Categories
Crypto Investments

Should we be getting more Bitcoins now?

This is probably the age old question of whether we should be getting in to the crypto market right now? For small retail investors like us, we should always consider the ups and downs in the short term as well as for the long term. Yes it does sound rather “cheesy” and obvious. But lets be honest here, it is the most important as well. So should we be getting more Bitcoins now? I am here to give some insights and my recommendations. Of course I am not an financial advisor and you should always do your own research when it comes into investing.

The first question is the ask how low do you think Bitcoin will go? It has already dropped quite significantly since May 2021 and is currently about half of its peak price. So do you think it will go any lower than that, even during a bear market? For me, I think it will not go much lower than what it is currently now. The reason is simple – there are a lot of financial institutions holding Bitcoins right now. If it goes too low, how will it look for their portfolio? No matter what, they will still need to answer to their shareholders. And if their portfolio value look bad, they might be kicked off their job very quick. We are talking about hundreds of millions of dollars in assets. Some institutions hold billions of dollars of Bitcoin as well. And even if it does drop much further, it will only be for the very short term. With backing by quite a number of high profile investors and institutions, I would say Bitcoin is a safe bet.

And the price at the moment looks very attractive for investors too. Looking at historical charts and if you are thinking of the long term, I think it is hard for Bitcoin to go further down. Sure it is more or less trading sideways these few weeks but kind of difficult to buy only at the lowest dip right? So if you are thinking of the long term, I am guessing now is a good time to get more Bitcoins into your portfolio. I won’t say it will never go down to this level anymore because I don’t have a crystal ball. But historically speaking, it will go up. Might not pump like during the bull market but I believe it will go up gradually.

We should also not forget that traditionally Bitcoin is considered a “safe heaven” for the crypto market. By safe heaven, I mean for investors to put their funds in during the volatile times. And the crypto market is currently extremely volatile. So yes there will be an increased demand for Bitcoin. There is a saying that if the crypto market is “boring”, then you should look at Bitcoin. I feel it is true. Yes stablecoins are something which traders will look at as well. But Bitcoin can actually go up in value while stablecoins are pegged to a fiat currency, hence the name Stablecoin. Of course if you would like a safer route, yes Stablecoins would be the way to go.

So if you are into investing into crypto, no matter what, Bitcoin should be in your radar. But remember as a small scale investor, you should never dump all your funds into one asset. And always invest only what you can afford to lose. The crypto market is still one of the most volatile asset class and quite a lot of crypto “shitcoins” out there can be wiped out in mere minutes. And when choosing which to invest in, go for the ones with the biggest marketcap you can find. Sure, it will probably never reach 100x but you can be quite certain it will still be around next year. Admittedly I am currently not holding any BTC in my portfolio at the moment. For those who have been reading my blog would understand why. But I think it is now the right time to get into Bitcoin. By the next pay day, I will be getting my little stubby hands on some BTC!

Here is a post which I have written on why I think Bitcoin is still relevant. Hope that it will all make more sense. Please take care!

Categories
Technology

Windows 11 coming soon

Not too sure whether you guys have heard but it seems that Microsoft will be launching Windows 11 very soon. I know that they did mention before that there won’t be any more versions of Windows after Windows 10 but I guess they realize that if they don’t release new stuff, people get bored and will start shifting away to other Operating Systems. And if you ask me, I think Windows 10 is a great OS. Even comparable to Windows 7. Now that is an OS I have used for over 7 years and actually only recently switched to Windows 10 on one of my work computers. Not kidding. It is such a stable platform.

Anyway with the recent previews of Windows 11, looks like it will be launched this coming “holidays” – so I am guessing in December of this year (2021). And if I am not wrong, it will be a “free” upgrade from Windows 10. So lets say if you have a working copy of Windows 7, you can technically upgrade it from Windows 7 to Windows 10 and then to Windows 11. I love you Microsoft. But do note that there are a few technical issues you need to worry about, like the kind of specification requirements needed to install Windows 11. From what I read, seems like you need TPM2.0 and Secure Boot. So your old system which comes with Windows 7 might not be able to support Windows 11 anyways.

As much as I am excited about new technology, I am a bit skeptic about Microsoft product line launches and for my work, I will usually wait till it has matured for a while before using it. Anyone remembered Windows 8? That is one of the worst OS I have ever used. And what about Windows Vista? That silly setup took over half an hour to install my blackberry software! I remembered looking at the installer loading screen not moving one bit during that horrible exercise. Of course that will not stop me from using it for gaming or at home. But for work, it is strictly the most stable version for me please!

