3 ms·

Well, this isn’t a great plan, but I’m betting that the bottom will fall out at one point and crypto will crater hard. Until then, I’m taking my DCA (dollar cos

Well, this isn’t a great plan, but I’m betting that the bottom will fall out at one point and crypto will crater hard. Until then, I’m taking my DCA (dollar cost average) funds and keeping them in Gemini and Abra Earn (50% each) and getting 7.15/7.5% return. When that happens, I’ll move quick to transfer my funds to whatever exchange has the most liquidity and I’ll pick either Ethereum or Cardano and spend half of my DCA money, then continue to buy more if anything drops 20% or more. I’ve done this twice before, and it’s worked pretty well so far. My DCA funds will likely be 5-10% of my net work at that point.

carabiner 4y ago
Nice. I'm unemployed right now (by choice) with minimal savings, but if I was still working I'd definitely be buying right now via DCA or value cost averaging. I bought a lot when pandemic started, mostly S&P 500 and Norwegian Cruise Lines and profited a lot. Sold them after a year to avoid the short-term tax hit.
potatototoo99 4y ago
In the event crypto craters hard, how likely are Gemini and Abra Earn not to go bankrupt if they're offering 7% returns guaranteed (I assume).
- cheriot 4y ago
  This. Any time there's a rate of return above short term treasuries the question becomes, "what's the risky asset this is invested in?"
- joemazerino 4y ago
  Celsius, anyone?
  - robcohen 4y ago
    It's not a risk-free bet, but considering it's not a signficant amount of my net worth I'm happy to take the chance for a multiple ROI.
- robcohen 4y ago
  That's definitely a risk, but typically when crypto craters hard it's actually quite difficult to quickly get money into the markets. Wire transfers and ACH transfers usually take forever or deposits get shut down. It's much better to have stablecoins in that situation. Also I've diversified my risk by selecting two U.S.-based exchanges/banks (Abra was the first and is currently the only exchange to get a Fed account). The likelihood that both stop withdrawals on the same day seems unlikely. Is it as safe as storing gold under my mattress? No, but the markets move incredibly fast. When I see an opportunity I'll need to move quickly, then get my purchases off the exchanges immediately.

carabiner 4y ago

Nice. I'm unemployed right now (by choice) with minimal savings, but if I was still working I'd definitely be buying right now via DCA or value cost averaging. I bought a lot when pandemic started, mostly S&P 500 and Norwegian Cruise Lines and profited a lot. Sold them after a year to avoid the short-term tax hit.

potatototoo99 4y ago

In the event crypto craters hard, how likely are Gemini and Abra Earn not to go bankrupt if they're offering 7% returns guaranteed (I assume).

cheriot 4y ago
This. Any time there's a rate of return above short term treasuries the question becomes, "what's the risky asset this is invested in?"
joemazerino 4y ago
Celsius, anyone?
- robcohen 4y ago
  It's not a risk-free bet, but considering it's not a signficant amount of my net worth I'm happy to take the chance for a multiple ROI.
robcohen 4y ago
That's definitely a risk, but typically when crypto craters hard it's actually quite difficult to quickly get money into the markets. Wire transfers and ACH transfers usually take forever or deposits get shut down. It's much better to have stablecoins in that situation. Also I've diversified my risk by selecting two U.S.-based exchanges/banks (Abra was the first and is currently the only exchange to get a Fed account). The likelihood that both stop withdrawals on the same day seems unlikely. Is it as safe as storing gold under my mattress? No, but the markets move incredibly fast. When I see an opportunity I'll need to move quickly, then get my purchases off the exchanges immediately.