How to protect yourself from ethereum correction
Ethereum is one of the strongest crypto right now and it is climbing slowly back to the 400$ it was for a short while.
But as everyone involved know, there is often a correction waiting. Of course you can hold on to your investment and just wait. I believe in ethereum and I also hold majority of my crypto.
There is a little tip for you, if you dont want to risk your cryptocurrency capital, but you also like to earn little bit more than just what you have. The more ethereum you own, more $ will you get when you decide it is high enough (If it is ever that time you say it is high enough).
So, i started doing following:
Everytime a bearish movement starts (price of ETH/USD goes down), and the market seems to keep dropping, especially when bitcoin is also dropping, I trade some of my Ethereum for USDT (tether dollar). It is a cryptocurrency, that is covered by a bank. So the price should be stable and always very close to 1:1 with USD. For exchange I use Poloinex, as their rates are low and if worked for me every time so far.
For example ETH is 350$ and it drops to 315$. So I exchange ETH for USDT and get 315 USDT per 1 ETH. The bearish movement continues and goes to 250$. Then it turns and go up to 280$ so i trade my USDT for ETH. As a result, I have more ETH than I had before and I can wait for its price to go up and beyond.
Of course I can be wrong and I can also loose some ETH, if price goes to the different way than I expected. That is why I do this always with smaller amount of my ETH (less than 1/4).
I am a miner so I am trying to maximize the amount of Ethereum I have rather than cash it out.
This method is rather speculative and also a bit risky, but there seems to be a pattern to ethereum drops and rises. And of course, if the price booms significantly you change USDT back to ETH and wait for the boom to end. And after that repeat the process.
Please consider this as a tip from ethereum miner, not a professional financial advise.
I love your posts.