Bitcoin+Cash portfolio?

[Ugly_Bird]

Why would you buy GBTC with a 2% annual fee if you can buy the real thing?

Because there is no real thing for the tax deferred account.
2% fee is much better than paying tax for XXX% profit :-)

I do have the real thing in another account

[bitcoininthevp]

Why would you buy GBTC with a 2% annual fee if you can buy the real thing?

Because there is no real thing for the tax deferred account.
2% fee is much better than paying tax for XXX% profit :-)

I do have the real thing in another account

Actually there is a real thing for the tax deferred account. You can work with an accountant and lawyer to form your own 401k that can hold bitcoins.

[Ugly_Bird]

So, I went ahead and bought GBTC on my Traditional IRA with Fidelity. :-)
Now the question is what kind of orders I need too place there to sell at certain points?
That would be two scenarios:
1) Hits the same price I bought at (to prevent loss)
2) Doubles the price I bought at
Would it be some kind of LIMIT order or two?
This is relatively new for me.
Thanks!

1. Stop-market sell order
2. Limit sell order

Not sure all brokers have these features for all of their users.

Got it! Thanks again. Yes, Fidelity has those on my account.

[bitcoininthevp]

So, I went ahead and bought GBTC on my Traditional IRA with Fidelity. :-)
Now the question is what kind of orders I need too place there to sell at certain points?
That would be two scenarios:
1) Hits the same price I bought at (to prevent loss)
2) Doubles the price I bought at
Would it be some kind of LIMIT order or two?
This is relatively new for me.
Thanks!

1. Stop-market sell order
2. Limit sell order

Not sure all brokers have these features for all of their users.

Got it! Thanks again. Yes, Fidelity has those on my account.

Keep in mind, bitcoin trades 24/7 and moves can be big. And your fidelity account/ GBTC doesn’t trade 24/7. So you could have a sell order that doesn't execute at your price, while bitcoin moves over the weekend for example.

[Ugly_Bird]

So, I went ahead and bought GBTC on my Traditional IRA with Fidelity. :-)
Now the question is what kind of orders I need too place there to sell at certain points?
That would be two scenarios:
1) Hits the same price I bought at (to prevent loss)
2) Doubles the price I bought at
Would it be some kind of LIMIT order or two?
This is relatively new for me.
Thanks!

1. Stop-market sell order
2. Limit sell order

Not sure all brokers have these features for all of their users.

Got it! Thanks again. Yes, Fidelity has those on my account.

Keep in mind, bitcoin trades 24/7 and moves can be big. And your fidelity account/ GBTC doesn’t trade 24/7. So you could have a sell order that doesn't execute at your price, while bitcoin moves over the weekend for example.

I was thinking about this too. What would be the best strategy to account for that then?

[bitcoininthevp]

Keep in mind, bitcoin trades 24/7 and moves can be big. And your fidelity account/ GBTC doesn’t trade 24/7. So you could have a sell order that doesn't execute at your price, while bitcoin moves over the weekend for example.

I was thinking about this too. What would be the best strategy to account for that then?

Set alerts on those prices and execute the trades manually. Maybe others are smarter here.

[pors]

Why would you buy GBTC with a 2% annual fee if you can buy the real thing?

A few reasons.

1. You dont need to worry about bitcoin technical stuff like storing it, they custody
2. The GBTC premium (currently ~25%) can actually increase during bull markets so you could profit even more that way
3. You can hold GBTC in tax advantaged accounts, so buying and selling on highs/lows saves a lot of $ vs doing the same yourself

If course there are risks too:

1. You buy at 25% premium and premium goes to 0% or negative
2. They lose all of the coins via a hack or whatnot
3. In flat market for many years, the annual fee eats away at principal

I see! That makes sense then, thanks for explaining.