Covered DIP Buying - An economic sleight of handSo, I have some coins I bought in the big dip, that have remained underwater since this latest dip. It has been annoying me.
Like many others, I don't like selling for a loss. But it's such dead capital, and it seems they are a little too high to regain their old levels any time soon, so they just sit there annoying me.
I could DCA, but that is quite frankly a sunk cost fallacy problem and I think they are both pretty overvalued. I only like to DCA on undervalued stuff, because you are improving your deal even further.
But anyway, while the crypto market is 20-30% down across the board I thought I'd finally get out of these two (OMG and ETH).
Simple sleight of hand at a new bottom if you have a little bit of spare capital.
Re-buy the same AMOUNT (quantity) of the coin at the new bottom price.
You have got a DCA if you so choose OR wait until the market recovers a bit and sell the more expensive pile after it recovers a certain amount.
Voila, it is as if you sold out of your position during a big dump, and bought into the bottom again, but slightly less stressful.
To be clear through example.
I bought 0.06 Eth at 2100 EUR for 126 eur a month or so back.
I just bought 0.06 at 1580 EUR for 94.8 eur yesterday
I would expect to easily be able to resell (my 0.06) for at least 2000 USD, or about 1750 USD, or 105 eur.
This is the inverse of selling on the way down and buying back in at the bottom.
(Bought 0.06 at 126 euro, sold at 1750 euro for 105 eur, and then bought the bottom for 94.8 ... thus winning 10 euro)
To be honest, I mainly want to get my shit off of Uphold because it is expensive and useless, but this seemed a useful mental trick.