If you want to know more about Windows 11, Linus Tech has video on it. I have linked it above. But basically it is a fresh interface change, is supposed to be more user friendly, better multiple monitor support and have some interesting benefits for gaming. I do game, so yes this will be very useful for me. But other than that, I honestly don’t think it is anything to be shouting out for. Even most reviews out there seems to be a bit disappointed with Windows 11. Especially considering that Windows 10 has been working very well for most users. Why change when everything works fine? Admittedly, all the eye candy in Windows 11 makes me kind of eager to try out the new OS though. I do love me some eye candy. Who doesn’t? And from what I heard, there will be some performance improvements as well. If things run faster and smoother, it is a yes in my book.

Categories
Crypto Investments

My “crypto” plans for the near future

Looks like it is time to start planning what to do with my crypto portfolio, especially in the near future. The market is in a serious downturn and I don’t think it will stabilize anytime soon. More likely it will indeed go down further for the next few months at least. But again I would like to reiterate that I don’t think there will be a “crypto winter” anymore. But there should be a relatively short bear market coming soon. Unless we start hearing lots of positive news and more adoption, we will see the this happening.

Anyways, here are my plans for the crypto I am currently holding – in most cases, I will move them to a lending platform to earn some additional interest. My favourite is Nexo. Currently I am holding quite a substantial amount in Binance as I had felt the need to trade them quickly. However as the markets turned extremely volatile, I decided it might be a better idea to just hold them and see how it goes. Well, it was not the correct decision. I should have sold them when I had the chance. Again this is the biggest trap for small time traders like me. We don’t know exactly when to leave the market. But however I did make some profits on some of them anyway. So moving most of the assets to lending platforms and keeping them there for long term is the best solution I can think of at the moment. And please keep them in the more well-known and established platforms. Nexo, Crypto.com and Celsius are the ones which have been very well established. There is nothing such as a “guarantee” in investments.

I know some of you guys are thinking of sending your crypto assets to decentralized yield farming platforms. I would highly recommend you not to do that for the moment. The reason is simple – currently there is a very negative sentiment with decentralized finance. You know what I am talking about – Iron Finance and the “first ever” large scale bank run in “crypto history”. And this has resulted in sell-offs and I am very worried about panic selling in this regards. You definitely don’t want to lose all you hard earned cryptos from this. But if you still want to yield farm I would suggest maybe going into safer exchanges like Binance liquidity pools. Yes their returns might be lower but at least you know they won’t just ditch you off the road when things go south right? Well hopefully. I too will be keeping my SHIB/USDT pool share in Binance. It is not a big amount anyway. And seems that there is an increased interest in SHIBA INU Token these few days which is a good thing. If you like to learn more about being a liquidity provider, please check out my post here.

For those holding proof of stake cryptos, you should also considering staking your tokens. Binance too has venues for you to stake your tokens. Some of the returns are pretty nifty too. So as you HODL, why not let it make you some money as well. And staking is one of the safest way to gain crypto without spending money on expensive equipment. Of course this is assuming that you have already hold the token in question.

I am always positive about crypto right. I am quite confident in like 1-2 years time, crypto markets will again rise and the tokens we hold right now will rise to newer high. I have no doubt about that. As long as the tokens have good fundamentals and Elon Musk and China don’t go around stirring everything up, I think we will definitely have an upturn in the near future. Just not right now. Crypto is getting “rekt” left and right at the moment. Bruised but not broken I have to say.

Anyway I am no financial advisor. So please do your own research and never invest anything based on the words of some blogger!

Categories
Crypto

Bear Market coming soon?

It sure looks like it. I mean just check out all the FUD that is happening around us, with all the bad news about this China ban on crypto-mining and whichever country is trying to stop someone from trading in cryptos or plenty of other disappointing news. The stream of bad news seems to be never-ending. Even with some positive news, it seems that nothing will really prop up the cryptomarket like the levels in May 2021.

So is the bear market or even “Crypto Winter” coming soon? Well in my personal opinion, I don’t think there will be a “Crypto Winter” anymore. The market should have matured enough not to face another such long term bearish market. Yes sure there will be period of bearish sentiments in any kind of market but I doubt that we will see another “Crypto Winter”. Of course this is not to say that when there is an economic crisis, the crypto markets will not go down. That would be absurd. No matter what is sad, all the markets are still interlinked. You don’t expect during an economic downturn to see other markets rallying right? By the way, Crypto Winter means that the market will drop by around 90% and everything will freeze to death.

