What have I been up to recently? I was rather busy at work and only have some time to do some scalping for Crypto. Of course I also have my stocks and equities and ETF which usually have minimal trading/buying/selling.
For Crypto, I bought in the dip recently and then just sold all this morning for some profits. Pictures speak thousand words.
Something in the market is not correct. As mentioned in this post earlier, I maintain my view that the 2nd half of 2022 will be bad, it might become even worse in 2023. I am still keep over 50-60% cash of my entire portfolios.
Hence, I am only doing short term trading/scalping or whatever you called it with the funds that that I have earmarked for trading. Quite likely I will either short crypto such as ETH (merge coming, usually is sell on news + general macro of market are not good) OR wait for further dip before entering again to trade. Let me observe how the market sentiment goes first – for those who are in Crypto long ago, Crypto price are usually narrative driven, until one day it become more mainstream like stocks/equities.
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I believe that many people has heard this story before. I thought I should share this again to remind myself and reader.
An American investment banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellowfin tuna.
The American complimented the Mexican on the quality of his fish and asked how long it took to catch them.
The Mexican replied, “only a little while.”
The American then asked why didn’t he stay out longer and catch more fish?
The Mexican said he had enough to support his family’s immediate needs.
The American then asked, “but what do you do with the rest of your time?”
The Mexican fisherman said, “I sleep late, fish a little, play with my children, take siestas with my wife, Maria, and stroll into the village each evening where I sip wine and play guitar with my amigos. I have a full and busy life.”
The American scoffed.
“I have an MBA from Harvard, and can help you,” he said. “You should spend more time fishing, and with the proceeds, buy a bigger boat. With the proceeds from the bigger boat, you could buy several boats, and eventually, you would have a fleet of fishing boats.”
“Instead of selling your catch to a middle-man, you could sell directly to the processor, eventually opening up your own cannery. You could control the product, processing, and distribution,” the American continued.
“Of course, you would need to leave this small coastal fishing village and move to Mexico City, then Los Angeles, and eventually to New York City, where you will run your expanding enterprise,” the investment banker concluded.
The Mexican fisherman asked, “But, how long will this all take?”
To which the American replied, “Oh, 15 to 20 years or so.”
“But what then?” asked the Mexican.
The American laughed and said, “That’s the best part. When the time is right, you would announce an IPO, and sell your company stock to the public and become very rich. You would make millions!”
“Millions – then what?” asked the fisherman.
The American said, “Then you could retire. Move to a small coastal fishing village where you could sleep late, fish a little, play with your kids, take siestas with your wife, and stroll to the village in the evenings where you could sip wine and play guitar with your amigos.”
Original author unknown
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I believe many people has read and learn this book from their school, corporate life etc.
For those unfamiliar with this book, these are the 7 habits!
Be proactive. Take responsibility for your own life. Take the initiative and don’t simply accept what you’re given.
Begin with the end in mind. Have a plan for your life. Know where you want to go — and why.
Put first things first. Sort out your priorities (which is much easier to do when you have an end in mind). Focus your attention on the things that are urgent and important. Covey’s “big rocks” metaphor comes from this section.
Think win-win. When possible, seek mutually beneficial solutions to problems. Don’t be adversarial. Help others achieve their aims as you achieve yours.
Seek first to undertand, then to be understood. Don’t be in a rush to be right. Listen to what others are saying. Empathy.
Synergize. Find ways to work with others in order to achieve mutual aims and accomplish things that you couldn’t do alone.
Sharpen the saw. Make time for personal renewal. Keep your lifestyle balanced. Pursue self-improvement.
Let us do the CRYPTO version – The 7 habits of highly effective crypto investor!
Be proactive. Take responsibility for your own Crypto. Understand that are Crypto Wallets and secure your coins with ledger (see Guide – Managing your Crypto Wallets). In the next worse scenario, put some in “trusted” CEX for trading.
Put first things first. Sort out your priorities of Crypto investing (which is much easier to do when you have an end in mind). Learn to do risk management. Focus your attention on the coins that are urgent and important. For some of many of us, it will be the “blue chips”, ETH BTC. For some, it will be small-cap coins with potential to 100x etc. Plan and think what you can do in bear market.
Think win-win. When possible, seek mutually beneficial solutions to Crypto problems. Don’t be adversarial. Help others achieve their aims as you achieve yours. Learn from one another in Crypto – be it blog or twitter or even your friends. Share knowledge and earn together!
