Safety precautions for the incoming SegWit2x mess

The problem:

Starting with July 14, several competing proposals, in regards as to how Bitcoin should be improved, will compete for miner, exchange and user support. It is expected that some sort of resolution will have been achieved by August, and regardless of which side wins, it is very likely this will be a period of high volatility. For some, too much volatility, and for those people who are looking to ease their anxiety in the upcoming days, here are some ways to put your mind at rest and ensure the safety of your money. This means you may still lose, but at least you’ll lose less.

First of all:

Get informed. I don’t know who is right, nobody does, so I won’t give you any links, instead I invite you to do your own research, listen to the proponents and opponents of all sides and chose your own.

Keywords to research: SegWit2x 'Bitcoin Unlimited' UAHF Bitmain 'Bitcoin Core'

If you’d like to read my opinion on the ideological side of the debate, you can read my article on the topic HERE

General Safety Procautions:


Move tokens to personal wallets. Most of the recommendations in this guide are very conservative, so the use of Personal Wallets over exchange “wallets” is greatly encouraged. If the world burns, Exchanges will be the first to go down.

Then you need to pick one of these, depending on your risk-tolerance. The higher the risk tolerance, the more risk you are willing to take, and the greater the profit you could make.

[Low RT] Stand aside and take profit in Fiat:


The safest choice is to move out your value. Maybe the risk is not worth it for you, or maybe you have had a long enough run and could use a break for a couple of weeks.

Enjoy the money you’ve made, or review your mistakes. Learn and buy yourself something nice, just keep an eye on the news. Once there is a clear resolution and the markets stabilize, you can jump back on top of the moon-bound wagon.

[Low RT] Move BTC to personal wallet:


Staying in BTC is, of course, an option, albeit a slightly more risky one. Staying in Bitcoin may give you the opportunity to profit from market swings, but it also means that, in the unlikely case Bitcoin’s price crashes, your investment will go down with it. If you chose to stay in BTC, remember that your Exchange can freeze or hold your coins at any moment, pretty much with impunity. Either stick to decentralized exchanges, like Bitshares or spread your BTC around, just in case. This is particularly important during these turbulent days, as the only way to make sure your BTC is safe on the technical side, is if it’s in your wallet.

[Medium RT] Move to USDT and wait for market signals:


USD Tether is a cryptocurrency designed in such a way that its price is always at or close-to 1 USD. It gives you the versatility of Fiat without leaving the crypto world. You can get it easily on many exchanges, but don’t forget to move it to a personal wallet if you intend to HODL during the Bitcoin wars. Another advantage of USDT is that you can use it to snipe trades if you are one of those people that spends hours and hours staring at the moving charts.

[High RT] Move to Alt-Coins:


This is the madman’s choice. If you just don’t care, and no puny conflict will get in the way of your profit, you can move out of BTC into other coins while the storm passes. While it is likely that a BTC dive or soar will drag the rest of the coins with it, only BTC will suffer the technical reorganization, so there is less technical risk in other coins, not to mention the potential to make profit.

[Low RT] If you are unsure, HODL:


If FUD (Fear Uncertainty and Doubt) have gotten to you, then DON’T PANIC. If you believe in Jesus Bitcoin’s fundamentals, you can also just wait for the storm to pass. Your money is likely to be safe on the long run, assuming you are in control of your Private Keys, and if you bought at good levels, you are likely to profit in the end.

Talk to others, specially old-time Bitcoiners (what?), you’ll find that this kind of crashes have happened before, and they’ll probably tell you that waiting is all you need to do.

[Bonus] When NOT to HODL:


There are very few scenarios where holding on tight may not be the best strategy. If you bought in close to the 3000USD mark, and you want to get out quickly, it is likely you’ll benefit from just taking the loss and re-entering at a lower price, as the market could experience immense amounts of downwards pressure while the scaling issue gets sorted out.

I hope this information is useful to you, let me know if it is! Remember that these recommendations should be just part of your overall investment strategy. In the end, what you do with your money is your responsibility and nobody else’s.

Invest responsibly. Don’t drink and invest.

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Do not buy USDT under any circumstances. Buy bitUSD to hedge or store value. USDT is a complete scam - read their terms. They claim to back the value 1:1 with USD in some Hong Kong bank account, which is not audited and nobody has every seen. It is far, far worse than the Fed Reserve, Fort Knox, COMEX etc.

Anyone that thinks there is $250M USD just sitting in a bank account backing USDT is nuts. There is most likey $0 and they are literally printing money. If word gets out or they go bankrupt USDT will become worthless overnight - because it is worthless.

bitUSD is fully backed by at least 2x collateral and runs on the Bitshares network. There is zero counterparty risk.

Better yet, buy HERO tokens, which is basically bitUSD that pays 5% interest. Not a joke, I keep all of the risk-off portion of my portfolio in HERO. It's like a savings account that pays 5% interest.

Hell, even SBD (Steem dollars) is a better way to store value safely than USDT. Stay away!

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This sounds very interesting. Do you have any source I could read about the dangers of USDT? Also, aren't bitUSD and USDT the same thing concept?

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USDT (Tether) is IOU and bitUSD is Market Pegged Asset

source: https://tether.to/legal/

more info about bitUSD you will find here:

https://steemit.com/bitshares/@xeroc/what-makes-the-bitusd-than-nubits

Look also for something about HERO ( it's like bitUSD with 5% apr)
https://steemit.com/trending/hero

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Thank you fractal. It looks like a very good argument, but isn't this kind of wording standard for the bussiness? I remember reading whitepapers with similar information, I understand it is because failing to add a disclaimer than this, would put the devs at risk of legal action or regulation, is this not the case?

Thanks for the advice. It is really helpful for being prepared for the upcoming volatility in the crypto market at around August 1st.

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Definitely, there is no way to be sure how it will pan out. ^^

Ty for the info

I take an approach that accommodate both safety and risk: I write as much as I can for steem dollars and convert them daily to other assets. Steem, ark, nem, bts are favorites. If I do it consistent without interruption, I should get a fair price on these alt coins. I could stay in sbd, but then I would risk being left behind when bitcoin has solved their issues.

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Would you say that investing in BTS, Steem & Sbd is putting to many eggs in one basket?

Very good post. It's always important to do your due diligence when it comes to investing, especially crypto.

Invest responsibly. Don’t drink and invest.

So true.

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Yep, it doesn't get enoguh attention. XD