Image by Sinisa Maric from Pixabay
The last few years I have traded alts quite a bit on Binance but when doing so I always had the $BTC/$USD chart open whenever I was trading. I babysit my crypto trades as the market is so volatile and I try not to use stops for that very reason. The best market to trade alts in is when Bitcoin is ranging up or having just pumped. Then alt season comes along until the rug pull. But I found hedging $BTC almost impossible because when the giant falls, it brings everything down with it. Thats why I rarely trade against $BTC because the gains to be made can be lost in a split second and I rarely see them unless its a pump or dump or one of those gimics such as $shiba.
- $BTC pumps. Alts pump a little but not as much as $BTC.
- $BTC plummets. Alts Plummets
- $BTC is calm. Alts pump.
Image by janjf93 from Pixabay
Trading alts with a volatile bitcoin is like running out trying to save the dog in a hurricane. You might get blown away or you might just make it home alive which in this case is converting to USDT to weather the storm. I have found some coins hold their value better than others during a Bitcoin dump. $LINK is definitely one of them. It's a bit of a weird one link. Has a strong following but no one really knows what they do.
$matic is another. Don't ask me why but they do hold better than other coins during turbulent times. But they do still take a wee bit of a hit if it's a major dip. Same goes for $ETH. It does go down when Bitcoin drops but not as much as before.
I know in traditional markets $GOLD and $SILVER are great hedges. Even Silver more than gold it can be said these days. I would be interested to hear @ezrider opinion on gold and silver as I read a post of his and he hedges with these as well but what I would like is a hedge from a crypto coin on the same exchange. Now at the moment I hedge somewhat in options of the same coin but I would prefer a hedge of a different currency altogether. I asked the question on the old Crypto Twitter but I think this group are more into bullshiting on about how much money they made and are busy buying islands , going lobster fishing while on LSD or comparing dick sizes than being actually proper traders. It's very easy to delete a tweet rather than admit a bad trade so I do not foresee them moving to an immutable blockchain. These guys were in the right place at the right time it looks like and hedging wouldn't be a thing for them. Now I don't wanna tar everyone with the same brush.
So my question to the @leoFinance community is what coin do you hedge against a drop in $btc. Is there one out there that you find doesn't budge at a drop? Or even the other way around. Doesn't budge at a Bitcoin Pump. There are more than likely more of these ones. Move Link , bloody move!! I would be interested to hear your comments on the traders in this space. Is there a crypto currency that you can hedge against $btc? I have not found this hidden gem yet but maybe you have and for that reason you are probably a millionaire not wanting to give away your secret. Anyway looking at some videos with the boys and girls in @leofinance , they seem to know what they are talking about. Any comment is welcome
Thanks
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Lots of options for stablecoins on Ethereum such as USDT and USDC. DAI, being decentralized, is more censorship-resistant. Then you've got other decentralized options, like HBD on Hive, and UST on Terra.
Other than stablecoins, it's hard to predict what coin is going to retain value as Bitcoin plummets. I think there are some gold-backed tokens that may provide some stability too, like DigixDAO.
In my opinion, the best long-term strategy is to focus on fundamental value, buy those tokens, hold them, and learn to identify when a market is hyped & overvalued.
Thanks @brennanhm I checked out your last video on 3speak. Some good points about having skin in the game. Il check out DigixDAO as well.
I was trading to BTC for a long time, but for last year I'm training to USDT. it's more stable for me, and always I can stake it for10-12% APY.
Yeah I would never trade an alt against BTC. Always against USDT . It's just what you hedge that trade against is the problem.
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