found someone who will trade me something for those bear earring I bought!!!

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