Thanks for the reply.

Yes. On review of my own post I might be slightly overexposed and causing myself unnecessary stress.

Thanks. I needed to hear this. This is good advice.

Thanks. Good ideas here.

Hey guys, this is a serious post.

I have been holding for almost 10 years at this point.

Sold one coin in 2017, lost some in 2014 to mtgox and HODL'd the rest.

I currently have what might be considered 'life changing money' to many.

I have been living at an extremely low cost and standard of living for the past 10 years. Some would scoff at my frugality and tradeoffs to maintain a low cost way of life.

Living the dirtbag lifestyle, squatting, living in communities,  traveling around the world on a shoestring budget, living in cheap countries, long stretches of time bumming around without working, living extremely frugally etc.

I keep a low cash balance, with my liquid fiat cash balance is down to something like under 0.5% of my total net worth. Rest in BTC. I have no motor vehicle, no property, no other assets and I am currently taking payments from the state for unemployment.

I feel like the dog who has been chasing the mailman (trying to accumulate wealth), and now that i've finally caught him... I don't know what to do! I have been studying 'sudden wealth syndrome' to avoid falling victim to it, or the common vices newly minted wealth attracts.

I want to avoid self destruction through wretched excess. I have gone down that road before and want to avoid touching it second time. I want to live a life with long term goals and take action based on thought, reflection and reason.

I am a long term believer in the bitcoin project and have invested significant time into educating myself about the technology and economics, in addition to how the current financial system works.

I find that I am currently dis-incentived from working a /hour job, as it's just so little money earned compared to my holdings. Even laying down capital for entrepreneurship because holding BTC is so profitable (though it does not grow in a linear fashion). Sometimes I wonder if I'll ever find meaningful work.

WTF should I do!? What would you do in my position!???

It's easy for price to affect mood if an individual has a position which is too large for them to handle.

What is your bitcoin worth as a % of your total portfolio?

Are you valuing that at today's date, or acquisition price?

I recommend investing more time in self study, reading, learning and general research to increase conviction, or to reduce position in BTC.

Hold a position that you are comfortable with. Keeping a cash balance is important.

If you don't make it to the future with a healthy mind and body, it doesn't matter what the price will be.

hold strong

Hello to all Sound money enthusiasts, Hodlers, Speculators and Sceptics.

What % of your portfolio is BTC at today’s value?

How do you feel holding that position, especially if it is on the larger end?


 

Hi Bitcoin Talk,

I’m trying to understand the mechanics of how a small “OTC?” trader makes income through cash trades on LocalBitcoins, HodlHodl, LocalCoinSwap etc.

I want to start making these trades myself. Can anybody give some comments or notes if my understanding is correct?

———

Exercise: The goal of Trader A is to increase his holdings of BTC and USD, while minimising losses.

———

Let’s assume the current exchange rate is 1 BTC = $10,000 USD

Let’s say Trader A currently has a balance of 1 BTC and $10,000 USD.

On HodlHodl, Trader A sets his:

SELL price of BTC for 10% OVER the spot rate, so he is selling 1 BTC for $11,000 USD

and

BUY price of BTC for 10% UNDER the spot rate, so he is buying 1 BTC for $9000 USD

Now, here’s where i’m confused…

How does Trader A protect himself against volatility in the price of BTC?

Let’s say he meets someone who he sells 0.5 BTC to, for $5500 in Cash, USD

So he currently has 0.5 BTC and $15500 USD in his possession.

Now, between trades, the price of BTC raises by 25%. Now, 1 BTC = 12500

Trader A still has 0.5 BTC and $15500 USD in his possession.

Now, he meets someone to buy 0.5 BTC from them at $5625

Now his portfolio consists of 1 BTC and 15500-5625= $9875.

Trader A has a smaller portfolio than he began with.

———

I spoke to an individual making money through trades with a 5% spread on LocalBitcoins. He explained that he has so much volume going through him (almost 50/50 buyers and sellers) that he does not worry about volatility risk because of the spread + volume. I am afraid he may be ‘caught out’ by one of BTC’s sudden price appreciations. Am I missing something vital here?

———

How can a trader in this business protect themselves against volatility risk?

Is the solution to have a Cash & BTC balance on an exchange, which they use to quickly realise their spread, once a sale in real life is executed to protect against volatility risk (with the expense of exchange fees and slippage)?

Any comments, questions or discussions are welcome. Or if this has already been covered in a thread, could anyone point me towards the adequate reading material?

My goal is to accumulate as many BTC as possible for my HODL stash.

Thanks.