Well, I have a few reasons, some of them may be misguided, but I'm happy to be corrected.

I don't like the idea that there is too much choices, and every one of them have different underlying crypto, and every underlying crypto other than the big 2-3 always feel like its a zero-sum game looking for the next bagholder. I don't want my emergency fund to be worth 50% less on the day I need them the most, I'd have 2 big problem on the worst day of my life. I just can't trust the money will be there for me when I need it.

Secondly, I am not familiar enough with them - I don't know which ramps to trust, I don't know which ramps are available and safe, and whether will it suddenly all crash down and every crypto I've received (even if I sent them myself) is considered income according to LHDN and I wake up one day owning massive amount of tax because I didn't do my paperwork perfectly. I am also not sure about the fees, I don't like that if you jump through 2-3 different hoops you can get a sweeter deal (atom arbitrage for example).

Worried is good, being worried save you headache later on when the problem can't be solved by just worrying.

Accept that you will need to pay tuition fees - not in terms of losing money because you gambled on the wrong stock or anything - but simply due to the fact that you need to build confidence and confirm your route. Check your commissions and fees and see if it match what other reports but don't try to save them too hard when testing the waters.

Don't one shot remit 2 months of your salary and be scared shitless when both parties say they don't have your money - don't one shot buy everything at once to save $2 of commission but found out you used market order and it filled at a weird price because it just so happens to be market open or something just happened. Don't put money you can't afford to lose and be dead worried about what others think of you when you are losing money 3 months in and it feels bad.

Start small, put 50, 100 through the route. If they are successful, save them as favourites and all that, and base your transaction on those. Buy the lowest amount of share, be comfortable with the many warning messages IBKR will warn you along the way, slowly figure out the interface.

Once you build confidence, once you confirmed your way works, then you should have less "unknown unknowns" that is at the back of your mind, and you wouldn't have to worry what happened to your money when you go to bed.

This post has been edited by Hoshiyuu: Apr 1 2022, 08:27 PM

Crypto is the most volatile asset, even more so than Forex.

Also staking has chance of the underlying fund doing a rugpull, disappear, get hacked etc and your cryptos lost with it since they are the custodian.

I bought crypto end of last year at their all time high. Lost 50% of value and have not recovered since then (after China ban). Any big news like China’s ban will trigger another sell off.. most ppl can’t take such losses in such a short time. Also crypto trading is 24/7. Even weekends can’t rip esp if own a lot of them.

Most ppl say don’t own more than 10% crypto of your entire portfolio.. I can see why.

In 50 years crypto might be very valuable.. or just fail and most cryptos disappear. Nobody knows since they are pure speculative. So would also suggest if wanna buy also go for famous ones like BTC, ETH good enough. At least they have higher value. Going for less known ones is high risk.. you’ll need to monitor them often.

This post has been edited by Davidtcf: Apr 1 2022, 08:29 PM

Happy to see your reasoning. If you are keen on it I'll suggest you to read more on stablecoin staking (USDT, USDC). I have my assets in USDT-USDC pool sitting on a sweet 20% APY. Some of it is in UST Anchor protocol getting 19%+ APY as well. But anyway if you have more questions feel free to shoot me a PM. I don't want to derail the discussion on Index fund investment.

Oh not sure if I can be considered bogglehead? I have $20,000 options in SPY 600D strike $5,000.


Crypto is volatile if you choose to stake non stables/blue chips.
If you choose stablecoins then you are literally pegging your asset/investment value to US dollars, and since we are on this topic, your investment is in USD anyway.

I would not convert all my crypto to Stablecoins. Never know when the next spike would have increasing BTC value by double? Hence I’d want to be ready for that.

Right now I converted my ETH and LTC to BTC and store them at Nexo. Then lock in one month each time earning in Nexo. After one mth convert just enough Nexo to BTC to still keep that platinum membership for higher interest.
That is my plan on keeping BTC now. Till I manage to recover or profit from my previous investment.

For new ppl buying into staking. If they don’t mind the high risk then go ahead. Many other articles warning ppl about dangers of staking.

This post has been edited by Davidtcf: Apr 1 2022, 08:47 PM

Good for you.
My original suggestion of stablecoins staking is not for investment, but rather for the purpose of emergency 6 months cash that can be withdrawn and used immediately, yet still enjoy relatively high APY.

Can you show me some articles on the danger of staking, just to see if I've missed anything.

This post has been edited by Icehart: Apr 1 2022, 08:50 PM

Wait SPY $5000? You mean $500 strike? That's like a LEAPS strategy right?

