Managing My Downside With My Matic Trade

in HODL3 months ago

Hey Peeps

As much as I like to take a risk in relative terms being in the crypto space is risky by definition, I want to believe I don't take too many unwanted risks and I calculate my positions to try and remain conservative. I focus more on managing my downside then looking to the upside, in a world where locally I can only pull out around 2% APR in the traditional financial world, skimming anything above that is pretty handy in these times.

But as investors, we are greedy; we're not happy with 4 or 6% we want MORE! We want our little nest egg to grow exponentially, but you can only do that with either more time or more capital.

This is the game we have to play and the toss-up we make to try and secure more PURCHASING power in the future.


About Matic

I have no clue about the project; it's some next-gen ETH competitor when I hear that as the description I hear we are another shit coin. As you know DE-FI is so hot right now, and Matic wants to get some of ETH's DE-FI dapps to migrate to their platform, not innovative, but hey competition is the mother of invention.

They're already listed on Binance and a few other exchanges but what really caught my attention was that they were listed with Celsius Network with a staking APR of 16.16%, hello now we're talking. You never had my curiosity, but now you certainly have my attention.

I would encourage you to do more research than I did and find out more about Matic, also if you do a review of the coin, please tag me or drop it in the comments so I can check it out.

According to @coingecko, Matic is 104 in their listing and has a

  • Price of $0.02592977
  • Total Market Cap $97,028,649
  • Circulating supply 3,762,794,752
  • Total supply 10,000,000,000
  • ATH $0.04490755
  • ATL $0.00314376

You can find out more at Coin Gecko - Matic

About my trade

  • I went to Binance, and I purchased 4000 coins at a price of or $104 in fiat terms
  • I then sent my 4000 tokens to Celsius Network and staked them at my APR of 16.16

My plan is to HODL for a full year at least.

Since Celsius pays out compound weekly and if the APR remains the same or close by I would net around 4,700.38 for the full year.

Which would leave me with $121 at the end of the year that's without the price of the coin moving up for an entire year. In crypto, pretty much impossible, especially when getting in early on a bull run coming our way.

Regarding the downside, if I end up with 4700 tokens, it would mean after a yea of HODL'ing the tokens price would need to fall to 0.022, and I would still break even in fiat terms.

Could it happen yes, but that gives me a 12% in relative value wiggle room before I start taking on losses.

I don't only want to bank on the price of an asset going up or down and I like to get dividends so to speak. Adding to my stake passively and reinvesting and compounding, that's the game I like to play, reduces my downside with each passing week and if we do get some price action, who knows where it could go.

Celsius also has adjustable rates, so if it does drop below my buy-in price, we could see interest rates increase to drive up HODL'ing but just me speculating.

Remember this is not financial advice, it's only what I am doing with MY Money! DYOR

Have your say

What do you good people of HIVE think? How are you managing your risk with trades? I would love to learn new ways of thinking! Feel free to share

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

Let's connect

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You're one of the best hodlers in the game and you're right about something; we as investors, we're greedy we want more because sometimes we envisage some kind of wealth which we feel we might miss out on

Greed will always get the better of us and impatience if you can learn to manage both of it, you will do far better at investing than you think

Just a jessie today. This idea is good - I agree. I think I have had same idea some time.

I kinda got that vibe when i saw your post about their crazy returns on celsius lol

I have staked a small portion of Matic and is cool to generate around 30% in staking reward.

You might be interested to see the video I made on YouTube about Matic:

CC87 - Discover Matic Sidechain Solution & DAPPS Interaction

Thanks so much for this video, the 30% staking reward is that fixed or does it fluctuate? It’s seems better to stake then to invest with Celsius might have to switch my approach

Fluctuate a little but remain closely around 30% at the moment. Do you not forget the high gas fees if you intend to implement this method.

I'm like you in the regard to passive income and compounding. I went with a service that has a 7.57% APR with daily payouts of 0.02% on BTC, LTC, DASH, and DOGE. I think it helps to hodl like this. We're not worried about the price going up or down because in the long term. We will be better off than in the beginning.

Absolutely what service are you using? I was always a HOLDR but now that I can increase my stake by HODL’ing I sure am one happy camper! I can see myself slowly shifting more of my net worth into crypto holdings as this sector matures

I'm currently using stakecube (reflink). Is there something you're aiming for? My long term goal is a DASH masternode.

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