I’ve been utilizing a decentralised finance dapp, I link it to my metamask account . My plan is to borrow stable coins and use them to purchase assets such as ethereal which I think will grow in price. Then after a year or whatever I sell part of the assets that increased in value (hopefully) to pay back the stable coin loan and keep the extra Ethereum. My collateral is Ethereum itself. You can do the opposite and borrow an asset that you think will decrease in value , sell immediately and pay it back at reduced cost in future . I’m very bullish though at this time for most assets.
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Ethereum transaction speed has vastly improved . It can take just ten seconds to see four confirmations. Fully confirmed in minute or two. It’s fast enough to work at real world transaction speeds and so are the ERC20 tokens . It means they can be more useful for near real time transactions.
Ethereum transaction costs are still very low in my book, often ten cents , but they are working on further protocol improvements for microtransactions and smaller payments to be viable.
Decentralised finance is easy to get into and very flexible , if you have collateral you can get started immediately. There are many platforms in operation and rates are fully transparent . There’s a learning curve involved in calculating risk of various borrowing strategies. I’m still learning.
Mostly folks are borrowing or depositing stable coins I believe. Dai is incredibly popular occupying most of the market and has proven to be very, well, stable so far. Around 1 billion USD is already locked up in DeFi platforms. I expect this to grow very rapidly .
This all looks great for Ethereum because they almost all rely on being ERC tokens and bring interoperable and the lower risk and trusted Ethereum network behind it.
With staking coming up soon for Ethereum, with the major stable coins all being Ethereum tokens and the need to own Ethereum for Gas to process transactions and also as a favoured DeFi collateral (which will mean more and more is locked up) and also for index funds, I just see this as incredibly bullish in the short and medium term.
Nothing else out there has an ounce of the popularity of Ethereum it surely will be the network effect winner.
I managed to sell some at the top and buy back in to increase the stash a bit. I’ve learned enough that 9 times out of 10 you just don’t get 40% plus runs without a pullback.
@Brianjones offtopic but what do you think of Tron (TRX)?
A colleague who is a computer scientist told me the fundamentals are very good, using the best of every blockchain but a bit complex for the average Joe, do you have an opinion on it?
Don’t touch it BUT it has a lot of millennial fans and Justin Sun knows how to promote it so it could run up on that. Technically it’s not a terrible platform but Ethereum is the big daddy.
I would advise 40:40 ETH: BTC and 20 to other speculative alt coins.
If just in it for speculation and a quick gamble try NANO that could run big with folks hoping to get on a train higher and I’ve always been a fan . It’s an instant no transaction fee no mining cryptocurrency DAG, is not under investigation as a security I believe , it’s got a fixed supply as well which I like and it’s still 1/6th of all time high.
It’s been plagued for years by a massive exchange fraud and very poor marketing but it could getting back in the limelight now. It’s also in low digits USD and newbie investors like that they will think it is ‘cheap’.
The team behind NANO have real technical chops they aren’t fraudsters ,just poor at marketing it (opposite of the guy that runs Tron…Well he’s not a fraudster just a good marketer ) .
Me too, just for fun. But I wanted a little skin in the game so as a newbie I bought $300 Bitcoin and $300 ETH. $600 turned into $950, fun!
Now, as I consider buying a lot more more I don’t want to pay tax on it. I want to buy, and let it sit for 10, 15, or 20 years.
I am looking at setting up a U.S. based self-employed/solo, self-directed, Roth IRA. Roth IRA has its own bank account (not in my name). Open crypto trading account in the Roth IRA name. Buy crypto, real estate, and regular investment products with after-tax U.S. income, inside the Roth. Hold 20 years. Sell with no capital gains tax or other tax. (or leave it to my heirs).
Any United States people who buy Bitcoin in their own name and hold for a long time will be looking at a big tax bill from the IRS when they finally sell.
If the strategy is buy-and-hold, it’s worth doing a little tax planning up front to protect the gains.
We broke ATH I believe - 4385 USD today.
Which is indeed well over 2x the previous ATH and 50x times it’s lowest low in the time period from Jan 2018 to now. Pretty much 10x for anybody who was DCAing snce then…Predictions can come true.
For once I put my money where my mouth is. Learned my lesson from Tesla. That one still hurts .
Time is the thing you need the most for investing. Some things take longer than planned.
And DCA is the way to go , can also be brave and front load investments when they are out of fashion if you have that multi year timeline in mind.
Again I will emphasise cryptocurrency is not an instant get rich quick scheme, it can take much longer to make good returns then you may expect and you also have to stomach ridiculous swings in your financial status.
Later in 2018 after a vicious double dip (dead cat bounce/catching the falling knife) I vividly recall I was on a family holiday and had to hide from my extended family how bad things were when I had lost (on digital paper value) most of my savings. However I managed to turn that into a positive by continuing to shovel money into the pit and switching my mindset to a longer time horizon. This only works with companies or cryptos which you think will survive the troughs of course.
And yes to make outside returns you MUST take on a certain level of risk, that just goes with the territory.
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However I managed to turn that into a positive by continuing to shovel money into the pit and switching my mindset to a longer time horizon. This only works with companies or cryptos which you think will survive the troughs of course.