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Making your "trading" decisions easy without predicting future prices.

Always dump fiat for bitcoin. You can call it dollar cost averaging, but this is simpler - if you don't need the fiat now (to pay rent), dump it.

Never sell bitcoin. If you need cash, use it as a collateral for a fiat loan. Shorting fiat (that loses value) and not deciding when you can spend (Bitcoin price does not matter that much).

You keep your btc value and if the rate of rising prices is higher than the interest rate (it mostly is), you can repay the loan later with less work. Or you can just keep the credit line open indefinitely. Also, when you don't sell btc, you don't pay taxes from the sale of btc.

So: always buy, never sell, spend whenever you need to.

https://hackyourself.io/product/how-to-harness-the-value-of-bitcoin-without-having-to-sell-it-ebook-mini-course/

Juraj 2y ago

All true, although I'm doing it for a long time and not getting rekt, because I understand the risks and I'm prepared for them.

For me it's better to take on a little risk in order not to pay taxes and not give away the upside.

The need to cover the risks is real though. There are more ways to do it, you can even have an option strategy to hedge the risk.

Here's a screenshot from a chapter of Cryptocurrencies - Hack your way to a better life table of content where I describe them in detail.

https://nostrcheck.me/media/public/nostrcheck.me_7761521560205758791689586708.webp

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Discussion

DireMunchkin 2y ago

Fair enough. I do like the idea of borrowing instead of selling on paper, just not with a 24/7 margin callable loan. 😰

Personally I would just eat the opportunity cost of selling instead. But I also live in a jurisdiction with no cap gains tax, so YMMV.

Juraj 2y ago

I also live in jurisdiction without capital gains tax, but I want capital gains and by selling btc, I lose future capital gains of btc.

I have an easy system. Notification comes soon enough for me to react, I have the coins for topping up margin ready. For the past three years, I was topping up approximately once a year. My problem is the opposite: I should withdraw the collateral more often.