Hey guys, wondering what your thoughts are regarding cryptocurrency exposure?
I just cashed out a short play on BTC via Binance. The fees ate up a little over 30% of my profits (~3% of a 7% roi.) I've done this a few times, and it never feels worth it. If I had scaled up my position the fees would be less substantial, but in my position I'd rather invest that money in something else.
In contrast, I could've gotten the same exposure with a company like COIN and had it be less than 0.5% with the ability to do options. Downside being market factors that don't (theoretically, but with the exception of earnings actually seem to) effect crypto.
Finally, and the one most recently made available to me, is the third option which is futures. Again, sizing is a concern and I'll see how reasonable the fees are, but I think this will be my approach to short term plays from now on.
For those who are a little nuanced and combine them – what is your distribution? From my high chair having just cashed out, I'm considering making an 80% equity / 20% cash/futures setup. Problem I have is not reinvesting and retaining that split and getting heavy on short term plays.
Just some late night thoughts. Love to hear what your experiences have been and what's worked for you.
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