Trading Remains A Solid Approach For The Current Market

Strong Movements

Significant moves are what generate significant returns. Even though leverage can produce a similar outcome, it doesn’t come without significant risk. These risks are obviously amplified among the less experienced. However, a good move (either way) can provide really attractive returns. Some are perhaps considering that a new bull market has commenced. First, we need to break the long-term downtrend.

Consolidation above this particular trendline would be a good start. Taking advantage of the current volatility is however a great way to ensure you don’t miss out on the profits on offer. Trading can be risky in uncertain times. However, long trades can be converted into long-term holdings, if indeed a particular trade goes against you. I say this in light of those who do not make use of stop losses and are yet to develop their own risk management strategy.

Volatility is the lifeblood of any trader. I guess many hodlers are rather pleased by the recent price action. Traders, on the other hand, embrace volatility and significant moves in either direction. An important point to consider is what happens in a complete collapse. Investors are held hostage and forced to suffer enormous losses. The alternative is to sell, usually at a loss, and then proceed to sit on the sidelines.

Traders can secure even better returns in a crash, for the simple reason that they can profit from the collapse. Essentially, this is the ultimate hedge! Whether a market pumps or dumps is inconsequential in such a scenario. Perusing the content of the Crypto community as a whole has left me with the distinct impression that the majority of participants are investors looking to increase their “bags”.

I have also noted a number of individuals who are actively engaged in both. This is that of accumulation and trading. This is a great approach to have, as it keeps the profits coming, in both bullish and bearish times. A deeper correction from this point would most likely be heartbreaking for many. However, expanding beyond accumulation opens the door to such a scenario actually being a tremendous opportunity.

Expansion

Increasing “your borders” is imperative if you wish to grow and develop as an investor. I actually don’t enjoy the term “investor”, for the simple reason that being involved in Crypto is a lot more complex than simply investing. Expansion requires moving into unknown territory. I remember how in the early days of DeFi, many were opposed to the concept. Those same individuals are now immersed in the DeFi space, and consider it an essential part of their Crypto strategy.

There are those who are currently opposed to the idea of trading. After drawing much attention to the multiple bull traps of this particular bear market, I wonder how many will adjust their perspective next time around. Growth requires moving into new “territory”, and without it, there is no real growth in terms of ability, knowledge, and approach. The more tools at your disposal, the higher the likelihood of success.

A construction team with a full arsenal of tools is guaranteed to outperform a team with a hammer and limited toolbox. In a similar way, the more tools at your disposal as an “investor”, the greater your ability to extract value from the market. It becomes easier and easier with the acquisition of knowledge and skills. I have heard many stating that they don’t have the knowledge or time to begin trading.

However, taking part in any financial market requires knowledge. Interestingly enough, traders and investors are using the same tools. One is looking toward the future, while the other is looking toward the present. They are however both making use of data, graphs, and technical analysis. A self-professed “unskilled” trader is simultaneously an unskilled investor. This reality has however simply not hit home yet, and in many cases never will. Long live the casino!

Final Thoughts

Trading offers amazing opportunities, regardless of the market. For many, this has been a bear market of “realization”. Perhaps, we will see some interesting events taking place in the next bear market. The beauty of trading is that it is not limited to any particular market condition. It’s an “open license” to maximize and capitalize on any and every market condition.

The Health Sector & Blockchain

Accuracy & Simplification

Two very important aspects of blockchain-based alternatives are accuracy and simplification. Blockchain-based models aim to simplify processes, ultimately removing friction and unnecessary time consumption. In a busy world, this is attractive to pretty much every sector and avenue of life.

Reliability through accuracy is also a very important benefit of blockchain. An accurate and immutable public ledger creates an atmosphere of safety and reliability. I have often said that human failure and laziness are blockchain’s biggest marketers. Reliability is essential, especially in the health sector.

