Solana and staking on Ledger
- Thread starter NoahA
- Start date
If you end up doing lots of research on the history and role of money, your mind will be blown away. Money is really just a way to store value. We don't want it to do anything else. Until bitcoin came along, all other forms of money were imperfect in some ways. But bitcoin is the hardest form of money there has ever been.
I truly think that a major economic shock really isn't that far away, and bitcoin will hopefully play a role in providing the proper path forward. We really are the end game of what central banks and fiat currency are capable of. For the world to move forward, we really need a new system, and the sooner the better.
To answer the question on the staking aspect of it, you will of course get better yields holding the coins yourself and staking them directly in the native wallet and even using a validator pool on Ledger but you do run the risk of bad behaviour as you point out. On a CEX you will earn less in yield but this is mitigated somewhat by the process they use to apparently vet the validators so they are "safer" and the lower yield is the price you pay for it. Regarding the SOL network itself I was optimistic initially but a few red flags have cropped up that make me dubious about its long term potential vs that of ETH and ADA.
Thanks for the info.
I don't want to turn SOL into a long term hold, but would like to get out break even, hence why I'm considering spending another 1k in order to improve the average entry tremendously and hope for a bounce. The lower yield at a CEX doesn't concern me as much as the exchange going down. I think Kraken is probably very robust, but these days, you never know. I moved most of my stuff out of Kucoin after some people suggested they could be next. They certainly do offer lots of leveraged products so who knows. I took a hit on selling some ETH in order to convert it to BTC because I just didn't want to hold ETH for the long term. But Kucoin charged $10 for a BTC withdrawal! (We are talked less than 0.1 BTC).
Man, my entry into crypto couldn't have been timed any worse... LOL
Yeah, I only put about 20% or so in crypto unhedged, so I'm similar, but in the massive runup, I didn't rebalance. HA! Puked up all my P in the last 6 mos.
You have to rebalance HARD in crypto. I'm too lazy.
Devils advocate time:
What about exchange for Goods and Services? Or do you disaggregate Money and Currency?
Also, what about Aristotle's rules of money? Portable, fungible, easily recognized, etc?
Some people might call it as shoulder head shoulder formation
I'm curious what your time-frames are for long hold vs break-even?
I'm not too concerned with the money, currency, store of value debate. What we need is something to rebuild trust. The inflation schedule of bitcoin is very clear, and ownership is very easy to verify and transfer. I've watched enough podcasts to understand how its the hardest form of money we ever had.
This entire crypto collapse is actually because we were using ideas from the fiat world and tried it on crypto. We had huge leverage, lending out of coins with no backing, and the list goes on. This works well in the fiat world because the governments just step in and print money to make it all right. Consider the bank failures of 2008 to be 3AC, but here we didn't have anyone stepping in to help. The MBS that brought the whole market down in 2008 would have taken down the entire banking system as well were it not for intervention, manipulation and money printing.
Its good this his happening now in crypto to be honest. Sure I'm losing money, but out of this will grow the the discipline for self custody. Who is going to use a CBDC when they know the government can steal it any time? The events of the past few months show why exactly its important to hold your own coins and that nothing else will do. Honestly, reading about Voyager and all the leveraged lending, and reading about Celcius and the ponzi scheme there, its all almost comical. This is honestly the best advertising for Bitcoin that you could ever hope for.
Honestly, I would love to see SOL pump hard, shoot past my BE, and then I can slowly scale out as it goes higher to take some profits, but for sure keeping a firm stop if it ever dipped down again. But it all depends on what the rest of the market is doing.
If I do scale in with a double up position, I think hitting a BE exit won't be too hard as a bounce past $100 is likely. But just as likely is it going to zero as well. (I bought 100 Luna for 20 cents.... a lottery ticket... and well that was a waste of $20). But spending another $900 on 30 SOL is a much bigger investment.