Ask HN: Guides to Investing in Crypto?
Looking to dive into books, courses, resources. More about the actual art of trading, learning how to predict, analyse, and less about the history of crypto.
4 comments
I've been doing stable coin investing. BlockFi pays 8.75% interest on stable coins (which should always be worth $1). Feels safe return in this crazy environment.
I also take out loans from schwab for extra leverage. I made a calculator here for it so as rates change, I can calculate my returns.
https://docs.google.com/spreadsheets/d/13FVmtdamdNhBhId8xwjU...
I also take out loans from schwab for extra leverage. I made a calculator here for it so as rates change, I can calculate my returns.
https://docs.google.com/spreadsheets/d/13FVmtdamdNhBhId8xwjU...
Feels safe return in this crazy environment.
Why? It's not a security. It's not in any way guaranteed. Or even regulated.
Various state regulators are starting to look into these companies - and you may want to look into why.
Why? It's not a security. It's not in any way guaranteed. Or even regulated.
Various state regulators are starting to look into these companies - and you may want to look into why.
We are talking about crypto here. "safe return" is relative. There are risks and they compensate you 8.75%-20% for those risks.
"picking up pennies in front of a steamroller"?
https://en.wikipedia.org/wiki/Taleb_distribution#Risky_strat...
https://en.wikipedia.org/wiki/Taleb_distribution#Risky_strat...
I love this. Thanks for sharing.
These "risks" you quantify how precisely?
I don't think there is a good way to accurately quantify them. I prefer stable coins that are managed and regulated by US companies (like Gemini) and avoid ones with algorithmic stabilization.
I agree they're a little bit safer than unregulated or so called "algorithmic stablecoins". But they're still commercial-grade debt, not bank deposits or money market funds. You may as well invest into junk bonds.
Their ERC20 contracts are backdoor-ed, so the issuer may in some cases will be able to recover stolen funds, but I'm not sure it will help if the issues itself will go bankrupt, and pure-play Crypto companies like Gemini or Circle are high risk of going under, for example in case of crypto crash or regulatory change.
Their ERC20 contracts are backdoor-ed, so the issuer may in some cases will be able to recover stolen funds, but I'm not sure it will help if the issues itself will go bankrupt, and pure-play Crypto companies like Gemini or Circle are high risk of going under, for example in case of crypto crash or regulatory change.
If you want to put your money into crypto, you need to see crypto by what it really is: crypto is a scam, not an investment.
Every crypto currency works like a ponzi scheme: people new to the game will lose money and the only way to get back your money is to put more people into the scheme.
If you look what happens every year with crypto, you can get a glimpse about how the scheme works. Prices are low and people start buying, slowly increasing the price. It will continues this way until the price reaches a new record.
When the price hits a new record, people new to the game will start buying, but they are already too late for the game, paying much more that they should. Media will starting talking about crypto, even tv news will talk about it, and mainstream people will start put their money into crypto. Then, suddenly, boom!!!! The price drops. A record drop. People lose their money. Rinse and repeat.
Why did price drop? Because people who owns large amount of crypto sell a large amount of crypto making other people with less crypto think prices will drop and this starts a waterfall, everyone starts selling except that people new in the game. With everyone selling so fast, prices drop fast and people new in the game, that do not anticipate this move lose money.
My advise for you is you need to buy now, with prices low, just after the crash. Wait your crypto double the value and sell. It doesn't matter if price will triple ou more. Don't be too greedy. Sell your crypto when it doubles the value, wait for the new crash. Rinse repeat.
Every crypto currency works like a ponzi scheme: people new to the game will lose money and the only way to get back your money is to put more people into the scheme.
If you look what happens every year with crypto, you can get a glimpse about how the scheme works. Prices are low and people start buying, slowly increasing the price. It will continues this way until the price reaches a new record.
When the price hits a new record, people new to the game will start buying, but they are already too late for the game, paying much more that they should. Media will starting talking about crypto, even tv news will talk about it, and mainstream people will start put their money into crypto. Then, suddenly, boom!!!! The price drops. A record drop. People lose their money. Rinse and repeat.
Why did price drop? Because people who owns large amount of crypto sell a large amount of crypto making other people with less crypto think prices will drop and this starts a waterfall, everyone starts selling except that people new in the game. With everyone selling so fast, prices drop fast and people new in the game, that do not anticipate this move lose money.
My advise for you is you need to buy now, with prices low, just after the crash. Wait your crypto double the value and sell. It doesn't matter if price will triple ou more. Don't be too greedy. Sell your crypto when it doubles the value, wait for the new crash. Rinse repeat.
I don't think your strategy works in the context of stable coin investing.
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I would suggest reading Nassim Nicholas Taleb's books: Black Swan, Fooled by Randomness and others. Its a bit dense reading, but well worth it.
I would point to Taleb's Barbell Strategy (google it) for any type of portfolio investing with high risk asset classes and I would consider crypto assets to be high risk (I don't invest in it). In the book, he talks about how to take on a little bit of risk without betting the entire farm.
I would point to Taleb's Barbell Strategy (google it) for any type of portfolio investing with high risk asset classes and I would consider crypto assets to be high risk (I don't invest in it). In the book, he talks about how to take on a little bit of risk without betting the entire farm.