What to Do with a Lot of ETH

Hey everyone, I have been daytrading NFTs for last two months and made 30ETH or so, I am not too sure what the best plan would be and was hoping to get some recommendations. I was planning in just setting up an APY.

Any advice/recommendations are welcome

Thanks

Comments

  • +15

    Day trading NFT's and made roughly $108,000 in 2 months? If only there was a meme for "I dont believe you".

    Any advice/recommendations are welcome

    Yeah, you should have cashed out in early Jan when ETH was up around the $5,500 mark.

  • -1

    Delegate the ETH for staking and make a passive ~5% APY for the next 6Y and retire when ETH2.0 is finished.

    • -1

      lol people who talk about staking are delusional. You are just losing your ability to sell your crypto when the market goes to crap (like now). I bet those champs staking in October for 12 months are loving the returns they are making.

      • +4

        Hodlers that stake has a long time horizon and aren't bothered by the day-to-day price action.

        • Correct. Sure, I could’ve sold at 12x my initial investment, but I’m still ok with being at 7x. I’m in it for the long haul and the fun of it :)

          • @HelpMeiCantSee: A 12x puts your cost bases somewhere between $350 and $450.

            You had two opportunities to sell the tops in 2021.

            Welcome to 💎 🦭.

      • +1

        What are you on about? Staking doesn't mean locking it up. Whilst some staking means it is locked up, such as ETH2.0 staking, you can stake in centralised places like Celsius, Binance, FTX, Kucoin, etc where you can sell it almost immediately whenever you want.

        • Staking doesn't mean locking it up

          Oh OK.

          Whilst some staking means it is locked up

          OK……..

          where you can sell it almost immediately whenever you want.

          Yes and there is a cost associated with that. Really they are just dressing up or hiding break costs. It isn't really that much different from an 11am depo however crypto bros want you to think it is something ground-breaking.

          • @serpserpserp: I should have said, not ALL staking means its locked up.

            What costs are you talking about? Take Celsius for example, it doesn't even charge the ETH transfer fee, I can transfer my ETH on there to an exchange to sell immediately. Only cost would be the brokerage fee, but that's $0 because I use FTX and staked some FTT so I get free brokerage as a maker. So it costs nothing to sell my ETH at anytime, which earn interest while its on Celsius.

            Do you have any crypto? If so, you ain't doing it right if you think all staking means its locked up.

            • @techlead: Don't get me started on Celsius. They are using your ETH as collateral for loans, so if the music stops on the day you are earning your interest (which is locked up and not accessible for 12 months might I add) you lose all your coin.

              Not a great risk profile for 6-10%. You don't even get to line up to get your money back in a work out scenario like you would with stocks/bonds.

              • @serpserpserp:

                Don't get me started on Celsius. They are using your ETH as collateral for loans,

                It's the other way around.

                Borrowers use assets as collateral to borrow fiat. The platform will ask the borrower to add more assets to their debt position or risk getting liquidated.

                • @rektrading:

                  It's the other way around.

                  No for users its up to 4x collateral for a loan (which you would never accept for any other asset class). But these guys also use your coin that they have custodianship over, to package up and can loan (themselves) or pass onto other investors directly (who want to borrow crypto). As long as it is on their platform, it is their crypto.

                  • @serpserpserp: The GFC collapsed partly because the assets used as collateral was worth less than dirt.

                    Overcollaterized debt is a positive feature and not a bug. A market that uses OCDP can help prevent a GFC 2.0.

                    • +1

                      @rektrading:

                      Overcollaterized debt is a positive feature and not a bug.

                      Maybe I should put this another way, it is 4x because it is a highly volatile and risky asset that could have zero value over night. But even a bank would only want 2x cash term depo (held at the bank discretion) for a loan. So these guys are taking more crypto off its users than required, then using that crypto for their own purposes. Meanwhile you have to wait 12 months to maybe get your interest. Everything is cool if that market is in bull mode or even in a gentle upswing. But if it isn't the opportunity cost is probably wasted at best, and at worse you lose all your crypto held with these guys.

                      People talk about Celsius like it is some simple risk free to make ~5% p.a but the risk profile of this venture is much higher than people want to admit. They completely dress it up with hero statements as well. I am not surprised by how many people fall for it.

