Question: How To Stay in USD When Not In A Bitcoin Trade?

[Woodford]

My problem is really pretty simple.

I think (just guessing) that Bitcoin is trending up too fast and that some unforeseen event will cause the price to down-trend in 2017, perhaps 30 to 50%. It is only a guess, but I am very nervous about keeping my Poloniex balance in Bitcoin since it might crash at any time and wipe out half of my balance. I though about keeping my balance in another altcoin, but if Bitcoin price falls, all the altcoins will fall, probably.

What I want to do is day trade in Bitcoin, but convert my Poloniex bitcoin balance to USD at the end of the day when not trading. Staying in USD when not trading is safer than staying in Bitcoin during 2017, or so I believe.

Is there some way to do this, or do I need another bitcoin broker?


Thanks
Woodford

[knircky]

Polo has two currencies that are pegged to the dollar.

Steem Dollar is one of them i would use because they pay interest of like 9% right now.

You have to put them into your steem account to collect the interest, but thats super easy.

[smooth]

Polo has two currencies that are pegged to the dollar.

Steem Dollar is one of them i would use because they pay interest of like 9% right now.

You have to put them into your steem account to collect the interest, but thats super easy.

A few comments on this:

1. As you noted, you only receive the interest if your hold the coins in your own wallet (using the steemit.com web wallet counts). If you keep the coins on polo, polo gets the interest.

2. The interest rate is variable and has been trending down. It is currently 6%. You can see the current rate in the sidebar on steemd.com: sbd_interest_rate 600

3. Steem Dollar (SBD) is backed by the value of the Steem blockchain. If STEEM drops enough in value SBD holders will also take a loss. According to blockchain rules this starts to happen when the market cap ratio of SBD to STEEM increases to 10% (currently about 3%) but the market also plays a role. SBD can and has fluctuate in value, though recently it has usually been within a percent or two of USD.

The other option is USDT which is backed by USD in a bank account held by the company that issues USDT (Tether). It is exposed to the risk that the company can not or does not perform in redeeming the USDT.

[niagrabill]

Go on Btc-e and palce a short and long position for the same amount. Its called going short against the box. You only have margin interest but it locks your price in.

[Pursuer]

your best bet is using USDT as smooth explained at the end of his comment. I am surprised how you haven't yet seen it since you are trading on poloniex?

but your other choice is to choose another exchange that offers trading with USD such as btc-e or cex.io or many other smaller exchanges that may have fiat trading pairs such as c-cex. I'd go with btc-e.com though, it is more trusted and it has the major altcoins worth trading.

p.s. bittrex also has USDT I believe.

[criptix]

If you dont have problems with aml and kyc just sell your bitcoins and hold dollar.
You dont have to be sleepless at night...

[smooth]

p.s. bittrex also has USDT I believe.

Bittrex has both USDT and SBD