Altcoins Talks - Cryptocurrency Forum
Further Discussions => Economics , Sociology & Politics => Topic started by: electronicash on February 17, 2024, 08:14:34 PM
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here's a situation, lets say you made money up to $300K this bull run and then you keep it on USDT and then waiting for the market to bottom.
would it change your position and not keep them in stablecoin instead if looking at the future that $300k might not have its purchasing power due to inflation?
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here's a situation, lets say you made money up to $300K this bull run and then you keep it on USDT and then waiting for the market to bottom.
would it change your position and not keep them in stablecoin instead if looking at the future that $300k might not have its purchasing power due to inflation?
I think it depends on your approach towards the market. If you consider long-term HODLing to be your primary strategy then keeping them in a stable coin makes sense. You just find the bottom again and buy for the long term. Inflation however is a problem as you have mentioned. But dollar cost averaging could be a solution to that. Not the best solution but it could be worth the effort.
Also, gold or land could be a better option for that. Inflation won't affect that much and even if you face inflation, the price of those things will also rise. Keeping a balance on your portfolio.
Stablecoins are not so stable after all. If you keep money as money, it will lose its worth/value over time. That's why investing is the best way. In my opinion, waiting for the bottom is foolish, because while you wait for that, you could miss other opportunities in that process. Or the bottom that you have hopes for may never come.
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Or the bottom that you have hopes for may never come.
that's a scarier. holding the stablecoin while the the bull run continues. i sure would be left behind.
it must be the dilemma anyone would face because its just 3 BTC per block soon, that quantity can easily be eaten by the assets manager. so its possible that bottom i'm looking might not happen. with money printing and inflation, BTC price could hit ATH to more than 300k but its the buying power of stablecoin to hold that is worrisome.
yes i do have plans to buy a property and maybe gold at least this hard asset wouldn't go away in case of black out. ;D
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would it change your position and not keep them in stablecoin instead if looking at the future that $300k might not have its purchasing power due to inflation?
Still a better choice to keep it on stablecoins than holding it to volatile crypto when you're just waiting market to drop regardless of the inflation rate.
It's unlikely to boost inflation rate to 10% a year and thinking it's purchasing power is not an issue. Well, usually when inflation is keep increasing, news outlets becomes noisy and bitcoin price does too, so better to keep %% in stablecoins then the other is bitcoin.
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would it change your position and not keep them in stablecoin instead if looking at the future that $300k might not have its purchasing power due to inflation?
Still a better choice to keep it on stablecoins than holding it to volatile crypto when you're just waiting market to drop regardless of the inflation rate.
It's unlikely to boost inflation rate to 10% a year and thinking it's purchasing power is not an issue. Well, usually when inflation is keep increasing, news outlets becomes noisy and bitcoin price does too, so better to keep %% in stablecoins then the other is bitcoin.
Good point. But my question here is that, does it need to be 50/50 or 60/40 in USDT-BTC? I mean how much do you think is the best percentage in that kind of situation mate as we are talking about inflation here.
I actually did this before in our local crypto wallet but just a small amount of capital that is why profit is not noticeable and fee is quiet high that time.
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If that were to happen to me and I have been holding it in FIAT and it dropped, I would be happy because I have made a profit with the initial buy that I have with the market. I will just buy again with what the market gives. Well, it's always going to be what I'm going to buy and it's probably BTC or ETH again.
It's not gonna affect too much because inflation is not that fast. You can still take advantage of the movement.
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Good point. But my question here is that, does it need to be 50/50 or 60/40 in USDT-BTC? I mean how much do you think is the best percentage in that kind of situation mate as we are talking about inflation here.
I actually did this before in our local crypto wallet but just a small amount of capital that is why profit is not noticeable and fee is quiet high that time.
It always be a personal preference, how high the inflation rate, the condition of the current bull run — because if it take longer time to dump even you call yourself done and pull your holdings to keep it on stablecoins, you might end up thinking maybe price will still go up while being cautious that it may go dump suddenly and bear season starts. So stop-loss or limit-loss is your option.
But if you think you're done with it, then pull it all 100% on stablecoins regardless the inflation rate, its useless to think about it when you already make profit as it will not appear to be necessary atm. Then wait til it dumps to a certain point that you can buy back BTC and call it profit. I will go 70/30 where btc/usd, or get the net profit you get on the current bull run then put back your capital into BTC for another round.
