Perspective & Mindset
When you really start to examine Crypto success stories that were calculated, in other words, the individuals involved actually set out to succeed. You begin to see how much the mindset and perspective of a person can either enhance or limit their progress. Another way to think of a mindset is a view. For instance, a person who is of the view that Crypto is risky, or a scam is ultimately hindered from ever experiencing any success in Crypto whatsoever.
His mindset and preconditioned views will not allow him to take part. Essentially, he requires someone with factual data to convince him otherwise and hopefully change his mind. This is obviously an extreme case and yet, milder scenarios exist even within the realm of Crypto enthusiasts.
Risk & The Investor Mindset
I have spoken before about how a person with a strong leaning towards investing is not like others. He views things differently and is often quite creative in the arena of thought processes, strategic planning, and risk management. Being averse to risk and a lack of patience are two traits that are foundationally opposed to entrepreneurship. This article proposes the alternative of buying a coin with passive income mechanics, as opposed to starting a small business. So let’s look at this and consider why so few actually think this way.
The Average Cost To Start Your Own Business
When you look at starting your own business, you don’t want to be laying out wads of cash but would rather invest in a startup that would hopefully bring in a decent income, especially when compared to the initial cost to set it up. On average, the cost to get a startup off the ground is in the region of $30K to $35K. What you have to consider is that although you outlay the capital and get your business going, it does not necessarily guarantee success.
A rather scary statistic reveals that approximately 90% of startups fail. Though some may go on to exist for a number of years, they ultimately fail. So unless you are exceptionally talented, your chances are not that great. In the event of failure, you can pretty much kiss that initial investment capital goodbye. You may also have built up a heavy debt burden trying to keep your business alive. Another important point to consider is that startups are usually owner-managed and run on a day-to-day basis.
This ultimately means that in essence you don’t really have a business working for you but you are actually working for your business, in the same way as an employee works for a boss. In fact, chances are you will be working harder, as now it directly affects your bottom line! So if it doesn’t work out for you, not only are you worse off than an employee but you have lost $30K and have perhaps incurred further debt.
A Coin As A Business With Alternative Risk
Now let’s look at another alternative, in the form of acquiring an altcoin as a business. Before we continue, we need to remember that even if a startup succeeds, it still needs to be established over time. Profits will increase slowly, as stability and reputation continue to strengthen. In a similar way, you need to consider that this idea will require time. It will also require a certain amount of talent and knowledge regarding the Crypto space. Why do I say that?
Well, this idea becomes extremely powerful when the coin of choice is still fairly under the radar but has a decent staking reward. I am using the practice of staking in favor of DeFi due to minimizing risk. The avenue of lending will not work that well because most of the coins utilized in this sector are already fairly large players. In other words, the market caps are quite high, which reduces growth potential.
Let’s Reduce The Risk
Instead of putting up $30K, let’s consider a very modest investment of $10K. I say modest because one needs to remember that we are talking business-sized investments. We are also reducing the risk due to there being zero personal effort, work, or input needed. Starting a business from scratch is no easy task. I am going to use 2 different coins as an example, to reveal how powerful this idea is if done right and well-executed. Firstly, let’s look at Fantom. In early 2020 FTM was trading at approximately a cent for quite some time, as seen below.
Let’s consider that you decided to buy FTM at approximately $0.05, after seeing it perform a 500% return and knowing that it was a staking coin made it an even easier call to make. The beauty of a staking coin is that it will continue to generate rewards going forward. The average APR on FTM is approximately 10%, which is fairly healthy in any event. Purchasing FTM at $0.05 would imply a holding of 200K FTM. I will not even visit the ATH prices but refer to the current valuations at the time of writing. Currently, 200K FTM is worth $514K and produces an annual reward of $51 400! This equates to a monthly reward of $4283 with zero effort.
At the current price, you would be recouping your initial investment over and over again every 2 and a half months! Your modest $10K investment would now also be worth over half a million dollars and you would have a disposable income of $4283 every month.
Let’s take a look at Solana. SOL traded at a very low level for many months in early 2020 and once again, let us put another 500% on top of those levels for good measure so that we are not looking at a perfectly timed scenario but a more realistic occurrence. Let us consider that you didn’t purchase SOL at the lows in early 2020 but rather at $1.50 in early 2021!
