hi guys my name is colin and this is
colin talks crypto in this video i'm
going to talk to you about why i just
sold 20 of my total luna holdings for
ethereum and no it's not because i'm
bearish on luna thank you for joining me
hey guys if you've been following me for
a while you know that about a year ago
or maybe even a little bit less than a
year ago i acquired a
position in luna and at the time it
wasn't a huge position it was probably
i don't know 10 or 15 percent of my
total portfolio
but
as luna has exploded in price so has its
percentage in my total portfolio
holdings to the point where it became
like 60 of my entire portfolio
and it's continued to climb and it's
continued to climb and it's performing
amazingly
and so what i've done recently is i've
actually just sold a
20 position of my luna
now like i said it's not because i'm
bearish in any shape or form whatsoever
about luna in fact i'm incredibly
bullish about luna so then why did i do
it
so let's take a look i'm going to throw
a chart on the screen here this is luna
as priced in ethereum this is not luna
priced in dollars this is luna as priced
in ethereum and the reason i take a look
at this chart is because that is the
asset i purchased luna in so it makes
sense to price it accordingly
now the thing that's interesting to see
where i purchased it versus where i sold
it is that is a 14.3 x gain on my
original investment as priced in
ethereum
and i just took a look at things and
i've learned a hard lesson that if you
don't take profits you can get burned
extremely badly i learned this on my
bitcoin mining stock call options i
learned this on eos i learned this
on bitcoin cash although my position on
that wasn't very big
but if you go heavy in one thing and you
lose it all
that has to be an outcome that you can
handle as an investor and to give you an
example if you went 100
into one asset
and that asset failed for whatever
reason
you'd be out of dry powder you'll be out
of resources and if it puts you out of
the investor game then it doesn't make
sense because you can't
come back to try again
and so uh one post i made recently on
twitter was basically never go all in
never go 100
and of course there are some of you who
have gone 100 in one thing
and
there are different circumstances
absolutely like if you're young versus
you're old you know when you're young
you can afford to make more mistakes and
you have a longer
time span in front of you to recover
versus when you're old usually when
you're older it's more about preserving
wealth so there are definitely different
factors involved here as well as
portfolio size there's a difference
between having a portfolio of one
thousand dollars versus having a
portfolio of one million dollars there's
different risks that you may want to
take you could have a different risk
appetite with a one million dollar
portfolio you might be a little more
conservative versus a one thousand
dollar portfolio let alone a 10 million
dollar portfolio you know can go all
over the place and that's relative to
your net worth that's relative to your
ability to earn so there are many many
factors that you have to take into
account when
making and placing a bet size basically
we're talking about bet size
how big of a bet do you place when
investing
so
let's back up here so back to luna i
purchased about 15 of my portfolio in
luna
and i bought it with ethereum i watched
it 14.3 x to this moment in time right
now it has 14.3 x and so i thought to
myself
you know i don't think anything's
happening to luna i think except for
maybe going up more i think it's going
to continue to skyrocket but that's a
very very healthy gain that's a type of
gain that i cannot pass by i cannot let
that go and so i took a look at it and i
realized that if i sold just a small
percentage of my luna i'd actually
recoup my entire ethereum cost basis and
still have a boatload of luna left over
and so actually what i've done is i've
sold 20 of my luna and i've made back
2.5 times my original ethereum
investment
so i'm up now i'm playing with house
money and the luna slice of my crypto
portfolio is still above 50 so i'm still
heavily heavily invested in luna which
is an amazing crypto and i have very
strong faith in it but like i said
earlier never go all in on something and
never go in so heavy that you feel
uncomfortable or maybe you couldn't
sleep easy at night and so now i feel
really good knowing that i have not only
made a profit on my original ethereum
because i've got 2.5 x the original
ethereum i put into luna
but i've also got
over 50 of my portfolio free luna
house money
so in the worst case scenario if luna
goes to zero which i don't think it will
but you never think it will until it
happens i'll be okay because i still
made a profit on this entire trade and
that's basically why i did it i'm
protecting myself i'm diversifying and
i'm planning for worst case scenarios
because there are a lot of unknowns
there's unknowns in ethereum there's
unknowns in luna there's unknowns in
both ethereum is transitioning to a
proof-of-stake system with the merge
happening very soon there's tons of
opportunity for something to go wrong in
that no matter how
perfectly they've tested it and i think
it will go fine and i think it will be
fine but you don't know for sure
and for luna
luna's largest use case is ust the
stable token by design as a d5 stable
token that is truly decentralized and it
is brilliant and i love it and i earned
20 percent with the anchor earn feature
but what if something was to happen to
luna i do know that ust is being funded
externally and just like a month or two
ago dokuan dropped another half a
billion dollars into the ust reserves so
that it could basically continue to pay
out this 20
industry
number one rate on your dollars which is
amazing and that's an incredible
marketing gimmick you know if you can
get twenty percent on your usd in the
form of ust on anchors earn uh protocol
i mean who's not going to do that i'm
doing that even and
the thing is is though what if that runs
out and there's propositions that are
already in play to reduce that rate and
to make it you know drop no more than
1.5 or gain more than 1.5 percent per
month but to
keep in line with the amount of reserves
that are available to pay out and so
that's a change to the system design and
that's a change that introduces risk any
change introduces risk so ethereum is
introducing change by migrating to a
proof-of-stake system that introduces
risk luna's ust is introducing some
change with its ust payment mechanism
that introduces some risk both i think
are incredibly strong assets
but i just feel like i can sleep a
little easier at night
