The post is a little long, but is not made to be fun.
Lastly Bitcoin did pump hard.
What did happen in the last cycles when the Bitcoin did pump hard, altcoins did pump hard after.
But there are things that are different from the last altcoins.
Here’s my point of view on the state of crypto industry in early 2021 :
1) The whales are here for at least 5 years now and they did take time to study their subject.
It means that pumps will be more rational than the last cycle, it means that only the good fundamentals since July offer a nice ROI/RR.
(RR is the ratio risk(%) / reward(%)), for other vocabulary/technical problems : Google is your friend !
What I mean by more rationale : ¾ of the top 100 market cap will change.
Many of the blockchains rely on a future DeFi ecosysteme to attract their investors. But nobody wants to use them cause nobody uses them, so what did they do ?
They are all building a bridge to Ethereum, and even more, they did make their shitchaines compatible with solidity, the language of ethereum, do you trust in copycats ?
What is the most important thing to have in a blockchain : scalability.
Ethereum announced 2022.
Which Blockchain coins currently have a nice investment RR :
The King : ETH
The Prince : DOT (scalability for 2023)
The Suitor : BNB (Owned by CZ)
The Outsider : HTR (scalability 2023, not the best but market cap is only 30M)
The existing alternatives : ATOM, AVAX, SOL (scalability 20XX, they don’t represent the best RR)
2) This time it’s not the public who is making the price pumping, it’s the banks because the value of fiat is hardly decreasing.
It mean, instead of being like the previous cycles where nobody knew what they were doing and the money was going in every projects, the money will flow from BTC into DeFi, making them pumping like hell (Mcp BTC : 700B, McP DeFI : 20 B) but with more strategy.
If you buy some BSV, sure you will earn some money, but maybe 100 less than peoples that did take only a little bit of time to understand.
In majority they are only invested in BTC and ETH.
But here comes the DeFi for Decentralized Finance who is unstoppable since May with a TVL (Total Value Locked) that went to 200M to 20B.
There are currently two major goals in crypto : store of value and replace the banks.
The first one is on Bitcoin and it can only be one.
And the second is undervalued in the crypto space who is undervalued. The RR is too big to be imaginable.
Why it can only grow ?
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When you’ll start using it, you will never come back into the old system.
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The banksters will use it at the end, because it’s cost reducing. They will certainly build on it but they’ll cannot compete with the system.
a) How to invest in DeFi :
There is Binance who have some nice opportunities.
And there is Metamask where all the DeFi ecosysteme is open to you (and you got your keys !)
Some people will argue that on Metamask with between 25 and 50 fees per transaction is too high, there is only one way to solve this problem easily, Stop being poor !
b) How find the blue gem ?
You can but there are plenty of people that will invest before you, twitter will be your best weapon if you can understand how the DeFi work and understand the white papers fast enough to invest before others.
Pay attention even the best projects can be hacked, you shouldn’t have every eggs in the same basket.
Beware if ethereum is hacked, everything will be lost, but is it really possible to hack Ethereum ?
Care to not overdiversify, select only 5-8 of your best project and ride them like that :
c) How to manage your investments :
-Take back 50% when x2 or 33% in x3.
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Ride and when you want to totally take profit keep a 10% moonbag.
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Care to not be married with a coin, if you have doubts get out before other people take the same decision before you.
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Stay informed on the project avancement by following devs, official page and some doomer DeFi investors on twitter. ( to search your coin on twitter, type $ and the name of the coin).
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Keep an eye on the whales addresses, especially dev one’s.
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Remember that 1 week in DeFi = 1 month in traditional stocks, it’s likely that I’ll won’t have the same investments in 1 month.
d) In what I’m invested :
This is not investment advice, if there is bad news I will know before you, and if a whale drops her bags I will dump mine automatically with her.
Datas :
$ALBT -> nice parteners
$VXV -> its a company token that can provide nice datas to hedge funds and medical companies.
Supply :
$MRPH Partner with coca, and some other in coming. They are reducing the cost of supply chains.
$QNT I did never see intelligent holders as much convinced like hell that QNT belong to the top 10.
Layers 2 with small market caps: to resolve the fees problem and have a nice RR :
$STAKE
$MATIC
DYOR cause I didn’t make mines.
Big players that can still snowball : I long them on Binance futures in x50.
$RUNE Blockchain bridge that is the first L2 of BTC.
$AAVE lending is stocks.
$RSR they are developing stable currencies for unstable countries. I didn’t understand anything but it seemed nice.
$SNX Layer 2, for me their synths are bad, they attract to much developers and hype to be a bad investment.
$OCEAN datas marketplace
Private pic :
$DEA -> (Warning I’m not that rational on it because I work with them) It’s a decentralized CFD (first release soon), who provide stocks synthetics in DeFi.
Some other types that you should know :
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There are the payment processors but I’m not convinced, I did never touch CRO and I won’t start now.
- Farming protocoles, it’s more trading than investing. I can’t figure out in time before whales what is the best yield. I did give up on that. (YFI, Pickle, Sushi, “{name of a food}.finance”)
- Insurances, UNN seems the best RR, but I’m not convinced yet in that field.
- IPO launchers : I did not invest in but I wish I wasn’t stupid.
$POLS Have Polka in the name and provide very nice IPO’s ROI.
$SWAP Seems nice
$ YFL an outsider, it’s more a trade than an investment for me.
- Oracles : The only value is hype, it could perform but it’s a huge risk. (LINK, BAND, UMA, TRB,…)
- Seigniorage : Stupid (ESD, DSD, ZAI, SHARE, …)
- Options protocols: I don’t like it but why not ($HEGIC)
- Governance tokens : For me it’s a scam, but I’m not the whales who are heavy in $UNI.
- The scams : It’s more for trading but it can still be worth it because market still stupid.
- NFT For a majority I don’t find the RR relevant compared to other types of protocols,… because I don’t find that people have a fundamental interest in them, it’s more a speculative interest.
- IOT : In this case, fees are the problem. There is nice project but more for 2022.
-Copytrading : I did test all of them, they are all shit.
To conclude : In my opinion the DeFi market is currently market with the biggest RR.
Take care.
-> irrelevant.
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