This would equate to 6 666 SOL, which at current prices would be worth $1.16 million. At an approximate APR of 7%, the annual reward would be $81 666! This would generate a monthly income of $6805! These are not even perfectly timed scenarios. I have added 500% to the low levels these coins traded in early 2020. If you know what you are doing and have a fairly good eye, it is not that difficult to spot these projects.
When you look at this objectively and dedicate time to research and identify what could work well in a year or two, only then can you consider buying a coin as a business for tomorrow. Remember the percentage is coin-based and not dollar-based, so as the value rises, the return does not diminish but rather increases. This is how you have to begin thinking if you are not already doing so. Thanks for taking the time to explore this investment idea with me.
The Starting Point
I think for most of us who have been involved in Crypto for a number of years, the story is quite similar. Different ways of earning and learning were instrumental in onboarding us to the Crypto lifestyle. While doing a lot of research surrounding Bitcoin in 2015, I obviously came across many ways to earn a bit of free Crypto. Even back then there were opportunities at hand that Incentivized users or visitors. Although these were mostly faucets and GPT sites, there were quite a number of them online, some still being online today. Earning platforms such as Freebitco.in and BTC Clicks come to mind.
How Far This Idea Has Matured
Today, the opportunities are rife, as an entire Incentivized economy now exists. Play 2 Earn has become massive during the course of 2021, as to has the mining and staking of NFTs. On top of that, we have blockchain-based social media platforms and blogging platforms. Staking and lending is an older idea but is still very well utilized. These more established options encourage and incentivize holders to earn certain coins, in order to generate a passive form of Crypto income, which is definitely my most favorite form. This “Incentivized economy” is unparalleled to any opportunity that has ever been given to man in my opinion.
Internet Bubble Was One Dimensional
The rise of Crypto has often been compared to the rise of the internet age and yet somehow thought leaders have not managed to truly highlight why and how it actually supersedes this event. I am not addressing the potential growth aspect, as many do. We all know that it is actually the new financial infrastructure and that tokenization will be massive. I am addressing the ease of access and more importantly, the opportunity to own Crypto without purchasing it! The only way you benefited from the internet bubble was to actually buy stocks, or perhaps domains. The point is, you actually had to invest money. With Crypto, the incentivized economy is actually enabling people with zero money to invest, go on to benefit, and create wealth.
This is mind-blowing when you stop to think about it. We, who have been here for years, are so spoiled that we often forget what an amazing opportunity this is. So many have actually left their jobs in favor of working in this “economy”. Many, with not that much at hand, to begin with. This is truly inspiring and I am dumbfounded by those who have come to understand what is on offer and choose not to maximize their exposure to such a blessing.
You Will Regret Being Lazy
Even if this is just a side hustle for you, the opportunity is massive and if you sleep on it, you will definitely be kicking yourself down the line. Just to bring this into perspective. Since early 2020, Solana has generated a return of more than 1000X to the peak. What this means in dollar terms might surprise you if you have never taken the time to study the returns of particular coins. In this particular case, a thousand dollars invested or accumulated in early 2020 would have been worth over a million dollars at the peak earlier this year!
Obviously, you will need to be rather knowledgeable in order to identify these gems in their infancy. This is when the time you invest in this market can reward you to a degree that not many careers can. The more knowledge and experience you have, the more likely you are to make good calls. As taskmaster4450 recently mentioned, focus on your dedication and consistency and let the numbers follow. I was so encouraged to come across this post because not many have this perspective. Many chase the money, being unaware of the fact that they can actually have the money follow them.
Money Follows Diligence & Consistency
It is difficult to catch or take hold of something that seems out of reach. On the other hand, if something is chasing you, success is basically almost guaranteed. Focus on your contribution and work and let the money follow in time. This is however a process and human nature naturally resists this dynamic. Instant gratification is the underlying human desire. In order to advance, this trait needs to be brought into submission and replaced with extreme dedication. Even in Crypto, success has a number of important virtues mixed into the recipe. Even the “easy money” made on Doge in this bull cycle required holders to hold a coin that made no real headway for years.
In this particular instance, patience was the main ingredient. It appeared instant but those who truly benefited here were those holding long before the pumps began to surge. For whatever reason, they had some conviction that they remained committed to that eventually paid off.
