Better Early Than Too Late
I have always advocated a strict investment strategy, especially in extreme conditions. One can and will always find a reason to abandon a specific strategy for another, unless a very disciplined approach is taken. I maintain my stance on holding the majority of my Crypto assets through the next bear market, apart from a certain allocation which I have set aside as long-term trades, which I intend to cash out for stablecoins. Recently I made the decision to start accumulating stablecoins. What needs to be understood here is that I have not sold my BTC or alts to gain these stablecoins. I have utilized trading and DeFi profits in order to purchase stablecoins. In so doing, I have not reduced my exposure to further potential upside. However, I have simultaneously reduced my risk to potential downside.
I am working towards holding an equal 50/50 allocation between Crypto assets and stablecoins. Many may wonder why I would make such a significant allocation towards stablecoins and the answer is actually rather obvious when you begin to think about. I recently endured a period of personal health issues, during which time I did not write or create any content. I did a lot of thinking during this time, along with the day to day management of my portfolio/economy and have resurfaced with greater clarity.
One can often get caught up in maintaining a strategy that beneficial new additions can be overlooked. I believe in fine tuning strategies, as well as adding new ones, while simultaneously maintaining existing strategies.
What Is Driving My Fascination With Stablecoins?
Firstly, another swan event may incur extremely negative consequences for all markets, including the Crypto market. Secondly, government interference cannot actually stop BTC but it can deal it a significant blow. Stablecoins will not waver in such conditions and have an even more attractive aspect that many are currently overlooking. This is simply, DeFi!
Let me be clear, if it were not for DeFi, I would not be considering stablecoins at all. I am also not some guy just trying to make as much profit as I can in a bull market. I have been involved in Crypto for 6 to 7 years and retired early thanks to this market. I rely on my Crypto economy for a living, unlike most who are merely in search of stellar gains. If things go wrong for them they still have a day job and suffer minor complications. I sold my business in late 2019 just before covid hit in order to go all in on Crypto. For me, it is imperative that I maintain consistent earnings, rather than explosive earnings. Truth be told, I aim for both but the majority of my exposure is linked to the stability of earnings.
I see the marriage of stablecoins and DeFi as the perfect match! I get to hedge and offset the risk of a market crash, while at the same time earning significant gains from my stablecoin holdings. Allocation is obviously spread far and wide and risk is managed as wisely as possible.
This is obviously a strategy tailored to my own personal situation and may not be viable or attractive to everyone. Please do not consider this as financial advice in any way but rather informative entertainment.
