Thursday, October 21, 2021

Almost out of crypto for now !


I've been writing too much this week, so do expect to see a lot of content coming out over the next few days.

I'm just going to give a short update on my crypto adventures.

Days ago, I told myself that when ETH-USD hits $4,000 I will liquidate my 2x leveraged holdings in ETH and convert my money to fiat. I intend to take a break from crypto and maybe get back next time with around $20,000 of funds. The reason is that due to gas fees, I need my crypto positions to be more meaningful.

Maybe I don't know what I was doing, but you might think that having a x2 ETH position should be profitable but based on my experience, the gas fees make speculation pointless unless you have a decent amount of capital. I was told, in hindsight, that I should trade during afternoon Singapore time.

Something has changed since I made my leveraged position, now I got to pay for gas for everything.

a) I paid gas to enable the sale of my leveraged tokens from TokenSets.

b) I paid gas to sell my leveraged tokens on Tokensets.

c) The system did not pay me in ETH. Instead, I got some mongrel currency called WETH, some kind of ERC20 crypto that I need to unwrap into ETH.

d) I paid gas to unwrap my WETH to ETH. But lucky the ratio of exchange was 1:1.

e) My ETH was in my Metamask, so I transferred it to Geminii which cost me gas.

f) On Geminii, I paid a fee converted by ETH to SGD.

g) Transferring SGD to my DBS account should be free I think. 

In the end, I started with $2,400, I ended up with only $2,100 in my bank account.

Maybe you guys would know how I could have done better, but my crypto holdings right now are at $70 USD of ETH in my Metamask. My $2,100 actually came from my spare change of $50 left on Coinbase many years ago. Maybe my $70 will grow again if I keep it there for another year. 

Folks are now speculating that ETH-USD will hit $10,000. I believe them because ETH is the basis for all things Defi. 

Anyway,  I hope that I can come back with a vengeance, starting at $20,000 in some currency that can allow me about $100-$200 every month in Amazon credits.  

Right now I'm waiting for to approve my account so I can get a card that gives me unlimited Spotify.

Folks who read about fantastic profits should appreciate something like this for a change.

Some blokes feel super intelligent after they start getting into cryptocurrency investing. Not me. I feel pretty stupid every time I try something. I don't understand why so many crypto bros love talking about investments with their dates until they get blacklisted on a spreadsheet. 

1 comment:

  1. Move to binance chain or other layer 2 chains to save on gas.. Eth gas fees suck and I refuse to use Eth .