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@ Sam Bankman-Fried
2025-02-09 03:31:22
I can see why someone would think that buying some other crypto is a reasonable idea for "diversification" or even just for a bit of fun gambling, ***but it is not.***
There are many reasons you should stick to Bitcoin only, and these have been proven correct every cycle. I've outlined these before but will cut and paste below as a summary.
The number one reason, is ***healthy ethical practice***:
- The whole point of Bitcoin is to escape the trappings and flaws of traditional systems. Currency trading and speculative investing is a Tradfi concept, and you will end up back where you started. Sooner or later this becomes obvious to everyone. Bitcoin is the healthy and ethical choice for yourself and everyone else.
But...even if you want to be greedy, ***hold your horses***:
- There is significant risk in wallets, defi, and cefi exchanges. Many have lost all their funds in these through hacks and services getting banned or going bankrupt.
- You get killed in exchange fees even when buying low and selling high. This is effectively a transaction tax which is often hidden (sometimes they don't show the fee, just mark up the exchange rate). Also true on defi exchanges.
- You are up against traders and founders with insider knowledge and much more sophisticated prediction models that will fleece you eventually. You cannot time the market better than they can, and it is their full-time to job to beat you and suck as much liquidity out of you as they can. House always wins.
- Every crypto trade is a taxable event, so you will be taxed on all gains anyway in most countries. So not only are the traders fleecing you, the govt is too.
- It ruins your quality of life constantly checking prices and stressing about making the wrong trade.
The best option, by far, is to slowly ***DCA into Bitcoin*** and take this off exchanges into your own custody. In the long run this strategy works out better financially, ethically, and from a quality-of-life perspective. Saving, not trading.
I've been here since 2014 and can personally attest to this.
<img src="https://blossom.primal.net/35ff641203bf4d197a032a59d6815b99249561bfd3a94b4a908ed5161420466f.jpg">