Hodling vs. trading altcoins?

Trying to think if hodling is still a better option for altcoins? I plan on just keeping BTC as is but I did manage to get in (albeit late) on ADA/USD and was thinking whether I should just start actively trading altcoins.

The only thing stopping me is the tax part (live in the US).

Those who have been actively trading different crypto pairs, how has the experience been for you? :open_mouth:

Also a random question for my American friends. Do you say hodl like “Ho-dl” or like “haugh-dl”?

I learned a long time ago to not worry about the tax implications because in the UK anyway you actually have to make a profit overall to have to pay tax. A tax year is a long time in the lifecycle of crypto trading. LOL.

Having said that, ADA has more than doubled, and I have not sold off half of that. But ADA is not that part of my portfolio to which I apply the “sell half if it doubles”. That is reserved for the sh__coin part of my Crypto plan.

About a strategy, what about a half way house. If your crypto currency doubles, sell half of it so it did not cost you anything, then think about HODLing the rest (that now has a net cost of zero)? It forms part of my entry/exit strategy and allows me to mentally segregate the role of Crypto as an investment tool, and the role of Crypto as a trading tool.

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I focus more on BTC rather than Altcoins (although I have some ETH and XRP). :thinking: But because of this, I was intrigued and found this YT video. :open_mouth: It was a livestream and it’s a bit long. I’m still watching it right now :sweat_smile: But looks interesting.

Also, I just say it like “Ho-dl” :joy:

I like this except my ADA/USD holding is sooo tiny. I should have bought more but now that it’s going cray, I’m thinking it’s too late and it’s better for me to sell all of it and then just hop back in when it gets sold off (watch it not sell off lol).

I read from one of the posts here that even staking is taxed here like even if you don’t collect/withdraw earnings?? Makes no sense.

Lol yes I tried to watch but it seems to be a lot of rambling (why I also mostly don’t watch live streams lol). So what was the gist of it? :open_mouth:

We’re at ATH levels, so buying now, most would say to wait. However, there’s this news making the rounds ATM.

Japan crypto exchange listing imminent. Granted many in Japan already hold ADA. So impact may be negligible.

And the Cardano Summit 2021 in mid September.

Hi,
Is that what your Forex trading plan is? Or would you sell half and move your stop loss to break even, knowing that you could not lose on this trade, but that you may catch that 100X if it ever does happen? That is why I believe that my renewed interest in Forex will be profitable the fourth time around. Not necessarily by having a conventional Forex plan that will demonstrate a positive edge sooner rather than later, but by applying the Forex plan principles and practice to our other investments or trades - meaning trading in the physical world. Don’t forget, we own a small trading company in Dubai that sells after market oilfield supplies. Our internal cost to prepare a bid is between a tenth and a hundredth of the profit margin if we are successful with our quotes. Though it took me about 20 years to realize it, there is little difference between our approach to trading goods and services to oil and gas companies than my renewed approach to Forex trading. A wonderful revelation but one that is probably not transportable to the lives of many other forum members.

This is the logical step and it’s honestly what I should do. But for some reason my plans change depending on the amount of money I’ve put in - which in the case of ADA is literally $50 lol. I know it shouldn’t matter what the cost is but I’m like, it’s soo tiny!

Omg how are you running a company in Dubai? Do you have to travel there?

That is what my wife does for the past 25 years. We only have operations right now in northern Iraq (Kurdistan) and we have two engineering staff who commute from their homes to Kurdistan on a 3 week rotation. We maintain a small office / motel suite there as a business base and accommodation for our staff. We have three other staff who process all quotations and orders to customers. This is a virtual global business, effectively, since about 2010. We were operating in Syria until the war started and the EU sanctioned the country. My wife is a Syrian national by birth, and I wanted to retire there. That remains a pipe dream unless a miracle of world peace happens. I guess you could say this is the origin of my “extraordinary patience” and my NGU “never give up” attitude to life.

Aww that’s lovely. I feel like the older people I know do not at all want to retire in the US. Their reasoning is mostly that they don’t want to be in a nursing home. How about you?

How often does the business require her to go to Syria? Man that’s crazy. Even with all that’s happening you’ve had your business for 25 years! That’s amazing!

Before the Syrian war, my wife and sons would travel to Syria yearly during school holidays and I would join them for 2 or 3 weeks in August. Since 2010, my last visit, close friends and family have always advised that I should not travel there for security reasons. Years ago, my wife did used to travel, unannounced, entering via Lebanon, and that was OK. But she has not been there for over five years and could not attend her father’s funeral 4 years ago. We are thankful for communications technology and most days she has long video conference calls with her close family inside and outside Syria. We also have a director who is our sons’ godfather, who part owns the company with us. He travels extensively in the Middle East. Imagine we used to bring our staff to the UK and send them to the USA for technical training in the 1900s and noughties, But since 9/11 (in 2001) the world has never treated Middle Eastern origin people quite as well as prior that event. None of our staff, nor family, can visit the UK and that has been the case for over 10 years now. It is a personal sadness, and our sons may have lost a lot of their dual culture advantage of annual visits. But there are millions of people far far worse off than us. We did have a plan, since I met my wife, of insurance against such events, and so spread our source of income and destination of investments into more than two jurisdictions. It turned out well for us, and that is a life lesson we can be thankful for. Trust nobody, not even yourself, prepare for the worst and hope for the best. Nobody in their right mind would have funded a loss making business for ten years, but I never claimed to be of right mind either. :wink:

Makes me really sad.

This is a hard one - trusting no one. I don’t trust myself most days but I have to trust at least SOMEONE haha.

You’ve had a lot of adventures my friend. Lots of lessons there to impart to your sons. :slight_smile:

I believe a combination of both is the best. I hold BTC, plus a range of Altcoins for the long haul, however I also use around 30% of my capital for margin trading in order to build those hodl bags. As with everything in life, there are ways around the restrictions… You could look into those, or just pay taxes. If you are successfully making profit then paying taxes means you are winning…

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It seems we came to very similar conclusions. At the end of 2020, I decided to allocate 20% of our crypto holding to trading. The first four months was quite active and we managed to increase our BTC denominated holdings by almost 15% in the four months. However, since the April peak, I have not managed to find a single trade that I wish to enter. In total we hold 10 types of crypto, but 92% is in the top 3 BTC, XRP and ETH with ADA as a very small fourth. End of 2020 we were 95% BTC. I have also broken my own rules set up end of 2020, but I have an excuse. I changed the long term HODL strategy from USD denominated to BTC denominated, and also the criteria via which I would “sell half when price doubled”. We are holding XRP since 1,200 satoshis and ETH since we bought at 0.033 BTC. It seemed before April that 30% swings in relative value to BTC were really quite common, but since then the entire market (of those tokens I am tracking) seems to move in unison with less than a 10% variance in relative value to BTC. I am not in a hurry, nor annoyed at lack of the opportunities I identify. Every time I think of converting one way or another, the reward/risk ratio is not compelling so I don’t trade. I think I have analysis paralysis, but the numbers are what they are and if I do not see at least a 3:1 reward to risk over a next month horizon I don’t trade.

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