Crypto Currencies and their Equivalents in the Stock Market

[Aiman 86]

Hello Everyone,

One of the biggest benefits of being a community of traders is having trader’s trading different markets! So now I got a question to some of you who are trading crypto’s which might help me, Andrew and other members benefit from the volatility of crypto’s.

-Recently crypto’s started getting some volatility; In fact, BTC went up from $11.500 up to $13000 in 5 days period. Is it possible to benefit from that volatility without having the crypto currency itself? For example, buying semiconductors, blockchain companies or ETF’s, etc.

Maybe some of you know the equivalence of crypto’s in the stock market? It’s just that crypto market is not regulated and it’s tough to trust the exchanges there.

 

This thread is open for discussion and hopefully we all learn something new here!  

[dellen 4]

I was just wondering the same thing. Take a look at this article https://www.fool.com/investing/stock-market/market-sectors/financials/cryptocurrency-stocks/ 

[Lightngo90 6]

I notice when #BTC starts moving before market open, $GBTC- (Grayscale bitocin trust) will catch up. They don't show lv2, not much of volume too, seem working with ABCD pattern well. I'm holding $QBTC in my taxfree account for longterm cause I'm living in Canada, they only allow $QBTC. Some of our members in US are holding $GBTC. Brokers won't allow to short bitcoin trust yet

[paul ang 9]

I came from the BTC trading side.

 

1) If you are "day trading" on BTC, you will need to get on the exchange (i don't do that).

2) If you are "swing trading" it, its not difficult to learn to use a "cold wallet", and move your BTC to a save place in between trades.

3) if long term "investing", you definitely need a "cold wallet".

[Aiman 86]

On 10/28/2020 at 7:44 PM, dellen said:

I was just wondering the same thing. Take a look at this article https://www.fool.com/investing/stock-market/market-sectors/financials/cryptocurrency-stocks/ 

Thank you!! Reading it now

On 11/1/2020 at 1:59 AM, Lightngo90 said:

I notice when #BTC starts moving before market open, $GBTC- (Grayscale bitocin trust) will catch up. They don't show lv2, not much of volume too, seem working with ABCD pattern well. I'm holding $QBTC in my taxfree account for longterm cause I'm living in Canada, they only allow $QBTC. Some of our members in US are holding $GBTC. Brokers won't allow to short bitcoin trust yet

Wow I didn’t know that! Thanks for the input!

[Aiman 86]

On 11/4/2020 at 6:29 AM, paul ang said:

I came from the BTC trading side.

 

1) If you are "day trading" on BTC, you will need to get on the exchange (i don't do that).

2) If you are "swing trading" it, its not difficult to learn to use a "cold wallet", and move your BTC to a save place in between trades.

3) if long term "investing", you definitely need a "cold wallet".

Thanks Paul!

[paul ang 9]

By the way, there is this stock called DCC on ASX, that one lags BTC a few days. just FYI, please DYODD.

[Mitch The Duck 4]

@AimanThere are also futures for BTC if anyone is interested in that or didn't know. 

Robinhood and Webull allow you to trade BTC for zero commisions. Have used them frequently for playing the moves. I also hold a long term position as my main that I average into over time. To echo @paul ang if you're going to invest in any longer term holds though you really do want to get a cold storage or hardware wallet. Personally I use Ledger. This will ensure that you have total control of your BTC, unlike holding it in any of the exchanges, brokers, or even paypal and square now.

Cheers,

MiTCh

[Anthony 2]

In my experience the crypto's are either one extreme or another. Either way too volatile to trade or dead in the water. Etherum for me is the happy medium. BTC is too volatile for me, but maybe that's just bc I'm not good enough of a trader yet. I have heard  so many rags to riches stories about crypto and to be honest I definitely think they have proven themselves to be more than just a meme at this point. 

[Alastair 114]

I have neva traded Crypto's but have friends that do.  Coming from the FOREX side of trading, Cryptos seem to adhere to the Elliott Waves  Theory like the FX market.  Basically they are FX transactions.  BTC/USD pair and EUR/USD pair etc.  (Note they and FX do not have Level2 and volume is not centralized therefore sometimes not reliable like stocks.)

In fact commodities also trade like FX as most commodities are measured in US$ e.g. GOLD is actually GOLD/USD and is correlated to AUD/USD as Australia is a major producer of gold. So other commodities like Oil, Lumber, Coffee and Pork Bellies....lol r measured in US$

So news announcements from the central bank of the country have great effect on the pair.  In the case of BTC since it is actually BTC/USD then the US Central Bank or FED (including geo political) has the greatest impact.

So issues affecting US dollar really move the pair and thus stocks associated with BTC will move which gives u significant lead time on the potential move of the associated stock esp on week-ends. 

Companies tht have BTC on balance sheet as a store of value like TESLA will be required to re-value its holding as the BTC changes price.  BTC will neva be a currency being this volatile but it will be a store of value/asset class in the short to mid term.

So in summary, companies which hold BTC on balance sheet could be part of ur target list while u watch the US$ index at extreme turning or inflection points.

Edited August 15, 2021 by Alastair