@stefan_21 What do you think of the following strategy, which I come across more and more often when I deal with the $BTC cycles?
-> At the end of a Bitcoin bull run, sell BTC and shift into established stablecoins to secure the value. During the bear market, you could use the stablecoins for lending, staking or yield farming to generate passive income. As soon as BTC has fallen sharply again, you could buy it back cheaply and profit from the next bull run.
Do you see any major risks or opportunities for optimization? Or do you perhaps do the same yourself?
Greetings and a kiss
Ash
-> At the end of a Bitcoin bull run, sell BTC and shift into established stablecoins to secure the value. During the bear market, you could use the stablecoins for lending, staking or yield farming to generate passive income. As soon as BTC has fallen sharply again, you could buy it back cheaply and profit from the next bull run.
Do you see any major risks or opportunities for optimization? Or do you perhaps do the same yourself?
Greetings and a kiss
Ash
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@Ash As far as I know, the swap in stablecoins is not a tax-relevant transaction only in Austria. In Germany, it counts as a sale and the one-year speculation period starts all over again when you buy again.
So I don't really see the advantage of switching to stablecoins, as you are exposed to additional risks :)
It's better to hold them in euros and earn some interest😅 at least you have the deposit protection that applies. If the stablecoin implodes, you're out of luck.
The other problem, of course, is that nobody knows how long the bull market will last. And also whether the cycles of Bitcoin and the 70-80% setbacks will continue.
Timing this is incredibly difficult.
Personally, I just set myself targets where I sell a few percent. For example, you could sell 10% at 150k, 10% at 175k, 10% at 200k and hold the rest. Then you would have made a profit and still have at least 70% of your holdings at the end.
You could then use the fiat money to buy back at a lower price in a potential bear market.
If the bear market started before 150k and we needed 4 years until the next ATH, you would have to live with it and sit it out.
I always make an Excel list with my holdings and potential price targets. And then I enter something like in my example above and see what comes out. Then I see that I would have x€ and xBTC at a top of e.g. 160k and can then consider whether I could live with that.
And in this way you can think through the possible scenarios and find a strategy for yourself that you can live with considering all the possibilities :)
I hope that was reasonably clear - if not, please just ask again. That was typed very quickly - I'm just on my way to the shops😂
So I don't really see the advantage of switching to stablecoins, as you are exposed to additional risks :)
It's better to hold them in euros and earn some interest😅 at least you have the deposit protection that applies. If the stablecoin implodes, you're out of luck.
The other problem, of course, is that nobody knows how long the bull market will last. And also whether the cycles of Bitcoin and the 70-80% setbacks will continue.
Timing this is incredibly difficult.
Personally, I just set myself targets where I sell a few percent. For example, you could sell 10% at 150k, 10% at 175k, 10% at 200k and hold the rest. Then you would have made a profit and still have at least 70% of your holdings at the end.
You could then use the fiat money to buy back at a lower price in a potential bear market.
If the bear market started before 150k and we needed 4 years until the next ATH, you would have to live with it and sit it out.
I always make an Excel list with my holdings and potential price targets. And then I enter something like in my example above and see what comes out. Then I see that I would have x€ and xBTC at a top of e.g. 160k and can then consider whether I could live with that.
And in this way you can think through the possible scenarios and find a strategy for yourself that you can live with considering all the possibilities :)
I hope that was reasonably clear - if not, please just ask again. That was typed very quickly - I'm just on my way to the shops😂
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•@stefan_21 I'll have to think through what you've just written again tomorrow and will certainly come back with a question. I'm too tired right now. 😂🙈
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•@stefan_21 So, I've read it through again and understood it (I think) thanks for your feedback :-)
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@stefan_21 Hello, my dear! I haven't read anything from you in the main feed for a while and just hope you're doing well. 😊
I'm currently looking into buying a Steelwallet and am completely overwhelmed by the sheer variety on offer - not to mention the price differences.
During my research, I came across this site, among others,
https://jlopp.github.io/metal-bitcoin-storage-reviews/
but the large selection doesn't really make it any easier. Do you have a Steelwallet, and if so, which one can you recommend?
I would also be happy to pass the question on to @Alpalaka and @DonkeyInvestor
I look forward to your feedback and hope you have a great Sunday!
I'm currently looking into buying a Steelwallet and am completely overwhelmed by the sheer variety on offer - not to mention the price differences.
During my research, I came across this site, among others,
https://jlopp.github.io/metal-bitcoin-storage-reviews/
but the large selection doesn't really make it any easier. Do you have a Steelwallet, and if so, which one can you recommend?
I would also be happy to pass the question on to @Alpalaka and @DonkeyInvestor
I look forward to your feedback and hope you have a great Sunday!
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•@Ash Greetings! That's sweet of you - thank you, I'm fine - I hope you are too? :)
I'm going through a bit of a rough patch at the moment because of an illness in the family. But luckily we're quite confident now.
And if everything goes smoothly, my girlfriend and I will be going on vacation on Wednesday😊 So there is a chance of improvement :)
That's why I'll be relatively inactive here over the next few days.
Regarding the steel wallet, I have the Seedor. It came with a hammer and matching letters to punch in. It was super easy, but a bit noisy. I felt a bit sorry for my neighbors😂
So I could recommend it - unfortunately I can't say anything about the others because I haven't tried them myself :)
I'm going through a bit of a rough patch at the moment because of an illness in the family. But luckily we're quite confident now.
And if everything goes smoothly, my girlfriend and I will be going on vacation on Wednesday😊 So there is a chance of improvement :)
That's why I'll be relatively inactive here over the next few days.
Regarding the steel wallet, I have the Seedor. It came with a hammer and matching letters to punch in. It was super easy, but a bit noisy. I felt a bit sorry for my neighbors😂
So I could recommend it - unfortunately I can't say anything about the others because I haven't tried them myself :)
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@Ash I have/had this one: https://shop.bitbox.swiss/de/products/steelwallet-13/
I'm happy with the plate, although the punch didn't always punch properly. But if you have an extra five minutes, that shouldn't be a problem
I've now made another one myself as I have access to steel + laser. But it's more of a gimmick
I'm happy with the plate, although the punch didn't always punch properly. But if you have an extra five minutes, that shouldn't be a problem
I've now made another one myself as I have access to steel + laser. But it's more of a gimmick
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•@stefan_21 Oh dear, I hope your family member is not seriously ill and that he/she gets back on his/her feet quickly! I can empathize, I have written on several occasions that someone in my family is also seriously ill. I'm keeping my fingers crossed for you and your family that the person will get better soon. 🍀
I had already looked at the Seedor. But holy moly, what a price they're charging! I'd rather buy Bitcoin from them. 😅
@Alpalaka has also shared his (cheaper) Steelwallet, and I'll see which of the two I might end up with.
In any case, I wish you and your better half a wonderful and relaxing vacation and hope you can recharge your batteries. 🔌⚡️
Best wishes Ash
I had already looked at the Seedor. But holy moly, what a price they're charging! I'd rather buy Bitcoin from them. 😅
@Alpalaka has also shared his (cheaper) Steelwallet, and I'll see which of the two I might end up with.
In any case, I wish you and your better half a wonderful and relaxing vacation and hope you can recharge your batteries. 🔌⚡️
Best wishes Ash
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•@Alpalaka Thank you very much! 👍🏻 I'll take a look at that, especially as it's a much cheaper option than the one that's usually recommended online.
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@Ash I don't have a steel wallet. Since I have balls made of steel, I simply tattooed the 24 words on it 👍
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•@DonkeyInvestor How can I get rid of these images in my head? 🥚🥚🖊️
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