2021-12-16 00:27:12
How To Make Money In Crypto?
Period By Period:
Bear phase - you should focus on buying only.
You have two ways of buying…
Technicals and fundamentals
Technical buying can be “just because it retraced”.
Now there are two categories: applicable and non applicable.
The applicable category is the one which will likely do a retrace of a retrace (the other direction) and make you some money.
The less likely category to make you money because you bought on a retrace is the ‘non applicable category’ which is basically coins with 1) bad volume 2) short history 3) no presence of a community
So, you’re buying big coins on a retrace… let’s say, pure shit coin, XRP, but has a community, has a history and has a volume… on a STRONG retrace you can be looking for at least fraction of that retrace back in the opposite direction. Again, likelihood, not certainty!
Then you have fundamentals
— the easiest way is to judge it is take any coin whose narrative you liked that pumped and you missed it… and proven strong… see it as it dips strong… resets… might present a good buy opportunity. Further or more than this gets way more advanced and needs you to become a proper fundamentals analyst, so for now this will suffice for the matters of this short Rule-Of-Thumb guide…
Sideways phase
Best opportunity now is staking.
Tokemak performed wonders in this stage, and now metis is… both our gems because why? sideways times, nothing moves, yet you accumulate staking rewards.
Depending on your risk tolearance there are
LP stakings (riskiest) - where you stake basically ie. toke eth and you get yield. It’s good for the provider as their token gets more liquidity, and good for you as you make a bunch of money staking. The risk is, in non sideway times, you get impermanent loss - more tokens of one of the two.
single-token-staking - this one is badass, and returns in crypto are unlike anything offered by the banks… crypto is so badass that traditional money like Warren Buffet still can’t get a grasp of it… Look, he is an amazing investor, but he is also an old man. Old men are grumpy, and slower on changes than young men. Of course he won’t welcome with both hands something he knows shit about, is too fast paced for him to ever get a grasp on and something he can only lose respect on. Enough on that topic. Single token staking returns currently in crypto are the closest thing to magic. If they would be safe, it would be pure market-beating-magic… but wait there is…
STABLECOIN stakings — multiple new platforms offer even higher than 12% apy returns (guaranteed) on the stablecoins. Basically no risk you’re making 12% or 14%… I think Mr. Y told me he found something recently with 18% on stablecoins. That’s crazy. Crazy. Of course, the downside is, protocols offer those as incentive and with time, weeks or months usually the apy decreases.. but nowdays it is EASY to find 12% apy in crypto on stablecoins. If you’re conservative user utilize this. Heck, even 1-2% apy on bitcoin is even possible to not make your btc fully dormant (again, I know, somewhere even more is possible, but I try to give you a rule of a thumb guide here like what’s average to expect over some longer period of time within year’s timeframe.
Bull phase…
the key to bull phase is
EARLY bull phase: identify where to enter, what to top up
MID: being in profit, having a hard on, and not to sell
LATE: knowing to book the targets at the top, and knowing hey, yes, if it juuuust hits that I’ll make more… but fuck it, this looks to be the top, I’m out. Knowing when to pull out (it’s usually the difference between fucking and being fucked too lol)… know when to pull it out…
And the final secret ingredient in proper trading is…
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