Furthermore I am sensing that there is an increased understanding of the various crypto projects out there. More and more traders are realizing that Bitcoin is just one of the cryptocurrencies out there. There are plenty of other altcoins and a lot of them have real use case already. The most obvious would be Ethereum which has lots of adoption already. Just check out their ecosystem and you will understand why Ethereum will not “drop to zero” anytime soon. How about Ripple and their XRP token? Banks and financial institutions are starting to use Ripple for transactions. And do I need to mention Cardano and their token ADA? Countries have signed on to start using their project and we are taking about countries! Sure the developed countries don’t seen to be interested but if countries start using their platform, more and more countries will join as they start seeing the benefits.

So yes, bear market will come and it seems to be happening for the past few weeks. Prices are down and it looks gloomy. And it is very gloomy. Just about days ago, we got another crash and BTC tested the 32k mark again. Although it has recovered a bit, the outlook for the coin seems to be still low. But don’t you find it very strange that with so many institutions and whales buying BTC, the price of BTC is still going down? Very strange indeed. Seems like it is always a bargain when such big investors come into play. Must be magic internet money? And why are whales and institutions buying BTC if Crypto Winter is coming soon? Makes no sense right? Feels like the market is being…..

Anyway I will let you dear readers decide whether it is the bear market currently. But if you feel that the bear market will soon arrive, it might be a good idea to consolidate your tokens and see which will be worth it to see and which will be better off if you hold on to them. I normally track by seeing which has made me some profit and which are still at a loss. Unless you need the funds, why sell them for a loss? That is why I always advise my readers never to leverage. It will led to panic selling and leave you at a loss. I have seen too many of such cases that I know it is a very common problem. There are some “retail” traders who believe that they are immune to panic selling and will make reasonable decisions when they are facing market disasters. Well…it is always possible but honestly I think it is pretty difficult. Hence we always see the huge swings, especially in the crypto market.

Categories
Crypto Mobile Crypto

GeoCash – Not too sure but it is live and on mainnet!

Well I am here again with yet another mobile “mining” app review. Seems a perfect fit for someone who likes tinkering with phones and who enjoys trading cryptocurrencies. Anyway this time around, it is an app called GeoCash. You can download the app from Google Playstore or the iOS app store. You can use my referral code [GREATESTHERO_O944NY] if you want to. What basically they do is to get anonymous “BIG data” from your mobile device. And as to what “BIG data” is – well it can be very hard to explain what exactly consist of BIG data but I am guessing nearly everything in the general scale. And companies and businesses around the world use these data to make decisions.

In return for providing them with this kind of data, GeoDB will provide you with GEO tokens. Yes basically you are selling your information to them. But you get something in return. Unlike Facebook or Google or those big companies who takes your data and don’t give you much in return, GeoDB gives you GEO tokens which can be then traded in exchanges for real fiat money. And again a reminder that they are indeed selling your information. So if you are someone who values privacy, then this app is certainly not for you. But honestly I don’t think there is anywhere on the Internet where you can hide from prying eyes anyway. Everyone is tracking you somehow.

And as their mainnet has been launched, all the GEO tokens are now tradeable in exchanges. The GEO tokens have a supply cap of 350 million. At time of writing, the price of GEO token is USD 0.2730. You can withdraw your GEO tokens but I believe you will need to stake a certain amount before you can do that. The reasoning is probably to stop users from suddenly dumping whole amounts of GEO tokens onto the market, thus tanking the price and causing problems for the community. And they have switched from Ethereum to Binance Smart Chain in verison 3.0. You will need some BNB before you can do any redemption. At the moment, I am not rushing to redeem the tokens. The project should be pretty stable, especially seeing that it was launched in 2019 and have survived for some time. And their community seems to be pretty active as well. I am guessing their biggest flaw is the lack of advertising. I only knew about them when I stumbled across a Youtube video talking about Pi Network alternatives. Even my beloved Youtube which is supposed to be a treasure trove of information, has very few videos on GeoCash or GeoDB.

