Ok, so here is the story. I have 30 SOL from an average price of $200. (yikes!) I can wait for it to recover, and hope it does, or I can also scale in. If it gets to $30 again and I buy another 30 for only $900, my average price is now $115. That way, it only has to do about a 4x in order come out break even. So on the one hand, I'm spending more money for what could end up being zero, but on the other hand, I'm really fixing the position quite nicely! But the real question is this. The 30 SOL are right now staked at Kraken. I first started buying SOL because I was encouraged by Youtube videos that it would be the so called ETH killer. With Ethereum having the high gas fees and non-existent upgrade, it made sense that SOL could take over. So this is how I came to build this position. But of course the other attractive thing was the 6% staking. Now clearly, in this time of crypto carnage as a result of leverage and high yields, is it even possible for this to be legit in the long run? I did read that this staking will decrease over time, but its still kind of up there in terms of being highly lucrative. I thought that in order to stake my SOL it of course needs to be on the exchange, and I feel mostly good about it being at Kraken, but you never know. I've now come to learn though that you can stake SOL on your ledger wallet. But here is the thing. Even though the coins are yours, its very clear from watching staking videos that part of your delegated assets may be irrevocably lost if the validator does not behave appropriately, as outlined in the image below taken as a screen capture from the ledger software videos. I currently have a Trezor wallet, but I'm happy to buy the new Ledger Nano S Plus if this means I can stake my SOL in a much safer way. What are the chances that Figment, which is the validator for Ledger, does something to make my coins disappear? And what are the chances that the Solana network itself goes to zero?
Before Sol, there were youtubers all raving how ADA was going to be the ETH killer, and we have had so many other ETH-Killers end up... getting killed. SOL's high-days seem to be over. SOL rose under the assumption that the Merge wouldn't be complete until Vitalik died of old-age. It was also believed ETH wouldn't have sharding either. That said, Merge is already expected for August. Let's say it's pushed back again a bit, that's ok. Either way, SOL's advantage points are really shriveling up now. And roll-up tech keeps getting improved. And I am trying to be nice here, we can get all into SOL's bugs and out-ages, etc. But that's another shit-show. In two years, I will be surprised if SOL is still in the top-10 list. Maybe it won't even be in top 100. ETH is very likely to be in #2 still. If not, that's probably because of the flippening. If the development community for SOL can grow like wild-fire... then maybe it won't be so bad. Good luck. NOTE: To my knowledge there isn't even one single SOL ETF that trades on the Toronto stock exchange.
I was thinking of just spreading out across 10 top staking cryptos by market cap. What do you think of that approach.
I think many won't survive. Heck, even look at how the poster above said he doesn't think Solana will make it, and this is one of the top, top ones. I'm a bitcoin maximalist and think this is the only one to own. But these other coins can certainly have a good run when the conditions are right. I just don't know if they will ever rise from the dead again. Holding bitcoin long term is I think the only thing I am comfortable with. Part of the reason why I didn't sell my Solana was because I thought it will turn around and I'm getting 6%. Well, its been about 6 months now and sure, I got 3% yield, but lost over 80% while doing it! LOL.... So maybe chasing yield wasn't the smartest move. Lots of people were caught off guard though, and I believed that bitcoin would hit 100k before this major drop. But alas, it didn't happen.
i only assign 10% of my investments to crypto, so this crash is not really that big of deal. Currently it's in top 10 by market cap (of course "Bitty" is in there) i'm still figuring out how cryptos fit in the real world lol. part of me thinks like Buffet, it's just a useless digital asset (unlike gold/silver that have real world application), but part of me wants to own them cause it's unique. Maybe too new for our time lol.