Begin 2022 On The Right Foot
As we approach the closure of 2021 and look towards a new year with fresh hope and ambition, now is as good a time as any to fire up your commitment and dedication. Set yourself daily goals, in terms of what you accomplish, rather than what you earn. Keep building, keep producing and perhaps 2022 will be an even better year for you than 2021! Although 2021 was quite a bleak year for many, for those immersed in the Crypto space, it has been absolutely fantastic! I am speaking in financial terms and personal progress. I know that there have also been other sad and devastating events. This is part and parcel of life, even when things are generally going well.
In troubled times, the financial aspect is often the predominant aspect that is most challenging and burdensome. As Crypto enthusiasts, let’s look at building a stronghold for our family and loved ones because the potential is within our reach. It will require action, so let’s encourage one another and shift this game up a notch!
Thanks for reading and congratulations to everyone who experienced success beyond expectation in 2021!
Some Investors Even Ignore The Basics
When it comes to the term “investors”, there is often hesitancy on my part to actually use that term in some instances. Anyone that purchases an asset is by default referred to as an investor. However, anyone who paints a painting is not necessarily an artist. Referring to certain individuals in the Crypto space as investors is actually not only inaccurate but also insulting to true investors. I am generally referring to the group that just buys something based on hype or something Elon or some other “influential” person happened to mention.
The basics of investment ideology are not even visited, never mind ongoing research, performance monitoring, and extrapolations based on numerous criteria and data. What makes this even more saddening is that some of these “investors” actually happen to get lucky and walk away millionaires.
What I Really Wish To Address
I am actually wanting to point out a few points to those investors that are actually doing research and trying to get a handle on potential investments. Firstly, looking into the future on a potential investment very much relies on where the coin is currently ranked and how much the appropriate market cap is. I often talk about investing in micro-caps because the potential upside is massive. This strategy does however involve very strict disciplines, otherwise, wreckage is basically guaranteed. It all depends on the return you are trying to secure. I see a lot of Crypto enthusiasts getting excited about a 30% or 50% gain.
This is stock market territory unless of course, you are intraday trading or scalping. When I consider a Crypto investment, not a trade, I am generally looking at many years. Consequently, I am also then looking at 100X and upwards. As I mentioned in my recent post on Hive, “The Real Money In Crypto Is Made During Bear Markets”, what you do in a bear market is a direct reflection of what you experience in a bull market. What this comes down to is that ultimately, you require years in order to experience significant gains. This is how 100X and above returns are achieved.
Time In The Market
Upon entering 2022 I will be entering my 8th year in Crypto. I have seen ETH at like $12 and BTC at a few hundred dollars, which subsequently means that I have seen how time in the market rewards. Generally, fund managers will always push the “time in the market” narrative because it rewards them by default. This is however a true viewpoint in the Crypto space. I can almost hear the responses, “that was back then when the market was in its infancy”. True but that does not mean that it does not still happen. I bought the following coins in the final months of 2019, or in 2020. Listed below are their current values, the price at which I bought, as well the ATH levels that were reached in April or May of this year.
SOL – $0.26
UBT – $0.01
So this is the recent performance of the market and what made these choices very good risk/reward investments was the low market cap. If a project is only valued at millions, or hundreds of millions, there is tremendous upside in the event that the project experiences even moderate success. It does not end there.
What About General Market Growth?
So looking to where a project may arrive is isolated potential growth of any particular project. This does not factor into the equation, the general appreciation of the Crypto market cap. Not so long ago the entire Crypto market cap was only a couple hundred billion. We have almost hit $3 trillion since then, which has been factored into the current prices across the board. So, if you can warrant a 50X return in time if the project succeeds, that figure may be multiplied many times over as well. This is how you succeed at investing in this market. Good trades will make you decent money but you won’t create wealth that way.
I guess a lot of people are happy with some additional money but in my opinion that is missing the forest for the trees. Personally, I invest, I trade, I build, I write, simply because I don’t view it as extra money, or even a business. It’s an economy diversified for as much safety and gain as possible. Your viewpoint dictates your actions. The more time spent in the market, the greater is the perspective, which can open up tremendous opportunities. You need to see it before you build it!
Good Decisions Require Good Research
There is no escaping putting in the time in order to sift through what’s on offer in the Crypto space. You could avoid it completely but then you would be more of a gambler, than an investor. Sufficient research is an imperative aspect of investing and even still is not a guarantee that you will succeed. Serious investors put in serious time to try and identify tomorrow’s gems!
