Crypto Hedge General - /CHG/

My top 5 hedge picks:

1. FIAT (USD or local currency) - The king of hedges. Will likely continue to go up in value relative to crypto short/medium term. However, in most jurisdictions cashing out is subject to capital gains taxes, which makes it a poor hedge if you are already heavy in crypto. If you are holding significant fiat I recommend waiting to buy, or use the dollar-cost averaging strategy.

2. Tether (USDT) - A token that is supposedly tethered to the USD. As a token, cashing out into USDT counts as a basis swap and therefore is not a capital gains taxable event. Will be likely to continue performing strong relative to the market. However, the value of USDT has broken from USD lately and Tether's liabilities exceed their assets. There is some risk involved of a run on tether or if exchanges freeze tether transfers.

3. Litecoin (LTC) - The "silver" to BTC's gold. Strong growth in transaction volume due to growing role as a fiat gateway. Segwit already implemented with Lightning Network slated for the fall. LTC/BTC shows strong growth. Resistant to BTC dumping by ICOs.

4. Ethereum Classic (ETC) - Great hedge against ETH falling. Strong growth relative to ETH. Fixed supply and immutable ledger. With very similar tech to ETH, a major project announcing they are using ETC is very possible. Resistant to ETH dumping by ICOs.

5. Decred (DCR) - My dark horse pick. BTC is facing a governance crisis - DCR solves the governance problem. Hybrid PoW/PoS store of value with on-chain voting. Criminally undervalued IMO but it's risky to invest in now. No current use cases or fiat gateway so it is speculating on future potential.

Honorable mention: Precious metals. Precious metals are a great hedge in general right now. Silver in particular. Prices are at a local low & precious metals typically benefit from global unrest. However physical metal is not liquid so I don't consider it a great hedge if you are trying to go big on crypto. Available for purchase in BTC on websites like Amiga metals or JM bullion.

Note on BTC: I recommend keeping a stash of BTC at all times. It's useful in case an alt you've been watching dips hard and you want to buy immediately. There is also a (small) possibility that the scaling debate is resolved early, in which case BTC could moon. In the event of a hard fork, by holding BTC you get copies of coins on each fork.

Note on ETH: I am extremely bearish on ETH. I expect a "prisoner's dilemma" event where ICO's all rush to dump their ETH before everyone else does. I would not buy ETH above $50. Others may have different opinions on the value of ETH but that's mine.

SECURITY: Remember Mt. Gox! Keep the majority of your crypto off exchanges!!! Use a software wallet, hardware wallet, paper wallet, or some combination of the above. Make back-ups! You and you alone are responsible for your money!

Support quality OPs. Buy me a beer:
LTC - LbVN32SWwPBrK2Z2X7cYJe5PTjFGbG63eF
BTC- 1EKsxZk18kx41AdocDpjkAviWFsedpovLb
DCR - DsbYpr7XYscF8Z1iNdT1uJ98fjsPVQHj11t

DCR is my biggest hold. Hope I'm not making a mistake

> ETC
> great hedge

ETH might be overvalued but at least it has a dev team

Get the fuck off this board with your fucking reddit spacing and your fucking "quality OP" bullshit this is a shitposting board to make fun of fucking bagholders like you.

Fuck off.

Same here. The past few weeks have been rough, but I have faith in the project long term.

Just a tip: Look at small cap coins on Cryptopia.

I just found ATOM.. volume is growing and sell walls are slowly going down. It's due to a violent pump.

LTC, ETC, DCR = hedges?

lol do you even know what a hedge is?

All three of those bleed when the rest of the market does.

Now this is a user who gets it

An hero in these dark tiems

fuck off with your normalfag bottom text shit