Neosify - Buy, Stake & Earn Crypto
Neosify - Buy, Stake & Earn Crypto
Neosify - Buy, Stake & Earn Crypto

Why I Sold All My DOT

By john harding | My Crypto Life | 26 Sep 2021


I have been holding and staking Polkadot for a while. When I first started staking the minimum stake amount was 20 DOT which was fine with me and didn't skew my portfolio %. Then the minimum went up to 40 DOT. OK I can just about manage this, although it did put my position in DOT as a larger % of my portfolio than I really wanted.

Recently the minimum went up to 80 DOT. Although I could have afforded this if I wished, it would have put DOT as a larger proportion of my portfolio % than I was comfortable with. 

The other reason I decided to get out of DOT was the algorithm. I had delegated my DOT among 21 validators. The problem was if one of those validators became oversubscribed the algorithm always seemed to pick that validator for me, meaning I got zero rewards. I removed the over subscribed validators, things were going ok until another validator became oversubscribed and the problem repeated itself.

Enough was enough and I started the process of unbonding my DOT. 28 days later I returned it to my Ledger account and sent it to Binance.

I could have invested it on Binance but I am not a fan of keeping my coins/tokens on centralised exchanges so I liquidated my position in DOT completely. 

My entry price into DOT is shown below. (The DOT was held longer than the dates shown, this is just when I started tracking my portfolio on coinmarketcap)

aad0087f8d45518ffabd9c858c3a43fd39feb7686a548b6e6ecd232cba7aed81.jpg

I sold it all earlier this week at the prices below

01a9c30404f5ac639b197de6af4bf024405f7a2667180f5358552c2d59b917b6.jpg

As you can see I didn't really earn much from staking due to fees and the oversubscribed issue, but I did make a 122% profit from my entry price to my exit price. I withdrew some funds to my bank account (I recently took a loan out for a new car and decided to pay some of it off with this sale) and put the rest into BUSD, with this weekends crash I have managed to get into a few new coins and increase my positions in other coins reasonably cheaply. 

I am probably done with DOT for good. I have become disenchanted with it due to the ever increasing minimum stake and the algorithm always picking the oversubscribed validators. There are plenty of other projects to choose from there is no reason for me to put up with these problems.

Farewell DOT

 

How do you rate this article?

26



My Crypto Life
My Crypto Life

Follow me as I embark on my journey into the world of crypto and blog about my experiences. My aim is to achieve financial independance through crypto, will I make it or will my dreams be smashed?

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.