No matter what is the multiplier, Leverage trading is the most risky choice to leverage BTC while holding because there's a possibility that you will loss a part or all your position unlike lending or staked it into liquidity pool. But this suggestion too is the most powerful way to maximize profit on holding BTC IF you are too good and lucky on trading. It's very hard to predict exactly the outcome of BTC on short timeframe because its price can be easily affected by the news just like what happened recently to Bitmex.
Using leverage on exchanges is a good way to make a return if you know how to stick to a strategy and be consistent. Let's not forget that traders/investors can use less than 1x leverage. If you have $10500 worth of Bitcoin, nobody says you can't buy $150 worth of BTC  There are other fees involved involved in futures like funding, but one should know the instrument he's trading. @Coin_trader I wouldn't say leverage trading is the riskiest choice. It is only if you trade with leverage. |
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I am curious to see if and how the community here manages their Bitcoin holdings. This post concerns mainly the investors, not holders.
I think the majority of you hold Bitcoin to benefit from asset appreciation. e.g. You buy at $10,000 and hope to double or triple in the shortest amount possible.
My question is if you found any ways to leverage your Bitcoin while you hold it?
examples:
- Taking a collateralized loan - Where would you invest this loan? A business, real estate, etc.
- Putting it into a interest account.
- Lending it.
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You would be surprised that the majority of people in the crypto space are here to make gains. Do you think the average joe cares about the blockchain and the ability to make peer-to-peer transactions without the middleman? - Of course not. He is just interested in making a quick buck to get the new phone, watch, car, impress others with his "amazing" ability to make money from thin air. But as fast as these joes can make that buck, they can lose it.
Finance wise it is about preserving and growing your wealth in a steady manner.
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I don't think that any of the altcoins that are now in the market will be a real competitor to Bitcoin. This is how I view the future: Bitcoin as a worldwide mainstream currency and proof-of-value while many other altcoins/tokens will be used on private sidechains with specific use-cases.
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Nice to see an ex-trader trying to bring value to the community. You own a crypto consultancy company? - Peerly Safe?
You said you're a former bitcoin 'peer-to-peer' trader. I suppose that means you have been mainly trading OTC. How have you fund buyers/sellers? (through platforms like localbitcoins or your network)
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Lessons learned the hard-way make the biggest impact. Still, I am amazed on the lack of education of the man who scammed the investors. I mean stealing all those funds has stained his family's name for decades to come. Not even talking about their consciousness if they have one. And for what? - Personal expenses and gambling?! - People are short-term sighted these days. Life is long and money can be made in tons. But other things like reputation and time are priceless.
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Crypto twitter is composed mostly of speculators, not actual users of Bitcoin. So, at least for me it is not a gauge for the adoption rate, but for the greed/fear in the market.
One of the institutional trading strategies is to make people think an asset is not good anymore, or it is less popular, etc. while they accumulate. Guess what happens then.
I don't even watch this kind of analytics. They are superfluos if you ask me.
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In my view real estate remains a fundamentally good investment choice. I mean we will always need a place to rest our body. You can't say the same about bitcoin or gold.
I am least likely to invest in Gold from the three assets talked about in this thread. Its usecases are rather small and it is a precious metal that could be soon produced in laboratories or found in the outer space. I'm not willing to place a significant amount of my net worth in a metal just because it has proven itself to be a reliable hedge.
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Personally I would only put a significant amount of money in an audited smart contract that is built on a reliable, trusted blockchain. Although Ethereum has somehow stood the test of time, its dense congestions that cause delays and high network fees makes me reticent in using it ever again unless the underlying technology is greatly improved. If developers can built something like the above and offer an intuitive user interface I guess DeFi is a perfect candidate for the centralized options out there. |
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Isn't that applicable to other bounties, not just DeFi ones?
Bounty hunters need to take the risk of working in vain. If the projects can actually create value for the tokens the rewards are generally quite hefty. In summary, it is a high risk >> high reward trade of your time.
Each one of us should measure their time and finances and decide whether participating in this kind of campaigns is worth it or not.