There are a few sectors where I believe excellence is not an option but a standard, for the simple reason that mistakes carry enormous repercussions. They are the following:

  • Medical & health care
  • Basic utilities including power and water services
  • Banking & finance sector

You can make a mistake with a meal in a restaurant, or send the wrong item via a delivery service. These are inconvenient experiences. However, they are not crucial or life-altering. Make a mistake on the operating table, and that’s another story. Poor performance resulting in the loss of basic services for days or weeks is also an entirely different story.

Blockchain ultimately limits the aspect of human error. It does not remove it entirely, but it definitely reduces error at critical control points. The more reliable, or safer a service can become, the better! Blockchain aims to simplify and improve upon the legacy systems we have grown so accustomed to. Perhaps, that is why many are unable to embrace the idea of blockchain.

What About The Health Sector?

Back in 2018 and 2019, I had a look at a few projects in this particular sector. Unfortunately, it appears as if there have been no real success stories within this particular industry. I find it somewhat strange, as it is an absolutely crucial sector that I am sure will eventually be dominated by blockchain technology.

Some will be aware of Energy Web Token (EWT), which has performed relatively well since its inception. From an all-time low of $0.54 to an all-time high of $22.67, it’s performed relatively well. EWT is obviously a project geared around energy, especially, renewable energy. The market cap is currently only $144 million at the time of writing.

In my opinion, there should be similar projects in the medical field. Projects that are performing fairly well with reasonable growth and adoption. One that I have identified with some positive momentum behind it is Medibloc. At the time of writing, MED is up 16% for the day and currently has a market cap of $93 million.

Honestly, I enjoy this particular zone when it comes to market cap. It reveals room for growth, while simultaneously displaying a level of stability. The 24-hour trading volume for MED is $32 million, which is exceptional, in comparison to the market cap. How this project fairs in the future remains to be seen.

The point I am however trying to make is that there are going to be success stories within this particular sector, and it appears to be an area that is somewhat overlooked by investors.

Final Thoughts

In a similar way that tokenized real estate captured my attention, the medical field is another area that I believe has tremendous “blockchain potential”. As always, accurate and early identification is of the essence. It’s a sector I will be keeping an eye on and revisiting over time. I think that watching the performance of projects such as Medibloc is probably a good start. I will see where that takes me…

What Qualifies As A Good Crypto investment?

Qualification Is Not What It Use To Be

If you asked someone this question during previous cycles you were likely to get a very standard and simple answer. The typical answer was: If it solves a problem and has a relatively strong community, it’s pretty much good to go. This viewpoint is still relevant. However, the list of qualifying criteria has grown somewhat since the early days.

Securing success in the altcoin market is becoming increasingly more difficult, largely due to both the direct and indirect consequences of adoption and growth. When money begins to move it attracts the attention of the regulators. It, unfortunately, also attracts the attention of scammers and other undesirables.

Opportunists and “fly by nights” flood the market with a very clear objective. In essence, they purposely aim to extract value without providing any value. Roadmaps can simply be the product of an overactive criminal imagination. If you pay attention, you will note the following: There are many who talk a good game, but their actions speak otherwise.

What Have They Accomplished?

Accomplishment is evidence of actual work and development. Has a particular project reached any meaningful milestones, or is it simply promoting a promise that always sees the goalposts being moved? This is an important question to ask yourself when considering any project. Is there evidence of measurable progression?

This is a “sign of life” and simultaneously displays that developers and team members are still passionate about the project and its future. Stagnation, on the other hand, is an issue, regardless of the problem that is potentially “being solved”. A good idea with no action remains just a good idea.

It is often suggested that bear markets are a good time to build. A relatively good health assessment is to identify what has been achieved since the last bear market. Has there been development and growth that has actually enhanced or changed the user experience? Furthermore, has it been embraced by the community and market at large?

Holding Its Own

Cardano remains a project that I am interested in, especially at these prices. Regardless of much still being in the pipeline, the project has managed to regain its spot in the Top 10. A project that can remain within the Top 10 for two consecutive cycles is a project worth noting. This is another aspect worth noting.

Yes, market cap valuations drop considerably in a bear market, but does a project maintain its ranking? Some projects even move higher up the ranking as other projects crash and burn. This is yet another positive sign of life, which is encouraging when considering future prospects.

