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originally posted by: SleeperHasAwakened
It's a good question.
For me the answer hinges on whether you subscribe to the theory that ET is from another solar system, or from another dimension.
If from another solar system, they likely traveled here via spacecraft, and possess the technology of interstellar travel. They also would need some way to avoid detection and observation as they entered SOL. I think your guess about the asteroid belt is a pretty good one. With tech for interstellar travel, it would follow they probably have terrific optic/telescope technology, so proximity to Earth is not a prerequisite. Also, if they don't care about actually /watching/ Earth's inhabitants in the visible light spectrum, and the are just eavesdropping on radio transmissions, that means they don't really have to set up camp anywhere inside SOL or that close to Earth.
If from another dimension, I doubt they would hide anywhere outside Earth. They are then so strange, so advanced as to be almost omnipotent/omnipresent. Read up on the book about Skinwalker ranch for thoughts on this scenario.