LC Posted December 27, 2020 Posted December 27, 2020 Appreciate the post, Aberhound. I missed the boat on cryptocurrencies but perhaps it is never too late and an allocation is in order.
elliott Posted December 27, 2020 Posted December 27, 2020 Appreciate the post, Aberhound. I missed the boat on cryptocurrencies but perhaps it is never too late and an allocation is in order. If it may be of help... I left the boat just before one of the big falls, just at the fall started. I did so because of a fundamental reason, though: I feared that cryptos would eventually be banned. Only a few weeks ago, I revisited the space, and at the same time, my mind changed about the ban. Bitcoin (and company) are now in too many hands (including strong hands). I think that laws making prices tank are still a very real possibility, but the risk / reward is now acceptable to me. So... I am building a position in btc and eth. Despite the massive rallies. I would have had my position already built if not because of cash flow constraints. Anyway, I am adding at these levels. One needs to be prepared for big declines, though.
LC Posted December 27, 2020 Posted December 27, 2020 Agreed on two points: the strong hands argument, and also being prepared for declines. Regulation can be frightening, I am trying to discount the probability and effects of the govt taking their slice. Are you buying the currencies outright or via some other manner (eg MSTR mentioned previously)?
Gregmal Posted December 27, 2020 Posted December 27, 2020 It is just my 2c, but from experience, if you are going to play something, play it. Dont half ass it. IE Buying BRK in late 2018/early 2019 during crash bc I liked financials and AAPL(I did this). MSTR is a cute idea and all, but if you want crypto/BTC, just buy BTC.
clutch Posted December 27, 2020 Posted December 27, 2020 I sold some of my BTC holdings as it reached 10% of my liquid net worth. I have done the same when it reached the peak back in late 2017 (which seemed very prudent until now)... maybe I will regret it but I like to continue treating BTC as my alternative asset class and keep it relatively small compared to my traditional portfolio.
elliott Posted December 27, 2020 Posted December 27, 2020 Are you buying the currencies outright or via some other manner (eg MSTR mentioned previously)? I am buying ETFs with "physical" backing. I would prefer to buy bitcoin and ether directly (what I have done in the past) but reasons not worth discussing here have me not doing so until about next summer. Then I will sell the ETFs and use the proceeds to buy bitcoin, ether.
SharperDingaan Posted December 27, 2020 Posted December 27, 2020 Some days Christmas does indeed come early! There is a lot of institutional interest in pushing the token to a record year-end close. While ALSO buying a few puts on the CME! This is all about demonstrating creds, a changing of the guard, and establishing pecking order - BTC closing out the year at a market cap at least on par with, or greater than Tesla/Facebook. What goes up, also goes down - and it's a terrible thing to waste ;D https://businessnewsideas.com/2020/12/27/bitcoin-price-blasts-past-27k-btc-market-cap-now-over-half-a-trillion-dollars/ Bitcoins market capitalization is likewise now over $510 billion, which puts it just under Warren Buffetts Berkshire Hathaway, the tenth-largest business in the world. This comes less than a day after surpassing Visas market cap SD
rkbabang Posted December 27, 2020 Author Posted December 27, 2020 It is just my 2c, but from experience, if you are going to play something, play it. Dont half ass it. IE Buying BRK in late 2018/early 2019 during crash bc I liked financials and AAPL(I did this). MSTR is a cute idea and all, but if you want crypto/BTC, just buy BTC. I bought some MSTR in my IRA, but yeah, for the most part I agree just but BTC.
TwoCitiesCapital Posted December 27, 2020 Posted December 27, 2020 It is just my 2c, but from experience, if you are going to play something, play it. Dont half ass it. IE Buying BRK in late 2018/early 2019 during crash bc I liked financials and AAPL(I did this). MSTR is a cute idea and all, but if you want crypto/BTC, just buy BTC. I use GBTC in my IRA and is roughly 1/3 of my total BTC exposure. The cash was more readily available in my IRA for large purchases AND it allowed me to trade the position with no commissions or taxes. The expansion and contraction in the premium provides additional optionality. As I sell chunks in the IRA, I can buy the equivalent amount of BTC allowing me to capture the NAV spread, lower my taxable gain, reduce my cash at risk, and potentially subsidize my losses (if we go back down) all while maintaining roughly similar exposure to BTC. Have been selling GBTC in drips since ~$15,000 as premiums exceeded 25%. About 25-30% of the position sold so far pulling thousands of dollars off the table tax free while only reducing my overall BTC allocation by ~0.1 BTC. If we crater from here (possible, but unlikely), I can take the tax loss from recent taxable purchases and rebuy GBTC after the wash sale expiry to catch the next updraft tax free. Seems like a great way to swing trade this until true ETFs are released in the US. I did also consider call spreads on MSTR, but the pay off on the call spreads was very similar but the payoff on owning BTC outright - just with more strings attached (having to worry about basis risk and hitting particular strikes).
rohitc99 Posted December 27, 2020 Posted December 27, 2020 Are you buying the currencies outright or via some other manner (eg MSTR mentioned previously)? I am buying ETFs with "physical" backing. I would prefer to buy bitcoin and ether directly (what I have done in the past) but reasons not worth discussing here have me not doing so until about next summer. Then I will sell the ETFs and use the proceeds to buy bitcoin, ether. Can you give names of such ETFs ? Is GBTC one of them ? are there any other ?
elliott Posted December 28, 2020 Posted December 28, 2020 Can you give names of such ETFs ? Is GBTC one of them ? are there any other ? I am not sure if it will help you, as the ETFs trade in Nasdaq Stockholm in SEK. Each has a version that trades in EUR, though. This is the website of the provider: https://coinshares.com/etps/xbt-provider
gg Posted December 28, 2020 Posted December 28, 2020 Does anyone know of a crpyto brokerage where you can open accounts for minors? Not looking for the minors to have access and trade - looking for a custodial, where I can gift cash to a child and purchase crypto on their behalf with it
rkbabang Posted December 28, 2020 Author Posted December 28, 2020 Does anyone know of a crpyto brokerage where you can open accounts for minors? Not looking for the minors to have access and trade - looking for a custodial, where I can gift cash to a child and purchase crypto on their behalf with it Use any wallet and just keep control of it yourself until you wish to give it to the child.