On-Chain Activity

This is also extremely important, as it provides insight into the true demand and adoption of the particular blockchain in question. In regard to DeFi projects, TVL (Total Value Locked) is another crucial point of examination. All of these metrics measure demand, which is an integral part of any blockchain’s success.

Another warning sign for me in relation to Solana is that the TVL has not increased alongside the recent price appreciation. I still maintain a relatively positive view of Solana. As recorded in an earlier article, I was happy to continue very modest accumulation as prices dropped. This was accompanied by a short position. In other words, my viewpoint was converted into a strategy.

Being fairly optimistic long-term, I was happy to continue very modest accumulation. However, understanding the immediate situation, I went short in a trade. Two “contrary” strategic approaches or so it would appear. Not actually, using price depreciation for long-term accumulation, while simultaneously shorting for short-term profits.

These profits can then be used as long-term capital if so desired. Recent price action has affirmed this strategy rather well. However, I would think that the lows get retested. The TVL is providing confluence to support this idea.

Final Thoughts

At the end of the day, identifying a future investment requires a significant amount of research. An investor also needs to ask the difficult questions… and then proceed to allow the data to answer them outside of a predetermined bias. A lot of people utilize data in a similar way to how they trade… they simply distort anything that contradicts their view until it fits their narrative.

This is a complete waste of time. Refusing to acknowledge the facts defeats the endeavor of seeking them out. Now is definitely the time to begin identifying your investment choices for the next bull market. All the best as you go about making your selection.

Important Dynamics At Play To Understand This Pump

Driving Forces

What drives a price in any direction is always very important to know and understand. Why? Well, it can offer a lot of insight into the reliability of the pump, and whether it has much chance of continuation. Combine these dynamics together with additional data and you generate a clearer picture of the market.

First of all, the current pump falls into the definition of a perfect storm. A perfect storm sees a number of things taking place at the same time that all work in favor of a certain outcome. The following key points have all taken place together, ultimately creating a surge in the Bitcoin price. It’s also important to note how long these “stimulants” can remain a catalyst.

Firstly, we have dollar weakness in the DXY, which can only mean one thing. That’s right if the dollar goes down, it requires more dollars to purchase assets such as Bitcoin and stocks. Inevitably, a weak dollar causes Crypto and stocks to rally, by default. Looking at the graph below suggests that the dollar could be about to experience some short-term relief.

Image Source – Investing.com

Secondly, I addressed tax harvesting in a recent article. This activity usually takes place in January. This implies that sell pressure can increase somewhat during the initial stages of January. However, reduced pressure, once investors have sold their assets will aid to promote upside momentum.

Then there is the case of the CPI print. Coming in on target was a bullish scenario, which helped to kick off this rally. So, in summary: A bullish CPI print is further enhanced by reduced selling pressure from an end to tax harvesting, as well as a collapse in the dollar index. This created the perfect storm to usher in a strong move to the upside. It is important to bear in mind that the stock market benefits equally as much in such a scenario.

Will This Move Be Sustainable?

Isn’t this the most important question? Premature short positions could be fatal if the price were to continue higher. So, what are the hints that the market is currently offering those who know what to look for? One of the most important factors is the stock market. The S&P has now once again moved up to the long-term downward-sloping resistance.

Image Source – Dailyfx.com

This resistance needs to be flipped into support if we wish to see continuation for the S&P. This also means that what takes place over the weekend is now even less significant than usual. If the S&P fails to conquer this level, prices will slip. This will inevitably have a negative impact on Crypto. I still believe that a strong decoupling from stocks will eventually come. However, you can only factor that in once it actually happens.

Bitcoin is currently trading above the 200 EMA, which is rather bullish. However, a weekly close above this level is required in order to provide a continuation to the upside. That being said, even that is not a guarantee, as Bitcoin has closed weekly candles above important levels before, only to later lose the newly acquired ground. However, a positive close will usually be accompanied by even a short-term pump.