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I will go 70/30 where btc/usd, or get the net profit you get on the current bull run then put back your capital into BTC for another round.
Yeah this is what I actually did in the past unfortunately I used all of my capital and profits for me and my family's needs when we're ran out of money some years back. But if given a chance to survive hodling until 2025 I think this is what I gonna do because right now I'm on a DCA hopefully it will be having a good result soon.
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Good point. But my question here is that, does it need to be 50/50 or 60/40 in USDT-BTC? I mean how much do you think is the best percentage in that kind of situation mate as we are talking about inflation here.
I actually did this before in our local crypto wallet but just a small amount of capital that is why profit is not noticeable and fee is quiet high that time.
It always be a personal preference, how high the inflation rate, the condition of the current bull run — because if it take longer time to dump even you call yourself done and pull your holdings to keep it on stablecoins, you might end up thinking maybe price will still go up while being cautious that it may go dump suddenly and bear season starts. So stop-loss or limit-loss is your option.
But if you think you're done with it, then pull it all 100% on stablecoins regardless the inflation rate, its useless to think about it when you already make profit as it will not appear to be necessary atm. Then wait til it dumps to a certain point that you can buy back BTC and call it profit. I will go 70/30 where btc/usd, or get the net profit you get on the current bull run then put back your capital into BTC for another round.
i am also planning to exchange them 100% to stablecoin but given the circumstances that somehow things could escalate quickly in living in a country where there is a constant threat for war, either blackout or no internet connection will just make the assets useless. what else could be an option for this situation other than gold?
in case however if what we thought to be the ATH isn't actually the ATH and price continues to go up, i think i will not chase the trade anymore. will just wait for the bear.
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i am also planning to exchange them 100% to stablecoin but given the circumstances that somehow things could escalate quickly in living in a country where there is a constant threat for war, either blackout or no internet connection will just make the assets useless. what else could be an option for this situation other than gold?
in case however if what we thought to be the ATH isn't actually the ATH and price continues to go up, i think i will not chase the trade anymore. will just wait for the bear.
If you are waiting for the market to hit the bottom and the market suddenly increases its price, like it seems that the market is still not done falling, then it is advisable to split your investment into two parts. Keep one part in stablecoins as you have already made up your mind to not chase the market anymore as you already made your profit and invest the other half in non-crypto assets, such as gold or other progressing investments. This way, you can diversify your portfolio and have a fallback option while you wait for the market at the bottom.
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i am also planning to exchange them 100% to stablecoin but given the circumstances that somehow things could escalate quickly in living in a country where there is a constant threat for war, either blackout or no internet connection will just make the assets useless. what else could be an option for this situation other than gold?
in case however if what we thought to be the ATH isn't actually the ATH and price continues to go up, i think i will not chase the trade anymore. will just wait for the bear.
If you are waiting for the market to hit the bottom and the market suddenly increases its price, like it seems that the market is still not done falling, then it is advisable to split your investment into two parts. Keep one part in stablecoins as you have already made up your mind to not chase the market anymore as you already made your profit and invest the other half in non-crypto assets, such as gold or other progressing investments. This way, you can diversify your portfolio and have a fallback option while you wait for the market at the bottom.
The truth is that we can't be sure where the lows will be and where the highs will be, we can only speculate on the possibility that a certain point might be a low or vice versa, and that's not going to be accurate.
For myself when we are sure that it has reached the ATH but the price is still rising, then I will stop chasing it because for me it is too risky. I would probably prefer to wait, even if it takes longer, but it doesn't matter when we have prepared everything.
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In my strategy of accumulating more after selling during the bull market, I suggested to myself that I sell to fait (USDT) rather than a stable coin. Although USDT may also be centralized, I think it's more safe than some other stable altcoins. Such a strategy is good, but not everyone likes to adopt it. Some people will prefer to hold their coins for so many years before they sell off. For example, a member said that he has been holding his bitcoin for more than 10 years, and for those intervals, two bull markets have been crossed.