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Congrats for their courage, but it isn't Bitcoin alone that sustained their lifestyle isn't it? They have a whole marketing suite set up - blog, youtube channel, social media - and digital products to sell. We should thank them for doing their part and spreading the word about Bitcoin.  |
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To me the biggest risk of all is that as I am still learning investing in Bitcoin, there are a few things that I don't understand. Fluctuation per se I cannot learn to forecast. Bitcoin seems not to depend on the general stock exchange condition, not like stocks for example. Although when in March 2020 the market went down, it went down too. Secondly, the fluctuation happens too often. You can lose $400 value in 1 BTC for just one lunch hour! And finally I can't figure out what happens when the capacity of BTC is finished. I guess the value will go yet up. But will BTC itself have value then? What if I will not be able to convert it into cash? Solvency is what worries me a lot.
1) You shouldn't invest in something without being informed. Investing in Bitcoin shouldn't be too hard. 2) Decide whether you want to be a long-term investor or a trader. For either of those you need to apply a strategy (e.g. technical analysis for trading) 3) Stocks are a different asset class than Bitcoin. Their value is based on the cash flow the companies produce for their shareholders/investors. Bitcoin is more like Gold. Its value derives from scarcity and speculation. 4) When all the Bitcoins will be mined, miners won't receive block rewards anymore, but will only be incentivized by transaction fees. |
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As far as real estate goes you have to do market research in your own area. The market will not look alike in the UK, Australia or Japan. Some countries aren't safe places to invest like if you live in Belarus I'd be careful with buying anything.
What foreign exchange rates are you talking about? Probably the Dollar that suffered a big loss in March with the start of the pandemic. It's always like that when some big changes are expected in a country. It will go back up after the election. That is if we don't get a stock market crash in the meantime.
I agree with pixie. Real estate is very different from one place to another. Even from one neighbourhood to another you will see huge differences. It is all a matter of , jobs, landscape, schools, hospitals, public transportation, crime, etc. IMO real estate is good to "park" your money for a steady growth of capital through property appreciation and hopefully monthly cash-flow. |
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Follow the old and ever actual supply and demand law. The "scooping" and HODL'ing of Bitcoin reduces the supply. Thus:
1) Demand stays the same >> Price goes up
2) Demand increase >> Price goes up more
3) Demand decreases >> Uncertain
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What I can think of is a ORIGAMI-styled paper wallet with Christmas motives or just a carton-made with xmas drawings would make a great gift IMO. To add to this gift I would prepare a beginner-friendly ppt or pdf presentation/guide or maybe some tutorial on how to buy something with bitcoin. Be creative - create a treasure hunt or a game. e.g. If you buy a shirt with bitcoin you will be able to unlock the riddle, smth like that.  |
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First of all you need to look at what YOU CAN control. Enable 2FA, use strong passwords, keep your private keys safe, keep as little funds as possible on exchanges and/or trading platforms as they are the most exposed to hackers.
Second of all make a little bit of due diligence on the exchanges. Ask yourself this kind of questions:
Are they a well established exchanged with proven history?
Have they been hacked before? If yes, have they hardened their security and how they managed the previous situation?
Are they keeping the funds in cold wallets and in multiple locations?
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I'm glad that the number of Bitcoin ATMs is growing, but sincerely I haven't ever used one because of the high fees.
I mean it is convenient than creating an exchange and going through KYC procedures, but is it really worth the fee? You decide, but for me it isn't. A below 5% fee would be acceptable. Hopefully if the trading volume increases we will see a reduction on commissions.
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Look, man.. You put together a quite long list of coins and this is your opinion and I respect it, but here is my perspective. I think Bitcoin is the king like you said and it will continue surging to new highs and attaining one of those crazy capitalizations. But all these other altcoins are ephemeral and mostly a gamble. I mean they might be interesting for some developers but unless they come up with something mind-blowing, they will be just pumped and dumped while the profits will pour into Bitcoin. In shorter words, Bitcoin is for the big boys while the majority of altcoins are for the adrenaline junkies and gamblers. |
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