Seek first to undertand, then to be understood. Don’t be in a rush to be right. Listen to what others are saying. Most people are blinded by own research, background knowledge and only believe in oneself. Listen to others. If you listen, you might avoid the recent tragedy of UST/LUNA (example, you listen to Algod) or Wonderland.
Synergize. Find ways to work with others in order to achieve mutual aims and accomplish things that you couldn’t do alone. Crypto is decentralized (hopefully in future it will be even more). Learn and build web 3.0 with other people! Create! The potential is unlimited! (See the List of Crypto Sites that I have complied).
Sharpen the saw. Make time for personal research. Spend time to read and learn. Don’t limit yourself to what you know. Please find what you don’t know and what you wish to find out. Learn from others and keep open mind – It can be Metaphysics or anything! Crypto is 24 hours. Hence, meanwhile, please keep your lifestyle balanced – exercise, Careyourpresent, don’t stare at the up/down of the prices daily.
Hope this will be useful to you!
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Similar to traditional investors, DeFI/Crypto investors love the staking yields, attractive APR/APY etc! Many people are always having the of wet dream of FIRE (Financial Freedomand Retire Early)! One of the main way that everyone know is passive income > expenses. But how do you get passive income?
The most common is dividend income. Put 1 million of your capital at 6% yield in dividend stock would generate $60k per year or $5k per month. If your expenses is lower than $5k per month, you can quit rat race! Then you can FIRE!
For Crypto in 2021, this is even sexier. I am sure that if you are actively in the Crypto world in 2021, there are tons of protocol that advertise xxx% APR/APY or even xxxx% APR/APY? WOW! Great! We can use this DeFI yield to achieve Financial Freedom in Crypto!
How sexy would it be if you heard that this particular DeFi Protocol is generating 300% APR? Would you put your money in this DeFi site? By putting your money in this DeFI protocol, wow, you could FIRE EASILY! How does it work?
Let’s put numbers into perspective!
Created by yours truely Careyourpresent
I am sure many of the investors/traders, wet dreamers of FIRE, Financial Freedom sure have planned and drafted the table above. Then they would look at the table above daily, making wet dreams daily, dreaming of achieving their goals. In fact, the Crypto narrative of high APY/APR make this dream come true faster!
Look at the table above. Wow! For a portfolio of 1 millions dollars, you can generate $127K per year, $10k per month, $2.5K per week, $350 per day! Yes! Financial Freedom! The best thing is for Crypto you only need to put in 3% of your 1 million capital, you can easily generate $90k per year, $7500 per month!
That mean you are using 3% of your capital to earn 71% of your passive income ($90K out of $120K)! Higher Risk gives higher return (in fact, very very high return! Together with Stablecoin yield of 20% (hehe, guess many people should know why I mentioned 20% hehe…UST, in case your don’t know), I can easily FIRE! HUAT AH!
The best part is this is only 3% of your 1 million capital, even if DeFi is higher risk, so what?
In fact, I am only risking 5% of my portfolio to get majority of my yield such that my passive income > expenses! Can quit race race and retire early!
Ok, back to real life, what happen in the end? I guess many would have know now! The 5% of your portfolio is gone! In absolute term, it is $50k. OUCH! That’s at least few months of my monthly salary! It hurt! For some who got greedy after keep getting “nice yield” after putting in small amount initially, then slowly slowly get greedy and put in larger part of your capital (like 20%or more etc), you lose much more of your hard earned money! Then Crypto investor would say Crypto Winter is here, give up on Crypto, better go back to TradiFi. Sound familar?
(In case anyone don’t understand the Crypto terminologies used above, you can refer to this post).
The above narrative are very common in 2021. Now, there is a new narrative in CT which I would like to bring to your attention.
Created by yours truely Careyourpresent
What is real yield and what does it mean? You can see many CT talking about it. Let me give a summary of this.
Real Yield is defined as yield derived from the generation of “real” revenue (like Token Swaps, AMM trading fees etc), as opposed to revenue derived from the inflationary token emissions (as in 2021).
If we time travel back to 2021, in order to acquire more users, many of the DeFi protocols incentivize liquidity/attract more TVL by offering nice attractive high XXX% or YYYY% APR/APY. I am sure that you have heard of this last year, if I provide ETH – USDC in a liquidity pool, I get this protocl DeFi token at 300% APR/APY. WOW! Passive income!
