Why should i always have fiat?

[Bonwin]

One of the mistakes that some crypto enthusiasts make is to convert all the fiats they have been able to accumulate all these while into cryptocurrency, which is wrong.

There are times you might seriously need fiats, not just because you do not want to invest all that you have into crypto alone, but to sometimes cover-up for your losses.

How does it work?
Take for instance every coin you invested in had plunged, just like what happens during bearish market. Then you notice another coin that has the potential to give you more than x2 of your investment. You may not be able to afford selling those coins you initially had, which had plunged.
In this case, you might need your fiat to purchase another coin(eth or btc), that can be used to make the new purchase.

This works most times for traders and sometimes for investors.
Before you know it, you would have recover your losses within a short time and you will have nothing to worry about.

It works for me and i just wished to share the idea, peradventure you will find it useful.

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[Ayobami99]

i think i like the idea of keeping funds in fiat not only in crypto, it has been a safe haven for me ever since i began investing in cryptocurrencies, one cannot predict the market movements so one need a plan B

[geminiboy]

this system can cover past losses with new profits that can be obtained by buying a cheaper one, I also often use the reserve fund strategy, I divide the investment funds into 3 parts, if the coins go down the second fund I reinvest, and it turns out the decline is still happening so the third fund can be used to buy basic prices, that's where the third fund always covers the cost of the first and second investments

[siddartha1492]

Or maybe you can have some stable coins like USDT. I think they can also benefit users in a situation like you mentioned above. But of course, one should have adequate amount of fiat too. I don't really buy the whole anti-fiat idea. Crypto is great, but fiat is also important. So have some fiat, no matter what.

[Reid]

A basic rule which not just trader should know but everyone.

You will still need to go with the flow of how this world works and one of that is the traditional currency.
It aint just because you knew there is new currency out there which is crypto and suddenly risking every penny you have.

You must always have the other option in case of emergencies.

[qazgroup]

You are right and i agree with you that we should keep a percentage of our holding in fiat or liquid cash because not only it is a good hedge against crypto market and secondly it can help as take leverage in extreme downtrends where we can pick good coins from there longterm support areas that can also yield good profits for investors so yes fiat is very important.

[mostkey]

All you need to pay attention to from Fiat is basic needs.

One of the mistakes that some crypto enthusiasts make is to convert all the fiats they have been able to accumulate all these while into cryptocurrency, which is wrong.

There are times you might seriously need fiats, not just because you do not want to invest all that you have into crypto alone, but to sometimes cover-up for your losses.

How does it work?
Take for instance every coin you invested in had plunged, just like what happens during bearish market. Then you notice another coin that has the potential to give you more than x2 of your investment. You may not be able to afford selling those coins you initially had, which had plunged.
In this case, you might need your fiat to purchase another coin(eth or btc), that can be used to make the new purchase.

This works most times for traders and sometimes for investors.
Before you know it, you would have recover your losses within a short time and you will have nothing to worry about.

It works for me and i just wished to share the idea, peradventure you will find it useful.

What is always remembered is not to put eggs in one basket, it provides an advantage or anticipation if one of the assets is not in good condition, then one of these coins covers the losses that occur, the most worrying if storing all into one coin can lose more value, it is a method used by many traders and investors today, to double profits into potential coins.

[Noobaru]

Of course you should always have fiat at your side and there are several reasons for that. Fiat is somehow stable while cryptocurrency is not at this early stage. You can always buy a lot more with fiat while cryptos are not yet mainstream. Don't put all of your savings into crypto since you can easily get burned.

[clonely]

One of the mistakes that some crypto enthusiasts make is to convert all the fiats they have been able to accumulate all these while into cryptocurrency, which is wrong.

There are times you might seriously need fiats, not just because you do not want to invest all that you have into crypto alone, but to sometimes cover-up for your losses.

How does it work?
Take for instance every coin you invested in had plunged, just like what happens during bearish market. Then you notice another coin that has the potential to give you more than x2 of your investment. You may not be able to afford selling those coins you initially had, which had plunged.
In this case, you might need your fiat to purchase another coin(eth or btc), that can be used to make the new purchase.

This works most times for traders and sometimes for investors.
Before you know it, you would have recover your losses within a short time and you will have nothing to worry about.

It works for me and i just wished to share the idea, peradventure you will find it useful.

