If you no longer believe in a coin: Don't sell it, but spend it

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Avatar for nomadghada
1 year ago

There comes a time when we start to reevaluate a particular project that we once use to be invested in, but overtime when the cracks start to show we might want to disassociate and sell off that particular coin or token.

Before we began

So there are a couple of things that recent events have shown us:

  1. Bad times can dilute your Crypto holding to 1/10 of the buy in amount

  2. Bad projects can actual go to Zero (Luna anybody)

So like stocks you should cut your loses and get out the bad assets.

However

You should use it instead of selling it off in an exchange.

And if you can't use a Crypto asset then you were in a bad project to begin with.

Let me explain

In one of my old article I wrote about why I won't reach 1 BCH mark because I use my BCH holdings as my personal bank account and use it to buy other cryptos, NFTs, domains and the likes.

Luckily I reached 1 BCH quite recently but for someone who believe in BitcoinCash I am in favor of using it as it is intended, a medium of exchange.

The concept

The idea is simple, as with your bank balance you would receive your paycheck every month and from that you'll pay your bills and then invest some and save some of the cash.

Similarly, with BitcoinCash if I would receive $10 worth of BCH I would keep some of it and use some portion of it.

Luckily BCH is an saving as well as an investment so I don't need to invest my BCH that I would receive.

Selling...

When you want to get out of certain Crypto I would suggest that instead of selling it for fiat currency use it for different things. Even if there isn't any vendor near you that accepts that particular Crypto asset then you can always find some online platform that does.

One of the best platform I had used in Travala where I had used of one my coins to book a hotel room and use the coin that I no longer believed in.

Why not sell?

Well it depreciate the Crypto market for one and secondly it defeats the existence of the Crypto in the first place.

Crypto is suppose to replace the fiat system, not compliment it.

Both Fiat and Crypto system are fundamentally different, even though both can exist besides each other with some degree of correlation.

But the true vision of the revolution of Crypto movement is to create an independent system that isn't manipulated like the tradition post gold-standard systems.

This is where Bitcoin has failed and how Marc Falzon has beautifully explained, BitcoinCash has taken that up the vision and idea of the Crypto as crafted by the legendary Satoshi Nakamoto.

Reduce the correlation with fiat

We all know that when stock market falls so does the Crypto market,

Which is honestly expected but the degree of correlation is quite high as compare to other asset classes like real estate.

Sure the housing market might be affected by a crash in stock market but if stock crash by 80% the real estate might crash by 10%

That is the degree of correlation that envision for Crypto in the near future.

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1 year ago

Comments

Honestly speaking Bitcoin Cash has a lot of good future to replace fiat. One of this is that when it comes to transactions its fast and easy aside from that the transaction fees is too small that's why we can really say how friendly it is. Bitcoin Cash is suitable to be used as payment options and it has a big potential to be used in the future since some shop owners incorporate Bitcoin Cash as payment options. Aside from that when I withdraw some of my assets in other online platform I always choose Bitcoin Cash because of its lower fees.

$ 0.01
1 year ago

Yeah, me too, I always choose BCH to withdraw as well. Mainly because I want to increase my BCH balance but also because on almost all platform BCH is the only option with the lowest withdrawal limits.

$ 0.00
1 year ago

My always biggest mistake is I sell. Because I always need some pocket money to make my internet packages. I always try to save them but always failed. But, soon I would get my job so then I would save the coin.

$ 0.01
1 year ago

Don't feel bad my friend, if you're using user Crypto directly (not selling for fiat first) then you're using it has its intended. You'll have more Crypto in the future if you keep participating in the Crypto economy, take your pay in Crypto if you can or do freelancing for Crypto.

$ 0.00
1 year ago

Thanks for information dear friend

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1 year ago