                      • +2

                        @serpserpserp: The game theory behind locking up assets is to prevent panic selling.

                        CeFi can lockup assets for x time which is on the mild side. DeFi platforms charge an x% penalty if the users don't honour their agreement.

                        This is similar to fixed-term mortgage agreements.

                        Users that want the best yield or lowest interest rates have to honour the agreement or risk being penalized. This system works in traditional finance and should also work in CeFi/DeFi.

                        People talk about Celsius like it is some simple risk free to make ~5% p.a but the risk profile of this venture is much higher than people want to admit

                        A +5.00% APY platform is pretty low risk in my book. Degen yield farming is in 100s to 1,000s of %.

                        • @rektrading: Yea, I haven't touched degen yield farming yet. I'm tracking it though.

              • @serpserpserp: You don't seem to understand the products offered by Celsius, there are two kinds, one for people who want to lend their crypto to Celsius for a yield (staking) and another allowing people to use their crypto as collateral to take out fiat without having to pay CGT (crypto loan).

                If you just use the staking product, you put your crypto on the platform and you get a yield. Its not locked up, unless you use their promotional code to get extra crypto (you don't have to use it). If you don't lock it up, you can transfer it out at any time.

                • @techlead: I never said Celsius lock up your crypto (but some stakers do). But if you have it on their platform and they go belly up you don't get it back, it's gone. That whole 12 months you waited for your interest is also kaput.

  • +2

    If you dont understand* any of these terms, then you shouldnt be day trading. The terms are price action, technical analysis, support, resistance, gain, failure, time frame, spinner, zone, price projection, origin moves, swing low, swing high. Those are basic, the advance one are, block sequence, DOM, spoofing, hedging, sierra chart. Also if you havent trade more than 2yrs with a decent hit rate … I'd go with APY or other same safer option.

    Trend is down for BTC so do 99% of all the shitcoins. Nothing indicate a reversal yet.

    Disclaimer: This is not financial advice, your $ you do whatever you want.

    • +12

      I looked them up in the dictionary, thanks now I'm ready to start trading.

    • +9

      People who think technical analysis of cryptos is a thing are also delusional. All technical analysis articles for crypto are always talking about the bottom being "close" or if it is skyrocketing, how the price will be double, triple, 10x that amount in 1 year.

      The only "analysis" you need to know is when a huge hedge fund (or investment bank arm) decides to pump then dump a coin. But of course, no one knows the answer to that, so they are all "a bottom is forming!" or "here is the shoulders, get ready for the moon!".

      • +1

        TA works well enough for me and I the traders know to make a living.

        You should work on your TA if it doesn't work for you.

        • You have made money out of crypto because more often than not it has seen astronomical gains over a relatively short period of time. You could randomly buy and sell 10 times over the past 10 years and you'd most likely be profitable.

      • +4

        Technical analysis is a fantastic tool for crypto bros to predict the past. They'll be able to pinpoint with remarkable accuracy when you should have bought the dip (aka "line stopped going down") and they'll let you know which way the line is going (up, always up, unless it's a <shape/behaviour term goes here>, time to buy the dip)

        • New ETH short, the other one got stopped out while I asleep/busy
          https://prnt.sc/26kg0vd. So idk what you're talking about but my TA & PA works for me …

          • @frewer:

            you're talking about but my TA & PA works for me …

            I assume it didn't work out this time for you though..
            Your eth short went the wrong way (fair way from btc liq)

      • +1

        https://www.tradingview.com/x/YRO6BZeD here TA & PA
        I use TA & PA, and other instrument to short/long at appropriate level/zone https://prnt.sc/26jyyc6. That is my 2 short, the more it goes down the better. Let's go !

    • swing low, swing high

      Isn't that something to do with rugby?

      • No idea, never watch rugby nor footy … Well beside people put it on at work. I know I dont watch sport in general ( well beside MMA so I can learn the moves, then again I wouldnt call it 'sport' ) …so dont come at me bruh

    • +1

      So let me get this straight, you want people to try to time the market by trying to sell at the top, and buy back when there's a reversal? Good luck with that.

      Its easy for someone with hindsight to say, you should have sold at $65k, then bought back at $28k and sold again at $69k. Not many people actually did that.

