Holding ZERO bitcoin is risky business
A few weeks ago I wrote a post about how I always keep some bitcoin on hand. I was mocked on some forum, but I got a sense that most doing the most talking didn'tt understand the intrinsic value of BTC.
Here we are a few weeks later and Bitcoins overall market dominance is back over 40%, the fiat value of alts are on the rise but if you try and sell your alts for Bitcoin you will receive less then you would have a couple weeks back. This is why I hold a fair share of bitcoin, as it makes it's return to dominance alts will bleed and become much easier to accumulate.
I understand that most people avoid holding BTC because they feel that they can get a better ROI from cheaper alts. This is true but you are fully exposed to the wild swings of bitcoin and also risk being left in the dust when bitcoin goes full bull and alts start getting dumped. The opposite scenarioo can play out as well, BTC can take a dive dragging alts into the ground sats wise, but as long as you have some BTC available you can buy the coins that dumped and resell as they recover.
I agree that "hedging with Bitcoin" can be a tricky business....
And when BTC risen from 800 USD to 20000 USD, in 2017. With that type of gains, most people are chasing 10x....20x....or even higher gains! Which can be a trap, as you said altcoins are very heavily correlated to Bitcoin. When BTC is on decline, most often altcoins following with the price too.
Then people panic, and sell their alctoins, for cheaper BTC, or even worse, they are holding those alctoins, and just watching the price declining.... their portfolio shrinking.
Worth to mention: most of altcoins had their all time highs in December'17, and lost lots of their price value since.... some of them might even never recover.
This is the reason, why knowledge and market research comes into very useful play. Whether you are a trader, or investor for a longer run: knowledge, and investing in really good projects, with great team, MVP, profit generating systems behind - are the best option when investing / trading (this reducing risks massively).
On the other hand: if you know how to hedge altcoins vs Bitcoin - this can be extremely profitable.
My friend this is a GREAT response. Greed has corrupted the vison of many and that chase of the all might "FIAT" has lead them to lose their BTC.
I personally do not trade in Fiat prices. I only trade in SAT/Gwei. Why? Becasue my end game is to earn more BTC. You can't do that if you are panic selling alts at a depressed sat price for BTC
very nice
No pain no gain so to have profit you have to take risks
I still hold a lot of Bitcoin too.
Well let me ask you this. Do you hold a lot of bitcoin because most for stability, or to catch alt dumps?
Both. I try to have a portfolio that is representative of the market. I don't hold small market cap coin and there are some coin from the top 10 that I've skipped like TRON and Cardano. I guess I should have bought. I missed so many opportunies but everyone in that space can say the same. I'm more than happy with what I have. The rest is bonus while I'm trying to focus on making this world a better place.
Oh ok, but why do you avoid small caps? I find quality young projects can pay off quite well.
As for the top 10. Tron and cardano are not deserving of the distinction but ‘Tis is crypto.
I personally have been shifting to more Btc as it’s clear Alts are going to get battered
I expect Bitcoin to make 5-10x in the next year. For me this is more than enough to achieve want I want to achieve in this life.
I expect national currencies to crash in 3-4 years if not sooner. I'm trying to concentrate my mind on making this world a better place and doing things I enjoy rather than thinking about maximizing my wealth at the expense doing the thing I love the most.
Good points.
Hodling a reserve currency is very important.
If you're not out performing BTC then what's the point of doing all that trading? And how will you build better positions without some on hand? I am trapped in both of these scenarios because i dont have enough btc on hand.
Good advice. Was it here on steemit that people mocked your or a different forum (/r/cryptocurreny maybe?)
/r/cryptocurreny : These Idiots. I don't think you can actually ever be right in the sub. Some one will argue regardless.
shill and bot country. used to be a decent place to gauge sentiment but now its so artificial that its barely worth the reading time.
Remember the bots that helped me in the past. Worthless now.
I had been wondering about that actually. I guess all the microtask sites are paying people to upvote and comment about various shitcoins now a days. It used to happen in the past, but not to this magnitude.
It’s crazy and never ending. What sad is that it works, sheep follow shills like crazy
I agree with this 100%! I also think that people use Bitcoin as a payment, which is fine, but in all honesty, it should be treated as a store of value. The only reason I think this way is because Bitcoin costs so much. Like, do you really want to buy lunch and have to convert USD to BTC and then have a ridiculous number like 0.0032285 BTC to pay?
Well this can and will be fixed when lightning network comes to life
Altcoins are vigorously corresponded to Bitcoin. At the point when BTC is on decrease, regularly altcoins following with the value too.Then individuals frenzy, and offer their alctoins, for less expensive BTC, or much more dreadful, they are holding those alctoins, and simply watching the cost declining.
I concur with this post! I likewise believe that individuals utilize Bitcoin as an installment, which is fine, however in all genuineness, it ought to be dealt with as a store of significant worth.
The more people who realize this, the less volatile the bitcoin swings will be
The instability of bitcoin will diminish as the liquidity of the market increments. In human terms this means at the present time on the grounds that there are moderately few market members the market can be moved by dread or eagerness cultivated by control.
Time will fell who really has the power to control these things.
I really agree with this, Btc still has a massive first mover advantage, and segwit plus the Lightning network is really breathing new life into it!
Lightning network is going to crush so many ALTs. especially if all the alt is used for is fast payments.
People seem to forget, their coins fiat value is still based on BTC.
Sir it's all about knowing the real value and it's potential about what is in your waller, and we all know Bitcoin will increase soon so selling it is bad choice they made
Well they really don’t care about the bitcoin at all so I doubt they even care.
wow very nice post
Thank you
Today, I read the news that the bitcoin rise. Almost 12k dollar price reminds me a movie 300 and rise of empire it's nexrt part
Everyone rushing to get to the front
yes because it's future................
excellent post friend
:)