We need to transform our investments into portfolios. This portfolio should always be BTC and fiat money. Even a few non-crypto investment tools can be included in this basket.

If I should the answer your question directly, Yes we should keep fiat in our investment basket.

[cizatext]

It a great mistake not to have credit of fait money in your possession because currency at any level have it own use there are time where your cryptocurrency will be useless at a given period that you will need to make a transactions and at that the only currency needed at that point is fait money. So it best to always balance the equation at all time.

[Lighthouze]

The concept of having fiat for the purpose of covering up for loses is not exactly realistic. Fiats could be for other purposes like real life expenses, especially as cryptos aren't mainstream yet, and purchase of BTC or ETH. In my country, you first have to covert your fiat to BTC or ETH to be able to purchase any other coin.

[aoluain]

Its important not to go "all in" and convert everything you have to FIAT and then
convert that FIAT to crypto. Too risky.

Everyone still needs to have FIAT for day to day living. Its wiser to convert a
percentage of FIAT to crypto and build it up regularly.

[jinnyjinny]

Since I started investing in cryptocurrencies, a lot of time has passed and I have gained invaluable experience. Previously, I as a true crypto-enthusiast, counted my profit in bitcoin and was extremely pleased with myself. But later I realized that the price tags for goods in the store are calculated not in bitcoins, but in fiat currency and it is good to have a profit in these units, at least now, when the cryptocurrency is so volatile.

[Ini35]

Part of the things that limit us sometimes and prevent us from having some profits as at when due is when we do not have backups. These backups are fiats that might be needed in case of any emergency.
For instance, i am a holder of ethereum and at a point, a could not sell them, because their prices had plunged. Then it was good i had fiat, so i just bought from the dip and i was able to make some profits.

[rockyfeller]

The biggest mistakes that i've ever done. Go all in on Crypto. Everytime i've earned salary in my regular job. I use to save money and buy crypto here's my budget monthly

10% goes to my utility bills and all the stuff that I usually buy and another 90% goes throughout crypto.

[ityandsyn]

One of the mistakes that some crypto enthusiasts make is to convert all the fiats they have been able to accumulate all these while into cryptocurrency, which is wrong.

There are times you might seriously need fiats, not just because you do not want to invest all that you have into crypto alone, but to sometimes cover-up for your losses.

How does it work?
Take for instance every coin you invested in had plunged, just like what happens during bearish market. Then you notice another coin that has the potential to give you more than x2 of your investment. You may not be able to afford selling those coins you initially had, which had plunged.
In this case, you might need your fiat to purchase another coin(eth or btc), that can be used to make the new purchase.

This works most times for traders and sometimes for investors.
Before you know it, you would have recover your losses within a short time and you will have nothing to worry about.

It works for me and i just wished to share the idea, peradventure you will find it useful.

       Yes we need fiat money not only because of this problem but for other purpose especially in third world country where digital money were not yet applied by society so we really need fiat money for every transaction .

[kumiskura]

~snip~!

       Yes we need fiat money not only because of this problem but for other purpose especially in third world country where digital money were not yet applied by society so we really need fiat money for every transaction .

Not only in third world country, basically every countries in the world have yet implement it today. most of stores that used it so far were personal store, not a retail one.
they were doing it because they are supporting cryptocurrency nothing more than that.

~snip~!

It's more like a crypto maniac instead of crypto enthusiast, do not get me wrong. But i can be considered as one of crypto enthusiast, but i did not convert every fiat that i have into cryptocurrency because i know that i need it for life.

[halpi]

For me, fiat is the main currency now, I can`t buy breakfast or dinner for crypto (unfortunately), I live in real world and I am not an investor, that why I always convert.

It is sad because I really want crypto to be new currency, but I can`t be out of the real world

[ronnis.gomes]

Having fiat in hand is an important and distant issue of being merely a choice as long as there is no other quick and secure solution to making transactions. Electronic media, such as credit and debit cards, have already greatly reduced the use of fiat but eliminating it is still far

[Hueristic]

Or maybe you can have some stable coins like USDT. I think they can also benefit users in a situation like you mentioned above. But of course, one should have adequate amount of fiat too. I don't really buy the whole anti-fiat idea. Crypto is great, but fiat is also important. So have some fiat, no matter what.

USDT is far from stable ATM and you would be well advised not to Hold them.