      I just dollar cost average, hodl and stake. Works out way better for me. I can retire now from doing that.

      • you want people to try to time the market

        Where did I say that ?

        • +1

          Shorts are getting rekt at the moment lol

          • @techlead: 🐻 💦 💧

            • +1

              @rektrading: Haha, I just buy the dip and hodl. Working out very well.

          • @techlead: I still have my 42k short, getting funding on bitmex for doing … nothing,

            • @frewer: Nice, take some profits while you still can. I've been buying every dip. Spot only, no leverage, therefore no liquidation and no funding rates.

              • @techlead: It's late, but I make an effort especially for you bruh. So you accuse me of telling people what to do, saying TA & PA are no good, fair enough if that is your opinion. Yet at the same same tell me to profiting taking ( lol double standard much ? ). I already PT on its way down https://prnt.sc/26p5m8g. While leave some to collect funding https://prnt.sc/26p5iy2 as you talk trash about me. When you constantly make profit for 5yrs+ with your whatever-method is or lack thereof … then come back and tell me what to do, I will listen.

                Meanwhile stop being a dick, there are plenty of (profanity) who trying to destroy this country, one less wont hurt.

                • @frewer:

                  So you accuse me of telling people what to do, saying TA & PA are no good,

                  I did no such thing, where did I say that?

                  Only thing I have against you is using leverage, I don't do it and don't recommend people using it.

                  My strategy is simple, dollar cost average (DCA buy the dips), hodl and stake.

                • @frewer: If you want to know abou my strategy, I have explained it here in detail already.

                  https://www.ozbargain.com.au/node/613895

            • +2

              @frewer: How's your short going? :D

              • @techlead: 🐻 💦 💧

                • +1

                  @rektrading: Yea, Bitcoin broke out of the descending channel. Bears are getting rekt.

                  I hope people bought the dip like me. I was very happy when Bitcoin was at $33k, I couldn't buy enough of it. And ETH below $2k, wow, that was amazing.

            • +1

              @frewer: Is your short still opened? Bitcoin over $42k now. :D

              • @techlead:

                Over 70,000 ‘bears’ get liquidated for $270 million as Bitcoin shoots by 10%
                Jordan Major 2 days ago 2 mins read

                Tender 🐻 staking.
                https://dwr.virginia.gov/wp-content/uploads/9.26.18_DGIF_Foo...

                • +1

                  @rektrading: Nice, I love it when shorts get liquidated.

                  So many clowns on Youtube and Twitter calling for a $20k Bitcoin, some for a $10k or sub $5k Bitcoin in February 2022 lmao :D

                  I've been buying the dip, got some cheap Bitcoin for $33300. That's the lowest price I got, pretty happy.

                  • @techlead:

                    So many clowns on Youtube and Twitter calling for a $20k Bitcoin, some for a $10k or sub $5k Bitcoin in February 2022 lmao :D

                    Idk about them since Im not using any news regarding to trading, however I know some ozbargainer call bought at $33k and HOPE it moon lmao. Hope you took profit if you didnt you just gambling, if you did pic please otherwise it didnt happens :D

                    • @frewer: Why would I take profit? Bitcoin is pushing $40k now.

                      My stategy is DCA, Hodl and stake. I don't use leverage, so I will never get liquidated. I'm never going to sell my Bitcoin.

                      Especially now, crypto is going to take off, Russia will use it to bypass sanctions.

              • @techlead: Oh sorry I was too busy to short these ponzi to $20k. It hasnt break out any significant level according to TA, let's hope it for your shake & other 1000's plebs that it wont go to 20k eh. Btw here is the evidence of my short https://prnt.sc/peTln364UKxy ( do you have yours evidence, oh wait you dont know how to short lol )

                Leverage = tool, tool isnt the problem, the problem is the pleb who doesnt who how to use it. Im not missing out on 50% market & buy only, then get on hopium of moon only.

                Disclaimer: Your $ gambling wherever you want to.

                • @frewer: How's your shorts going? That was an epic short squeeze, I love all the liquidated shorts.

                  Its not that I "don't know how to short", I choose not to short, nor leveraged long for that matter.

