I am waiting for silver to become available in the spot market on Binance. I am surprised that gold which is the most precious metal is available in the spot market but the other precious metal known as silver is still not available in the spot market. If it becomes available it will be a great opportunity for me to make a good conversion between silver and gold and also trade them at the same time.
This means it can become a two in one option for me where I can keep converting between them while keeping a trade in mind. This will increase my quantity. The advantage of spot trading is that there is no funding fee so no matter how long you hold it you will not suffer any loss from funding fees.
Although I can also do this conversion in the futures market but the biggest disadvantage is the funding fee. The funding fee keeps getting deducted from my amount every four hours which becomes a source of mental stress for a trader.
I have discussed this strategy before but that was with the futures market in mind. However, now because I am holding silver USDT in futures the funding fee has already given me a lot of stress. Now I am waiting for silver to be listed in the spot market so I can make a good conversion between silver and gold.
I do not know what reasons Binance has for not making silver available in the spot market yet. The trading volume and all the other requirements have already been fulfilled but still they are not listing it in the spot market.
TRADING + CONVERSION STRATEGY
Anyway this is a very easy and simple strategy. I will make my investments while keeping the EMA 200 in mind. Whenever silver goes below the (4H) EMA 200 I will continue buying silver.
As I explained I have 2000 USDT and I want to rotate this amount so I would like to buy silver at every dip. As soon as it touches the EMA 200 I will convert one layer of my silver into gold.
Similarly when it touches the EMA 200 again on the one-day timeframe I will shift another layer into gold. In the same way according to the weekly chart and the one-week timeframe when it touches the EMA 200 again the remaining amount I have in silver will be converted into gold.
What will happen is that I will book the profit from its bull rally and move into gold. Now if it dumps gold will move much more slowly compared to silver. At every dip meaning whenever silver continues to move below the EMA 200 I will convert gold back into silver. I will keep doing this in layers which will continue to increase my quantity.
The additional quantity will be my profit and I can sell it and move into cash. Along with this if I see that both metals have had a good bull run it will also become a trade for me that can give me a very good profit.
Now this will only be possible if both metals are available in the spot market. For now gold is available in the spot market but silver is missing which is a negative point for me.
I am just waiting for silver to become available in the spot market very soon so I can take the best advantage of this conversion.
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