If you are worried about their application, I am quite certain that it is “legit”. I am not seeing any advertisements or anything suspicious from the app. And as they are selling data to companies, that is where they actually make their money. If you read their white paper, it seems that the buying and selling of the data is supposed to be “open” which is good I supposed. But honestly I don’t know what “open” means in this case. But as long as they are making money from it and giving us a percentage of the returns, I don’t have any problem with that. And if you are interested in purchasing Big data, they have the ODIN – Open Data Interoperable Network.

The application feels very lightweight and responsive. So no issues in that department. Been using it for a few months and yes, it should be fine for most users. Yes there have been some delays but if you have been in the crypto sphere for some time, you know delays are inevitable. Someone should ask our dear Vitalik Buterin about Ethereum 2.0 and the years of delay this has been through. For me, as long as the project goes ahead and is stable, I am more than willing to wait. And what you have to do is to on your phone and let the application collect your data. From my experience, the usage of the collection does not require that much bandwidth or processing power. However one thing I notice is that the application sometimes will not give any rewards. I did face such issues even when I am travelling from place to place but it seems to resolved itself somehow. And the application is often updated so bugs should be resolved relatively quickly by their team.

I will keep on using this application for the near future and will update this post in a few months’ time. If you are looking for a crypto mining application that is fully functioning and their tokens tradable, then this is the application for you. A gentle reminder for readers NOT to pay for anything on such apps! Even if they are legit, it is usually not worth it. If you are interested in my review on the Eagle Network App, please check it out here.

Categories
Crypto Investments

Trying out the Shiba Inu/USDT pair liquidity pool

You are correct to say that Shiba Inu coin is a shitcoin. But lets be honest here, someone told me that this coin has risen 1,200,000% since its launch in August last year. And we know its only main purpose is a store of value “asset” if you even call it that. No, there is no smart contract or any other real case utility for this token. Just like DOGCOIN, this is just for speculation and from what is happening in the markets, it has done its job well. On CoinMarketCap, it is ranked #36 which is very impressive for such a new coin. The returns are pretty impressive.

They claim that the Shiba Inu coin is a 100% community run coin but I have no idea what that means. And I most certainly don’t understand what they mean by the Shiba Inu coin being an “improved” version of DOGECOIN. Pretty sure any coin out there will be an improved version of DOGECOIN given that it is just a direct clone of Litecoin and Luckycoin which themselves are also clones of Bitcoin. Basically the developers just copied the source code and made a few changes to it and called it DOGECOIN.

Anyway enough of my silly rant. The main reason for this post is to share my experience as an liquidity provider for the SHIBA/USDT pair in Binance pool. But as you can tell from the markets these days, the volatility is through the roof. Just a few days ago, SHIBA suddenly went up to 0.00000988 before slowly going down again to 0.00000739 at the time of writing. And volatility is bad for liquidity providers as when the price fluctuates, there will be higher impermanent loss. If you would like to read about impermanent loss, please take a look at my post on the risks of being a liquidity provider.

I had initially thought that being a liquidity provider for such a speculative coin will be profitable as this would mean that trading volume will be extremely high. But after about 2 weeks of depositing my SHIBA & USDT into the pool, I don’t think I even break even yet. And the impermanent loss is rather high as the price goes up and down. But I am guessing being a LP is all about long term. If you are willing to stay for the long term (and hope that the SHIBA INU coin doesn’t actually tank to 0), you might get some profit out of it. The SHIBA/USDT liquidity pool has (or had) one of the highest yields in the Binance pool. Seems to be dropping quite significantly these few days though. Does that mean there is reduced interest in this coin or that this is just the general sentiment in the crypto market these days? Trading is very subdued probably due to too much FUD and market manipulation. Volumes are down quite significantly as well.

I will update this post in a few more weeks time. I don’t really have that much data I can actually use. However at the moment, I would not recommend anyone to park their tokens into the SHIBA/USDT pool. And oh I am not a financial advisor and you should do your own research when doing investing.

Categories
Crypto Guides

Useful crypto channels on Youtube

One has to admit, Youtube is a great resource for anything crypto. I mean if you want to learn how to yield farm, there are tons of Youtube guides to show you exactly how to do it. If you want to learn how to get onto the Polygon network, there are tons of guides there as well. It is just such an amazing resource that most of the time I will simply just visit Youtube if I want to just learn more about crypto. However it is also important to understand that Youtube has lots of FOMO and FUD videos as well. And I mean a lot. Possibly more than half of the crypto channels are all into this FUD and FOMO. And how about those clickbaits? Guess everyone has an agenda eh?

