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Medium piece, "I Dump (Decred) Coins on You: Confessions of a dev that sells crypto to pay bills"

Confessions of a dev that sells crypto to pay bills

“Do you want those devs dumping on you to pay groceries?” “I don’t want those coins flying up in my face!”

Ouch. As a dev (well, technical writer mostly, but I write some code too) in the Decred Decentralized Autonomous Organization (DAO), I get paid in crypto. And I do have to sell most of it to pay for groceries, rent and other bills every month. Comments like that sting. I’m not hurting you, I’m working for you. And taking a large pay cut too btw. But I get it. I am eating your sandwich. In this article, I explore the insights I’ve gained by trading my paycheck on volatile crypto markets every month. It teaches you quite a lot actually. About trading, the meaning of crypto community, and the nature of money generally. Things obscured from you when you get paid in a liquid, “stable” currency like the US dollar. Like, the simple truth that there’s always someone on the other end of a trade.

On Liquidity

Remember that famous report saying 95% of all Bitcoin volume was fake? Most “alt coins” are worse. There’s barely enough real liquidity to trade anything but small amounts. Submit a market order for any sizable amount and the slippage (the difference between the quoted price and what you get) can top 10%. You realize that CoinMarket Cap (CMC), that leaderboard cypto stares at all day every day, for what it is: advertising.

Many of the larger coins on CMC have no active development, no actual use case (other than as mini casinos for traders to play in, which is a real use case). Most of these coins, with market caps in the hundreds of millions or even billions, maintain their market cap only by heavy use of market makers, price manipulation and narrative management. Nearly every project hires companies that deploy market making bots (bots that always take the other side of a trade).

Sometimes, the less scrupulous of these firms get bonuses for maintaining a certain MC, or genera...

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