The objective by these protocols is to buy time to create more sustainable revenue-generating products (of course some evil protocol use YOU as EXIT Liquidity). Eventually, as (1) the yield comes from inflationary tokens which has no real value/revenue generated (2) more users will rotate to the next DeFi once the emission incentives from the xx protocol tokens start to decrease, the price of the token of the DeFi protocol collapse. Retail interest and greed was at an all time high in 2021. Of course there are smart sharks that still wins by farming the yield and run after know the tokens will collapse soon (Refer to this post to see how monitor sharks in Crypto).
Do you still remember, Wonderland? Time? Luna UST? Cronos, DeFI kingdoms Jewel? Mad Meerkat Finance? Etc. They marketed and entice DeFi users with high APR/APY. People FOMO goes in and whack with their hard earned money, in the end when the tides goes naked, everyone become poor. (See 80000% APY! Wow let’s ape!)
Back to current time, the narrative now is to use DeFI protocal/Dexs with Real Yield instead of “fake” yield in 2021. More real revenue = more yield paid to users. The term “Real Yield” become the main story line now. How long this narrative will substain? Your guess is as good ad mine.
For an example on real yield currently, you can refer to my post on the recent GMX. People see real revenue generated from the GMX Dex. GLP Arbitrium even give around 20% APR to users as it accrues 70% of the platform’s generated fees. These fees are also paid in your favorite ETH (this is enticing to many people especially with the upcoming ETH merge). Of course there are other protocols who are real yield generating too, but I won’t share more examples in this post.
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Reminder!: If you still have any crypto in CEX like Gemini, KuCoin, Crypto.com, FTX etc or any lending platform, please withdraw them into your own hardware wallet (e.g. Metamask), ideally with Ledger.
NOT your keys, NOT your coins!
Please do not wait until the CEX/lending platforms starts to make announcement like Hodlnaut today. It will be too late!
Another lending platform – Hodlnaut suddenly gone today.
P.S. I already took out all my funds from Hodlnaut few months ago when news such as Celsius, 3AC dying… such things are usually contagious. 2nd half of the year will be worse.
Soulbound tokens (SBT) were first mentioned in his website, follow by in a paper published by Vitalik Buterin and others on May 11th, 2022. In the paper, Buterin et al suggest that even until now Web3 focused on “transferable and financialized assets, rather than encoding social relationships of trust”.
Web3 today centers around expressing transferable, financialized assets, rather than encoding social relationships of trust. Yet many core economic activities—such as uncollateralized lending and building personal brands—are built on persistent, non-transferable relationships. In this paper, we illustrate how non-transferable “soulbound” tokens (SBTs) representing the commitments, credentials, and affiliations of “Souls” can encode the trust networks of the real economy to establish provenance and reputation. More importantly, SBTs enable other applications of increasing ambition, such as community wallet recovery, sybil-resistant governance, mechanisms for decentralization, and novel markets with decomposable, shared rights. We call this richer, pluralistic ecosystem “Decentralized Society” (DeSoc)—a co-determined sociality, where Souls and communities come together bottom-up, as emergent properties of each other to co-create plural network goods and intelligences, at a range of scales. Key to this sociality is decomposable property rights and enhanced governance mechanisms—such as quadratic funding discounted by correlation scores—that reward trust and cooperation while protecting networks from capture, extraction, and domination. With such augmented sociality, web3 can eschew today’s hyper-financialization in favor of a more transformative, pluralist future of increasing returns across social distance.
What are Soulbound Tokens (SBT)?
In short, Soulbound Tokens are publicly visible, non-transferable tokens, which can be issued to wallets that are called Souls. Once issued, the tokens are bound to the “Soul”, thus enabling personal identification that was not possible in the past only with NFTs.
In summary, SBTs are NFTs that can’t be transferred once received. You will hold it in a Soul wallet forever.
This will be a method for defining “social identity” in Web 3.0 and De-Fi. SBT will be you in future. So Cool!
What would SBT be used for?
There are several use cases for Soulbound tokens (or non-transferable NFTs), likely there will be even more cases in future.
Certification and Documentation – example your University Degree, your driving license etc
Proof of Attendance and Presence – Verify applicants/attendees of an event
Facilitate Lending and Borrowing – Your credit report can be represented using SBTs. This will offer lenders a borrower’s complete credit profile.
Voting – replace your national identity during voting. So cool!
Wallet Recovery – Buterin introduced the idea of a social recovery wallet in a January 2021 report
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