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i am also planning to exchange them 100% to stablecoin but given the circumstances that somehow things could escalate quickly in living in a country where there is a constant threat for war, either blackout or no internet connection will just make the assets useless. what else could be an option for this situation other than gold?
in case however if what we thought to be the ATH isn't actually the ATH and price continues to go up, i think i will not chase the trade anymore. will just wait for the bear.
If you are waiting for the market to hit the bottom and the market suddenly increases its price, like it seems that the market is still not done falling, then it is advisable to split your investment into two parts. Keep one part in stablecoins as you have already made up your mind to not chase the market anymore as you already made your profit and invest the other half in non-crypto assets, such as gold or other progressing investments. This way, you can diversify your portfolio and have a fallback option while you wait for the market at the bottom.
The truth is that we can't be sure where the lows will be and where the highs will be, we can only speculate on the possibility that a certain point might be a low or vice versa, and that's not going to be accurate.
For myself when we are sure that it has reached the ATH but the price is still rising, then I will stop chasing it because for me it is too risky. I would probably prefer to wait, even if it takes longer, but it doesn't matter when we have prepared everything.
Well, if you sold your assets at the previous ATH, and are currently assessing the market's possibilities, you can set a specific price point at which you are willing to re-enter the market. It's not necessary to enter at the bottom since nobody can predict the exact price. However, if your goal is to invest at the lowest point possible, you can use the DCA strategy once the market enters the bearish phase again. This way, you can enter the market at different prices and have a chance to buy at the lowest possible price.
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Well, if you sold your assets at the previous ATH, and are currently assessing the market's possibilities, you can set a specific price point at which you are willing to re-enter the market. It's not necessary to enter at the bottom since nobody can predict the exact price. However, if your goal is to invest at the lowest point possible, you can use the DCA strategy once the market enters the bearish phase again. This way, you can enter the market at different prices and have a chance to buy at the lowest possible price.
Yeah you are correct mate, I know we all wanted to really maximize our profits especially in this volatile investment that is why we do DCA. But most of our profits I think rests on stable coins after we reap it in times of bull run or new ATH and exited the volatile market to protect our funds from the sudden plummet during correction or the bear market.
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Just yesterday I answered a similar question on our local board (https://www.altcoinstalks.com/index.php?topic=318003.msg1505161#msg1505161). Not only is it very difficult to get the highs and lows of the market right, but in my post yesterday I quoted two articles entitled 'The best investor in history' and 'The worst investor in history' which showed that for periods of less than 100 years the DCA strategy is the same and even gives a little more return than the strategy of the best investor in history, who was always right to buy at the lowest moments of the market. The studies were done on the stock market but I am convinced that they apply directly to bitcoin as well.
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I will prefer to share the money into three equal parts. Bitcoin price is still in a good price because we have not reach the previous ATH price, and we are expecting a new ATH price which should be above 100k. I will use the first part which is 100k,to lump sum, I will use the sec ond 100k,and divide it into smaller fractions, like $1k into 100 places, and I will use 1000k dollars to DCA weekly or monthly consistently, till some months before the bull run. I will divide the last 100k into two, keep 50k in USDT, and keep the last 50k to buy at the dip, should incase bitcoin price dips below 40k. At the bull run, I will sell the the the fraction that I use to lump sum, take profit and buy back, and I will keep the DCA portfolio for a very long time, and those bitcoin that I will buy at the dip.
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here's a situation, lets say you made money up to $300K this bull run and then you keep it on USDT and then waiting for the market to bottom.
would it change your position and not keep them in stablecoin instead if looking at the future that $300k might not have its purchasing power due to inflation?
Be aware that Market is still keeping its high now so maintaining your funds in stable coins is for me a so very advance movement what if Bitcoin made its climb to breaking the ATH? then you will regret that you acted earlier mate.
so basically this may be coming in the next few months or so.
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here's a situation, lets say you made money up to $300K this bull run and then you keep it on USDT and then waiting for the market to bottom.
would it change your position and not keep them in stablecoin instead if looking at the future that $300k might not have its purchasing power due to inflation?
Be aware that Market is still keeping its high now so maintaining your funds in stable coins is for me a so very advance movement what if Bitcoin made its climb to breaking the ATH? then you will regret that you acted earlier mate.
so basically this may be coming in the next few months or so.
