Topic: Dump tactics - where to protect your crypot's when during dump? - page 3. (Read 621 times)

It is obvious that when the market begins to go down the best way to protect your gains is to be either in stable coins or in fiat currencies, many in the past tried to protect themselves with altcoins but that is a mistake as for the most part altcoins tend to exhibit a behaviour that is even more volatile than what we can see in bitcoin, however you need to be careful as it is not recommended that you keep your money long in one of those stable coins as you never know if they will disappear while you are holding a huge amount of them.

It is very important not to confuse "dumps" with "corrections".
A dump is when a shitcoin was pumped (for example from $10 to $20) then it is inevitably followed by the dump (which it goes from $20 to $9). In this case you shouldn't wait for the dump to start to then think about what to do. You should have sold before the dump began.

But a correction is when bitcoin goes up in a bull market (for example from $14k to $20k) then price corrects and comes down a little (from $20k to $17k) which is always followed by another rise as the continuation of the bull market (from $17k to $19k). In this case if you are day trading you can sell after the rally slowed down and price reached the resistance and buy back right away as the correction happens.
It is worth mentioning that during this process altcoins will always dump both during the rise up or the correction. In this case the only way to protect your "assets" is to convert them to bitcoin which is what all traders do which is the reason why altcoins dump.

As for gold/silver, these things should be used as diversification not something you go to back and forth.
As for stable coins, they are not to be trusted ever unless you have absolutely no other choice and you are going to own them for a very short time and accept the huge risk you are taking.

There isn't a direct way to turn your crypto to gold or silver, there are companies that proposes that and there are "stable" coins that claim backed by gold but in reality none of them are trustworthy. I would say best way to do it would be to cash out to your bank account in fiat form and go buy the gold directly, which would have some fee costs but otherwise would be a lot more trustworthy since humanity has done it that way for centuries now.

The other question is simple, if you think there is going to be a dump either do not buy bitcoin at all and since the price is very high compared to what it was, people would understand that or you could simply just put a stop loss, at which point if the price falls your exchange will sell your coins before it drops too significantly.

It would really be subjective because there are different type of traders the one who do actively trades and the ones who do hold no matter what.
Its easy to say on being patient but when you are already on the situation where price is already dumping and you do see that your portfolio is gradually
going on reds which would really poke up your emotion that neither you would heavily react with it or trying to endure the temptation of panic sell.
Dump techniques neither you would really be switching up to stable coins or simply cashing it out fastly to fiat.
Its up to someone on how he do secure it out there are actually various ways to do it.

Why do so many roll out stablecoins as THE option when there's no shortage of exchanges with real money? And some of have banking licences so that money is fully insured rather than being run out of a beach hut in the Bahamas.

It sounds like OP plans to 'time the market'. I doubt a newcomer would do a great job of that and nor would most people including me. You're better off riding it out with a significant portion remaining in BTC. The market can give you a beating before you know it's happened.

If you are a holder, being patient is a key to secure your fund against dump. Being panic or sad only causes you to make a fail decision.

If you are trader, stop loss is an important feature helping you stand still. Dumping can happen anytime and thats why setting a stop loss is very important. You can rebuy bitcoin with a better entry after hitting stoploss

As suggested, trade your Bitcoins for stable altcoins and never try to chase the losses in the market in case of being on the wrong side of the trend. You can use sell stop orders if the market drops suddenly with the given price range, the best tool for protecting the trades from sudden market behaviors. You can use buy/sell limit orders to buy/sell higher the market rate. If the market rate is lower than the rate you wanna sell, use the sell limit order but be careful not to mislead the orders with stop sell orders. There is four types of limit/stop orders and each of the trading order serves for different purposes. For any question, you can ask here or directly from me on pm.

If you believe that the trend will be negative, you have two generally safe options:

a) Exchange your cryptos to stable coins
b) Open a sell position on Bitmex or similar future exchange

IMO looking to the dollar <> crypto value is wrong and I'm not doing anything during the dumps.

Yes, converting it to stable coins to retain the current market value of your BTC. But if I see a market dump, I'll keep my bitcoin and just let it be. And the counterpart of it is to buy by that time when it dumps. More bitcoins to go is way better than converting it to stable coins.

Etoro? or the typical method of crypto > cash > gold/silver.

1. Its your choice but majority been doing this specially if they do just make some active trades and waiting up for some dumping situation where you can
easily switch up to btc when you do see some opportunity.

