More than a ten friends, connections and followers (on Steemit, Facebook and LinkedIn) have asked me what is my strategy for tomorrow. Am I going to sell all coins or one of them (BTC or BCC)? Will I HODL? What position will I take – short or long? Why?
So, I realized that it would be nice to make small analysis, identify pros and cons and explain my estimations. As you are maybe familiar, I am into altcoins and do not have too much invested in BTC. So, I will be a risk taker in this game because I can’t loose too much.
First strategy – HODL
If you are a (long run) investor and if you believe that current price is low you should hodl. In other words, your strategy for August the 1st is to do nothing. It is good for those who do not want to bother themselves with (probably) great price oscillations in next couple of weeks. Also, it is the best strategy for guys who want to sleep (like a baby) and don’t want to be anxious and preoccupied in next period.
On the other hand, if the price decreases, they will (probably) have an indirect loss. They won’t take an advantage of the opportunity to buy more bitcoins on lower price than it is today.
Second strategy – SELL HIGH BUY LOW
At 12:20 UT all BTC owners will get bitcoin cash. On many blogs and portals, considerable number of owners are planning to sell everything in first second. I suppose that there will be no enough demand, so price will decrease. Those who sell the first will get the best deal. Next bidders will sell on lower price. Some of the community members do believe that price of btc will drop around 10% - 20% for a short time after the BCC release, because a lot of guys are now piling bitcoins just go the the free BCC (that is why we see the current spike of 10%).
Their strategy is based on assumption that price will fall but also reverse. So, they will try to anticipate „the depth“ of fall and than catch the train when reverse happens.
Strategy to sell and wait is good in theory, but vary risky in practice. First question is will they manage to sell. Secondly, will they make right predictions. Thirdly, will they catch the train.
Third strategy – HEDGE
Small number of BTC owners will hedge and implement both strategies. Most of them will spit all coins in two parts. First part (maybe 50 percent) they will hold. The second part they will sell and wait for the „right“ price. So, if price goes up they will get profit and if price goes down at least they will have less regret since they already cash out half of bitcoins.
Forth Strategy – INVEST
An insignificant number of owners will sell everything and than buy alcoins like Litecoin and Monero. This strategy can not be evaluated like others because we would have to analyse every coin and do comparative analysis. But, I see some potential in this strategy especially if you are altcoin enthusiast.
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hey; waiting for your update, segwit locks in august 21st
Hey there @cryptogirl! You have a really nice blog, this post is just another fine example of your writing skills! I'm sure you will hit 500 followers this month, I just became one of them.
I'm sorry I don't have any advice or working strategy for specific coins, whenever I buy into some coin, it looks like its value drops instantly. It's OK, though, I think that with enough time, most coins will attain new record values in the future, i.e. we're still at the beginning of the mass adoption of crypto :)
lucky us.
Did you know that if you put Lisk in your Lisk wallet and vote for 101 delgates you receive free Lisk(money!)!?
You can earn 22.6% interest per month if you specifically vote for these members: http://howtoearnlisk.tk/#votingrounds
I bought 0.5 BTC & moved it into a Electrum wallet. I've got to work out how to transfer the BCC into a different wallet & then find an exchange, join, prove identity etc. Should have joined an exchange before really (already on Coinbase but won't support BCC).
I think I'm going to dump the BCC pretty quickly if I can & reinvest in either more BTC or other altcoin.
Do you prefer bitcoin or altcoins? I believe that Lisk and Golem have an oportunity to succeed.
I have 154 EOS tokens and 3 LTC as well as the 0.5 BTC. I do like altcoins but like the fact that BTC is the oldest crypto and is the most accepted. I think it will reach $5000 US in the coming months. I will look into Lisk and Golem.
It sounds like you've already read this ;) @jimbobbill - let's all hope that prediction is correct! On another post thread I was saying how I agree with the long term analysis, but shot term I think BTC could definitely take a hit after people holding it now get their Bitcoin cash some will probably dump Bitcoin as well.
https://www.cnbc.com/2017/07/31/bitcoin-to-surge-nearly-80-percent-to-5000-standpoints-moas-predicts.html
@cryptogirl1 -- Just curious how you decided on Lisk and Golem? Those are good calls, but there are plenty more good altcoin picks IMHO :) If you want some other alts to look into, I'd also recommend Veritaseum (way down from its high now), Stratis, Siacoin, Antshares/Neo, and Waves
Nice write up Thanks.
I'm going number three and four, I exchanged a number of ETH and LTC for BTC a few day's ago just to take advantage of the free BCC that is coming and will probably swap back into them again after the forkenning has happened, but will still hold at least half of both BTC and BCC and see what happens.
Have voted and followed.
excellent post
good @tha199
Great strategys :) thanks for sharing
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