It is good to have thought through your strategy and make sure that it fits for your situation, and surely here we are not getting so much into trading strategies, but sometimes it is important to figure out a kind of psychological balance that works, and since you say that you are striving to accumulate BTC, then you may well be continuing to add funds to your accounts as well? It is more difficult to build your account merely by trading back and forth between BTC and USDT... so I don't really mind the idea of it, and even something like 70/30 BTC/USDT might seem more practical to me, but surely a variety of your individual factors are going to matter.. including how long that you have been stacking sats...
so if you have been stacking sats for a long time (gosh even if we go by your forum registration of more than 7 years ago), then it would make less sense to have your funds so skewed in favor of USDT, and I remember some times in the past (in around late 2017) that my funds had gotten into the ballpark of 90% BTC and 10% cash, and I was feeling like I had way too much cash, but that was when the BTC price was going up, so I was shaving off some BTC along the way up, so I could see that there might be times that a person will shave off BTC on the way up, and then get towards higher levels of cash as contrasted with BTC, but I still have some troubles understanding the justification to try to maintain 50% cash (or USDT),
so I suppose just on the face of it, it seems to be me that you might not be very strongly convicted in terms of believing in the power of BTC... because we know that the dollar (and thus also USDT) is in a situation in which it is inevitably losing a lot of purchasing power on a regular basis.. sure they try to say that it is in the single digits, but it also depends on what you are trying to buy, so it seems to me that in the coming years bitcoin is poised to do quite a bit better than the dollar and the rate that the dollar is losing purchasing power.. but surely at the same time, there can be a lot of up and down along the way to see how it plays out and also various periods of time in which bitcoin may end up doing surprise exponential UPward price moves that never end up really recovering (or dipping back down), and then you could end up regretting that you had chosen such a seemingly relatively whimpy bitcoin allocation.
I did not have the opportunity to engage in such accumulation of BTC, since due to personal reasons I had a break of several years (about 4), and I returned to the forum and to active accumulation less than a year ago. I agree with you that 50 percent may be too high a share for such an ethereal token that is added to the owners' accounts with the snap of a finger. 40 and even 30 are quite fair.
We might not be communicating very well, and largely you understand that I am suggesting 70 BTC and 30 USDT .. and i am kind of forgetting about USDT being a shitcoin, since it has around 9 years of existence and pretty reliable pegging to the dollar and even quite a few attacks over the years, so it can be considered similar to the dollar even though yeah there are some potential ongoing issues in regards to its ongoing attacks, but I don't see them rug pulling you or even losing their peg to the dollar absent some pretty major event.. so in that sense, I was not really referring to any concern that might exist regarding USDT's dollar peg.
I was largely referring to your suggestion of an investment portfolio that is investing in bitcoin and keeping such a low allocation - even though surely you can balance those kinds of risks however you see fit.
Since I got into bitcoin in late 2013, I personally, had considered my bitcoin investment in terms of something to add to my various other investments, so I already had an investment portfolio that was decenty diversified into a variety of assets - even though I kind of figured that anywhere I had my money, i had too much dollar exposure, so I initially was looking to invest into something like gold, and so when I first read about bitcoin, I considered bitcoin as a kind of potentially better than gold substitute investment, so in my first year investing into bitcoin, I gave my self an allowance, and by the end of the 1st year, I figured that I had gotten my bitcoin investment up to right around 10%, which I thought was a pretty good place to be, yet since 2015 was such a down year for bitcoin, I continued to buy bitcoin, which ended up getting me to right around 13.5% by the end of 2015, and so the price appreciation of bitcoin between 2016 and now largely puts my bitcoin at around 75% of my other investments, but within my bitcoin allocation, I have some bitcoin versus cash that is authorized to buy bitcoin, which generally floats between 1% and 5%, even though in late 2017, it had gotten up to 10%, so unless I am not really understanding you correctly, I am just thinking that you're claim of 50% bitcoin and 50% USDT is way too high dollar exposure.. so let's just take USDT as if it were very similar to the dollar.. and maybe the most I would think would be 70/30, even though mine had gotten up to 90/10 at one point, but usually I am way lower than 10%.. and currently in what I consider to be my "crypto holdings," I am around 97% Bitcoin, 2.5% cash and 0.5% shitcoins... but all of that crypto together is around 75% of my overall investment portfolio with my other allocations in mostly stocks, bonds and real estate.
Regarding your 4-year break in BTC accumulation, sorry for your loss (and sometimes we might not be in a position to accumulate, perhaps financially, psychologically or maybe even other reasons of conviction about BTC) because we likely realize with something like BTC "time in the market" is better than "timing the market," yet if you had accumulated a decently-sized BTC stash prior to taking your 4-year break then you would likely have had been in a very good place, but I take it from the rest of your description of the situation, you had not front-loaded your BTC investment...which may well mean that you still consider yourself to be in a kind of current BTC accumulation stage... that's my reading of what you are saying, anyhow, and yeah, the last year and a half have probably been decent times for accumulating BTC, but yeah of course, prior to late 2020 would have even have had been better... but any of us can ONLY do what we are able to do and we have to live with our choices and/or whatever might have had been our inabilities to accumulate bitcoin at earlier dates.
