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I quiet agree with you because the fact is that DCA knows kind of investment plans doesn't work for shitcoins because some of these coins the growth rate over a given period is very low so in terms of bringing back value on investment is not there so applying DCA to such investment will be wast of time
First off. You did not need to cite my whole post in order to make your point.
Second, it seems that DCA is best applied to projects that have long term value, such as BTC, and so it can become quite problematic when folks apply DCA to shitcoins, and so in those kinds of cases, the DCA might cause the loss of more money as compared to if they had not applied DCA to such crap.
So yeah, I think that the point is that we should be careful if we are going to apply DCA to something like a shitcoin, since surely it could take a bit of time to even reasonably that the shitcoin is even worth investing into in the first place, and so many times, with shitcoins, the presumption should be that they are not worth investing into unless you can figure out some angle to invest into them, and even if you conclude to invest into them it may well be ONLY really justified as a trade (to get in and out) rather than trying to stay invested in them in long term ways that is way more justified for something like bitcoin... and yeah, even with bitcoin, there could be some risks, concerns or even timeline considerations that a person might have, so frequently people have to also figure out reasonable amounts that they can invest based on their own particulars, including but not limited to the levels of their discretionary income and perhaps the extent to which their cashflows might be consistent enough in order to justify a decision to invest into bitcoin for 4-10 years or longer rather than merely coming to bitcoin from a perspective that aims to trade it on a shorter than 4-year timeline.
I open up a thread here:
Something to pounder for crypto enthusiast regarding LA wildfire. Probably this could be a wake up call for the rest of us to have a good practice on how to protect our keys in case of a natural disaster like what had happened in Los Angeles.
There could be several, like having your private key stash somewhere outside your home, or maybe in safety deposit box in a bank. Because just imagine if you hide everything at your home, with your keys and your hardware devices, and the amount is more than your home itself. And then going home to see that everything is on smoke.
And you have been buying in the dip and HODLing it for too long.
Having multiple backup options for your keys is really a good move. You never know what could happen, so spreading them out in different secure places can really give you peace of mind. You just have be prepared for whatever life throws at us especially with how unpredictable natural disasters can be. Always make sure that you stay ahead of whatever comes. It's all about your long-term preparation and making sure that all the effort you have put into buying the dips and HODLing pays off. If one method fails, having your keys secured in different ways gives you that hope and assurance that your hard work isn't lost. It's a smart strategy to keep your investments safe.
I don't think this is a smart strategy at all, if you spread your wallet key in different places then it will be more likely to be noticed by different people. For example, I have written my wallet key in a notebook and I keep it in a safe place as it will definitely be safe from fire, water and natural disasters.
Whenever you store your wallet key in multiple places, if one copy of it is lost immediately then your wallet can be hacked but you will not know it. So it is never a smart strategy to store your wallet key in multiple places.
Of course, there are trade offs in regards to different approaches to safeguard private keys, and perhaps you have found an approach that is really good for your own particular situation, yet your approach might not necessarily be good enough for another person with different personal circumstances. Claiming that you have a perfect system seems a bit problematic, especially when we know that there is variance in the way that guys hold their keys, and I doubt that you are the ONLY one who has the perfectly correct approach, even if it were to be true that your approach were to be perfectly correct for you and your situation.
For sure natural disaster can take various forms, and even if we took several precautions in regards to our private keys, we might have had made mistakes, so for example, maybe in the LA fire example, we had some kind of a hardware wallet, and we had back up keys in our house and then another set of back up keys in another building on the property (if we are so lucky as to have another building available to us, such as a shed or a garage), but then if our backups are on paper, then they might have all gotten damaged.. and a similar thing can happen in a hurricane or tropical storm zone in which the kind of disaster is different, and potentially leave us vulnerable if our backups are not sufficiently geographically separated.
Some people do not even have access to any location other than their living location, which might not be a lot of places to store/hide backups, and surely the more value that we hold, the more important it becomes to spend more time and potentially money in protecting our value.
Surely with some of the burnt homes there might have been people storing a lot, if not all of their wealth in their houses, and so then if their house burned down, they would likely needed some kind of an insurance policy, since it could be difficult to self-insure.. and if a person had residential property and also had bitcoin, then maybe they ONLY lost half if they had secured the bitcoin properly, yet surely it is difficult to presume that everyone who might have had bitcoin in the fires had secured their bitcoin sufficiently (or maybe they got lucky and their backups did not end up getting destroyed... or maybe if they had notice before they evacuated, they were able to take their backups with them?)..
Surely there can be a lot of kinds of value besides the personal residence or the bitcoin, and also some folks put a lot of time and energy into building and organizing their personal (and perhaps work?) space, and so there could be a lot of loss in regards to various organization systems that a person might have established in their personal residence.... There could have had been value in having had built neighborhood relations too.
This was exactly what I was arguing or should I rather say discussing with a friend few days back, he argued that storing your seed phrase offline is the best and most secure method of seed storage, and while I agreed with him to an extent, I was still trying to remind him that offline storage is still not 100% secure as something could still go wrong and his storage option could be affected, using the LA fire outbreak as an example I was able to explain to him the dangers and limitations of offline storages too. Even when one chooses to use multiple backups, there’s still every possibility of damage or loss. For example, having backup phrases on paper and safely securing it in a place on your house may only guarantee some level of protection and safety to one’s assets as it is still very vulnerable in the face of fire, water or other natural disasters.
Indeed, geographical separation of the backup phrases may also be able to mitigate the risks totally losing everything but like we know, not everyone has access to different safe locations, which also makes it very difficult to access this alternative.