If that is the case, I will use that stable coin worth $300k to perform Dollar Cost Averaging in the bottom prices. Early or late I can still catch up for the trend and through this strategy we can avoid missing some of the opportunity the price movements has brought us.
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I will prefer to share the money into three equal parts.
Good idea. I don't understand why we need to go all-in for stablecoin or holding BTC either unless your capital is really small and holding BTC for 4 years is not going to change your wealth to a significant degree. If I were looking to keep some purchasing power for the bear market, I'd probably convert it into fiat directly instead of relying on stablecoins. Considering how shady some of them are, and how reliant they are on government not changing their policy and cracking down their business, I still don't feel safe using them for mid-term/long-term capital storage.
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I will prefer to share the money into three equal parts.
Good idea. I don't understand why we need to go all-in for stablecoin or holding BTC either unless your capital is really small and holding BTC for 4 years is not going to change your wealth to a significant degree. If I were looking to keep some purchasing power for the bear market, I'd probably convert it into fiat directly instead of relying on stablecoins. Considering how shady some of them are, and how reliant they are on government not changing their policy and cracking down their business, I still don't feel safe using them for mid-term/long-term capital storage.
I can't do that here in my country as our local currency is currently losing it's value due to inflation so much better to have USDT compared to having my local fiat currency. Stablecoins is good to have if you are living in a country that is currently affected by inflation. Though I personally use it only for taking profit because most of the time it will be on Bitcoin most especially if market is good to DCA.
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Inflation is probably the least of your worries when the bear market hits. I'm pretty sure the traders and investors that didn't cash out/convert to fiat/stable coins would prefer that instead of hodling coins/tokens back to their bottom. You have a lot of options if you have $300K in reserves. DCA as other have mentioned or gamble on some new tokens before the next cycle.
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Inflation is probably the least of your worries when the bear market hits. I'm pretty sure the traders and investors that didn't cash out/convert to fiat/stable coins would prefer that instead of hodling coins/tokens back to their bottom. You have a lot of options if you have $300K in reserves. DCA as other have mentioned or gamble on some new tokens before the next cycle.
or stake the stablecoin to still make money while waiting for the bottom of prices. though i'm not sure i can actually wait and i'm already eager to spend money even today i'm already looking forward to try out my plan of using the money to build mining rig for the coins i wanna try mining.
but where do you think is safer to stake USDT to earn? i'm concern about the CEX that might suddenly as for another KYC and source of income.
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here's a situation, lets say you made money up to $300K this bull run and then you keep it on USDT and then waiting for the market to bottom.
would it change your position and not keep them in stablecoin instead if looking at the future that $300k might not have its purchasing power due to inflation?
Simply mathematical modeling speaks in favor of keeping funds earned on the HYIP, in stablecoins. With a constantly falling crypto market, the losses from the loss of value of crypto-assets will significantly exceed the losses from inflationary processes to which the stablecoins are subjected.
The second nuance - what are the alternatives for preserving the earned money? Gold ? It is a controversial issue since the price of gold is not entirely predictable by the time of crypto market growth, plus the price of buying gold and the price of selling gold is always a guaranteed loss of part of the value. If fiat - there will be losses on fiat crypto conversion.
In short, it seems to me that storing "before the bull market", in stablecoins is one of the most balanced options
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Inflation is probably the least of your worries when the bear market hits. I'm pretty sure the traders and investors that didn't cash out/convert to fiat/stable coins would prefer that instead of hodling coins/tokens back to their bottom. You have a lot of options if you have $300K in reserves. DCA as other have mentioned or gamble on some new tokens before the next cycle.
Yeah I think other Altcoins with potential are also worth to gamble while waiting for that bottom in Bitcoin. It can also give us good returns during that period. We all know that just like Bitcoin, Alts also have it's season so I think it is a good alternative as well. $300k is huge so to maximize profit and prevent it from being stagnant I think stablecoins might not be an option for some investors and they may jump into other Alts.
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Inflation is probably the least of your worries when the bear market hits. I'm pretty sure the traders and investors that didn't cash out/convert to fiat/stable coins would prefer that instead of hodling coins/tokens back to their bottom. You have a lot of options if you have $300K in reserves. DCA as other have mentioned or gamble on some new tokens before the next cycle.
