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!