The Traditional Altcoin Strategy
When talking alts, the most common thought that comes to mind is that of massive gains, as well as massive losses. The most common strategy is to buy alts at their lows. Once sentiment shifts positive, to then in turn to sell at the peak. This is the strategy that receives the most attention, largely due to the significant gains that are generally the case when it comes to solid projects. This is a great strategy that I myself utilize but it is only one of many. There are other ways to profit from altcoins and I will be discussing some of these that I personally use.
If you are one of my regular readers, you will know that ultimately my strategy is to build my own Crypto economy. This means that I need to create and have constant flows of income. Trading is of a binary nature and only profits you when you are on the correct side of the trend. This is also subject to the market and leaves you at the mercy of others, which is not something I find attractive. This is why I have begun to downscale significantly when it comes to trading. The five main strategies I utilize are as follows:
Trading with or without leverage.
Top tier staking projects with high yields.
Lending of Crypto assets.
Liquidity mining and farming.
Passive Endeavors
Traditional Trading
Trading with or without leverage can be very profitable and can often provide an ongoing source of meaningful income. I remember trading LINK from a dollar or 2 with leverage, over quite an extended time. I executed multiple trades all the way up until approximately $11, at which point I decided to retire that trade.
Trading can be a great way to utilize alts for profit but it can also see times of stagnation and even reversal. This is why I am downscaling my trading endeavors and focusing on other alternatives. However, when I do trade I make use of Bybit and FTX for leverage trading. When it comes to spot trading I tend to favor Binance for most of my executions.
Trading can also be fairly stressful, especially if you are trading with leverage, as possible liquidations are always potentially looming. I do however have a strategy that makes this an unlikely scenario and protects me from liquidations. Even though I may avoid a liquidation, I may still be in an unrealized loss for a significant time. This means that my capital is now no longer providing income and this is something I am trying to avoid as much as possible. Hence my decision to keep trading to a minimal endeavor.
Staking Protocols
Staking is something that I was previously convinced was going to become a predominant force in the Crypto space. This was something that I realized back in 2018 and did quite a lot of experimentation with high reward staking coins. Today, I tend to look at solid projects with great staking rewards, such as BAND, ZIL and KSM. When it comes to staking, I prefer to stake in my own wallet. This is where Atomic Wallet has been key and a great place to get your coins earning yields.
MyCointainer and StakeCube are other third party services I also utilize from time to time but with rather smaller amounts. To be honest, Atomic Wallet is by far my favorite option.
Lending/Earning Interest
Lending is another avenue that I have explored and currently make use of for altcoin and BTC yields. However, this is not an avenue that I dedicate much allocation to as the gains are very small. This is generally more for partial investments of BTC and ETH hodl positions, so as to secure some type of gains. Taking into account what banks are currently offering, this is a pretty decent return but when you consider what DeFi is currently making possible it pales in comparison.
Lending is pretty much Crypto's answer to traditional banking and when it comes to third party services such as these, I tend to favor the big guns who have more to lose in a scenario where things could possibly go wrong. This is why I tend to gravitate towards BlockFi and Nexo. Both companies have some serious backing, as well as insurance of funds in their custody. Profits here are simply left to compound. I make use of DeFi to gather more capital for new additions to my mechanism portfolio. Lending and traditional staking are probably the safer of the options that I make mention of in this post.
Liquidity Liquidity Liquidity
Healthy markets are liquid markets and this is where liquidity mining is providing unparalleled opportunities within the Crypto space. This has been a really exciting chapter for me and I am always on the lookout for great new opportunities. Bankroll has been a consistent performer and I am currently quite excited about the FARM addition to Publish0x's tipping tokens. There is no doubt that I will be locking up my FARM once I accumulate a considerable amount worthy of the gas fee.
This is a very important space for me currently and I am very interested in sourcing out the best projects and opportunities available in the market. Crypto is all about getting involved in as many earning opportunities as possible. Considering that many opportunities are actually passive in nature, this makes it a lot less burdensome to be involved in a number different projects.
Set And Forget
Then I have the passive channels that allow me to setup a system that requires zero maintenance and oversight. These are opportunities such as BetFury, where the BFG tokens have already been mined and are now producing daily dividends and income. The addition of ETH dividends has proved to be a really good move, as ETH is primed to see significant gains in the near future. My dividends are primarily BTC and ETH, though there are small amounts of TRX, BTT and USDT that I earn as well.
Income from Betfury is generally kept in BTC and ETH, as these are my 2 main hodl coins. I tend to utilize smaller earnings as new capital to either increase existing systems or create new ones. This is a very basic overview of how I utilize altcoins to create and generate lasting income. As always, this is not investment advice. Please do your own research, as any services mentioned are simply those that I have made use of and found to be beneficial to me. I do not endorse any product or service.
I am sure there are many of you out there on a similar path. Enjoy it because if you stay with it, you will see the fruits in time!