Anyway I had taken the liberty of listing down some of my favourite Youtube channels for crypto “stuff”. Hopefully none of them have too much FUD or FOMO in them. I know that it is inevitable some form of FUD or FOMO will be present but these are probably the better ones I have seen. And as always readers should be careful when taking any sort of advise from Youtubers or even bloggers like me. Do your own research!

One of my favourite Crypto channels is Coin Bureau. The main reason why I like this channel is because it is not only informational, it is entertaining as well. There is very little FUD or FOMO in their videos and everything is rather straight to the point. I really appreciate videos that don’t dilly dally around just to add to the length of their videos. I normally switch to another video if I happen to come across such videos. Pisses me off. If you like informational videos, then I think you will definitely appreciate Coin Bureau offerings. They have weekly news, reviews on different cryptocurrencies, the technology behind such cryptos, how to invest properly and much more.

Jason Pizzino. Yes he is one of the “lesser” known crypto Youtubers but I feel that his videos are always very informational. And his views are more or less fair or at least fairer than more other Youtube channels out there. Furthermore, his insights into the crypto world is rather refreshing as well. Not to mention his knowledge about the crypto markets. Admittedly he has way less fluff and the video layout and design can be rather monotonous but if you want fluff and grand sweeping statements, can always go for Crypt Banter right? So if you want to learn more about crypto and how it truly works, his channel is the place to go. His videos includes market technical analysis as well. Plus he always look like someone has just bullied him a little too much.

Finematics. This is one fine channel if you just want to learn the technology behind the various cryptocurrencies and other projects in the crypto world. I mean this just gets straight to the point. No other nonsense or trying to get you to buy a certain coin or invest into a certain project. Their videos immediately start by “showing” you how the technology works with diagrams and charts, making it easy for common folk like us to understand. And I learnt a lot from this channel. If you are just interested in the tech behind all these crypto projects, this is the channel for you. It is kind of sad that they do not have the amount of subscribers like some other clickbait Youtube channels out there. So don’t go into crypto investing blind. This channel is highly recommended. I hope that you guys will support them.

Categories
Crypto Mobile Crypto

Eagle Network mining application- I am bullish?

Update: 9-Oct-2021: The value of the Eagle Token (EAN) is just USD 0.0003. At the moment, it is simply not worth it to do any sort of mining on the Eagle Network. I have been mining for over 6 months and the 7000 Eagle Tokens are worth just USD 2-3 dollars! Of course the price of EAN might rise in the future but looking at it right now, it kind of looks bad. But here is hoping that their Swap feature will help increase the value of their native token. Note that the project had actually been successful and the features they promised were being implemented. Just that the value of their tokens did not mean my expectations.

I have been mulling around with plenty of these mobile mining app and most of them I think will most likely not make it. Sure Pi Network should be one that will succeed but the rest of the batch seems to be destined to fail. Even Bee Network which should have some financial muscle behind the project seem to be lagging behind. There was no updates or even announcement for a month already. Feels like it is dead to me. And does not make me feel much confidence for these projects in the long term.

However I am rather confident with Eagle Network[referral code: U27G8MDM]. Sure when they first started, I felt that they were a bit “scammy” as they had those “boost” packs (or “powerup”) where you can pay money for extra mining boost rates. But they have since removed them for a fairer method of just mining and getting more users to join the network. Which in my opinion is a good thing. This way nobody can get just far ahead without much effort. If you want a “boost” you will need to get your friends or someone to join the network using your referral code. Yes this actually helps the network by letting more people know of the Eagle Network. Adoption of the network is key to the success of the network.

As for the reason why I am quite confident with Eagle Network? Well it is because of their frequent updates. Although at the time of writing, the Eagle Network own native blockchain has not be implemented, they have already started using the Binance Smart Chain for the time being. This means that from next month onwards, their temporarily blockchain will be available and functioning. You will be able to transfer Eagle tokens to your own wallet. And yes, the wallet should be up and running by next month. Hopefully. This is quite an impressive feat as the Eagle Network app has just been launched in February 2021. According to their recent posts, it seems that they have plans for their native blockchain to be ready by 2022. Again quite impressive if they are able to get it up by then. Their native blockchain will use “elevated proof of stake“. As to how it works or how it compares to the regular proof of stake, I have no idea. I tried searching for more information and it seems that there isn’t too much information on this type of blockchain technology. Well we will just need to see what they come up with. Maybe it is just another implementation of the regular proof of stake.

