Post
Topic
Board Beginners & Help
USD to Bitcoin to Altcoin and back: investment risks?
by
kreut
on 13/09/2017, 16:46:25 UTC
Hi,

Day 2 of getting my feet wet with crypto, so sorry for the noob question...

I've opened up a Coinbase Account and am going to use Bittrex to buy/sell some alt coins.  I understand that I need to buy Bitcoins first on Coinbase (GDAX), then send them over to Bittrex for the alt coin purchase.  So, it sounds like the flow is:

Desposit USD in Coinbase -> Buy Bitcoin on GDAX -> Send to Bittrex -> Buy Alt Coin on Bittrex

Then, when I want to withdraw USD, I'll need to:

Sell Alt Coin for Bitcoin on Bittrex -> Send bitcoins to Coinbase (GDAX) -> Sell bitcoin for USD -> Withrdaw from Coinbase

Is this the correct flow?  And if so, since I'm making 2 conversions (USD <-> Bitcoin <-> Altcoin), couldn't there be a major fluctuation before I complete my trade?  For example, the Altcoin goes way up, I convert it to Bitcoin, then Bitcoin happens to go way down, then I convert it to USD, ultimately losing money?