Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
⭐ Merited by JayJuanGee (1)
These people who sell are always a step ahead. After 8 years of hodling I was ready to sell my first small amount BTC (not the one I bought Oct 2020) at $59444. And they knew many people will sell at 59k ish so they started the sell off at 57k 
Now I will rethink if I sell below $99k 
Now I will rethink if I sell below $99k How about don't sell at all. At these price levels, there are ways to make an income of 10s of thousands USD a month on your exsisting stash without selling. This applies to stashes under 10 BTC too. Life is good at these levels.
Fuck third-party custody, if you are considering or enticed by anything that involves that.
There are some concepts in bitcoin.. the real deal bitcoin, that incentives are built in, so bitcoin is already designed to increase in value.. .what the fuck more do you need, you greedy fucks (#nohomo) who may well be seriously considering placing your coins with some stupid-ass service trying to claim legitimacy and enticing you with supposed "passive income" .. blah blah blah..
Did I say, "fuck that?" Don't be fucking trying to short-cut your BTC accumulation goals by thinking that you can "make money" using convoluted (surprise terms) contracts when if you accumulate adequately, then you will have way more options just living off the likely ongoing BTC price appreciation that has no real signs of stopping, even though it it is likely to continue to have up and down cycles along the way.. and you can take advantage of that in your long term planning and your refusal to take stupid-ass shortcuts that may well end up screwing you out of your coins by hook or by crook or just by bad luck (such as great price moves that liquidate you out of your supposed collateral that you were not able to adequately cover because you were to fucking busy gambling out of greed).
You will thank me later, even if you might not be able to measure what you are thanking me for, exactly...
The thing you fail to grasp is that by selling covered call options to fund my lifestyle and purchases I will not be reducing my stack, In fact it will even help me accumulate more then I could before. What's more, I don't have to risk keeping my BTC on the exchange to still have it fully cover my calls. I can use margin so that those coins are kept in my own wallet (not the exchange). A little diversification is not a bad thing, especially when you don't have to sell BTC from your stack to do it.
I think the trouble some of you have with this may be a lack of understanding/experience with derivatives in general. I can get almost 10% per month with covered calls, and my counter-party exchange risk is reduced by using margin. Yes its slightly risky, yes you might miss out on some capital gains, but in the long term it will do pretty fucking well. I’ve done covered calls among other options strategies for years in the legacy markets and I can tell you right now these premiums are amazing in comparision.
Thank you? your kidding right? If I had listened to you my stack would have been reduced substantially with your constant insistence of selling BTC on the way up. Now that's a stupid strategy. I can assure you my stack will be much larger at 200k then it is now. The only people to thank around here are the ones that tell you to never sell any of your BTC, unless there is an emergency.
Let me help you, and others that might consider listening to you, out. First let me introduce Exhibit A - https://en.bitcoin.it/wiki/Mt._Gox https://en.bitcoin.it/wiki/BTC-e etc etc etc... and read up on exit scams. Oh you want to hedge your counter party risk by running on a margin? That's cute, let me introduce Exhibit B https://en.wikipedia.org/wiki/Flash_crash oh you claim to make 120%/yr?
this brings me to Exhibit C https://bitcointalk.org/index.php?topic=50822.0 & https://en.wikipedia.org/wiki/BitconnectLooking at Deribit, in order to get 10% premium for March 26 calls you need to sell at $60k strike, meaning that if in 1 month BTC goes up by anything over 7% you'll loose some of your BTC (or as you claim "miss out on some capital gains"). Now you just have to do it consistently every month, and hope Deribit doesn't go the way of Gox.
Currently the golden standard seems to be BlockFi that pays just 3%/yr (above BTC2.5) https://blockfi.com/rates/ if you believe you can get considerably more (like 117% more) without taking on additional risk, i got a bridge to sell you
Look, there are many different investing strategies, some may be right for you and others not. For me, I no longer want to sell any of my stash (Like you and many others here do), but I would also like to retire, right now.
Covered calls is how I can retire and it is a legitimate strategy that has been done for decades in markets of all types. It produces income, and sometimes, some capital gains. I'm prepared to let the other 99% of assets to go for only capital gains while 1% is dedicated to income. I also want a way to generate an income in a downwards market (BTC does this sometimes), this strategy allows it.
I really can't understand the hatred that my strategy seems to generate in you and others. I am now more of a hodler than most people because of it, and I always assumed that is what we liked to do around here. Hodl as many coins as possible and for as long as possible.
Yes there is risk, I guess I'm just not as risk adverse as you and others here are.
Well for one, you're preaching to Not Your Keys, Not Your Coins crowd here. Sure if you want to play with 1% of your stash go ahead, just don't try to claim (or fool yourself into thinking) that making 40x the return of BlockFi is somehow low risk, just because you don't see the risk doesn't mean it's not there.
If you do this with the whole stash, then you better use even more advanced strategies using futures, etc.
planbB (or preston pysh?) is saying that hedgies are on the hook for 1.5 bil already selling futures and buying same amount of spot btc, of vice versa, I don't recall.
Apparently, it is 20% yearly return with practically no risk. It is caused by a significant contango in btc futures..
The futures strategy is no risk because it is a perfect hedge. Easily done through CBOE and CME as well. If anyone has a bunch of fiat not doing anything that they want to generate a yield on, this is a great strategy.
Now 20% with no risks and a perfect hedge? ELI5