Practical question - if you wanted to 'pause' your exposure to Bitcoin (let's say because you thought the exchange rate vs. USD was at a temporary high and likely to fall back significantly - so there was a chance to liquidate and re-enter later, hence buying more Bitcoin on the way back in), how would you go about it? I'm talking a 'pause' period of months here.
I can see the downside of liquidating some bitcoin and just leaving USD on an exchange, and the counterparty exposure that exists there. I equally can see the risk of withdrawing to a USD bank account and being unable to get that USD back onto an exchange at a later date (for example, because KYC requirements change or because your bank tightened its limits on how much can be transferred to an exchange). What's the alternative? Hold a 'stablecoin' on an exchange during the 'pause' period? If so, is there any such thing as a 'safe' stablecoin?
To be clear, I'm not asking about the wisdom of such a 'pausing' approach - I don't anticipate that any one of us could predict the top or bottom of any period/cycle, or even guess with any certainty whether the USD price of Bitcoin will be higher/lower x months from now. It's the process of executing on the approach that I'm thinking of. Personally, I'm a believer in the long-term - I bought a very small exposure in mid-2018 and haven't touched it since, but I was thinking of the practicality of doing what I've suggested if I ever lost my nerve during a major bull run, or thought there was an opportunity coming. It was triggered by a post here a few days back, where someone outlined their view of a move to a new ATH, then a pull back, then another ATH - it got me thinking about how practically one could optimise the pull back period, even if one was a long-term believer.
Any thoughts/insights would be much appreciated - thanks.
[link] [comments]

You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments