Alts are getting REKT! Swapping OmiseGO to bitcoin


This post is going to be brief.

I converted ALL 200 units of OMG into BTC a few days back. (I wish I had made this move earlier) OMG takes up the largest pie (13%) of my crypto portfolio. The average cost of OMG is around US$7.33 and it is now trading at around US$1.06. Ouch…

If you have read my earlier posts, I am currently in the process of converting alts into BTC so that I can have a more balanced portfolio, within crypto. It used to be 0% BTC, 100% Alts. Then it became 6% BTC and 25% BTC and after I sold my OmiseGO, it is now 34%.

Crypto portfolio
Previous Allocation 1
Previous Allocation 2
Current Allocation

The reasons for converting OMG into BTC are as follows:

  • Bakkt testing bitcoin Futures Contract
  • Launching of bitcoin ETF soon (VanEck & SolidX)
  • Awaiting approval of bitcoin ETF from SEC
  • Institution interest in bitcoin
  • bitcoin halving around May 2020
  • bitcoin is the number 1 coin in crypto and bitcoin is king
  • bitcoin technical analysis

The potential for bitcoin is obviously greater than OMG, in the short-term. When I look at OMG chart, it is really really ugly.

OMGBTC on Binance

The thing about alts is they are all priced in satoshi value. The ultimate goal for a crypto investor is to accumulate as much satoshi as possible. When I see the OMGBTC pair, I only see it eating away all my bitcoins.

My initial reasons for getting into OMG is because of its staking properties, which is seemingly a distant away. It is the only altcoin I have that is not generating dividends yet. And to be honest, based on their progress, I think their staking feature would only arrive in 2021.

On the other hand, BTC looks like it’s going to break out anytime soon and continue the uptrend.

BTCUSD on Coinbase

If I converted my OMG into BTC, the cost price of my BTC would increase from US$25k to US$30k. That is because I am converting OMG at a loss from my cost price.

My first thought was whether it is a good idea to do so. After all, I am selling or converting at a loss. Then I asked myself this simple question: Is it easier for bitcoin to reach US$30k or is it easier for OMG to reach US$7? Those are my breakeven prices. And suddenly my mind clears up a little.

Furthermore, I realised that I might fall into the trap of making a decision based on the past rather than the future. My initial judgement was to look at the past of how OMG fell from its glory and it is going to climb back up, just be patient. That is if I evaluate my decision making based on the past.

However, if I look towards the future, it is clear that the chart of bitcoin is much more bullish than OMG. The OMGBTC is heavily bearish as you can see the entire Kumo cloud is red and everything is just underneath the cloud. Holding on to OMG is going to be stupid as it is a falling knife and its falling with no signs of stopping.

That’s why I really regretted not taking the active role to convert alts into BTC. But I still do keep some alts. In case an alt rally is around the corner, I will still be able to partake in the rally. Furthermore, these alts are giving me dividends. So I might as well just keep calm and collect dividends.

I remembered facing a similar situation when deciding to sell my DGD. In my earlier post, I was faced with the same dilemma. It is a bad decision to be converting DGD to BTC. DGD was once US$500 and now it’s US$25, are you sure you want to be doing that at its all-time low?

Fortunately, I did. The price of DGD is now US$15.

I realised that there is indeed a difference if I swap more of my alts into bitcoin. I created an additional portfolio to monitor its value had I not convert my alts into BTC. The price difference between the one that has BTC (my current one) and the old portfolio which is all in on alts, is about US$400.

Let’s see how this goes.

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