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In the cryptocurrency sphere, there are various roles, including project initiators, infrastructure providers, collateral custody service providers, mining equipment suppliers, and secondary market service providers such as exchanges. The most well-known roles are exchanges and ordinary traders, with many people claiming that it's challenging to make money, and losses are substantial. Today, from the perspective of a lazy investor, I'll provide a few suggestions:
1. Regularly invest and hold Bitcoin and Ethereum for the long term.
2. Invest in leading coins in the DeFi (Decentralized Finance) main track (DeFi blue-chip stocks).
3. Stablecoin mining and participating in airdrops.
Let's analyze each of these points in detail.
1. Long-term holding of Bitcoin and Ethereum through regular investments:
Regularly investing in Bitcoin and Ethereum has been a timeless truth in the fluctuating cryptocurrency market. Bitcoin has gone from hundreds to tens of thousands, and Ethereum from a few hundred to around 6,000, with the possibility of reaching $100,000 in the next round.
Ethereum's versatility and operability in blockchain make it an essential cornerstone in the industry. Starting from a few dollars, it has become one of the categories anchoring decentralized finance (DeFi), approaching $2000 today. The current trends of Bitcoin and Ethereum validate the correctness of the strategy we have always adhered to. If there are no significant changes in the fundamentals of Bitcoin and Ethereum, investing in and holding them is, in my opinion, a strategy that all cryptocurrency investors should always adhere to. They will be the cornerstones of our investment portfolios.
In the foreseeable upcoming market boom, Bitcoin and Ethereum may reach new highs. At that time, selling a significant portion of the held coins for profit while retaining a small portion could be a viable strategy. After the bull market, during the bear market, re-implementing the strategy of regular investments would be feasible.
2. Investing in leading DeFi coins (DeFi blue-chip stocks):
DeFi is a highly promising sector. It has different ecosystems, with the most promising being DeFi within the Ethereum ecosystem. The reason for such optimism is that DeFi has become an infrastructure in the Ethereum ecosystem, acting as the cornerstone of a building. Projects within the Ethereum DeFi ecosystem are the underlying foundation on which various new applications will depend in the future. They will capture the value of future applications, continuously creating value for investors.
Leading projects in the DeFi sector, such as COMP, DAI, UNI, MKR, SUSHI, CRV, and others, will gradually widen the gap with their competitors, ultimately standing out and monopolizing the entire sector. During the bull market, it's advisable to sell these top DeFi projects at or near their peak prices and buy them back during the subsequent bear market. Like Bitcoin and Ethereum, they will become long-term holdings and targets of future attention.
3. Stablecoin mining and airdrops:
Staking and mining are emerging concepts and investment methods. The primary focus of this type of mining is to provide liquidity. Liquidity provision involves collateralizing two types of tokens in a liquidity pool in a certain ratio. However, liquidity provision mining has a major issue known as "impermanent loss," meaning that liquidity providers may lose a portion of their original tokens due to market volatility.
This loss currently does not have a 100% solution. However, in liquidity mining involving two stablecoins of the same type, the "impermanent loss" is minimal and almost negligible.
Therefore, participating in stablecoin liquidity mining is a relatively good mining method. However, I maintain a certain level of reservation about it, mainly because the current mining returns are already low, and the gas fees incurred during the collateral process are significant. Overall, if the initial capital is not substantial, the returns from participating in such mining are limited.
Furthermore, if we use these stablecoins to buy undervalued projects during low prices, the future appreciation potential of these value projects may outweigh the mining returns. The advantage of this operation is its prudence, with minimal risks.
Participating in airdrops is a popular and cost-effective way to obtain tokens or whitelist access. The benefit lies in acquiring the native tokens of a project at an extremely low cost, often a fraction or a small percentage of the later mid-to-high prices when listed on exchanges. Of course, gaining eligibility for airdrops is becoming increasingly difficult. A series of hosts and virtual programs are needed to evade witch identification and account verification settings. According to data from statistical companies, the proportion of ordinary users obtaining airdrops with a small amount of funds is less than 3%. Therefore, attention should also be paid to identification and verification in this process.
In summary, for lazy investors seeking lower risks, the above strategies are undoubtedly worth considering for many long-term, value investors. If you are also someone who pursues stability, you can continue to implement these strategies. |
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Post time 29-2-2024 09:20:12