Dedication That Rewards
I spent many years in the business world running businesses and sometimes managing as many as 60 staff members. Extreme dedication and long exhaustive hours were the order of the day. When I look at my reward for dedication within the Crypto realm compared to that of my past, the one pales in comparison. I am sure you can guess which one it is that outshines the other. Crypto has been extremely rewarding and even if the market completely collapsed, I would still be ahead. This reality has been instrumental in forming my conviction to be absolutely committed to this market, regardless of price.
Keeping It Relevant
One of the reasons for that is not only what I have just mentioned but also the approach of relevance regardless of market conditions. For many, when a bear market strikes, Crypto becomes irrelevant and they go into hibernation like true bears. In the last multi-year bear market I started developing strategies in order to benefit from bear markets. In my thinking, if I could not ensure gain in all market conditions then I was not making the most of the opportunity. This ultimately lead to the development of numerous Passive Crypto Income systems.
I have really tried to drive this point home to my readers, as it is truly the most powerful aspect of Crypto, especially as what is earned in a bear market generally increases dramatically in value over time. I recently viewed an interview in which CZ of Binance stated that the earnings generated on the platform are held indefinitely in the currency they were received in. This is a very good move, at least in a bear market anyway. Passive Crypto Income ensures that new Crypto is being added to a portfolio each day, which is a fantastic way to offset loss because no personal allocation of funds is required. A portfolio that is growing, even if only in coin holdings without further allocation is actually what many would consider pretty amazing.
Not Only Possible But Fairly Uncomplicated
The reality is that this is a lot more attainable than some may think and once you begin examining ways to achieve this goal, you realize how truly dynamic this approach is. Perhaps it is just me but passive income has always excited me tremendously, while simultaneously stirring up the drive and motivation to achieve as much as I can. You can always choose to work harder towards your passive income goals but even in the event that you do nothing, the money is still coming in.
This is simply why I ignore price a lot when it comes to the bigger picture of my own strategy. In my thinking, loss in a bear market will be offset by building more and more mechanisms. Fresh daily income is not losing value and can be converted to stablecoins in the event that prices are expected to edge lower for some time. Those stablecoins can also be put to work to earn even more passive income. The opportunities and creativity of this idea are almost limitless.
Keep Your Head Down & BUIDL
Being motivated to keep building regardless of price or market conditions is an extremely powerful distraction. It can also be the most rewarding decision you may ever make in the Crypto world. My most meaningful gains have not come via price speculation but rather building positions in certain projects despite the price, or any other metric and then just hodling. I enjoy working towards a goal. Building and developing a certain investment/mechanism is very rewarding and a challenge I always welcome.
This is not only rewarding from a financial point of view but it is also great to start something from scratch and watch it grow as you dedicate your time and effort.
Worse Case Scenario
In the event that the market continues to slump and we find ourselves slap bang in the middle of another bear market, use the opportunity to apply yourself and build something for the future. I do however believe that this is unlikely, though we may visit $40K you never know. Most only look for opportunities in a bull market but opportunities exist everywhere, you just need to find them.
Everyone Busy Rethinking Their End Game?
A lot has happened in the past few months when it comes to the Crypto markets. Bitcoin went all the way down to $29K and then all the way past the previous all-time high to $69K. Currently, BTC is trading just below the $50K zone and many alts are not doing so well, with some exceptions of course. Many were expecting a yearly close for BTC at around $100K, which at this point, looks unlikely but not impossible. I am sure many are busy reevaluating their strategies as the year draws to a close. I am however not changing anything but rather extending my time horizon. The reason is, there will always be a valid reason to readjust one’s portfolio or strategy. Constantly changing a strategy is actually a strategy for failure.
It is similar to the investor who buys an altcoin that doesn’t move after a number of months and so decides to sell it, just prior to the coin having an explosive run. He repeats this behavior and so ultimately misses out on all the significant moves and makes zero gains.
Models Are Not Precise & Will Never Be
I know there is a lot of hate and mocking currently unfolding on Crypto Twitter, which is why I don’t really pay much attention to it, or take part. Plan B is now being attacked due to the failure of his floor model. It is important to note that the S2F model is still completely valid and has not been broken. Personally, I do not view models as absolutes. Anyone looking to a model to predict price on the day, or even for the week for that is matter is not being very realistic. Models reveal averages and general price direction. Models deviate from the projected path but over time are seen to have followed it.