Yeah I think other Altcoins with potential are also worth to gamble while waiting for that bottom in Bitcoin. It can also give us good returns during that period. We all know that just like Bitcoin, Alts also have it's season so I think it is a good alternative as well. $300k is huge so to maximize profit and prevent it from being stagnant I think stablecoins might not be an option for some investors and they may jump into other Alts.
like Yuan or Ruble?
i have that idea actually but there is just not stablecoin for these countries. i would likely be looking forward to see if this is also an opportunity to look at after winning large sum in crypto. we wouldn't want to keep it in BTC while the bears are dragging BTC price to the ground.
if inflation could be the issue just as how fast stablecoin can be devalued. it happened Argentina which is why if we are to prepare for what is to come for stablecoin, i guess looking for alternative after BTC will be good. which one Yuan or Ruble?
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Inflation is probably the least of your worries when the bear market hits. I'm pretty sure the traders and investors that didn't cash out/convert to fiat/stable coins would prefer that instead of hodling coins/tokens back to their bottom. You have a lot of options if you have $300K in reserves. DCA as other have mentioned or gamble on some new tokens before the next cycle.
Yeah I think other Altcoins with potential are also worth to gamble while waiting for that bottom in Bitcoin. It can also give us good returns during that period. We all know that just like Bitcoin, Alts also have it's season so I think it is a good alternative as well. $300k is huge so to maximize profit and prevent it from being stagnant I think stablecoins might not be an option for some investors and they may jump into other Alts.
like Yuan or Ruble?
i have that idea actually but there is just not stablecoin for these countries. i would likely be looking forward to see if this is also an opportunity to look at after winning large sum in crypto. we wouldn't want to keep it in BTC while the bears are dragging BTC price to the ground.
if inflation could be the issue just as how fast stablecoin can be devalued. it happened Argentina which is why if we are to prepare for what is to come for stablecoin, i guess looking for alternative after BTC will be good. which one Yuan or Ruble?
Yeah if you just buy and hodl vice versa USDT is good but if you want to play with Altcoins on alt season it will work good as well. I am not familiar with the Chinese and Russian currency as an alternative but you might want the strongest currency like US dollar, Kuwaiti Dinar, Pound Sterling and Euro. Inflation is our only headache while holding fiat so beware and be wise.
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Inflation is probably the least of your worries when the bear market hits. I'm pretty sure the traders and investors that didn't cash out/convert to fiat/stable coins would prefer that instead of hodling coins/tokens back to their bottom. You have a lot of options if you have $300K in reserves. DCA as other have mentioned or gamble on some new tokens before the next cycle.
Yeah I think other Altcoins with potential are also worth to gamble while waiting for that bottom in Bitcoin. It can also give us good returns during that period. We all know that just like Bitcoin, Alts also have it's season so I think it is a good alternative as well. $300k is huge so to maximize profit and prevent it from being stagnant I think stablecoins might not be an option for some investors and they may jump into other Alts.
like Yuan or Ruble?
i have that idea actually but there is just not stablecoin for these countries. i would likely be looking forward to see if this is also an opportunity to look at after winning large sum in crypto. we wouldn't want to keep it in BTC while the bears are dragging BTC price to the ground.
if inflation could be the issue just as how fast stablecoin can be devalued. it happened Argentina which is why if we are to prepare for what is to come for stablecoin, i guess looking for alternative after BTC will be good. which one Yuan or Ruble?
Something tells me that the chosen currencies are not the most suitable collateral for stablecoins....
And that's without taking into account - not the best prospects of both, and legislative obstacles to work with cryptocurrencies
Well the charts, speak for themselves...
(https://i.postimg.cc/XXgbmGSS/2024-03-04-23-46-52-USD-RUB-Trading-View.png) (https://postimg.cc/XXgbmGSS)
(https://i.postimg.cc/zVXrrz8L/2024-03-04-23-47-29-USDCNH-Trading-View.png) (https://postimg.cc/zVXrrz8L)
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Yeah if you just buy and hodl vice versa USDT is good but if you want to play with Altcoins on alt season it will work good as well. I am not familiar with the Chinese and Russian currency as an alternative but you might want the strongest currency like US dollar, Kuwaiti Dinar, Pound Sterling and Euro. Inflation is our only headache while holding fiat so beware and be wise.
