How to dump Devcoins without killing their value

Author's note: This article is part of an ongoing blog about my adventures in the world of alternate currencies.

Disclaimer: This isn't so much a how-to manual as it is another installment of my story.

The short answer is simple: Only dump small amounts. If you are earning generation shares from writing for the Devtome and you start selling them off at market rate, you will be contributing to the overall depression of the price of Devcoins relative to Bitcoin. With that said, the next question is one only you can answer, which is this: do you care if the value of Devcoin keeps steadily decreasing?

But I need to be able to do something with my Devtome earnings, you say. I don't want to just hold onto millions and millions of Devcoins and watch their value drop to zero while other writers get to trade theirs out for Bitcoins! I don't want to be working for free.

My problem tends to be one of sheer impatience. It's great when I have sell orders which have been sitting on the order book collecting dust for weeks and weeks and one morning I wake up to find out there was a major DVC pump overnight and they filled and now I'm flush in Bitcoin. This has happened to me once so far. It's the weeks and weeks part that's not so great for me. The same goes with trading on the spread and the spread is much narrower than what I'd like. It's not so much that I have a problem holding onto ten million or so Devcoins; it's the doing nothing part that bothers me.

I tend to dump when I'm feeling impatient, when I just want something to happen, when I want to feel as if my vast Devcoin riches are actually doing something for me. I do not feel good about dumping Devcoins at less than 25 sat, but based on previous experience I know it's only a matter of time before I do that, unless the price shoots up and stays up fairly quickly. But yes, I have to admit it; I'm a dumper some of the time.

Place sell orders at higher than market rate

This is a challenge to my impatience but I have found that this not only helps me get more Bitcoin out of my sale, but it also prevents me from just selling down the bid column. Even more fundamentally, if I manage to sell at a price that is higher than the going rate was when I put up the order, then that means that a buyer came along who was willing to pay that price, and this actually registers as an increase in the Devcoin value.

I don't believe that a sell order that is higher than the going rate can even technically be called a dump. However, if you are trying to unload a huge number of Devcoins at one price, then you will be putting up a sell wall which will prevent anyone from buying at a higher price until your entire order fills.

Place multiple sell orders at different prices

In order to avoid creating a sell wall, you should divide up your order into positions at several prices. This allows you to take advantage of pumps to higher prices while still ensuring that you will sell something even if there is only a small upward movement.

Sell into a buy wall

If you must sell at the going rate, at least wait until there is a large amount of buy orders at that price, otherwise known as a buy wall. Ideally, you will sell far less than the amount of Devcoins people want to buy at that price, and in this way your sale will have no immediate negative impact on the price. Keep in mind, however, that you are chipping away at the buy wall which can ultimately have a detrimental effect on the price if other buyers don't replenish the order book with their orders.

Sell small amounts at a time

Figure out how much you need to dump in order to get it out of your system and try to keep that amount as small as possible. The less people sell, the lower the selling pressure gets and reduced selling pressure allows for buying pressure to build up and boost the value.

Stockpile Devcoins

There is no rule that says that as soon as your generated shares mature you have to sell them off. It's really OK to hang onto them for a while. In fact, it's rather nice to let their numbers grow into the millions. If watching your wallet balance grow by 45,000 DVC at a time is nice, seeing a big fat balance of several million is even more gratifying. So go ahead, sit on those Devcoins and experience what it's like to have a million or more of something in a wallet!

Even better than just letting them sit in the same wallet where they generated, and if you can resist temptation, is sending them over to mcxNOW and then letting them sit there. Then they can earn a small return on the balance depending on how much buying and selling of Devcoin has taken place on the exchange in the previous six hours. mcxNOW's “interest” feature has helped me hang onto my Devcoins, as I could see that they weren't just sitting idly in my account, but were actually working for me. If I'm not going to immediately trade out my Devcoins for Bitcoins, I at least want them “creating” more Devcoins!

Invest the Devtome earnings and dump the dividends

This is something I am playing around with right now. Unfortunately there aren't a whole lot of options for investing Devcoins. There are a couple on Cryptostocks. One is generally considered a good investment, however I have noticed the dividend payments getting more erratic, so I'm holding off on buying any more shares for the time being, though I'm not pulling the plug and selling any of my existing shares. The other has been extremely consistent about paying out dividends but the rate of return is quite low, less than five percent a year assuming you don't reinvest the dividends. So anyway, not great so far, and I hope that people will come up with better Devcoin investments as time goes on. With Devcoins being so cheap now I have decided to send my Devtome earnings straight to Cryptostocks rather than mcxNOW, and I am buying up shares as fast as I can. I have been doing this since I got access back to my wallet following the breakdown of my old laptop.

Tonight I decided it was time to start building up my Bitcoin balance on mcxNOW by selling off my Devcoin dividends. I also decided that I would sell off the Devcoins I earned as “interest” on mcxNOW. I decided that while I will still place sell orders one or two satoshis higher than the market rate, I really do want to sell these quickly so in my mind I'm still dumping at a bargain.

Granted, the amount of DVC I earn in dividends and “interest” is quite small, less than 2,000 DVC per day. So I'm not going to get Bitcoin rich doing this, especially at these bargain basement prices. However, the amount of Bitcoin I can get is still significant, certainly more than what I'm earning in Bitcoin “interest” and mcxFee share payments, and I can watch it add up.

As someone who still frequents CoinAd, BitVisitor, and the occasional faucet I still appreciate acquiring tiny amounts of Bitcoin. I really think that dumping this small amount of Devcoins several times a week will help to work out some of my impatience and desire for action, particularly on days when the exchange seems dead. This should hopefully keep me from foolishly dumping the bulk of my Devcoins which come from my Devtome earnings. Hopefully this will keep things interesting enough for me while Bitcoins are expensive and it's much harder to earn them in other ways.

Furthermore, I feel pretty good about the fact that the Devcoins I'm dumping are not primary generated ones, but secondary Devcoins which I've earned as a result of doing something productive with my generated Devcoins while keeping them as Devcoins. Really, all I need is more solid Devcoin investment vehicles so that I can actually diversify.

Devtome Writers | Devcoin

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