USD-backed crypto and the importance to set your goal clear
If you are here long enough, you must have heard about Tether USD (USDT) or Trust Token (TUSD). Those coins are known as the USD-backed crypto coins. In other words, we belived that each of those coins has the value close to 1 US-Dollar.
Major exchanges and the USD-coins
Many exchanges, such as Bittrex, Binance, Huobi have already accepted Tether USD (USDT), and some trades have already approved using TUSD (Bittrex, Binance) to list among the top pairs.
With that info, rest assure that those coins are valuable and trustworthy by lots of traders in the world.
Time to look at your goal
Frankly speaking, we are all on the trading crypto to get one thing: profit. In term of benefit, many preferred to measure by the amount of Bitcoin they have. Others may prefer to have altcoins such as Ethereum, DASH, etc.
Some, like me, prefer to keep my profit and capital in USD-backed coins.
I have read many books, and all of those suggest a similar thing: No matter how you trade, keep yourself capital for next day trade. For me, it has been the same. In the past, I tried to increase the number of Bitcoin I owned, but then I realize that Bitcoin price is highly dangerous to trade, so that I have switched to USDT. By that, I do not care much for the long-term outlook of Bitcoin, I trade based on the waves of Bitcoin and make a profit in USDT. In my portfolio, I only have USDT and Steem.
From that, if you are trading without a particular plan, you should make one and follow it strictly. I have lost some trades, but in general, I still have profit, all measured by USDT.
Interesting thought, I think it depends on the prevailing trend.
In a BTC bear market, I've found it good to hold fiat like you mention and focus on making gains in terms of fiat (i.e. trading USD pairs such as LTCUSD). That way you don't have to worry about the bitcoin price deflating your capital.
On the other hand, when bitcoin is in an uptrend, it's much easier to keep your capital in bitcoin and try to increase its BTC value by trading BTC pairs (e.g. NEOBTC).
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