As I fall deeper down the rabbit hole of crypto and investing and realise the way we measure purchasing power is grossly skewed and why we who don't have assets continue to fall behind each year, I've become quite the active investor. I started with HODL'ing and accumulating, which I think is the part most people should focus on in the begging.
Become comfortable with owning your money and how to use these tools to transfer and store your wealth, once you feel comfortable with your crypto and the volatility doesn't bother you anymore, then it's time to move on.
The days of only buying low and selling high in crypto seem too antiquated as more layers, and use cases come online and using CE-FI and DE-FI with the inefficient rates of defining a yield curve in this space, you can make a lot of money.
Since we don't know how to evaluate the underlying asset, and the cost of holding volatility, the interest rates on putting this type of capital to work is high.
Due to very little liquidity and Bitcoin being super scarce asset interest rates are high.
Tyring to attract capital to your project over another and build a healthy base of traders, liquidity suppliers and debtors, the interest rates are high.
The wrong measurement tool
Once you ignore the dollar value or fiat value of the asset in your local currency things, start to clear up and make a lot more sense. As fiat gets debased that floor continues to rise, as more money flows into Bitcoin the floor continues to rise, so I am not too concerned with the unit price in fiat.
What I am looking for is yield. I've taken around 1.3 BTC (a combination of BTC and alts) and put it to work in various platforms. If I average out my returns across all my investments I'm pulling in around a 12.4% yield which is nuts; this rages from staking coins, yield farming, liquidity pools, CE-FI interest accounts, gambling dapps and more.
The safety of these tools remains to be seen, but when measuring your yield in more satoshis, it makes it easier to see if you're generating a profit and how much profit you generate.
Don't become Bitcoin Pizza guy
Arguably, one of the most famous cases of selling to early, is Bitcoin Pizza guy, the person who spent 10 000 BTC buying 2 pizzas. Every time you sell Bitcoin for fiat, you make that Bitcoin pizza guy moment for yourself, buying dollars or local currency for way too high a price.
I have no interest in cashing out any of my cryptos, short of a bull run and parking it in a stable coin and then moving it back later.
I am here to learn from the mistakes of the past, and as long as I continue to take advantage of these high-interest rates, I can't be there to sell.
Even if my yield is cut down to 4-5% on a Satoshi, it's far better a return than I could get anywhere else.
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."
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