https://twitter.com/thedefiedge/status/1500898103225827330
Real wealth is created during bear markets.
But no one shares practical advice other than "buy the dip".
Here's your playbook to make the most out of a bear market: (+ a few sample portfolios)
Your job is to survive.
You can't reap the rewards of the next bull cycle if you fuck it up during this bear market.
Defense wins championships.
Crypto will break ATHs again, but not all projects will make it. That's why it's important to position yourself correctly.
A few Sample portfolios for the bear market:
• Figure out your balance: stables, low risk, medium risk, & high-risk plays.
• Then decide on Projects.
I created a few sample portfolios for you to look at.
(education, not financial advice 😏)
I recommend Alt Layer 1's - they are the best risk vs reward ratios now.
• 🔥: ETH / AVAX / TERRA / FTM / COSMOS
• 👍: CRO / SCRT / NEAR / METIS
• 👎: ADA / SOL / BNB / DOT
Don't get salty if I don't like your coin - Invest in whatever you want.
Stay away from higher-risk plays for now.
I love ape'ing into shitcoins but now's NOT the time.
My 2017 classmates remember why.
These smaller-cap plays might be dead by the time the market recovers.
Blue chips have more funding & adoption.
Safe now - Ape later.
Why Stablecoins?
You should be heavy in stables now (25-50%).
I get it, they're not sexy.
Their job is to reduce the volatility in your portfolio and preserve capital.
I think of stablecoins like bonds in TradFi.
(+20%) is better than losing another (-70%) from here.
Where to Farm Stablecoins? I like to keep it simple with
@anchor_protocol (Terra) for 19.5% APY. More advanced players can check out: •
@platypusdefi ( @echidna_finance / @vector_fi ) •
@beefyfinance Use @0xcoindix to compare rates.
Stablecoins aren't risk-free.
• Algorithmic stable coins can de peg. • USDC / DAI / USDT are centralized. Governments could freeze.
Diversify your stablecoins.
You can also hold fiat. Then again, holding fiat is a risk due to inflation.
Pick your poison.
When to Buy the Dip?
I've made the mistake of buying the dips as soon as they happen.
Don't catch a falling knife.
Ex. Buying the ETH Dip in May 2021 at $3800, and then it drops down to $1800 a few months later.
So when should you buy the dip?
Try Dollar Cost Averaging
Instead of $1k on ETH today, you buy $167 on the 1st of each month for the next 6 months.
Don't underestimate simplicity.
And you're not going to beat yourself up if you mistimed it.
"Ser, I have no money to buy the dips"
I get asked all the time for low-budget strategies.
Stop wasting hours on Crypto Twitter & discord.
You're better off increasing your earning power or creating a second income stream.
And then investing in blue chips.