What are crypto dust and what i've learned.
I'm writing this to share my experience with crypto dust. Now, what is crypto dust, its the amount of tokens/coins that you have that are of less a dollar of value. Small enough that it cant pay for gas fees or transaction fees.
So how did we came to this crypto dust. There are a couple of reasons and aside from this crypto dust i would like to share a somewhat related expireince that has to do with exchanges and time in the market.
A. Coming from a small country and hoping a small amount of money can at least gain from crypto, you can only invest in small amount of money. I mean your purchasing value is not that big compared to 1st world countries. Hence, you start with a small amount of your less powerful currency.
B. Global exchanges vs local exchanges. Global exchanges do have more projects listed versus local exchanges.So you opted to use global exchanges in the hopes of being able to find gems. So you digen to those new projects, and may find good projects actually. Two things can actually happen here, shutting down of your country and or shutting down a token. B1. Shutting down of your country, this is due to government regulations governing the global exchange that you into. What the exchange in do is transfer your crypto to USD and give option to withdraw it, or you simply move it to an account in another exchange (this is where exchange and or transfer fees happen). Exchange to exchange is a better option since you are able to hold the value of the token. The auto USD is the bad part, if you bought the token at ATH and been hodling because of the bear market because you have diamond hands, then its like a rug pull, they auto exchange it for whatever the current price is, there goes your hodl and diamond hands. B2. shutting down of a project. This is also due to government relations, like they say the company cant offer this to the consumers and should stop it or else they get penalized. So they company is forced to stop the trade or holding of a particular token, in which they will implement either or both of the options.
So far you would ask, so what is the problem here, its crypto dust. On a bear market even good projects pummet in prices. You small crypto holdings can turn into dust and you will have a hard time transfering it, even to a cold wallet due to fees.
There are no work arounds, so I hope this can help or warn you about it.
TP on price targets, keep in mind to leave a good amount that you can still transfer. If your talking about a dollar or two, might as well take it all out
For coinbase, if you know someone in another country that still allows coinbase, then you can transfer the crypto dust or even non crypto dust to that someone for free. Usually exchanges has this feature to send another account without a fee.
C. Time in the market, a bear market or winter is a brutal season in the market. This the time where you are tested, if you have diamonds hands, specially for newbie that came in because of FOMO and bought in at the ATH. Its ganna be a long hard brutal winter. Your holding will pummet to almost 90%, and it takes years to bounce back. So if are not forced to let go of the token or forced out the exchange, be a diamond hand just let the stormy winter pass, its just a paper lost, the market will bounce.