Why I Am Powering Down
I know I am not in any way obligated to inform the community of my powering down, but nonetheless, I felt the need to explain. I am not one to leave my words or my actions open to interpretation.
I am not powering down in a panic because I have lost faith in the platform and believe I must withdraw as much as I can before the price of STEEM tanks.
I am not powering down because I no longer want to be a member of this community.
Much to the contrary, I am powering down for 2-3 weeks because I have witnessed a never before seen stability in the value of STEEM over the past month or so. For this reason, and a few others, I feel it likely that we may not be too far away from another spike in the price.
I do not know what the new, elevated value will be, but it is obvious that it will go high, and then level out lower.
So, if the price goes to 2 dollars, and then levels out at 1, I want to have some liquidity available to sell as close to 2 as possible.
Just as if the price goes back up to 4 or 5, and then settles at 2 or 3, I want to be able to sell as close to the peak price as possible, and potentially buy back at a low again.
I power down every week, just in case. There's no shame in it. I generally power it straight back up again.
That's a good idea. I should really have retained some liquidity in case of a potential spike, but I hadn't really felt it likely to happen any time soon until very recently.
Oh, and this post wasn't about a shame. I just didn't want anyone to notice and lose some faith in the platform as a result of it, when it is the opposite which has motivated me to hit the power down button.
What I mean is basically, if anyone sees someone powering down, nobody should care. TBH it should be normal for all active users to be powering down at all times, for flexibility.
Yes you're right. I just felt because I was loud about my distaste for the way the recent hardfork was implemented, that people might get the wrong end of the stick.
I still think it could have been handled better, but overall I am always happy to see any type of progress in regards to Steemit.
Interesting! I might try this approach . I have no clue 😜
I keep dithering over powering down myself because I would like to have a chunk of Steem to play the markets because I think another spike could be on the horizon and done correctly I could increase my holdings quite a lot!
Yes, you have a lot more to play with too. Would be nice to see you end up a whale because of some decent trading!
But, always the risk you might fuck it up and end up with less... It might go up to 5 and you sell thinking it will go back down and you can buy 5 times more at 1, but then it sky rockets up to 20 and you can only buy a quarters worth back.. Obviously an unlikely scenario, but you never know in the cryptoscene.
Yes that is why I always go back and forth on it.
The scenario you bring up is exactly why I use the "scale out" approach with cryptos. At most, I'll sell half of my position, only after a good +25 ~ 100% move (this is assuming that it's a crypto that I believe has a solid chance of success), depending on past spike performance. Then, I'll usually only sell half of my remaining position at a much higher target. The rest goes only after an insane parabolic move from there (since my second sell will sometimes come in around a 4X move with these insanely volatile cryptos, the "insane parabolic" could be as high as an 8 to 10X move. In other words, the third "tier" usually isn't reached, but if it is...yipeee!).
I shoot for three sells, while still leaving a little on the table (...maybe like 15% of the original position, just in case) after the third sell. I use this approach because pumps tend to happen in three waves. They very seldom make a fourth pump before a major price correction.
I've been doing the same for a while. Nothing left the platform, just went from SP to Steem so it can sit and wait...
Glad you are staying here brother, looking forward to reading more. I wish you luck in your trades.
Thank you very much, mate.
I am hear to stay too!
Not mad at you.
TEAM STEAM
that's okay.. it is your right ! :)
I've considered doing the same thing. Good post.
It's a good bet. let's see how it pans out! let us know!
I am also powering down but for another reason: to buy GOLOS tokens for steem. The reason is that GOLOS is much more undervalued then steem.
What gives you that impression about GOLOS? I mistakenly invested a bit of cash into GOLOS, thinking it was GOLEM, but it's been doing so well that I'm hanging on to the investment.
The reason is that i am trader and can earn on trading much more then on simple holding of tokens.
I was expecting that there could be a hefty spike in GOLOS price, much like there was with STEEM, but it doesn't appear to have been going that way. I shall have to take a second look though. Thanks for the tip.
You know, the cyber-fund team, that launched GOLOS explained in some post that huge pump in the beginning will do much harm to token, they prefered slow but constant growth. And, by the way, when they implement hardfork from Steemit, they don't just copy but discuss changes with community and can modify hardfork rules. For example, they increased APR for golos holders and did some other improvements. I guess in future the price of GOLOS will be higher then price of STEEM.
Yeah, I believe just because someone's powering down that doesn't mean they've lost faith in the platform or anything like that. I started a power-down because I needed a bit of money quickly, and because I want some liquid steem available if necessary.