Looking at the S2F model above, it is clear to see that on numerous occasions, the price has overshot and underperformed the model but at some point down the line has returned to the mean. If the case being made by many at the moment was accurate, then this model failed a long time ago but we can see that over time that is definitely not the case. I suppose at some point, the model will fail due to the data and fundamentals entered into the formula becoming outdated. I do however believe that Plan B will obviously recalculate and update the model as the market matures.
This is how models work. Readers who have owned or managed a business know that targets are projected due to past performance, sales, and or price increases. I have often experienced how sometimes a strong start to a month can put you above the benchmark and later drop you below the benchmark. In a similar way, the month can kick-off way below the benchmark and later surge to exceed the projection.
The takeaway here is that regardless of what happens on a day-to-day basis, the projected target is usually attained, or at least closes very close to the projection. This is a monthly “model” and day-to-day movements are not precise. Consider then a model that is projecting over multi-year time frames. Do you not consider that perhaps even in monthly terms, the value will underperform and overshoot?
Welcome To Reality
We all want to see great gains and it gets very exciting when you begin to consider that you can actually predict those gains. To a large extent this is true but at the same time models require “grace”. Models are not clocks, expected to be right on time. However, they are more like seasons that identify a “period” of certain behavior. If you choose to take a very legalistic view when it comes to price models, you will end up being rather disappointed. Willy Woo is basically confirming what I have just outlined in the following tweet.
This model does a look back on previous times that #bitcoinhad similar on-chain demand. We’re currently trading at a decent discount. It’s a model for investors, not traders who can easily be liquidated well before the model plays out.
This is how markets operate. Another view to take into consideration is that a lot of focus has recently been placed on Plan B’s models. His followers on Twitter recently surged past 1.5 million. There are however individuals out there that would love to see these models discredited. That being said, there have been occasions in the past that have been thorns in the sides of these models and yet they have prevailed.
I think that a significantly longer time frame is required before everyone starts screaming, “the model is broken”.
I don’t think even the most bullish of us Crypto enthusiasts could have imagined what we have seen unfold in the last 2 years. It has been amazing but also very troubling. In many ways, Bitcoin and Crypto as a whole has flourished due to the chaos and unraveling of government, economies, and society as a whole. Unfortunately, this is way more likely to get worse in the coming days. Fortunately, we do have this asset class as a silver lining! However, simply having something available is very different from actually benefiting from it. There are a lot of individuals that have worked hard in this industry and have already enjoyed significant success, many even life-changing success.
There are also those who have noted the tremendous potential and even spoken about it on numerous occasions and yet made no real effort to actually build something that can continue to contribute to their lives and the lives of their families.
More Than A Foot In The Door
As the craziness accelerates, so will the case for sound and hard money like Bitcoin. This is when you already want to have more than your foot in the door. You want to be well immersed, involved, and exposed to this rocketing sector. Once a technology advances to a point, there is no turning back. It would literally be considered unthinkable. We are already past that point! I would go as far as to say that anyone not exposed to Crypto in some way now is basically gambling with their future. That might sound a bit excessive but not in light of what we have already witnessed since 2020! This is not financial advice but simply my perspective and how I envision the future.
Investors Are Inferior To Builders
An investor is generally quite troubled in the face of a market sell-off as we witnessed over the past weekend. He has put his hard-earned capital to work and does not want to see it depreciate. A builder does not sit in the same boat. Sure, nobody enjoys seeing value evaporate but a builder is holding an ace up his sleeve. Builders have mechanisms, models, and even businesses that are constantly generating Crypto. While a market crash may cause the average investor to lose value, a builder is seeing new value being added, which can offset loss quite significantly.
This new Crypto income is coming in at lower levels, which in many cases also secures more satoshis, ultimately making it more valuable when prices appreciate.
This Is The Boat You Want To Be In
It makes perfect sense that this would be first prize. This is the best position to be in! This is made possible by Passive Crypto Income, which initially requires a lot of work. Most passive income streams require initial effort and time to build up. Yes, some avoid this step due to already having significant capital that can be put to work but they are a minority. The opportunities available in the Crypto space make this opportunity available to pretty much anyone. If you haven’t started building some type of economic construct then there is never a better time than now!
