DE-FI Is A Hedge Against HODL'ing Opportunity Losses

in HODL3 months ago

Hey JessInvestors

If you've followed this blog in the past, you'll know I'm a big fan of HODL'ing even before Bitcoin came around I was HODL'ing cash and then deploying it into financial assets as I saw opportunities. HODL'ing as been a fruitful financial strategy for me, and I can't imagine where I would be without this mindset.

Not that I am wildly wealthy, but I do have no debt and a cash buffer and investments to my name. HODL'ing by nature can be done with any asset class, and it's not only a Bitcoin or crypto thing. It can be a good strategy with any asset class that benefits from currency debasement.

As a cash HODL'r in my formative years of financial literacy, I had to do it in a currency that has been abused by its government more so than others I am grossly aware of how a currency can lose its value in a short space of time.


Savers are losers HODL'rs are winners

In any runaway inflation based economy like my local currency, the fisher effect regardless of the numbers they provide continues to eat into your purchasing power year after year. No matter what rate banks give you its always lower than the actual broad money inflation which eventually trickles down to you and you pay higher prices.

So savers are losing, however HODL'ing in an asset like Gold or Bitcoin you get the benefits of saving and instead of being paid interest you enjoy the benefits of inflation. Since inflation moves faster than interest rates, you're in a faster source of wealth accumulation.

HODL'ing is a long term capital accumulation game. Since your stake isn't put to work or increasing without you adding more capital, you only betting in inflation and increased demand for the asset to increase your purchasing power on paper.

Until you sell your Bitcoin/gold/asset, it is an unrealised gain.

DE-FI the odds

Like I said I love HOLD'ing I love being rewarded for my prudence and I think its an important lesson we all should learn. However, dead capital is not good for economic growth nor my goals. I can't just sit on crypto and hope some bigger fool will buy it for more money in the future.

DE-FI is trying to establish a yield curve for the crypto market, which is important for any asset class. You want to know what an average return looks like when using the asset, or collateralising the asset, not only price appreciation.

DE-FI allows you to put your stake to work, earn extra stake and turn capital into a productive use case. DE-FI also allows you to dollar cost average into your new position.

As you take profits from your loans backing, liquidity pools or staking you get to take that profits and dollar cost average in as these cheaper tokens (returns) add to your position and lower the capital expenditure you placed on the original value.

DE-FI allows you to reduce your risk to the downside as well as multiply your gains to the upside. I don't see DE-FI as any sort of getting rich quick scheme; I am not after super-high interest rate returns. What I'm interested in is accumulating a higher position in stake to reduce my average cost of accumulating.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

Let's connect

If you liked this post, sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler and subscribe to my fanbase

Browse & Earn CryptoStack Sats For FreeEarn Interest On Crypto



I am a De-fi, Hi-fi and Wi-Fi je-si

Lol and don't forget CE-FI and see losses and cry

Posted Using LeoFinance Beta

I am a newvie when it comes to DEFI and HODLing but I am impressed by it. Hope to learn more about it and to find good opportunities to get into. 👍

Then I highly recommend you check out the @hodlcommunity account and join the HODL community, there's always great content, views on HODL'ing and investing, sharing opportunities, and a great way to keep up to date. They also curate the best posts of the week, so you don't even have to go searching just check out he jewels post and get the best content all curated for you

Posted Using LeoFinance Beta

Thanks @chekohler. Followed @hodlcommunity successfully. 👍👍👍

Awesome, welcome to the club! Looking forward to seeing you around and hopefully sharing your HODL techniques with us too

Posted Using LeoFinance Beta

I can agree with @chekohler Hodl community will give you a lot of advice and ideas.

He doesn't HODL he SwedL's

Posted Using LeoFinance Beta

What does it mean to swedl? So many things to learn. Haha..

LOL because he HODL's and his Swedish

Posted Using LeoFinance Beta

Oh, Swedish hodling. LOL

I'm hodling out for the time being and just building the stack, keeping the sats safe and then unleash them once Ledger can DeFinetly get things going!

Posted Using LeoFinance Beta

I am legit thinking that far ahead like I want to have a reasonable deposit of crypto and then wait for whatever the yield curve on various coins, set up a ledger for BTC DE-FI and one for alt DE-FI and watch the returns while I chill on a beach somewhere and never post about it on Instagram because I don't need the likes only the sats

Sounds like a good plan to me! No point in posting on instagram for likes when we've been spoilt with likes having an actual financial value on other platforms!

After extensive research finding good assets to invest into always worthwhile to Hodl, really a patience game. But then no matter which one you select it must work for you 😉

Enjoyed reading, learning what others are doing @chekohler

Oh yes for sure my major stake is locked up in long term HODL’ing and will never touch that but I decided to split the other half and go look for yield and I get around 6% APR averaged out across all my DE-FI goodies paying me in Satoshis and while it’s a pittance now it’s all adding to my stake

Who knows what these tiny Satoshis will add up to in the future! As long as I’m increasing my stake each day I am happy 😃

Every little helps, move it to where it feels right, then reassess and move again, any form of currency must work....

Absolutely, I think its all part of learning how to use this new form of money, the more transactions you make, the more confident you become which I think is vital when you're handing and responsible for your own money

I am a Jessie.

Ohhhh, and I'm a HODLer too 😃

Posted Using LeoFinance Beta

LOL are you a DE-FI’r too? Then let’s make it 3 for 3

I started to look into Celsius this week and installed the APP. They need to do a web version.

I think Blockfi has a web version, but Celsius and don't seem to be focusing on desktop, I think that these mobile-first businesses want to target the casual investor

@tipu curate

Thank you, you're far too kind, but I ain't complaining 😜

I started to look into Celsius this week and installed the app.