How to keep fiat safe while waiting to buy dips?

[NYChyna]

Hello all, I would very much appreciate anyone's help in giving this newbie some much needed help. I want to be ready to buy Bit?s dips. I plan on buying a few Bitcoins. I know keeping fiat on any exchange is not wise while waiting. I have a Nano X and I?ll be using Coinbase. My bank takes 3-5 days for a transfer to be complete. But how am I suppose to be ready to buy dips and keep my fiat safe while it?s sitting on Coinbase? Any knowledge, tips, helpful advice, etc. and even other suggestions for other exchanges or anything related would be much appreciated. Thank you!

[jackg]

I think this is what dai, usdc and usdt are for. You can convert to those and store them on a ledger nano (if you're able to use it with metamask or myetherwallet).

You could also check the fees using normal coinbase (non pro) with a debit card if you have one and see how long that takes to process.



Use normal coinbase to convert fiat to usdc or dai to pay low fees.

[hatshepsut93]

Fiat, by its nature, is centralized, even stablecoins are centralized, despite what they might claim. You should decide who you trust more - the companies behind stablecoins or your bank or your exchange, and store coins there. If your bank is so slow, check alternative banks. There's no 100% bulletproof method here, there will always be risks. You can even diversify and store maybe 10-20% on exchange to make fast trades, another 10-20% in stablecoin, i case your bank account will get frozen, and the rest in your bank.

[mk4]

I know keeping fiat on any exchange is not wise while waiting.

You should be fine with leaving fiat on exchanges because exchanges getting hacked is mostly concerned with stolen bitcoin and cryptocurrencies and not fiat; Assuming you're actually referring to real fiat money and not stablecoins.

[PrimeNumber7]

I know keeping fiat on any exchange is not wise while waiting.

You should be fine with leaving fiat on exchanges because exchanges getting hacked is mostly concerned with stolen bitcoin and cryptocurrencies and not fiat; Assuming you're actually referring to real fiat money and not stablecoins.

In the past, exchanges have given 'haircuts' to all customer balances when crypto was stolen from the exchange.

This means if an exchange has $100m in total customer assets, $1m in funds in excess of customer assets, and has $11m stolen, customer balances would be reduced by 10%.

Someone wanting to buy coin on dips is going to have to give up some security in exchange for the potential additional profit. If you want to employ this strategy, you should do your own research and deposit fiat on an exchange you believe is financially stable enough to survive a modest loss of funds via a hack, and is overall unlikely to get hacked.

[CashbackLover]

Why coinbase? You can store Fiat by using binance to buy USDT, so you know the purpose of stable coins? Change your Fiat to USDT on binance exchange it's very straight forward, coinbase is also a Centralized exchange and wallet, you have no control over your funds because users aren't given private key, find another wallet like trust wallet and move the USDT into the trust wallet

[Bitbtc8]

Don't leave Fiat on exchanges cos of hack, instead of using coinbase why not binance? Deposit Fiat on binance exchange and use that to buy any stable coin just like CashbackLover said, you can buy USDT, USDC, or DAI, so buying stable coin will keep your Fiat in form and after bitcoin loses dumps you can buy back, also I recommend using a decentralized wallet like Coinomi, Trust, Enjin or atomic wallet, because they will give you recovery seed or private key, if you lost your phone you won't lost your funds

[Findingnemo]

There are two choices, the first one has been already mentioned on above posts which is about using stable coins so you no need to convert the capital and profits into fiat to buy back at the dip.You can simply move to your wallet and buy when you wanted by depositing into exchanges.

Or you can try p2p trading platforms where you can buy bitcoins instantly with your fiat money itself, no need to risk your money on centralized stable coins.

[The Cryptovator]

OP, you are referring to trading actually. Because buy the dip and sell high means trading. So if you are wondering to trade then you may choose a reputed exchange, Binance would be fine IMO. It's almost safe unless your account gets hack. Also during USDT withdrawal, lately Binance asking for three types of authentication, email OTP, mobile OTP, and Goggle 2FA. So, I don't think it's easy to hack three types of authentication. Storing Ledger wouldn't trade instantly. Using a third party exchange front Ledger would be quite slow.

But remember, don't hold your fund in exchange for a long time. Just keep funds there only for trading.

[Apostlekin$$$]

Hello all, I would very much appreciate anyone's help in giving this newbie some much needed help. I want to be ready to buy Bit?s dips. I plan on buying a few Bitcoins. I know keeping fiat on any exchange is not wise while waiting. I have a Nano X and I?ll be using Coinbase. My bank takes 3-5 days for a transfer to be complete. But how am I suppose to be ready to buy dips and keep my fiat safe while it?s sitting on Coinbase? Any knowledge, tips, helpful advice, etc. and even other suggestions for other exchanges or anything related would be much appreciated. Thank you!

