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I would like to share some thoughts I have regarding ALT-perps and the way I've seen some peers of mine trade them as well as the risks involved.
Smol thread
Smol thread
Many of you believe the game has changed due to an increase of USD(t/c)/FIAT on-ramping. I am going to argue the opposite and say nothing at all has changed except for the range of tools that are available.
Why am I saying this? Well just take a look at a lot of ALT/BTC pairings over Q3/Q4 2020 and tell me what you notice. Exactly, the same that always happens, a cycle. While on-ramps have changed, the cycle hasn't changed.
Why this is exactly the case is something I do not know but what I do know is the changes in risk it has brought upon us in regards to leveraged ALTS and why I believe a lot of you are using unnecessary risks with hope to outperform the market.
It is important to look at ALT/BTC pairings to see if there is any strength to warrant taking a leveraged trade for them. Because if there isn't, it would be better to just take a leverage trade against bitcoin because after all, bitcoin is outperforming that ALT.
While your ALT might be gaining $ value, its BTC pair is actually losing value. So does the risk you take really warrant the return you are getting out of the market?
Is there really any strength? Are you looking at the correct charts?
Is there really any strength? Are you looking at the correct charts?
Q3/Q4 of 2020 has shown us that this hasn't been the case and anything but small scalps for BTC-pair bounces just hasn't been the effort and risk you have been using.
Another inherit danger of looking at the wrong charts and ALTS on leverage is when BTC tanks due to rally exhaustion.
ALTBTC pairs often do not fare well when BTC tanks so not only is ALT losing $ value due to BTC but this is amplified by the ALTBTC pair tanking.
ALTBTC pairs often do not fare well when BTC tanks so not only is ALT losing $ value due to BTC but this is amplified by the ALTBTC pair tanking.
The last tweet doesn't matter when a true ALT season happens as the outperforming by alts will be gigantic so you don't have to worry about either.
End thread, please share your thoughts and opinions as well.
End thread, please share your thoughts and opinions as well.
I know this probably isnt something you want to hear when ALTS have started outperforming BTC as of this week (like I shared back in october) so here is happy kitty