In the short term, the volume appears reasonably healthy. However, zoom out a bit and there is a bearish divergence at play: Price is appreciating, while the volume is diminishing. If you are not in a trade, now might not be the best time to enter a new position.

Conclusion

In summary: Bitcoin needs to close the week above the 200 EMA in order to confirm a level of continuation. Secondly, that outcome needs to be considered in light of what the S&P does at this critical level. This is what I am watching and waiting for in order to determine if this rally has legs. Remember, this is a good rally but the long-term downtrend has still not been broken. This is not investment. DYOR and enjoy the ride.

Decentralization Becomes Imperative In 2023

The Golden Thread

Decentralization has always been something that Crypto purists have held in high esteem, and for good reason. This has been my motivation, especially, in regard to blockchains like Hive, Ravencoin, and a few others. There are no guarantees when it comes to investing, especially in the Crypto space. Decentralization is however one of the most important factors that help to provide future confidence. As we have all noted, the casualties of 2022 were all in some way due to centralization.

We are now entering into a time when decentralization is no longer attractive, but imperative. Once the speculation wears thin and the hype surrounding projects like BONK begins to lose its shimmer, the shift is likely to kick in. I have written about the shift to quality that takes place due to bear markets. This will become even more prevalent in 2023 and beyond. How investors choose to position themselves from this point on is of great importance.

Bull markets have continued to disperse gains across the altcoin market. However, if you have managed to analyze this performance, you would have noted that many altcoins did not reach their respective previous all-time highs during the course of the past bull market. So, even though a high tide continues to lift all boats, many are not experiencing the rallies they once did. What do you think investors will be looking for in 2023?

Decentralized Protection

Unfortunately, pretty much every altcoin and layer 1 had an ICO and remains at risk of being slammed by the SEC. Projects that are not in this category and operate under a strong level of decentralization will eventually be scooped up by investors. Choosing projects that fit into this category could be a rather smart move. Remember, in order to make significant gains in this market requires action that is often not appreciated in the moment.

Purchasing SOL below $0.30 did not garner me any appreciation. The same can be said of many others such as DOT and UBT. The market operates under a “herd dynamic” and if you want real gains you need to break away from the herd. It is the herd that later provides your gains. This is another reason why I exited ETH. The herd has done its job. The table has been cleaned. Anything from this point on is simply nominal.

Decentralization offers a level of security and shelter. This is what investors will begin to appreciate, and even seek out. Being exposed to the Crypto market with a level of “insurance” is the way to go. Investors have not truly appreciated the concept of risk management and diversity. However, even though many are still to learn this lesson, I believe that 2022 has managed to humble a number of participants into submission.

We don’t willingly adjust our behavior. We don’t decide to become better investors. We go through painful experiences and then choose to learn from those experiences. There are those who experience devastating results, and yet continue to behave the same way. The market will humble the best of us at one point or another. Choosing to approach the market with humility allows the market to communicate with you.

What Is The Market Saying?

You can’t go against the market. You cannot overpower or outsmart the market. Successful investors learn to listen as opposed to pushing their own agendas. If the market is not headed for the outcome you desire and predict, your endeavor is in vain. Those who study the market, and learn to be impartial, gain the best perspective, and ultimately, the best returns. Observing the trends, and the changing of the seasons is imperative.

It appears as if the market is headed towards a season of strong attention to decentralization. The focus will be on decentralization. For many of us, this has always been of great importance. Those who have managed to focus on projects such as Hive and others are likely to be handsomely rewarded in the future. It’s time to swim with the tide and catch the wave of decentralization that is on the way.

Final Thoughts

You don’t catch a wave when it arrives. You have to paddle out to the backline and position yourself so as to catch the swell as it comes through. Investing is the same. Identify the swell (trend) and then position yourself via allocation. If you wait for the trend to hit, it’s too late. These are my thoughts toward the future, and definitely doesn’t constitute investment advice. The golden rule: Do your own research! Catch you next time.

Still To Make Its Mark?