And it seems like you can start staking your Eagle tokens once the blockchain is up. I would certainly love to see how everything goes for this project and their staking rewards. Quite exciting. This is actually the first time I have seen a true mobile mining cryptocurrency project go “live” actually. Pi Network is still in its testnet phrase and there doesn’t seem to be that much updates either. Oh Eagle Network’s iOS application had currently finished its testing phase and should be available soon. So iOS users can start mining as well.

As for the people behind the project? Well we don’t have much information about them either. This is not always a bad thing but I would definitely like to see a few faces in charge of the project. At least give us the names! I am a bit skeptical when it comes to anonymous teams as I am in the firm believe that if you don’t plan to cheat, there is nothing to hide. But as I see this project getting updates more and more often, my confidence started growing. For those who are interested, Eagle Network is a rather typical “gamified” platform. This means that they are planning to create a gaming community with this network where players can download games via this application. As for the use of the Eagle token? I am not too sure. Perhaps to pay for the games or to use as rewards? At the moment they have a game called Eagle Crush and you can earn tokens from playing it.

The application interface is quite decent. Again this is something the Pi Network team should learn from. I honestly don’t understand why the Pi Network team don’t spend more time making their application slicker and more user friendly. The Eagle Mining Application is clean and have easy to understand layout. You don’t have to spend time trying to find where a particular function is located. Both Bee Network and the Eagle Network applications makes me want to come back to the app, even if it just to tab a button. Oh they have this “faucet” spin the wheel gimmick which can give you more tokens per day. Again, it really doesn’t take up a lot of your time. Just that sometimes it will show advertisements. However the best way to increase your mining rate is still to get your friends to join the network.

And finally for those who think that they can become rich overnight with this mining application, then I will be the bearer of bad news. You probably won’t be. Nobody knows how much the Eagle token will be worth. And if you ask me, once the project goes live and you can trade your Eagle tokens, it probably won’t be worth much either. And in order for it to increase in value, there must be use cases for the token. Without any use case and if the entire gaming platform behind it doesn’t work out, those tokens will be worthless too. But with that said, all the user needs to do is to tap a button everyday (to activate the mining for the next 24 hours) and nothing else. It should not take too much resource or bandwidth either, as the mining is virtual. I don’t mind too much as I am a phone freak myself. But bros, never pay for anything on such apps! Especially for “boost rates”.

You can check out their whitepaper here.

Categories
Crypto Investments

Understanding the difference between APY & APR (Defi)

Today’s topic is a bit short and boring. It is all about APY and APR. But these two terms are actually rather important especially if you are looking into generating passive income from your cryptos – be it lending or being a liquidity provider. You need to understand the difference between these two to get the most out of your earning interests.

First of all APR – it stands for Annual Percentage Rate. Basically this is what you get from interests or staking your tokens and it is the return. So for example you stake 100 ADA which has a APR of 10%. So in one year, you will get back 100 + 0.1*100 = 110 ADA. The 10 extra ADA is the return in staking. The same goes for interest. It is that simple. That is why is it also called simple interest.

Then for APYAnnual Percentage Yield meaning that the returns will include the compound interest. So it is like APR but includes the additional interest you get from those compound interest as well. So for example if you put into a DeFi lending platform 100 ADA and it has an APY of 10% and gives you interest daily. So on the first day, you will get 0.0273972 ADA and you increasing amount of ADA till the total of 110.51 in one year. So you get an extra of 10.51 ADA as compared to the APR. This means that you are reinvesting your interest rather than taking it out as profit.

But wait guys, do you know what that means? It means that an APR of 10% is actually better than a APY of 10%, even more so when we are talking about earning with compound interest which is paid daily.

There are a good number of ways for crypto investors to make money from yield farming. And some of the APYs are pretty crazy. Some even with 300-400% APY! However do understand that these yield farming do come with some risks. I would never recommend anyone going into these kind of high APY farming without first understand who it actually works and the risks involved. So please do your own research. And know the underlying fundamentals of the protocol behind the yield farming.

Some of the popular yield farming platforms are Curve Finance, Pancake Swap, Beefy Finance, Uniswap, Venus and many more. Again, I would like to remind readers to do your own research. And if something sounds just too good, you might want to give it a pass.