                • @frewer: I hope you closed that short. Most of your profits are gone lol.

                  I bought $2330 ETH last night. Quite a large spot position actually, 6 figures. No leverage.

                • @frewer: Your short is about to go red, better close it soon haha.

                  The market said no to short lol

                  • @techlead: LMAO yeah yeah, I just add more short & close my long. Here my free TA for you. https://www.tradingview.com/x/isxv31rC/. Love people like you who provide liquidity for my short. Dont be plankton for whale to eats

                    Another hint, if it doesnt close aboved $54K for multiple times. It will continue downnnn. If you want to learn TA & PA I can teach you … at a cost of course ( well if you have money still ). Have a good life

                    • +2

                      @frewer:

                      Love people like you who provide liquidity for my short

                      Techlead is technically not providing any liquidity against your trades. Techlead is buying spot and you're short/long contracts.

                      Play nice guys. We're all here to make 💵. There is plenty of that to go around for everyone.

                    • +1

                      @frewer: I'm only buying spot, I'm not providing any liquidity to you,

                    • +2

                      @frewer: As I said in my original post, I find trading very stressful, I don't want to do that. I do know some TA, enough for me to be able to ladder in and buy the dip. That's all I want.

                      I DCA, hodl and stake. Stress free, no liquidation, no funding rates, just bliss. No stop losses or take profit levels.

                    • +1

                      @frewer: How's your short going? haha

                      • @techlead: What did I miss?

                        • @rektrading: Bitcoin decoupling from shares. Massive run, beating the alts. over $43k now. Massive short squeeze. The people with high leverage, 10-20+ leverage most likely completely liquidated. ETH pushing $2900.

                          I reckon this downtrend is well and truly broken if this price level holds for the next few days.

                    • @frewer: Are you shorts liquidated yet? :D

                      • @techlead: Pros don't get liquidated. They use SL.

                        One THETA Trader Lost $11M to Liquidations as Prices Jumped 18%

                        A trader of futures tracking the Theta Network token took one of the largest losses in crypto as the market recovered.
                        By Shaurya Malwa Mar 1, 2022 at 8:31 p.m. Updated Mar 2, 2022 at 8:24 a.m.
                        https://www.coindesk.com/markets/2022/03/01/one-theta-trader...

                        Rekt.

                        • +1

                          @rektrading: Wow, that's insane.

                          • @techlead: Short looks better than ever, guess what it goes back to where you bought lol. As I said

                            if it doesnt close aboved $54K for multiple times. It will continue downnnn

                            Got long here. Let's see if it break 44k. You could have make heapta profit if you learn to take profit bruh. Got pic for me yet ??? No pic no happened.
                            I can give you more pic of my short IF you give me your pic of your long + profit taken

                            • @frewer: I don't trade leverage. I just buy the dip, hodl and stake

                              • @techlead: Fair enough, as I said the trend is down. Dont be caught swimming naked as in the saying "you know who been swimming naked when the tide receded" … Break above 46k for reversal

  • +4

    Whatever you do, plan ahead for the tax man!

    • You mean buy lots of KY…

      • The KY will be deductible as a cost of doing your taxes.

        • Tax optimization at its best! 😅

  • Hold and hope 2.0 works some literal miracles

    • When is it (Hope 2.0) going to launch?

  • Sell out before interest rates starts to rise, just the forecast of less monetary support has caused crypto to shed, when the fed puts in one or two or three rate hikes ETH will only tank

    • It would go down as a temporary reaction, it wouldn't stay down.

      • Wasn’t it you that said by the end of the year (2021) BTC would be $250,000-300,000?

  • +3

    Interest rate rises are temporary.

    Ether's price appreciation is coded to go up in the long term.

    Hodl accordingly.

    • +2

      how do you code someone into buying something higher?

      price are set when 2 people agree on the price to exchange for goods, the seller accept the buyer price or vice versa

      there is no code or wizards that can compel two people into buying/selling anything higher or lower.
      if the seller wants $10 and the buyer only wants to pay $8 then there is no transaction and if the seller is desperate they have to accept $8 bid
      and so price is set at $8 and the next lot of buyer want to sell at $8 but only this time buyer only want to pay $7, until those 2 agree on the price then
      there is no transaction until such time they both either agree on $8 or $7

      just like how the market playing out now, you set higher price there is no buyer, so seller has to lower price to meet buyer bid

      • EIP-1559 made Ether close to deflationary.