Make the most of the opportunity, especially while the prices are under pressure and at significantly lower levels. As I mentioned in “For The Love Of The Bear Market”, bearish trends are perfect for builders. It’s like building a house while the building materials are cheap. You don’t want to build a house when the price of materials is going through the roof.
Thanks for the visit, all the best on your Crypto journey! Check out “The Crypto Wealthy Mindset” for some ideas on creating and generating various forms of Crypto income.
Discerning Without Action Is Futile
In 2018 I was still a business owner and customers that entered my store often received the Bitcoin punt from me. In 2018 the price of BTC was in an excellent accumulation zone and even though I was so bullish, people were mostly laughing at me. I however understood what was busy playing out in my own country’s economy. To me, BTC at $3K was an absolute steal. You need to remember that there was no covid at this stage and even still there was a bullish case to be made for Bitcoin. Now that BTC is in a completely different price bracket, these same people say that it was obvious that this would be the outcome.
If that was the case, why were they laughing at me and not buying Bitcoin? Knowing something without acting on it is a fool’s wisdom, which is in essence useless. To be honest, I don’t even think they knew it but rather it was just a response to cover the shame of ignorance.
Identify & Act
If you truly see value somewhere then you need to create ways to capture that value and harness it for yourself. This has always been the idea behind creating Passive Income Mechanisms and is why I am so passionate about it. My readers know that I began building passive mechanisms to generate free BTC because I wanted to accumulate a quality asset indefinitely over time without using my own capital. There are a number of these that I have printing free BTC on a daily and even minute-by-minute basis. There are however other projects that for me, offer long-term value. That is why I began building mechanisms in order to capture this additional value.
So What Are These Projects?
Due to the fact that I picked up Solana early in 2020 for approximately $0.26, it was a no-brainer that continued “free accumulation” of this asset would be an obvious move. Along with Solana mechanisms are some for ETH, BNB, and a few others. Outside of mechanisms, there is an avenue that I consider a very powerful and important approach to accumulating quality tokens. Although it does not necessarily require capital allocation, it does require time and effort. This is the accumulation of HIVE and Hive-based tokens.
Creating Content On The Hive Ecosystem
I have an old Steemit account from back in 2017 but chose to create an entirely new account for this adventure. More than a year ago I began accumulating Hive-based tokens through blogging on Hive, mostly via Leofinance. I post fairly consistently, as I believe in the long-term prospects of this particular ecosystem.
As I have mentioned before, many platforms will reward you in Crypto but none of them have the upper hand that Hive offers. There are many coins and tokens that I invest in but these particular projects or coins offer tremendous long-term gains in my opinion. That is why I set up accumulation mechanisms, or alternatively, set out to earn them.
If you truly believe that a project offers value, then you need to be accumulating it one way or the other. Evaluate your views and begin accumulating, if you haven’t already begun. Taking action is the only way you get to look back one day and smile.
Check out “Hive – The Communal Road To Independence” for more information on the Hive Ecosystem.
Every Portfolio Should Have An Allocation
It’s a personal view and by no means financial advice but I believe every Crypto Portfolio should have some exposure to stablecoins. This is also quite important when locking in gains as a trader, or even as a long-term investor.
A Great Hedge
Holding stables will see your portfolio increase somewhat more modestly in a bull run but still rather significantly. The same is true for when prices drop. Stablecoin holders are far less affected by the carnage that so often destroys Crypto investors in a bear market. This is the ultimate motivation behind stablecoins, a hedge!
What Is The Best Allocation?
This will differ from person to person, depending on their risk tolerance and investment objective. I personally like to have a minimum of 15% to 30% at all times. I increase this allocation as a bull market begins to mature, to ensure that I am well protected in the event of a sudden crash. A sudden crash is usually the first stage of a bear market
This does not necessarily mean that all flash crashes are the beginning of further downside but rather that when a bear market is initiated, it is often done so by an initial sharp decline.
Simply Holding Stablecoins Is Not Enough
Due to excessively high inflation and monetary printing, holding stablecoins will cost you over the longer term. That is unless you make use of this simple strategy that has the ability to increase your holdings over time.