Centralized Implosion

Last year was an absolute disaster on so many fronts and in so many ways. Ultimately, we witnessed the devastating effects of centralization, and just how dangerous it really is. There is no such thing as “too big to fail” when it comes to a scenario of centralization gone wrong. Projects, once viewed as solid, no longer even exist.

This is the reality of centralization, and when a few individuals (big bag holders) decide to make foolish decisions. As we have discussed numerous times, Ethereum is losing its sparkle. It’s definitely not decentralized, and no longer meets the demands of investors looking for a decentralized future.

However, this appears to be the case for so many other layer 1 alternatives, which suggests that perhaps the top-tier layer 1s of the future are still to emerge. Perhaps, the devastating effects of 2022, together with unfair project launches of the past are yet to inspire developers to come up with an improved solution.

It is quite possible that purists within the developer community are simply unsatisfied with what is currently available in terms of “viable” layer 1 blockchains. Could we see a number of optimized layer 1 blockchains hit the marketplace in 2023? I think it’s a strong possibility. Looking at the dot.com bubble, many early projects were replaced by better alternatives over time.

Many of the early star performers are no longer even in the game. The foundational phase of any innovation, or revolution, is rather messy, at best. It’s often a case of “trial and error”. This makes the next bull market even more exciting, as we could be exposed to brand-new projects that perform exceptionally well for early investors.

Keep An Eye Out

It’s definitely a potential scenario and one worth monitoring. I think it would be wise to watch the space for new and upcoming blockchains in 2023. ETH always held the most promise, and will most likely continue to occupy dominance, but it is losing the faith of investors like myself. Solana has had ongoing issues, and it’s still questionable if the project can regain the trust and confidence of the market.

I guess Cardano has the highest likelihood of success in 2023 and beyond. However, I am not a maximalist, in any way, which means I understand that a number of blockchains are going to be needed to satisfy the demand of an ever-increasing decentralized ecosystem and adoption rate. I guess time will tell.

Final Thoughts

Don’t necessarily limit your options to what is currently on offer. Perhaps reserve a little capital for new and upcoming blockchains. Remember, failure is someone else’s opportunity. I think the implosion of 2022 will be a birthing ground where developers will learn from the mistakes of the past. This is simply my own view and opinion. Please don’t consider it investment advice in any way. All the best and see you in the next one!

Maximizing A Bear Market

Thoughtful Creativity

Bear markets often arrive with a sense of heaviness and desperation for the majority of market participants. However, It’s not all bad, and once you have experienced a few, you almost begin to look forward to them. A bear market can be extremely profitable. Once again, it’s all about the approach. So, how do you actually handle a bear market? How do You walk away with a higher portfolio value than you had in the bull market?

Due to the fact that most investors view Crypto as an asset class that appreciates at an accelerated pace, a bullish bias develops in the minds of investors. This creates a negative connotation towards any price action apart from parabolic. Yes, there are phases of extreme upward momentum. However, just like every other market, nothing moves in straight lines. There are numerous ways an investor can navigate a bear market.

However, when you break any strategy down to its core, you will find these principles to be present in some form or manner. How each investor chooses to utilize them is up to the individual.

Shift To Stablecoins

This is perhaps the most important move, as it preserves capital, and the more accurate you are, the better! What you typically find is that investors choose to react, as opposed to initiating a predetermined plan. Another issue that often arises is that this causes the majority of investors to miss the initial phase of a bear market. They then put off moving into stablecoins because they anticipate a bounce, not realizing (or choosing to ignore) how severe a bear market can become.

Moving into stablecoins is an essential part of any strategy, as it gives the investor capital to work with. This is incredibly important when it comes to the next point. In order to short any market requires capital, and if you don’t have it you won’t be able to participate in shorting or buying the bottom unless you are making use of fresh capital.

Shorting

Stablecoin allocation is imperative, whereas shorting is extremely powerful. Once a bear market kicks in it becomes highly unlikely that the market will experience any significant correction to the upside. This is the perfect opportunity to enter into long-term short positions. These positions can be increased as the market continues to fall. Modest leverage can also be utilized as a way to amplify profits.