        You can see the on-chain data here.
        https://ultrasound.money/
        https://watchtheburn.com/

        Ether will in time go full deflationary.

        • +2

          doesn't matter what is claimed or program or designed or run on pretty sites
          this is stuff of fantasy and maybe exist in the Matrix

          price are set when two people agree on a price to exchange for goods doesn't matter if it is crypto or shares or properties or gold or bananas
          you can not code a person into buying or selling goods at price he/she does not want.

          Now you can predict and said ETH can goes up 10 or 20 times from here and I dont care that is your opinion
          but claiming you can code stuff to go up is start to get into the realm of delusion and breaking all money rules known to man
          it akin to you can designed something that can defined the laws of physics

          • @Hearthstone: Let's put this in normie terms.

            EIP-1559 is doing the same thing that has been happening to GPUs since 2020. The GPU supply suffered a shortage and sent the price up to +50%.

            EIP-1559 is burning close to 1/2 of the block rewards. The game theory here is that the low liquidity will cause a supply crunch that will in the long term send the price up to the right. This can take 1Y, 2Y, 6Y or longer before the full effect is known.

            • +1

              @rektrading: that doesn't change the fact two parties have to agree on a price to exchange the goods and that how
              price are set and discovered not some program or code

              and supply and demand is market force it applies to all sort of thing not just crypto (CPU,GPU, Oil, toilet paper, properties)
              look at regional properties, last 2 years it demand out stripped supplies people are willing to pay for more

              and the demand for virtual stuff is just virtual they are not real because you can always make more of it

              where demand for hard asset are real, 10km land within Sydney or Melb or London you cant make any more of it period
              unless you can build a similar cities to Sydney or London etc…

              eth or bitcoin or thousand of other coins, you can put a fake supply on it by limiting it maximum coin but someone else
              can come up with exact same concept in a different form

              when thing get expensive people looking for alternative solutions and come up with alternative way
              hundred or so year ago, industrial nations think coal is running out so they start to look for alternative energy source and found it in oil
              now oil is killing the planet so they found alternative energy in battery and solar and wind

              this is hard asset stuff and if human can do that without any issue, virtual stuff is just a state of mind it easy peasy for someone else to come up with similar concept

              • @Hearthstone:

                eth or bitcoin or thousand of other coins, you can put a fake supply on it by limiting it maximum coin but someone else
                can come up with exact same concept in a different form

                This is one of the most common replies from people that venture outside of their circle of competence.

                I'll leave this now to wait for the effect to play itself out.

                • @rektrading: Just here for the smug cryptobro telling the "okay, this is what market forces and supply and demand curves are" guy that he's out of his circle of competence and future gains are in the c o d e.

              • @Hearthstone: Yep you could make more of it, but this would have to voted in with the case of Ethereum. That's one of the advantages of blockchain, transparency. And should mention the AUD is also created, traded and verified digitally but with a centralized system.

  • +1

    Calculate your tax liabilities and ensure you put at least that much aside for CGT.

    • Don't you have to only pay Tax if you sell off some/all of your crypto?
      Isn't that the case with Stocks as well?

      Seems like the solution is for some sort of Financial Institution who buys your crypto and exchanges it for well know stocks (eg TSLA) or a portfolio of the top 1,000 options. But that seems more like a loophole the elite and rich use, there's no way they would allow plebs the same privilege.

      • Every crypto trade is a cgt

        So for them to have made this much eth, they've done trades, bought sold nfts etc
        Every one of those is a cgt event that needs to be calculated, declared and CGT paid

        • -1

          But its still unrealised gains.
          Bitcoin is not legal tender. It needs to be cashed out, to determine the net gain/loss. Otherwise its all theoretical.

          And the whole crypto market moves together as one. When Bitcoin is doing well, the Alt-coins are also on the upswing. When Bitcoin is floundering, the Alt-coins are crashing. Well, it does control (30-90%) of the crypto-market, whilst Etherium controls (7-30%), then XRP controls (1-18%), and the entire rest, or Top-100, only make up (6-35%). On average, its more even split like 40/20/10/30.