As long as you're aware of the risk carried by using a stablecoin, especially if the issuer is not on friendly terms with the government. That being said, what about asset-backed tokens like gold? I remember seeing a project claiming their token is backed by gold and anyone can check their vault to see if the gold exist or not. I'm pretty sure it is not a good long-term solution either since you can't really withdraw any gold, but should be better compared to using meme coins to store your wealth.
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Inflation is probably the least of your worries when the bear market hits. I'm pretty sure the traders and investors that didn't cash out/convert to fiat/stable coins would prefer that instead of hodling coins/tokens back to their bottom. You have a lot of options if you have $300K in reserves. DCA as other have mentioned or gamble on some new tokens before the next cycle.
Yeah I think other Altcoins with potential are also worth to gamble while waiting for that bottom in Bitcoin. It can also give us good returns during that period. We all know that just like Bitcoin, Alts also have it's season so I think it is a good alternative as well. $300k is huge so to maximize profit and prevent it from being stagnant I think stablecoins might not be an option for some investors and they may jump into other Alts.
like Yuan or Ruble?
i have that idea actually but there is just not stablecoin for these countries. i would likely be looking forward to see if this is also an opportunity to look at after winning large sum in crypto. we wouldn't want to keep it in BTC while the bears are dragging BTC price to the ground.
if inflation could be the issue just as how fast stablecoin can be devalued. it happened Argentina which is why if we are to prepare for what is to come for stablecoin, i guess looking for alternative after BTC will be good. which one Yuan or Ruble?
Something tells me that the chosen currencies are not the most suitable collateral for stablecoins....
And that's without taking into account - not the best prospects of both, and legislative obstacles to work with cryptocurrencies
Well the charts, speak for themselves...
(https://i.postimg.cc/XXgbmGSS/2024-03-04-23-46-52-USD-RUB-Trading-View.png) (https://postimg.cc/XXgbmGSS)
(https://i.postimg.cc/zVXrrz8L/2024-03-04-23-47-29-USDCNH-Trading-View.png) (https://postimg.cc/zVXrrz8L)
well there is not much option unless we can physically buy gold. while most of the analyst i've heard are also avoiding USD due to the massive printing.
one option is the yuan since most of the BRICS countries are up to use it already so this must be something of an option.
the question this time is where exactly should we be keeping our assets to hedge when the bull run is over. there are several options that are suggested and maybe its best to diversify like having Gold, keep some USDT and keep a bit of BTC and lastly Yuan.
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here's a situation, lets say you made money up to $300K this bull run and then you keep it on USDT and then waiting for the market to bottom.
would it change your position and not keep them in stablecoin instead if looking at the future that $300k might not have its purchasing power due to inflation?
How much inflation are we going to experience in a year or two risk buying at the top? If you live in a country where inflation is well moderated, you dont have to worry about too much of inflation on your investment, the reason why we have investment is because we want something that can combat inflation and if you could make such amount in bull run, you have nothing to worry about unless you are the type of person that have touch money and see such amount as nothing but even still, the amount is okay to me.
However, if you leave in a country where inflation can just skyrocketed, then you should leave your profits in USDT since other currency depreciated against usd, the dollar will help you protect your funds from inflation as you can have more money when anytime you try to convert to your currency.
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Yeah if you just buy and hodl vice versa USDT is good but if you want to play with Altcoins on alt season it will work good as well. I am not familiar with the Chinese and Russian currency as an alternative but you might want the strongest currency like US dollar, Kuwaiti Dinar, Pound Sterling and Euro. Inflation is our only headache while holding fiat so beware and be wise.
As long as you're aware of the risk carried by using a stablecoin, especially if the issuer is not on friendly terms with the government. That being said, what about asset-backed tokens like gold? I remember seeing a project claiming their token is backed by gold and anyone can check their vault to see if the gold exist or not. I'm pretty sure it is not a good long-term solution either since you can't really withdraw any gold, but should be better compared to using meme coins to store your wealth.
Well yeah that coin backed with gold is really a better option short term compared to having memecoins as an alternative to store our profits from the bullrun. USDT maybe has I think no existing problems with my country's government so I think it is all good to have it since inflation is already hitting hard now with our local currency.