Which altcoins are likely to go up when BTC goes down? - page 2.

WeThePe0ple

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Quote from: mk4 on January 14, 2024, 12:05:38 PM

I don't think they'll be an altcoin where you have a high probability of it outperforming bitcoin on a bear market. You simply either convert to stablecoins or your local currency, or you can hedge your holdings by holding short positions on CEXs/DEXs.

Converting to local currency, in my country, means 50% taxation on the profits + social taxes which equates to another 16k per year.
That would just eat up all profits.

I always considered getting into crypto a one way street. Going back to fiat immediately alerts the tax hawks, and soon even the police.
Instead of converting to fiat it may even be better to just take the losses of the bear market.

Whether you lose 60% of the ATH (cash out) to all sorts of taxes, or the market declines 60% in a bear market and you hodl, comes down to the same thing.
But if you withdraw 100k you have alerted the authorities, and if you take the losses of the bear market you don't.

It's such a shame that they confiscate your profits on every withdrawal. Stablecoins are not a safe haven. Just for now

Sunderland

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Yes, many people believe that ETH ETF has a bigger chance to be approved after what happen with BTC ETF.
I think there will be no major issue with stablecoin such as USDT and USDC (on any chain) in this year, so swap the profits to stablecoin indeed a wise strategy if you believe the BTC will crash soon.

For the tax concern, it depends where you live now. Every country has different terms and policy regarding the crypto tax.

electronicash

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not sure what you mean by stablecoin being depegged. they seem to be okay, especially the USDC and USDT, you could just be too anxious. but the value of USD could drop because of inflation so prices of stuff will surge. keeping your money in stablecoin is still best.

but it would be cool to see altcoins can be used to hedge when BTC is correcting. when you find one, you will be worried too if there is enough volume when you sell it. if you find ETH growing when BTC falls then it could be a good option.

Tipstar

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The market is not that easy to predict. If it was so simple, everyone would have been a millionaire.
The coin that actually always rise in price when BTC decreases are stablecoins and the difference is minute in cents. There are some risk taking people that leverage the difference with leverage but the BTC moment is also never definite.
For every other alts, the general trend is they follow the BTC moment and as BTC decreases, they too would decrease. If you want to trade on the analytics and crest and trough, you might not have to differentiate between BTC or any other alts. But considering the lower cap of alts, they bring larger volatility.

mk4

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I don't think they'll be an altcoin where you have a high probability of it outperforming bitcoin on a bear market. You simply either convert to stablecoins or your local currency, or you can hedge your holdings by holding short positions on CEXs/DEXs.

WeThePe0ple

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A guy once told me, altcoins generally do what bitcoin does, but to a larger extent.

So BTC goes up 10% --> Alts go up 20%
BTC goes down 10% --> Alts go down 20%

While there are some exceptions (ETH did not crash now, presumably because of the ETF rumour), during the last month I verified this.

I want to sell my BTC when I expect the next bull run to be over. But I do not want to cash out because that will lead to confiscation of the profits via taxation.
Someone told me to swap the profits for stablecoins. But stablecoins are currently under serious attack, and are at risk of getting depegged.

Is there any alternative to cashing out and paying enormous taxes? It makes no sense to swap 100k worth of BTC to an altcoin when we expect a BTC crash of 40%, when all other altcoins are likely to crash even harder.

I wish there was something that behaved conversely to the BTC price.

Topic: Which altcoins are likely to go up when BTC goes down? - page 2. (Read 177 times)