          Perhaps the solution, which I suspect is being used, is that people are buying Bitcoin when the times are going good, switching it with Alt-coins when the times are great, and switching back to a Stable-coin that's pegged outside to the cryptomarket (eg Tether, Binance, USDcoin, Dai, Uniswap, etc etc).

          And furthermore, I guess, it would be tactical for a middle-class worker to pump some money/savings/investments into the cryptomarket on a continual basis. Let's say you consistently put in $5k yearly (about $20 per workday). And take out lump-sums only once in every 4-years.

          • @Kangal: Just a thought experiment:
            (yes, I know, hindsight is 2020)
            (and went with usd to make it easier to calculate)

            2012/11 - 2013/11: buy usd $5k at average cost of usd $110 (total: 45.45 coins)
            2013/11 - 2014/02: contemplate selling at average cost of $810 but chicken out and fail
            2014/02 - 2014/11: buy $5k at average cost of $480 (total: 45.45 + 10.42)
            2014/11 - 2015/11: buy $5k at average cost of $290 (total: 55.87 + 17.24)
            2015/11 - 2016/11: buy $5k at average cost of $560 (total: 73.11 + 8.93)
            2016/11 - 2017/11: buy $5k at average cost of $1,900 (total: 82.04 + 2.63)
            2017/11 - 2018/02: sell all Btc to Tether
            Total (84.67 Btc) averaging usd $14k value, at $1.23 cost to Tether coins (965,000 t)
            2018/02 - 2018/11: you buy $5k Tether at average cost of $1.01 (total: 965,000 + 4,950 t)
            2018/11 - 2019/06: you buy $5k Btc at average cost $4,500 (total: 1.11btc)
            buy back Btc from all Tether
            Total (970,000 t) averaging $7,600 value, at $1.03 cost to Bitcoins (123.91 + 1.11 Btc)
            2019/06 - 2019/10: sell all Btc to Tether
            Total (125.02 Btc) averaging $10,000 value, at $1.02 cost to Tether coins (1,225,000 t)
            2019/10 - 2020/10: buy $5k Btc at average cost $9,000 (total: 0.56 btc)
            buy back Btc from all Tether
            Total (1,225,000 t) averaging $22k value, at $1.02 cost to Bitcoins (55.68 + 0.56 Btc)
            2020/11 - 2021/03: sell all Btc to Tether
            Total (56.24 Btc) averaging usd $56k value, at $1.02 cost to Tether coins (3,090,000 t)
            2021/03 - 2021/10: buy $5k Btc at average cost $40k (total: 0.13 btc)
            buy back Btc from all Tether
            Total (3,090,000 t) averaging $49k value, at $1.02 cost to Bitcoins (61.82 + 0.13 Btc)
            2021/10 - 2021/12: sell all Btc to Tether
            Total (61.95 Btc) averaging usd $64k value, at $1.02 cost to Tether coins (3,900,000 t)

            …so far
            put in USD $45k income, over 9 years
            took out USD $0k
            total value USD $3.9M
            If taken out/converted that is $440k taxable (minus expenses) each year for nine years, and taxed at the highest bracket rate of 45%.
            Roughly equaling USD $1.6M total taxed payable.
            And final profit acquired of USD $2.3 M
            (all of that's with plausible manoeuvres and trying to "time the market")

            A simpler means would be Time-in-Market
            To match that all you would've needed was to spend $7,000 (62 btc) in late 2013
            Or potentially spend $14,000 (126 btc) in early 2012
            And you wouldn't have to worry about these anxiety, ups and downs, and manoeuvres

            • @Kangal: I may have been wrong about Tether. They're not a StableCoin afterall, they are an AltCoin that is lying/pretending to be one. And honestly has the hallmarks of a ShitCoin that's all pump and dump. Only difference is that this is the biggest pump in crypto history, so if/when they dump, it will crash the whole crypto market.

              Better to stick to UST or USDC.
              Or just go Bitcoin only, without any Stablecoins/AltCoins. Play the long game, and be willing to take the hit during Tax time. I guess ye olde adage is right: Time-in-Market is better than "Timing the Market". It's less riskier, and gives good (potentially greater) gains.

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