The application of these strategies is very much applied as protocol. Emotions are ignored, and the application becomes systematic. Being able to disconnect yourself emotionally, as well as following the rules that you have put in place, is what brings success. Disciplined execution is imperative.

Dollar-Cost Averaging Into Cash/Stablecoins

This is where so many get a bear market all wrong! As the market begins to edge lower, they begin comparing the current price to the all-time highs and so reason that prices are heavily discounted. They begin to DCA into a collapsing market. Tell people this while they are busy doing it and expect to be ridiculed. However, give it some time, and the foolishness of this approach is rather evident. However, a fool is always right in his own eyes, so there will be those who never learn.

Instead of dollar-cost averaging into the market, investors should be allocating that capital into stablecoins or even cash. Even if you do not end up buying near the bottom, holding off until the bear market has matured will always be more lucrative. Don’t go around catching falling knives, especially when it comes to the long-term scenario.

Passive Income

Being continuously busy with the development of passive income mechanisms is always a good idea, regardless of the market. These mechanisms become extremely valuable during a bear market, as they are able to generate an ongoing flow of investable income. This avenue can be utilized to complement the abovementioned strategy. Due to the reality that this is in fact “free money”, if you really want to DCA, then this is the capital you should be utilizing.

The reason for this is that there is no real element of loss, as the capital is in essence free. However, dollar-cost averaging with your hard-earned money will definitely leave a bad taste in your mouth as you watch your investments shrink over time.

Buying The Bottom

It is fairly difficult to call a bottom. However, establishing a zone is not that difficult at all. I have been aiming at a certain level for almost a year already, and still, it has not been reached. What does this mean in real terms? It means I avoided buying a collapsing market. If it is not reached, I will be buying a reversal. What does buying a reversal mean? It means I won’t be losing money. There needs to be a stronger sense and understanding of risk management among investors.

Remember, the preservation of capital is actually more important than making money! You can’t generate profits if you don’t have any capital to work with.

Tax Harvesting

In the event that you still find yourself holding assets that are down 90% or more, the best solution is to sell them just prior to the end of your particular tax period. This will incur a loss and will assist to lower your taxable income. If you wish to continue holding these particular assets over the long term, you can simply repurchase them again.

Selling the assets at a loss creates a tax event in your favor, and is necessary if you wish to make a bad situation work in your favor, at least to some extent.

Anyway, I hope this has been helpful in stimulating some thought into how you approach the next bear market. See you next time!

The Layer 1 Dilemma

Amazing Returns

Layer 1 blockchains have been at the forefront of securing spectacular gains for investors ever since Ethereum launched at $0.31. Projects such as Solana, Cardano, and BNB have all gone on to secure enormous gains. Yes, even at current prices, Solana is still significantly higher than its ICO price, which is $0.22. An important note to those utilizing CoinGecko and other similar metric-based sites. CoinGecko will only record and document price action from the time they begin tracking the asset.

Solana, for instance, is recorded as having an all-time low of $0.50 on CoinGecko. However, that is not the lowest price the asset has ever traded. From what I can tell, Solana has never traded below its ICO price of $0.22, which is significantly lower than that recorded on CoinGecko. At the end of the day, many of these blockchains have performed phenomenally well over a fairly short time frame. There are however a number of challenges that lie ahead for layer 1 blockchains.

As I have recently mentioned, I am not really interested in Ethereum as a future investment opportunity. I had a good run with ETH, and too many “issues” have managed to deter me altogether. Centralization is one of the many concerns that I have in regard to Ethereum. However, this is not an issue only pertaining to ETH. This is often part and parcel of the ICO launch.

Centralization

The majority of ICO launches see much of the circulating supply being handed off to the founders, devs, and treasury. This automatically creates a centralization issue right from the start. Premines are somewhat unethical in my opinion. This is one of the reasons why I love Ravencoin so much. Eventually, the market will realize that this blockchain operates on a set of principles that are far above its competitors. This will likely happen when many layer 1s get hit by the SEC. You can quote me on this one!