A Simple Strategic Solution
Many who choose to lend out their stablecoins usually choose to receive their interest in stablecoins as well, which, unfortunately, is the wrong approach. When using BlockFi, users can set their interest to be paid out in any currency. So, I can deposit USDC and earn my interest in BTC as opposed to USDC.
By receiving interest in BTC, or any other altcoin that has growth potential, investors can outperform inflation and monetary expansion. However, by receiving interest in stablecoins, investors begin to lose value over time. The idea here is that as value is being lost in the principal allocation, new value is being created in the interest that is earned and subsequently growing over time.
The same strategy can be utilized by holding USDC in a Celsius account and receiving interest in the CEL token. Investors who chose this approach in 2019 or earlier are now holding more value in their earned interest, compared to their initial lump sum investment. This has been made possible by the tremendous growth seen in CEL over the past two years.
I guess investors can also receive interest in stablecoins and then immediately shift into other altcoins. This approach however does involve management and time. When it comes to lending and earning interest, many prefer the set-and-forget approach. Either way, there are ways to hedge your portfolio with stablecoins and still grow your portfolio over time.
Get creative, as you brainstorm and test different strategies. That’s how you create win/win scenarios and go on to grow your portfolio over time.
Strategic Battle Plans
After being involved in this industry for many years now, I have managed to discern smoke screens, as well strategic plays by both whales and institutions. Whether the institutions are of a private element or government, they both play the same game. When it comes to markets, you really cannot take anything at face value. This is is why being immersed in the Crypto market is so very important, if indeed you are going to successfully navigate your way through the FUD and everything else that gets thrown at you. Being immersed in the market connects you to real and up to date data and intelligence. This is the tool that is able to disprove FUD, or confirm certain information that is actually credible.
There is actually no way that you are able to discern what you are able to trust without it! A wealth of knowledge, understanding and data has a way of making you highly efficient, by default. It is rather similar to the athlete who is able to naturally stun crowds. Immense hours of training have produced an athlete who naturally performs by default. Every time he enters the field, his performance is of a very high calibre. In like manner, a Crypto enthusiast who daily immerses himself in disciplines begins to make really good calls. The reason is that his decisions are undergirded by a wealth of knowledge and data.
Principles Are Very Much Applicable
People see the profits being made in Crypto and they automatically think that they can just jump on in. Comparing it to a time machine that will similarly transport them to a position of wealth. Ignorance is the kindest word to describe such thinking. Although the returns in Crypto are significantly higher than any other market or asset class, the same principles apply. If as an investor, you are not educated, get ready to lose your shirt.
Whale Strategies Exist Thanks To The Uneducated
Once the knowledgeable or insiders begin to see the behavior of the uneducated, they see opportunity. Whales begin to orchestrate plans that thrive on the uneducated or foolish. They feed off of their fear, their greed, and their lack of discipline and conviction. These investors are your “paper hands” and you can count on them to panic and ultimately hand over their coins at a healthy discount.
That being said, if everyone was a savvy investor, the market would be stuck. Intelligence requires fools as does the master require servants or slaves. “The fool will be a servant to the wise”. That’s how it works, so best get going to ensure that you are on the correct side of this principle.
Where Do You Begin?
The first step along this journey is to never take anything at face value, especially media contributions. If you study media stories about Bitcoin over the last decade you will be amazed at the absolute ignorance and misinformation. Now that a lot of the fundamentals of Bitcoin and Crypto are more widely understood, it is very easy to see how incorrect and ultimately damaging the media’s contribution has been.
The Brilliance Of On-Chain Data
Thanks to on-chain analysis, there is an amazing tool at the disposal of every single investor. Once you have found what appears to be factual and accurate data, you need to seek out confluence. This substantiates and confirms your findings and creates a level of trust and credibility to your data, ultimately creating conviction in your view, and subsequently, your investment or trade.
If you never move into this realm, you are merely a gambler. Like a leaf blown in the wind, you will have successes but they will be upon the back of luck. Statistically, your success versus failure rate will be very bad, ultimately costing you money.
So What’s The Take-Away Here?
Firstly, don’t believe everything you read or hear. Secondly, do your own research, so as to find confluence and secure your investment decisions upon some sort of foundation. You also need to remain up to date on what you are investing in. The industry is moving so fast that it is actually very difficult to stay abreast of everything. Choose your investments and sharpen your focus.
Wishing you success, as you navigate the world of Crypto.