Can you beat someone who religiously buy and hold bitcoin from inception with trading?
- Thread starter HolyGrailSeeker
- Start date
Didn't think the day would ever come where I agreed with Pekelo, but here we are, the 100th monkey writing literature.
Stopped out this morning. Small loss helped a bit by the Canadian exchange rate.
I'm trading with Newton in $CAD.
The discussion starts at post 69
I made 2 small trades and got stopped out both times. Maybe down 1K
So as a trader my account value would be $243K
An account with 5 BTC is worth 88k!!
And the guy who wanted to bet that buy and hold out performed trading, is day trading crypto futures.
One year later.Ok, got it
5 bitcoins for investor @ 48,878 = $244,390
Today is 12/6/2021
Let's track your trade performance against that
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I made 2 small trades and got stopped out both times. Maybe down 1K
So as a trader my account value would be $243K
An account with 5 BTC is worth 88k!!
And the guy who wanted to bet that buy and hold out performed trading, is day trading crypto futures.
Results are based on a bear market in all markets
Have you calculated what that $243K invested in FAANG (Facebook, Apple, Amazon, Netflix and Google) would be worth today?
How about in Tesla and PayPal?
Edit: my crypto perp futures trading is not part of investment thesis
I based it on my own trading experience which is slightly positive for 2022. Mostly cash but a few stocks that have made gains.
I thought that your trading was that you wanted to put some money to work and figured that trading was a better way than buying and holding. Has to be some reason you are trading.
"trading... put some money to work" - this does not match my crypto perpetual futures experience
For me, trading crypto perpetual futures is a way to express an opinion on short term price moves by risking a small capital
The mechanics of the crypto perp futures trading platform utilize crypto assets as collateral. This is enticing (or tempting) because if the trading is successful, there is no need to sell the crypto asset(s)
I started trading crypto perp futures as I wanted to short Eth with leverage on "sell the news" Merge event and I made over 5000 USDT
However, as I mentioned on the Bitcoin price thread, my crypto perp futures trading was liquidated when I went long btc perp futures and I stopped trading
Whether you're aware or not, I only deposited more crypto assets as collateral to trade short the FTT perp futures and made over 70,000 USDT
I withdrew all my collateral, re-acquired back the ones I lost from the previous liquidation, swapped 40,000 USDT to crypto assets to yield farm and earn over 20% yield
and at this time, I'm only playing around with 10,000 USDT in the platform
So, as you can see, this is different than your description of "putting money to work by trading"
I used trading as gambling and when I got lucky, I took the winnings from trading and invested into crypto assets and the ecosystem of defi (decentralized finance)
Sounds like whatever it is you are doing is working out for you.
If you reinvested 40k USDT which I assume is equivilant to 40k US Dollars. It seem to me that you have made quite a bit more than you have by buying and holding.
I guess it depends on how you spin it. Anyway I'm still waiting for BTC to stop trending down so I have no investment yet.
I have lost ytd over 700K US $ mark-to-market of net worth in the crypto assets portfolio
The only way to spin that is to say it's not a loss if I haven't sold, which technically I was not planning to sell
But to be honest, it still hurts to know that the value has gone down so much m2m
I suppose everyone is hurting out there, stock investors, bond investors, real estate investors and much more pain to the crypto assets investors
I kinda know how you feel, I had a similar situation in 2002 as the value of my liquid net worth was cut in half as a result of my buy and hold strategy. It was a feeling I didn't want to repeat so I changed my strategy.
If BTC does what you expect it to, and makes a new high in the next couple of years, then the drawdown in fiat will be much worse during the next crypto winter.