Topic: Which altcoins are likely to go up when BTC goes down? - page 3. (Read 521 times)

This is true but as they said that experience is the best explanation, if you haven't experienced anyone before you might not know the true meaning of this because there is more to what he said to you.

There is Bitcoin season and there is altcoins season, Bitcoin market can pump for 2 weeks straight and it's possible that altcoins will remain stagnant and few will pump during that time, it's like that because everyone will be focus on the bitcoin market but as soon as the Bitcoin market is done, it will might do some corrections and then remain between some price but the fluctuations will not be that significant. This is when altcoins pickup and there moves is usually a fast and furious one, a coin can pump for 2 weeks straight and will not stop with 1000% and you will think it's stopping only for them to continue until market is stop by some news where it might do a heavy fall or correction for good coins, meme usually collapse after this kind of pumps.


The market don't crash unless there is something that happened but because of the volatility nature of Bitcoin, they fall harder than bitcoin. When Bitcoin was having a small market and liquidity, it use to do what altcoins are doing today but with time it grow to become more stabilize due to the liquidity surrounding it. It's either you stick to Bitcoin, altcoins or hold stablecoins, it's as simple as that.

There is no way to avoid taxation if you're going to ask me and that's what you have to accept. Whether you cash out through selling Bitcoin, stable coins or any other altcoins, they'll still going to go through with your local fiat currency and that's going to subject you for taxation and gains. I know that it's going to take a lot of money from the principal amount but that's how life is, they say that debt is tax free so I don't know if you can connect that with that.

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

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.

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.

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.

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.

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.