Opportunity Exists In All Market Conditions
They say that every cloud has a silver lining and that could not be more true than in the world of Crypto! Some of the most devastating periods in Crypto history have later turned out to be some of the most perfect opportunities. Hindsight always reveals the reality that fear, uncertainty and desperation so often cloud by triggering emotions that are not conducive to investing and trading. Let's be honest, investing will always be a risk and the current economic climate of the world serves only to increase that risk, rather than diminish it.
Current uncertainty in the market has caused me to adopt a more aggressive approach to a strategy I already practice and that is holding coins that I can either farm, stake or earn income in alternative ways other than price appreciation.
There is at least the solace of some return despite negative prices and in some instances, even compensating for the loss in value. Perhaps traders are becoming weary, apart from the truly experienced ones who manage to correctly interpret the market most of the time.
The Rise Of Liquidity Pools & Farming
When you look at how farming has taken off in the last few months, the timing could not have been better, except perhaps for 2018. If it were not for DeFi and the farming movement, Crypto stood a very real chance of stagnating. Look at how Tron's swift move into DeFi and farming with SUN has breathed new life into the project and price.
Bankroll is another very recent example, where the token had begun to stagnate and with the inclusion of farming has surged to all time highs. A token that was $0.01 in August briefly touched a dollar yesterday, that's a 100X right there! This has gone largely unnoticed by a large number of people in the space but that doesn't matter to those who have profited by the move.
What remains to be seen is longevity, as that will be the true test. There is also the possibility of innovation within the space that can create and encourage longevity. It seems as if preparing for the worst is becoming a larger allocation of many portfolios. Is it possible that by being forced to find new ways of generating returns, we are creating an entire shift that will leave speculating in the dust?
Will trading as we know it be left for the dinosaurs in the traditional markets and could Crypto trading become more centered around swaps, farming and staking? An entire shift of wealth creation in an entirely new economy! These are some "pretty out there" thoughts that may not seem so out there in years to come.