VC backing and node centralization is yet another arm of this terrible monster. From the point of a medium-term trade, I guess one can risk it. However, coins to hold over the long term need to have certain aspects that will protect them from the inevitable scrutiny that is coming. It’s just a matter of time. A strong level of decentralization is important and should be part of an investor’s checklist, in my opinion.

The Security Issue

This has been haunting the Crypto space for some time now, and I am guessing it won’t be long now. The FTX debacle has obviously accelerated this aspect of regulation. FTX has left a lot of egg on a lot of politicians’ faces. There will most likely be an exaggerated move in an attempt to appear proactive and concerned. I guess this is where the under-the-radar projects have a bit of an edge. Setting an example usually implies that the top dogs take the knock.

I would expect BNB and other layer 1s to get hit first. I somehow think that Ethereum’s relationship with the WEF might act as a shield, at least in the short term. One also doesn’t know how the market will respond to such an event. Remember, every bull trap has been driven by retail investors. What happens if they surrender to the fear, uncertainty, and doubt? Markets often knee-jerk in such conditions.

This can sometimes create great buying opportunities. However, that is provided there is a bounce generated by renewed investor confidence. EOS has never really recovered from its “SEC moment”. It is difficult to discern how the market will respond.

Final Thoughts

These are real concerns, and could ultimately alter the course of many layer 1 blockchains. I think one has to weigh up the risks together with the potential returns, in order to establish if the risk/reward ratio still makes sense. As I said, I averaged approximately 40X on ETH. I know I am not going to get that again, at least not in a single cycle. That is another reason why I am out of ETH. The risk/reward is no longer attractive to me.

I feel there are better, and even safer alternatives out there that still have tremendous upside potential. Anyway, that’s my opinion and not investment advice. Each to his own, see you next time!

Leofinance’s LEO To Surge In The Next DeFi Rally?

The Sector That Dominated 2020

Well, that was the year, wasn’t it? What a great year for DeFi! I know that the majority of DeFi enthusiasts joined the “DeFi Army” in 2021. However, there were some pretty amazing gains in 2020 as well, which matured into a second DeFi season in 2021. There was actually quite a significant correction in 2020. However, I was convinced that there would be a second wave. Fortunately, I was correct, as I continued gaining exposure to DeFi despite many insisting that it would be a long time before we saw any new gains.

This is why it’s important to follow your own conviction. Provided, it’s not just hopium. I have another strong conviction in regard to a coin that many would perhaps suggest is not up to the task of reaching my expectations, but that’s for another article. We have seen the development of multiple DeFi projects on Leofinance. CUB, PolyCUB, and the incorporation of Hive into the DeFi world via the DeFi protocols built on Leofinance.

Early investors in CUB saw massive gains within the first 48 hours. However, hodlers got absolutely slaughtered. Let’s be clear… this is not indicative of CUB. This is how DeFi projects behave. Honestly, I have never seen a DeFi project avoid this dynamic. Very much like a pump and dump, DeFi attracts early investors, as the yields are truly significant. These gains water down very quickly, and this is when the early birds pull out and sell everything.

The only DeFi protocol to avoid this outcome to some extent was PancakeSwap. However, the bear market was able to bring it to the same arrival point, it just took a little longer. However, when you look at where CAKE began trading compared to where it is currently priced, it is still significantly higher. Early entry is always a winning move! The same is true of Solana. Early investors who bought SOL at approximately $0.30 are still far from experiencing loss despite the collapse.

Back To Grass Roots

Due to the current bear market and “DeFi effect”, LEO has returned to the grassroots level, in terms of price. This provides the greatest opportunity for brave investors. In a similar way that the covid dump was a blessing in disguise, the current market is presenting tremendous opportunities, in regard to value. Discounts abound, and LEO is one of them. The great thing about LEO is that you can earn the token.

As DeFi projects begin to rise from the ashes, so will the projects that “house” them. This is where I believe LEO will begin appreciating again. Considering that LEO also has passive income opportunities via delegation, it becomes an even more attractive asset to acquire at rock-bottom prices. Investors have to weigh up the risks against the potential gains. As I said, the fact that you can earn LEO reduces much of the risk.