Categories
Crypto Investments Mining Mobile Crypto

Crypto income – my “passive” income strategies

A good advise I would like to share with everyone new to crypto investment or passive income generation is never to put all your eggs into one basket. Sure when things are good, everything is rosy and dandy. But then things does south and it often happens in the cryptosphere, that is when everyone panics and make very rash decisions. And that would very likely let to disaster. That is why I never put all my eggs into one basket. When I invest, I throw into a good number of different strategies. These range from old old crypto trading in the exchanges, putting cryptos into lending platforms, doing staking with my cryptos, small scale mining in pools, mobile “mining” and even joining cloud mining groups. I even put a small amount into those unknown coins in the hopes that it will one day explode for me to cash out.

For those who like to YOLO, I would recommend you to make sure you have a backup plan. YOLO on the crypto world is rather dangerous to say the least. You will never know if one day Elon Musk will start attacking your DOGECOIN which you have put your life savings into or that one day some government institution decided that BTC is a threaten to their banking monopoly and decided to ban Bitcoin mining as an excuse. These things do happen on a regular basis.

Here are some of the my passive income strategies.

  1. Good old crypto trading – I put a portion of my salary every month into buying crypto in the hopes that they will rise in price. In most cases I will hold them for the long term. Note that unless it is currently a bear market, “long term” would mean a few months at most. Yes I have a few tokens which I am very bullish about their future but for most cases I will only hold for a few months at most. However if you are a good trader and would be willing to spend a considerable amount of time looking at charts, buying and selling crypto could possible make you some consistent money. But for me, I think it is still a bit too much work, especially for a small time trader like myself. I usually trade on Binance. You can follow my step by step guide on how to buy your first crypto on Binance here.
  2. Staking – As I mentioned above, there are a few tokens which I am extremely bullish about. Some of which we are able to stake the tokens. Basically this means that you help to secure the network with the staked tokens and in return more tokens will be rewarded to you. These usually have a “lockup” period where the tokens cannot be used and in the end of the lockup period, you will get tokens back. I currently am staking ADA and CAKE tokens. Their returns are quite good as well.
  3. Lending platforms – I have a few tokens in various “centralized” lending platforms – namely Nexo and Celsius[referral link included]. These tokens will generate me passive income as interest rates. The tokens I deposit into lending platforms are then used to lend to borrowers who pay interest rates and part of which is given to the person who deposit into the platform. However note that if you are more into trading, it might not be a good idea to keep on transferred tokens from one wallet to another as there are transfer fees involved. And some transfers take a long time. However some of the stablecoin interest rates are as high as 12% APY. And even other altcoins, their interest rates are way better than if you keep funds in most banks. Yes, I do keep my tokens on two different lending platforms – Nexo and Celsius. It is also a good idea to compare the different rates between them. Note that there are also decentralized DeFi platforms like AAVE on which to earn interest on. Some of which are very interesting.
  4. Mining – For me, mining forms a pretty small portion of generating passive income. This is because I have only like 3 rigs to do mining. However they are still sources of passive income. I am estimating about USD4-5 per day. That works out to be about USD 150 per month. I mean it is certainly not the greatest but at least I am putting my computer to work right? Check out my blog post on my rig mining adventures here. I usually mine Ethereum on Nicehash and Monero.
  5. Cloud mining – These are perhaps better described as buying hashpower or buying hashrates. So you pay for the hashrate while the provider will do the mining for you. The equipment, space and electricity is all handled by the provider. Yes I am not making like 100% returns in profits but at least my money is not sitting ideal in the bank with 0.3% interest rate. Risk of course includes the provider shutting down or the country in which the provider is operating in decides to ban mining (like China).
  6. Liquity Provider – This is a higher risk investment to get passive income. What you do is add two tokens into a liquidity pool and the tokens are used for trading in decentralized exchanges like UNISWAP or PANCAKE SWAP. In return you get a cut of the exchange fees. However there is a big risk called impermanent loss and can be quite substantial if there are major price swings when the liquidity provider takes out his/her tokens from the pool. So please be careful when joining such a pool. Please have a look at my blog on being a liquidity provider here.
  7. Mobile Crypto Mining – Yes those little apps on the phone which users have to tap like once per day to get tokens. I am not very bullish on their prospects but if a least one or two of such projects were to succeed, surely there will be some returns. Just spend like 5 seconds of your time daily to tap and hope one fine day the tokens will be worth something. The more popular of such applications are the Pi Network and Bee Network.

Before we go, I need to reminder readers that I am no financial advisors. This blog is about information and is meant to educate readers to what is happening in the crypto world. You should always do your own research!