Change Fiat to USDT, that's the only way to be fully ready, keep the USDT is a wallet that supports private keys and wait for Bitcoin to fall in price, I'm sure it will happen some day cos of Volatility, bitcoin can't keep surging that's certain, use binance to change Fiat to USDT

[cheezcarls]

Hello all, I would very much appreciate anyone's help in giving this newbie some much needed help. I want to be ready to buy Bit?s dips. I plan on buying a few Bitcoins. I know keeping fiat on any exchange is not wise while waiting. I have a Nano X and I?ll be using Coinbase. My bank takes 3-5 days for a transfer to be complete. But how am I suppose to be ready to buy dips and keep my fiat safe while it?s sitting on Coinbase? Any knowledge, tips, helpful advice, etc. and even other suggestions for other exchanges or anything related would be much appreciated. Thank you!

This is the purpose of USDT and USDC in the crypto world, as they are stablecoins. To keep your fiat safe while waiting for the dip to come, convert them into USDT and USDC and make sure that it's on a decentralized non-custodial wallet like the Ledger Nano S, Trezor, Trust Wallet, etc., where only you can have access and no third party interference.

[20kevin20]

Depends on what "safe" means for you, honestly. I would not consider Coinbase a safe storage for a few BTC but each on their own.

The safest thing you could probably do is purchase an ERC20 stablecoin with the fiat and keep the stablecoins on your Nano X. When you feel like you're ready to purchase BTC, just move those stablecoins back to Coinbase and purchase BTC.

[LTU_btc]

Probably there is no 100% perfect solution. You simply can keep fiat on exchange, so that you would be able to buy on dip instantly without waiting until bank transfer will be made. Offcourse, it's not safest thing because there is risk of hacks. Though, in case of hacks biggest danger is for cryptocurrencies, but as @PrimeNumber7, then exchange can make "haircut" to all users ballances.
I'm not big fan of stablecoins, but it's another option. You can keep it on exchange, but offcourse, your own wallet is safer place.
And finally, it's possible to buy crypto on Coinbase using credit card, it's instant and not takes few days to complete like bank transfer.

[cryptoaddictchie]

I have a Nano X and I?ll be using Coinbase. My bank takes 3-5 days for a transfer to be complete. But how am I suppose to be ready to buy dips and keep my fiat safe while it?s sitting on Coinbase?

Just process your fiat into cryptocurrency such as stablecoin then afterwards transfer those stablecoin on your nano X, simple as that you already ready for any incoming buyback if dips persue. When the dump event happened simply transfer back those stablecoin crypto into exchange not necessary coinbase but any that have trading btc pair.

[tranthidung]

You should be fine with leaving fiat on exchanges because exchanges getting hacked is mostly concerned with stolen bitcoin and cryptocurrencies and not fiat; Assuming you're actually referring to real fiat money and not stablecoins.

Hackers and their fund movements with fiat (real fiat) will be traced more easily when they make movements with crypto and some mixing combination methods to launder their hacked crypto. The point is there is no guarantee that after hackers were caught, all victims will get their funds back.

Nothing is 100% safe: from exchanges to fiats, stable coins so the best approach is decentralize your funds in some sort of money storage: fiat + stable coins.

I know for crypto enthusiasts, stable coins are their more favorite as convenience they bring to users. With their fast transaction speeds and wide adoption on exchanges, people can move stable coins around and buy up dips. With fiat, the adoption is less and people usually have to bear a temp loss in rate to buy Bitcoin with fiat or to convert fiat to stablecoin then buy bitcoin with stable coin. It is true when market is in hot mood.

DAI is a good stable coin due to its decentralization. USDT is more used but beware of risks and related drama, potential lawsuit on USDT. I'd like to decentralize my stablecoin allocation into a few stable coins and in different wallets.

PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets (it is your thread, I quoted it for OP). 

[Darker45]

At some point you'll have to take a risk. Depending on how low the dip that you're waiting for, I might even park a moderate amount of fiat or stable coin in my exchange wallet. I might even create a buy order in advance. But the large bulk of your funds should be in your Nano X in the form of stable coin, as others have already pointed out. You may start moving it as soon as the price is already approaching your target buy price.

Or why not buy now? Your expected dip might only arrive after Bitcoin hits $35,000 or $40,000 or even $50,000.

[Maxstl007]

Hello all, I would very much appreciate anyone's help in giving this newbie some much needed help. I want to be ready to buy Bit?s dips. I plan on buying a few Bitcoins. I know keeping fiat on any exchange is not wise while waiting. I have a Nano X and I?ll be using Coinbase. My bank takes 3-5 days for a transfer to be complete. But how am I suppose to be ready to buy dips and keep my fiat safe while it?s sitting on Coinbase? Any knowledge, tips, helpful advice, etc. and even other suggestions for other exchanges or anything related would be much appreciated. Thank you!

I'm not so sure if you can buy USDT on coinbase, try checking that out first, now that there is still time use your Fiat to buy stable coin and keep the stable coin in your wallet that has private key, this might take longer than expected because bitcoin is still very bullish, you need to have lots of patience

[Husires]

Since you want to buy spaced out, you can use the central platforms, and for your fear of losing your money, your use of USDC,USDT, Binance token will be appropriate. It might make some profits but the smart idea is to trade with Altcoins pairs that have not gone up.
Perhaps its role is to rise when the other rises.

Avoid using platforms that claim to be decentralized just because their fees are low. Stick to popular wallets, even if their fees are high.