What exchange do you use - asking for a friend
Discussion
Until yesterday it was Binance and then they came around with their routine re-verification. Being in Germany atm means that updating my info locked me out of the market. So I moved my funds to Kraken which is still under my Spanish details. Hence I bought 1k worth at 100k and when we fell through I bought another 1k worth this morning at 91k.
Note, my principal / collateral is BTC which never gets sold into fiat. I don't short myself, I only buy Bitcoin with their money and eventually pay them back keeping the difference. For this to work your collateral should be at least 3x what you're borrowing and never fomo into the first buy with the max amount available. you "ladder" into your buys and take the free sats. With this approach you can't get liquidated. Been doing this for a long time and never lost money.
I did the same long time ago with ETH and DAI. Put ETH in collateral to get DAI, bought more ETH with DAI that I put back in the collateral. I was able to survive 50% price down. When it was 45% down, into panic, I send more ETH in the collateral, was able to withstand 60% down. Left a week on holiday, got liquidated at 62% price down which stay at this level for less than an hour then went back 20ish% up and never went back to this level ever again.
Learned the lesson, for long I would never talk about it again.
But now BTC is getting slightly less volatile (and much less than any shitcoin), might worth reconsider it, but not during a bullmarket, only after a deep bottom of a bear. The closer we are from ATH, the higher is the risk of a large correction, especially flash crash.
Thanks for sharing.
I don't play with any other coins. My sole goal is to steal sats from the market and I'm not interested in any other token at all. As for a flash crash, at this stage of the cycle, unlikely but never say never.
Here's a calculation I've run a while ago for a friend who wanted me to explain this. I figured AI can explain this better than I can myself.
https://chatgpt.com/share/67573014-1b78-800e-b26b-684c71f92a39