So that led us to the big question, since we can’t feel safe secure our backup phrases online due to fear of hackers and online theft, and neither can we feel completely safe securing our backup phrases offline for fear of losing them to thieves and natural disasters, where/what then is the safest place or method of storing our wallet data, where we can completely feel safe without having to worry about threats?
I doubt that I know the answers to these questions, and surely there are some consulting services that will help people with their custody choices, and surely, the more value that we have, the more we might find it to be helpful to collaborate regarding our set up and possible alternatives and/or possible threats to our model.. and we might not even need to disclose all of the details of our set up in order to consult about our set up, yet surely sometimes we don't even want to consult with anyone, so we are left to figure out our security and hope that we have adequately covered most (if not all) scenarios that are likely to occur.
Of course, there is multi-signature too, yet I think that one of the most common reasons that people lose their coins is due to overly complicating their security set-up and then forgetting all of the steps or not properly communicating such steps prior to their death or incapacitation.
I have discussed some aspects of my set up in the past, yet even I know some areas that my coins are vulnerable, so it is not like I necessarily want to publicly disclose every thing that I do or even to discuss some of the areas that I consider vulnerabilities.
of course, guys can have some coins in hot wallet or medium wallet or cold wallet, and so the hotter the wallet the easier they are to get to, and even the cold wallets could have time locks or even geographical separation between keys, yet there could be problems in those kinds of set ups too.
There are some set ups that require putting the various parts together before signing is possible, which causes vulnerabilities when the parts are put together, and there are possibilities that might involve 3 out of 5 or some other quantity of signatures, but the three do not have to come together geographically, so I cannot claim to know how to employ all of these various options, especially since there are also folks coming up with new systems that might contribute to complications that may or may not be helpful for guys who might be trying to figure out more straight-forward approaches.. and maybe newbies do not need to have any of these systems in place, yet the larger the stack size, then it seems to become more important to increase security measures at least in regards to some of the stash.. but then even if some stash is a lot, and maybe it is not touched very frequently, it still might need to be tested on a regular basis, quarterly, yearly once every two years.. or something.. some of the timelocks that go 50 years into the future scare me, but it could be a variation of security that might be employed in shorter timelines, including deadman switches and various things that might not be very necessary for smaller amounts of coins.
Another thing is that if the BTC goes up a lot in a short period of time, we might not realize that our hot wallet turned into a vulnerability...
Recall thr0ugh much of 2015, BTC prices were around $250 for much of the year. Let's say that a person was planning to buy a car with bitcoin (or maybe he sold a car for bitcoin), and so he had something like $10k on his phone, and he was thinking that he would move it to cold storage, but then he forgot about it... so $10k in 2015 might have been around 40 BTC, yet in late 2017 (just two years later), for a short period of time, the same 40 BTC were worth $800k, so surely a guy might have found himself to be very vulnerable if he had not remembered that he had that wallet with 40 BTC on his phone in 2015 that had grown from $10k to $800k and then putting himself in a position of real bad vulnerabilties if anyone had known about him having that quantity of BTC on his phone.
Many of us likely have heard about sloppy security practices, and sure maybe it is not as BIG of a deal if the value is not as much, so maybe we might even purposefully have $1k to $2k on our phone because we are specifically going to make a purchase with someone who wants to transact in bitcoin, yet sometimes we might get busy in life and not realize some ways in which we had failed to increase our security after we should have known that the value of the wallet had gone up based on recent BTC price moves.
Even between late 2022 and late 2024, there might have been guys who had not realized that coins that they had on a late 2022 wallet had gone up close to 7x at least from top to bottom.
I recall a trip that I made that lasted from mid-2020 until mid 2021, and I recall that there was one wallet that I was keeping that had gone up close to 10x (BTC prices that were around $6.5k at the beginning of the trip and we know that they had gone close to $65k in March 2021), so I had at least one wallet that had gone up 10x and it was a bit troubling to figure out how to mitigate some of the risks in that while I was in a travel status, and I was not even really thinking too much about it, until at some point I had realized that I had overlooked that particular wallet...so sometimes mistakes can happen, even if we have several good systems and practices already in place.. but we might need to make adjustments based on changes in valuations.. and maybe we don't even want to deal with it or we might not feel comfortable with trying to figure out how to deal with our situation in which one of our wallets had changed in value by so much of an amount in such a relatively short period of time.
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To answer your question, nothing in this world is 100% secured, anything is possible.
We live in a world full of uncertainty, no one knows what may happen in the next few days or month because nothing is promised, the best you can do is to save your secret phase offline and leave the rest for God, because to the best of my knowledge, it's only God that gives 100% security.
I would be careful in terms of leaving too much to god, but maybe that's just me.
If banks and most of these exchange that has everything to protect themselves are being breached on several occasions, tell me what makes you think that you are more perfect than those institution on security?
Surely there are trade-offs between banks and individuals...so you seem to be painting with a pretty broad brush if you think that the vulnerabilities are similar.
You might even decide to have several copies of your secret phase in different geopolitical area of your country just as suggested, they might be protected against natural disasters, but have you thought about it if one of it falls into wrong hands?
There are ways to hold portions of keys rather than the whole thing in one spot. .or to encrypt the information.. Of course, there are trade offs, even with encrypting or otherwise convoluting information.
Any of them lost will definitely be a serious security threat to your asset, so in essence of all am trying to say is that their is no perfect security when it comes to this world that we live in, the best way to protecting your holdings right now is saving it offline on a single sheet, and leave the rest to God.
I doubt that there is ONLY one best way to do things, even if you have arrived at a conclusion that you believe is best for you and your situation.