When sound projects trade at a discount, the “value dynamic” is very much at play and should not be ignored, in my opinion. LEO is trading a little above $0.04 at the time of writing. With an all-time high of approximately $1.21, the potential upside is quite promising, once prices begin correcting. Both bull and bear markets exaggerate prices towards each market bias. Investors and traders need to capitalize on this dynamic.

This means selling when prices are overvalued in a bull market and buying when prices are undervalued in a bear market. It really is that simple. Emotions however are an investor’s worst enemy and must be conquered in order to make sound decisions. For much of 2022, I have opposed dollar-cost averaging. However, the tide is about to turn and the DCA strategy is about to become a wise move, once again.

Final Thoughts

Leofinance has managed to maintain strong engagement and activity during the course of this bear market. Just take a look at some of the stats compiled by @dalz to confirm what I am saying. This is bullish behavior. Unfortunately, the price has little option but to surrender in a bear market. Community engagement is however another story and reveals the true condition of any project. Do your own research and make your own decisions. I will however continue to slowly accumulate LEO.

I choose to continuously stake my LEO, as I would never consider selling at these crazy prices. This is a season of accumulation.

How You Can Bring The Power Of Synergy To Your Investments

Knowledge Creates Power

Many investors desire to speed up their journey to wealth. This often results in failure and even utter destruction. This is also at the heart of the FTX failure. Had SBF chosen to grow the business he had, as opposed to creating an illusion of wealth, he would have done really well over time. Even though there are no shortcuts to wealth, there are ways to legitimately “speed up” the process. However, this will once again demand effort and dedication.

Isn’t it funny how “effort and dedication” are always present when it comes to reaching a goal, or some level of success? This is rather ironic, as those who refuse to learn and develop an understanding of TA, and markets in general, are in essence actually avoiding their own success. The years that are wasted throwing money at altcoins and wild speculation are lost years that generally tend to yield very little fruit.

However, a dedicated student is soon making headway and accelerating along the path to wealth. Someone who has a relatively sound grounding in market dynamics and technical analysis is able to create a form of synergy in their investment approach. The average Crypto investor only practices two disciplines/approaches.

So what happens when the market turns bearish? Furthermore, what happens when the market just edges sideways over prolonged periods of time? Best case scenario: There is no portfolio growth. Worst case scenario: The portfolio depreciates in value. Fair enough, investment is a process that requires time to mature, I understand that. However, there are ways to enhance the process.

The Double Whammy

A skilled trader is able to add an additional step to the investment process. Instead of averaging into investment opportunities straight off the bat, a trader can begin leveraging capital. In this way, he can begin allocating profits into hodl positions. While the DCA investor is sitting on idle capital, the trader is utilizing profits for DCA allocation, while making use of the initial capital to generate more capital for investment.

This creates a form of synergy, ultimately speeding up and enhancing the investment process. It’s a similar idea that motivated my passive income endeavors. In both scenarios, I am able to generate new capital for investment purposes. This ultimately helped me to invest in high-risk/reward altcoins. If the investment capital is in essence “free money” then I can’t really lose, can I?

Establishing these dynamics in practice allowed me to become more adventurous, and ultimately removed much of the risk involved in the altcoin market. This too is similar to what I mentioned in my recent post, “Hive – A Level Of Defense”.

It’s going to cost you something. However, with Hive, money is removed from the list. You can enter the Crypto space, begin accumulating and leave your wallet out of the equation. It’s an unparalleled opportunity, in my opinion.

Holdings that are acquired outside of a purchase, ultimately carry no risk. Allocating trading profits for investment purposes produces additional capital, as the initial capital is being utilized as trading capital.

Final Thoughts

If you enhance your investment strategy with additional work and knowledge, it’s not a shortcut! It’s a smart move. There’s a difference. Shortcuts are not only pertinent to speeding up a process, but also avoiding effort. Arriving sooner than expected at your destination by working smarter and harder is commendable, not a shortcut.