A trader has more exposure to the crypto currency market than a regular holder would because of the frequency of interacting with the Blockchain for transactions.
A holder knows nothing more than to HoDL and if they are disciplined enough, can and should HoDL for a couple of years without paying heed to market trends of whale signals or halving in the least
A holder would buy the dip or buy otherwise because they believe more in the outcome than in the currency market situation.
There is no reason to stereotype HODLers in such a negative way Cryptomultiplier, and surely there are HODLers who will spend their BTC from time to time and also experiment with spending.. or even spend and replace.
Holders may well go through BTC accumulation stages for 10 years or more (as long as they been in bitcoin), depending on whether they were eager enough about bitcoin in earlier years to stack a decent amount of bitcoin, then they might have gotten out of their BTC accumulation stage.. kind of forced out of accumulation stage by how much BTC had gone up in the last 7-10 years or even the earliest of adopters from 13 -15 years ago (yeah we will just be getting into bitcoin's 15th birthday in January, so it would not be too common for too many people to have had started in that 13-15 year time frame, even though we do have some of them in this forum.
One of the difficulties in spending remains quite a bit of hostility in terms of how bitcoin is treated for tax purposes, so some people might get confused by how to treat their bitcoin based on not wanting to have to engage in complex accounting practices.
[edited out]
Actually in this case when talking about investment it is a choice and indeed if we can do it then why not.
Regardless of whether or not fiat is safe at this time we must realize that fiat is the greatest power but investment can indeed be a necessity without leaving fiat because after all for everyday life fiat is still very much needed.
I will not leave fiat in this case because it is also impossible because fiat still has full power, especially to support life but for investment, especially in bitcoin, it is a different story. Do not merely when you are in bitcoin you forget and consider fiat bad because in the end when looking at the situation in everyday life fiat is still a primary factor if categorized as a necessity.
In this part of your post, your ideas sound a little lost Fauderz, even though I think that I understand what you are saying in regards to making sure to keep some feet in the fiat world, even while investing into BTC, and even on a personal level, I don't have any problem with the idea of keeping a foot in both worlds, but your comment's seeming attachment to fiat seems like it could be a bit problematic, as if you don't really understand what bitcoin is offering..... but from the rest of your post, I can see that you do seem to understand that bitcoin is a potentially powerful investment.. so what is it? Do you consider that there is anything wrong with establishing a bitcoin position and continuing to operate in the fiat world, so it is not like your choice to invest into bitcoin would result in your having to have to give up fiat? You seem to understand that, so why be so lovey-dovey in the way that you describe fiat? Sure fiat exists, but we don't need to be lovely-dovey about fiat, since fiat has a lot of problems and hopefully our investment into bitcoin allows us to have some non-correlated exposure to money that is not so controlled and manipulated by state actors, who might not even have bad intentions but the system that they are working within has gotten away from them, so they have to engage in deceptions, lies and desperations to try to keep normies trapped into such a controlling system.. especially ways that fiat is currently being manipulated to control people, which maybe had always been somewhat true and the powers that be do not really like normies using cash, either.
As long as you believe and want to invest in bitcoin then you definitely know what you will do. 30 percent of income if it feels too big then you can reduce it to 20% or 10% according to your own strength.
Many here are married but in the end they can still do DCA consistently. This indicates that belief can make us think more broadly and not only fixated on economic conditions because in the end when good management is done and you know how much income and expense from your income actually it can be a gap to make some changes if you want to invest and it depends on yourself whether you want or not to invest.
someone that doesn't have an investment mindset will always find excuses to give to support his belief. Your mentality plays a great role in determining the kind of decision we make, while some can decide to invest like 20% of a months salary and hodl and just forget that such amount ever enters there hands others will be considering the immediate thing they can do with such amount. If in the long run, they investment pays off, the later regrets his inaction while if it doesn't pay off, since you've already counted that money as gone you won't feel that bad. That's the reason we are advised to invest with an amount we can afford to loose without any serious effect on us.
Therefore, we must have a careful strategy from the beginning so that in the future the needs we need and the ongoing investment (DCA) are not disturbed. 20 percent is not the initial benchmark because if in the end if we are not able to be consistent in the future, why force something that is difficult for us to guarantee so that initial management of finances and planning in investment must be decided carefully from the start.
If we set too much from the beginning, for example 30 percent or 20 percent but are not able to be consistent, it will also be not optimal so it needs further emphasis on whether we are able to invest with an amount of 30 or 20 percent for the long term or not. If in the end this is burdensome then reduce it so that you are able to be consistent but on the other hand you are also able to support the needs of the life you live.
I agree with everything you say here Fauderz, and I would just add that it is likely better to find an amount that is sustainable that is lower than to pick too high an amount, but at the same time, if someone is really on top of their cashflow situation (and they have an emergency fund in place and have even projected out their cashflows for 6-18 months), they may well have enough information about their situation to really be aggressive and to push their DCA to its maximum amount every time they get paid or every month or however they have it set up and decide to fluctuate every paycheck between 10% and 30%, so it is not like they have to be exactly consistent, and just because exchanges allow people to set up automatic DCAs, I am not really much of a fan of the automatic DCA, yet at the same time, many times in the real world, people don't want to have to manually make their BTC buys on a weekly, bi-weekly or monthly basis.
