Originally Posted by 44Runner
Now here is my question. How quickly can you buy in to the market and dump on these exchanges? I know how to mine the crap, but I really don't know about trading it. I sat here with my dick in my hand while an operunity passed me by and I really don't want to let that happen again. Because of my mining, I am always on top of the prices for the most part, I just would like to get some information on the trading aspect.
The short answer is to keep your crypto and USD on an exchange you trust. Setup limit or stop orders so you can trigger it to buy or sell when the price hits where you want it. I know this goes against everyone's saying that "money on an exchange isn't yours". But if you want virtually instant buys/sells, that's generally your best bet.
The problem is that most exchanges take a few days to deposit and withdraw USD due to the way the bank transfers are setup. That said, Gemini allows for "instant" deposits, though. Basically, if you deposit $500 from your bank account, they will let you trade that $500 immediately for BTC or ETH. Only catch is that you can't transfer that same amount of USD, BTC, or ETH out of the exchange until the bank transfer is official. The same is true for BTC. If you have BTC in an offline wallet, you can send it to Gemini and sell it immediately. Caveat is that you can't withdraw that money until the appropriate number of confirmations is made.
The other option is to build a trading bot that will do all of that stuff for you. There are utilities to do that and even backtest your algorithms, but I've personally found that it's easier to focus on the fundamentals rather than trying to play the technical analysis game of trying to time your buys and sells perfectly.
I keep most of my crypto in offline wallets and transfer it into an exchange when I need to convert it. (I use crypto as my personal savings account since the whopping 0.1% I was accruing was so low that I was willing to handle the uncertainty of crypto -- especially since I usually don't take money from that account except for larger purchases anyways). I'll leave some on the exchange just in case I want to take advantage of the market, but I don't trade much anymore. I was gung ho about it last year and realized that the only time I made any money was when the market was horizontal. Otherwise, I'd miss out on the dips and humps. I also found that there can be some pretty big overnight price swings, so it's even easier to miss them.
Originally Posted by vetteboy79
Slightly off topic question, but I'm curious...why are graphics cards used in the mining process?
The algorithms used in mining can easily be parallelized -- basically, there is no known efficient solution to the problem they solve (finding a hash starting with a certain number of zeros), so they just need to keep trying numbers until they get the right one. Since the computations aren't dependent on each other, you can parallelize the algorithm very easily.
Graphics generally involve a lot of matrix computations that can be parallelized, so GPUs take advantage of that by enabling many simultaneous calculations. An individual instruction on a GPU runs a lot slower than a CPU, but since you can run a bunch simultaneously, it can be much faster for algorithms that can be optimized to run in parallel. So it's kind of ideal for the algorithms miners need to execute.
Bitcoin started out that way, but the miners figured out that you can build dedicated ASIC chips to do the process faster and with less power than GPUs, so most of Bitcoin's mining is done on hardware specifically designed for that. Other cryptocurrencies use a different algorithm that requires a lot of memory to execute -- making it infeasible to build ASIC chips to solve the problem.