2. Its up to you on where you do make out some other investment neither you would divert into those typical natural resources like gold and silver.
   but some do just decide to stay with crypto but well when it comes to diversification then having this option
   is quite common.

Most of people do target out on their fiat value earnings and that what matter most.

You must set a specific strategy when rising and falling heat, and even the same strategies differ from one person to another.
Lots of altcoins are down from Bitcoin for you, and it's not the ideal place.
It is better to withdraw it to your bank account or use some intermediary services that enable you to send and obtain this information and others,

Keep in mind that to access fiat to crypto either you pay a premium or required to do KYC process, so if that's not your deal then I guess stable coins is a short-term alternative. It's not like you have to hold for years to find a better entry to buy BTC again.

USDT has the most volume and most exchanges support the ERC or BTC version, and in some cases even TRC.

Just stick to Bitcoin if you really want to hold. Because BTC always recovers.

Stablecoin risk is if it gets seized or stopped or just becomes illegal.

Gold and silver,,, too many scams out there I think you will find many socalled derivatives but you cannot prove yourself you actually hold gold so I would avoid.

I don't think there is the best place to protect your assets when bitcoin is starting to dump, but you can sell your bitcoin if the price starts to go down.
You can use bitcoin pair usdt to sell, so you can hold usdt to buy back bitcoin later if the price reaches the lowest price.
But there is no guarantee for you to see if the down of the bitcoin price will be a "dump" because sometimes, the bitcoin price is down and back to the high price.
I prefer to sell some bitcoin before the price is down deeper, so I can have the opportunity to buy back bitcoin again.

I don't know what the easy way to convert crypto for gold or silver is. But I will sell my coins to fiat to buy gold or silver in the local store. I don't want to buy gold or silver online because that is too risky for me, but I don't know about you.

There are many ways to do this. Basically you can sell for USD or USDT on any exchange pretty much. Just sell it for USD and in the future buy it back if you think it will go back up. Another way you can do it is if you use a futures exchanges and just open a short of the same value. Right now this is beneficial because if you are short then you will get paid a funding fee.

There are many exchanges like Binance Futures, Kraken, FTX, Bybit, Bitmex to do this. Just remember that if you are wrong and price goes against you, you will lose your BTC value of the difference that it goes up by. This shouldn't make a difference because you technically sold earlier so you will still get your original selling price even if price goes against you.

Good suggestions by few of the posts above. However instead of stable coins you can always option out for the fiat conversions. I mean converting crypto to crypto is anyway little basless idealogy. When deep market dump is on going even stable coin will fluctuate a little bit.

In addition to that you will have to wait for the buy-sell process and get desired value for token.

In my case, I use WazirX (local exchanger) which allows me to sell my bitcoins into fiat in no time. I can hold this fiat in INR value and they are as stable as dead soul!!! When you see market is pumping back you can always option out for buying at peak in no time.

That's advantage for me over stables. Of course it's up to everyone's choice how they want to secure the "original value".

Dump tactics with fiat. :-)

Any dumps from now will be healthy dumps or more correctly you can call them as healthy dips or corrections. Such dips or corrections are great chances for you to accumulate more bitcoin and practice DCA.

One of the Best Weapons in Trading. Make sure you read it and can apply such trading weapons for your trades.

Whenever you get the signs based on the indicators you are using indicating that BTC is losing momentum, just convert to and stable coin and buy back the dip, with this, you are increasing your BTC holdings.

Yes it is, just dump it into the stable coin and then you can also wait for the dip to buy in too. Your asset will not be volatile.I often used the stable coin to protect my asset from the dump.
There are some reasons
1 big liquidity
2 traded in all of exchange sites

Im not sure if this is the best way but do you aware if the liquidity of gold coins are not so high as stable coins?

Dump it to stable coins on any exchange (i suggest binance as market leader).

There are stable coins backed by gold if you are interested to be exposed to gold fluctuations rather than dolar constantly loosing value:

https://coinmarketcap.com/currencies/digital-gold/ - popular on bitcointalk thanks to their bounty
https://coinmarketcap.com/currencies/pax-gold/ - known alternative (same firm that has PAX - usd stable coin)
https://coinmarketcap.com/currencies/tether-gold/ - the biggest player - same firm that has USDT

But this is not like holding gold bar in your hands. These firms can disappear with your money any day.

Dunno about silver. Most likely you will have to dump to USD and send it broker/physical seller.