First of all, when I saw the image above, I instantly knew that it fit the content of this article perfectly and all will become clear at the end of this article.
Secondly, come join us on Discord to talk crypto, mining, bots, passive income & come subscribe on YouTube — I’ll be publishing a video to talk about this article more in depth with some other examples over the coming days.
Right enough shilling, lets get in to the article…
Given where we are in the current crypto market, I wanted to share my thoughts and some perspectives on whether now is the time to stop trading with USDT (ETH/USDT) and start trading with BTC (ETH/BTC) as the quote currency.
What I mean by this is that lots of people trade with USDT as their quote currency, whether this is in manual trading or with bots. The reason is that you are always holding USDT but given the current market, it may be worth considering whether this will maximize your profits in the months or years that lay ahead.
Now, I do need to add at this point that this is not financial advice. I can’t be held responsible for your trading or investing decisions and you need to do your own research.
Disclaimer over, so let me give you a little bit of perspective by way of an example.
Say you have a 3Commas trading bot (I have a number of articles on this) and for the sake of this article, it makes around 0.1% per day. The quote pair is USDT and you are making USDT every time the bot closes a deal. You start with $2,000 and leave it to run for 12 months, reinvesting 75% of the profit made. In 12 months, you would have $2,581.98 in your trading account and you would have taken out $249.38 from the 25% that you didn’t reinvest. In total, you would have made 41.9% in the year and you would have a total of $2,831. These are great returns but now lets change the perspective….
Now say you do the exact same as the above but you buy $2,000 of BTC and make BTC every time you close a trade. You make 0.1% per day, reinvest 75% and leave it for 12 months. If in 12 months time, BTC reaches it’s previous all time high of $69,000 after that 12 months, that initial $2,000 would be worth $8,907 and you would have taken out $859 which totals $9,766 or 388%!!
In the case of the BTC example above, not only are you making 0.1% per day but you also make additional money at the appreciation of the $2,000 of BTC. Think of it like owning an asset that makes you income (but MUCH RISKIER!!). The asset increases in value over time (the $2,000 of BTC you bought) and you rent it out to make income every day (0.1% trading bot or manual). Even if BTC doesn’t reach $69,000 but hits $40,000 you are doubling your money whilst making 0.1% per day!
Now I know what some of you might be thinking…. what if BTC halves in price once I have bought it? Well, in my view this is not the end of the world! It gives more time to accumulate more BTC before the next bull run but this all depends on whether you believe BTC will return to it’s all time high (and beyond).
You can also hedge this risk by splitting your quote pairs between USDT, BTC, ETH, BNB and more. Binance allows you to trade with BNB as the quote pair on some markets so BNB/CAKE for example. Kucoin allows you to with ETH on some markets ETH/UBX for example. This gives you many opportunities to build more of that quote pair which will be worth more during the next bull run.
You also need to consider, whether you think we are close to the Bitcoin bottom? What I mean by that is, from here, if BTC hits $10,000 (50% down from today’s price), are you willing to take that chance for a 345%+ profit?
So what are my thoughts on this? Will I be going on all in on BTC?
Well, USDT is the safe option. When you are not in trades, you avoid any market volatility and the value of your portfolio won’t drastically change in those times but as I mentioned above, this can work for you and against you.
Personally, I will be prioritising trading with BTC or ETH over other quote pairs. This doesn’t mean I will convert all of my USDT to BTC or ETH and I will continue to trade using USDT but not exclusively.
I believe in Cryptocurrency long term and I genuinely believe that the rewards will outweigh the risk over the next 3 years so accumulating more and more crypto is my primary focus.
All new capital I invest in to Crypto will be in to a cryptocurrency — not a stable coin. I will be creating bots based on BTC & ETH pairs and more information about my strategy will be shared on YouTube in the coming weeks.
Patience is the key and they say that millionaires are made in bear markets so to tie this back to the image right at the start of this article, in 3 years time, I expect the decisions I make now to be the ones that will leave me with a small pile of money (the small tower on the left) or a huge pile of money (the HUGE tower on the right).
Only time will tell… so I will leave you with a couple of the quotes that resonate with me given where I think we are in the crypto market.
“Be fearful when others are greedy and be greedy when others are fearful” — Warren Buffet
“You make most of your money in a bear market; you just don’t realize it at the time”— Shelby Davis
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DISCLAIMER
This is not financial advice, I’m not a financial advisor or accountant or tax professional. This is my experience of software tools that have helped me and my experiences with them.
I do use referral links in this guide. Using these supports future articles so if you find this article useful and you want to check out the tools I’ve covered, please use them. I’ll also call out where you get a discount — win-win right?
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