Originally Posted by ivanlabrie
Happens, that's what coinchoose.com and the like cause...any scrypt or sha256 coin that makes it there will suffer the same fate:
-Diff goes down, or price goes up -> multipool and the like will rape the bejesus out of it till either difficulty goes up or price goes way down after tons of miner dump coins like crazy at whatever price buyers pay.
-Coin is left in a comma, since difficulty is so high no one mines them, price is low too...blocks take AGES to move and thus difficulty recalculation takes forever. (unless the developer of the coin implements anti-coinchoose measures, like digital coin's Baritus did, FTC after it's almost death or like Mincoin after the patch, or even WDC)
That is why I prefer those coins I mentioned over other random scrypt coins, I don't feel like doing that myself, since there's little time to mine and dump before the guys with huge farms do it.
Yeah, that happens all the time. I like to watch for spikes like that, but I don't start mining until the exchange rate drops, and then the difficulty drops, and then I start mining. At that point the difficulty will be lower than normal, and the exchange rate will be too, which means the difficulty will remain low for some time. Which means I'll be able to gather much more coins than I normally would. Then I hang on to those coins until the next spike, or at least until the exchange rate goes back to normal levels.
I don't like that whole multi-pool idea. Its strategy is too shortsighted, considering the massive and frequent value fluctuations in coins. If you wait for a coin to be valuable before you start mining it, by the time you have enough to be worth trading, it will already be worthless. Better to mine while a coin is worthless, you can make more money by selling when there's a spike. Not only will the coins be worth more, but you will have much more of them.
This strategy requires patience. And it's not without its risk. There's always a chance that a coin might not spike again for a long time, or maybe not at all, or maybe the coin might die off completely. Those risks can be mitigated by simply not putting all your eggs in one basket. Just like multipool switches between valuable coins. I switch around between non-valuable coins.
Edit: by "non-valuable", I mean good coins that are currently at a low and will bounce back, not crap coins that will never be valuable
Just take a look at the exchange history of any coin, you can see which ones have a spike every few weeks, or month or so. and which ones don't.
Edit: I also pay close attention to the coins that are NOT listed on any of those comparison sites, but are listed on exchanges. I find those ones tend to have the best day-to-day payouts, because most people don't bother to look that closely. I recently traded 2 day's worth of memecoins for double the number of litecoins I would have made in the same time period. That rate has gone down since then, but it's still favorable.Edited by wedge - 8/2/13 at 7:49am