Sorry, yes you are right. $500 strike price when SPY index hits 5000.
Yeah it's LEAPS strategy.

Also if u compare with MMF funds, staking is dealing with volatility of crypto also.. when they lose value what you stake will lose value in its entirety.

Other dangers listed in articles such as these. So yes once again much higher risk. Stablecoins sure less volatility, what if the crypto get stolen like so many news we heard getting hacked etc?
https://trustwallet.com/blog/top-7-risks-of-staking-crypto

An article about stablecoins. Threats from regulators and its long term sustainability:
https://www.france24.com/en/technology/2022...-global-markets

This post has been edited by Davidtcf: Apr 1 2022, 09:47 PM

Really appreciate the reply! Actually, both my reasoning are almost entirely lasered on UST staking via ANC (Hence the reference to ATOM).

If you can afford the spare time, I would very much welcome that we take it to the DMs, I'd be more than happy to learn about your ramps and method. I've considered it a few time and I do have a play-money allocation to test this sort of item out. When I've read it up, it seems like the 20% APY is not sustainable and no one could explain to me who is forking out the 20% interest rate, and I am very curious how are the fees like for small transactions. Plus, I'm trying to understand how can UST stay pegged to USD should Terra goes to 0 for whatever reason, too.

-

I believe that a Boglehead invest primarily if not only in low-cost, broad based index fund, trading options on a broad based index surely doesn't count, both the commissions/fees involved and the risk are much higher, and relatively more active.

This post has been edited by Hoshiyuu: Apr 1 2022, 10:59 PM

Yep, already transfer fund to IBKR via wise successfully USD150.

Later just waiting for bonus and EPF to buy vuaa.

Also got your hint regarding market and limit order. I changed it to limit order as it is what I do in local burse.

Thanks for info so far

This post has been edited by AthrunIJ: Apr 2 2022, 12:23 AM

Glad to see some fine tinkering on asset allocation happening here.

What suggestion would you give to a Malaysian who prefer the passive investing method of John Bogle but prefer that his exposure only in ringgit? Can be any global diversified asset, but must be denominated in ringgit, and preferably these fund houses and etfs are Malaysian home grown too.

Thank you.

Bursa related ETF?

Got a few with China, REIT, Gold, ASEAN Dividend or Malaysia Momentum

Only buy when it is 52/week low with Bursa promotion

Market timing, sector tilting, region tilting, factor tilting. All that Jack Bogle warned against.

It's okay to do so, but that's not the Bogleheads way.

It has to be low cost, so unit trust are already fully out; It has to be broad-based, so Bursa's out too. The closest acceptable thing would be Roboadvisors, while I can hardly recommend any of them, a few of them do hold primarily VT or SP500 with a healthy amount of bonds or stable assets even at the highest risk portfolios.

Can't really have exposure only in Ringgit, that'd limit the person to Malaysian funds, which have a massive currency risk and political risk. International funds traded via converting MYR to something else immediately before buying could hardly count as MYR exposure, and Ringgit denominated ETF listed on Bursa are all of rather questionable and concentrated with uncompensated risk...

Really can't provide much alternative there, this is simply not a way to invest that's popular in Malaysia...people don't want to get rich slow, in general.

Can’t help it if one wanted RM denominated ETF

WHich is why’s ETF are traded mostly in USD as the currency stable and not to subject to massively fluctuations

Most Bursa ETF except Gold are basically rubbish because are questionable because low volume trading and market makers most of the t8me are subject to raise prices by price fixing

Also note the 20% APY is not sustainable:
https://wantfi.com/terra-luna-anchor-protoc...it-pay-20-yield

This youtuber also mention the more people stake in something the less its interest will be later on (4:27)


I'll stick to the usual ETF and stocks. Possible to have returns of 20% or even more a year or in two years time if you pick the right ones. Much more secured as well.

This post has been edited by Davidtcf: Apr 2 2022, 07:44 PM

Well good for you. Not forcing anyone here but am just offering an alternative to those who are keen to explore further.
Just to reiterate once more, this staking is not an investment advice (short/medium/long), but a suggestion on alternative to earn yield from "emergency funds" that you're allocating for 6 months and more.

Well the emergency funds' capital need to be guaranteed. From what I read in staking it's a grey area.

If more to investing (willing to take risk) than yes can consider staking.

You can split into USDT/USDC/UDC pool if you're afraid of UST risk.
But still quoting from the article you provided, even the author has put in UST to stake in Anchor now, at least until 2 weeks before the yield reserve dries up.