SharperDingaan Posted December 29, 2020 Posted December 29, 2020 Does anyone know of a crpyto brokerage where you can open accounts for minors? Not looking for the minors to have access and trade - looking for a custodial, where I can gift cash to a child and purchase crypto on their behalf with it Open a joint account with the minor (subject to higher ongoing KYC oversight). When the minor matures, stop trading and let him/her take over. In the interim, split the tax bill with the minor, and annually gift them the cash to pay their portion of the (lower total) tax bill. Tax savings annually added to the joint account. SD
Aberhound Posted December 30, 2020 Posted December 30, 2020 Does anyone know of a crpyto brokerage where you can open accounts for minors? Not looking for the minors to have access and trade - looking for a custodial, where I can gift cash to a child and purchase crypto on their behalf with it Watch Celsius Network as they have promised this feature in 2021. I have been using Celsius to fund the kids university with good result. You can open multiple amounts and the trust came from a will so should be valid tax wise. You can easily borrow at low rates so you can better time the tax events or use leverage. Interest rates are far better than outside crypto thanks to the much faster velocity of money allowing the team to earn high returns to pay the high rates. They are profitable and use no leverage so I consider it safer than any institution using leverage as we approach the Minsky moment.
Fly Posted January 2, 2021 Posted January 2, 2021 What do you guys think of BlockFi? https://blockfi.com/rates/ Is it crazy to convert cash into USDC and gain 8.6% APR?
SharperDingaan Posted January 2, 2021 Posted January 2, 2021 What do you guys think of BlockFi? https://blockfi.com/rates/ Is it crazy to convert cash into USDC and gain 8.6% APR? Too bad they forgot to mention the capitalization rate, the custodian, and that it only really works with sh1tcoin. In you have BTC or ETH and want to margin, you're using options/futures - not blockfi. If you don't want the derivative, you're using a marginable, enhanced KYC account at one of the major FI's. Different POV. SD
SharperDingaan Posted January 2, 2021 Posted January 2, 2021 Some days Christmas does indeed come early! There is a lot of institutional interest in pushing the token to a record year-end close. While ALSO buying a few puts on the CME! This is all about demonstrating creds, a changing of the guard, and establishing pecking order - BTC closing out the year at a market cap at least on par with, or greater than Tesla/Facebook. What goes up, also goes down - and it's a terrible thing to waste ;D https://businessnewsideas.com/2020/12/27/bitcoin-price-blasts-past-27k-btc-market-cap-now-over-half-a-trillion-dollars/ Bitcoins market capitalization is likewise now over $510 billion, which puts it just under Warren Buffetts Berkshire Hathaway, the tenth-largest business in the world. This comes less than a day after surpassing Visas market cap SD Just an FYI to advise that as at 11:09 EST, Jan 02, 2021 - BTC passed USD 32,000, and on its way higher :D https://markets.businessinsider.com/currencies/btc-usd SD
Gregmal Posted January 2, 2021 Posted January 2, 2021 ^ Yea I slept in this morning a bit...when I did my usual account checks, saw BTC move, shrugged shoulders, and said "Happy New Year"...good times.
Gregmal Posted January 3, 2021 Posted January 3, 2021 On the institutional/product side, there's a lot of whats called a feedback loop. With early stage items, it can be very powerful. Recall how once the first couple institutions or funds finally disclosed being long Tesla, then fast forward a year from then, and everyone was doing it no problem. Imagine now having been one of the first movers in BTC this past fall, and having a +50% mark to market already? Or how about sitting on 20% ytd gains before the markets have even been open for one trading day? I continue to reduce 1-2% of the position after every 10-15% bump or so, but things should really start to get interesting.
SharperDingaan Posted January 3, 2021 Posted January 3, 2021 It would be a very wise move to have exited entirely by the end of this week. Help yourself to one or two options as well ;) In Canada, RRSP season typically drives new retail investment into the market, much of which this time around will probably feature crypto as a new asset class. Then most will discover that this class suddenly has TWO investable assets in it, and that one of them has many different types. SD
Gregmal Posted January 6, 2021 Posted January 6, 2021 Guess who won GA? https://seekingalpha.com/news/3649177-bitcoin-declared-winner-in-georgia-election
SharperDingaan Posted January 6, 2021 Posted January 6, 2021 We're out of our BTC at USD 35,002, and it has been quite the ride. Now it's time for a time-out from crypto - and the nephews studying up on ETH, options, futures, exchanges, and the CME :-* Time for the REAL education to begin! SD
Gregmal Posted January 6, 2021 Posted January 6, 2021 I do recall SharperDingaan's timely exit at $18k on the first run up. Been managing the position and already have several times the cost basis removed, so the dice continue to get rolled. Where it lands, no one(except maybe SharperDingaan) knows!
Fat Pitch Posted January 8, 2021 Posted January 8, 2021 We're out of our BTC at USD 35,002, and it has been quite the ride. Now it's time for a time-out from crypto - and the nephews studying up on ETH, options, futures, exchanges, and the CME :-* Time for the REAL education to begin! SD When does regret set in? $40k, $80k, $500k? ;)
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now