having reduced my luna position from
like 60 to 50 percent and increased my
ethereum position from like 30 to 40
roughly speaking that's basically what
i've done and that's why so i still am
extremely bullish i think we're going to
see tremendous tremendous growth from
the luna token itself and the ust
adoption in the months to come i think
that even if the ust rate does go down i
think that it will continue to be very
appealing because i think the goal is to
keep the
interest rate the apr that you can earn
from your ust above the industry average
so it will still be appealing but it
might not be quite as tantalizing as the
crazy insane 20 apr that ust currently
experiences and so
i just want to be ready no matter what
happens i feel really good about having
secured some of my profits in fact all
of my cost basis
and i'm fully aware that it is
incredibly possible maybe even likely
that luna outpaces ethereum even further
and you could say well you would have
made more colin if you had just kept
your luna even longer but to me there's
a point where taking profits is
important and i think 14x
is appropriate for doing that with just
20
of my luna if it makes me sleep easier
at night then i think that that's worth
it
one point that i think is in favor of
luna growing faster than ethereum is in
terms of market caps if you look at the
luna market cap versus the ethereum
market cap luna can i think like 10x
it's market cap before it even equals
the ethereum market cap i just looked at
this today this could be wrong but i
think luna was like 40 billion market
cap and ethereum was like 400 billion
dollar market cap and so with that kind
of
small market cap relative to the
king you know number two crypto ethereum
the number one smart contract crypto
i think that luna with its very
inexpensive gas fees
it's very fast block times both of which
are better than ethereum it's proof of
stake already which is amazing and
ethereum is just trying to get to that
level i think that those are factors for
why luna could continue to outpace
ethereum in terms of its price and its
market cap
luna's 10 times smaller market cap does
give it a lot of room to grow but i know
that ethereum has been around for a lot
longer than luna so it has that
longevity that stability one other key
reason for why i am selling some of my
luna for ethereum is i do think that
there is a chance that because of the
merge for ethereum this proof-of-stake
migration
assuming it's a success which i do think
it will be given all its testing i think
that we could see a huge run-up for
ethereum um if you look at the price
charts of ethereum versus the charts for
luna there's a big difference luna has
recently seen a tremendous run-up
ethereum has seen a run up kind of like
a couple years ago and then a correction
and not really another run-up so for me
it's a way of selling high on luna and
buying kind of low for ethereum right
before a potential momentous event which
is the merge so that's another factor
for why i am doing this that's the
timing of it all there is this event
happening for ethereum and also the
inverse correlation of the luna price
chart being really high and the ethereum
not really having seen a run-up recently
and so i'm hoping to flip those profits
into ethereum and make them into even
more profits during ethereum's hopeful
rise very soon
so now i've got my eggs across multiple
baskets and that's my example to you of
taking profits it's actually a form of
taking profits even though i didn't take
it into dollars i didn't buy luna with
dollars i bought it with ethereum and my
goal is to accumulate crypto it's to
multiply my crypto portfolio not to
accumulate dollars so for me if i can
2.5 x my ethereum stash
and have some free luna on the side
which happens to be like half of my
entire portfolio
i'm more than happy to take those gains
to diversify and to basically have
locked them in
this is not financial advice
like i said luna could skyrocket to five
hundred dollars and ethereum could
stagnate or ethereum could go to twenty
thousand dollars and luna could stagnate
at some point but do your own due
diligence make your own educated
decisions and i just wanted to share
this real life example with you of me
taking profits and how i price things in
the asset that i actually purchased them
in i wish you all the best of luck and i
continue to feel very excited about this
cryptocurrency bull run we haven't left
it for one minute and you know what's
interesting is i think we're going to
look back in a year from now after we've
done a huge parabolic move for bitcoin
and especially these all coins like luna
and ethereum and the bear market that a
lot of people claim that we have been
seeing for the past year is not going to
look like a bear market it's going to
look like in 2013 when we went sideways
for a little bit and then it's just part
of a bigger move i think that this bear
market is going to in the future not
even be called a bear market it's going
to be called a subpeak which is what i
actually think it is for those of you
who think i'm crazy and think that we
already saw the top and we're going down
from here and it's a bear market i urge
you to look at the altcoin prices as
evidence of why it has not been the
final peak
anytime the bull run is over and we
actually are collapsing all coins do not
make new all-time highs so then how
could luna be making a new all-time high
right now and some of these other
cryptocurrencies be making you all-time
highs if we're in a bear market it's
because we're not in a bear market we're
in the middle of a correction of a
massive massive run-up for bitcoin where
it's going to end up in
six figures easily so that's my thesis
it continues to be the case to this day
and that's where cbbi the column talks
crypto bitcoin bull run index comes in
useful that's at cbbi.info if you didn't
know but basically the reason that the
cebi is so useful is because it's not
like any of these other indexes or
metrics
many of these other indexes and metrics
indicate sub-peaks almost every one of
them that i've seen the cbbi is the only
one that is designed only to indicate a
blow off top and not to falsely indicate
a subpeak and that is what separates it
from the rest so that's what i'm going
to be keeping my eye on if the cbbi goes
above the previous all-time high of the
last few years i think it was like 70 or
75
that's when you start to like pay
attention and maybe start taking profits
i might wait as high as 80 or even 90 to
start taking profits but if it hits that
range you know that we are in the
profit-taking zone
all right guys i hope you're doing
fantastic take care and i'll talk to you
again soon