A Downturn In The Alt Market Can Be A Good Thing
The recent slump in the altcoin market has gone on a little longer than most anticipated but the market is starting to show the early signs of new life once again. I have been working a lot with DeFi smart contracts and providing liquidity over the past few months but the current bargains in the market have caused me to look a little closer at some good staking options once again. This is when and where you want to start picking up alts that are reasonably established, stable and offer decent staking rewards.
Buying a staking coin at the bottom of a medium-term or even short-term cycle has tremendous benefits when it comes to creating Passive Crypto Income. Obviously buying at the bottom of a long-term cycle is 1st prize but that is not always an option, as that only happens every few years. Band is one such project that is starting to look really attractive, especially as you can earn 17% per annum by staking via the Atomic Wallet. It was only months ago that Band topped out at over $17 and a return to this price will produce some serious rewards to current buyers.
This is why I have shifted a Band trade into a long-term staking position. Adding to this position at current levels will bring down my average and so relatively increase my percentage staking reward.
Zilliqa is a recent addition to the Atomic Wallet staking portfolio and is actually a very timeous addition. There was quite a lot of hype when ZIL first hit the scene but unfortunately that was pretty much in the heart of the bear market and subsequently lost attention, as did many others. With all the hype around ETH 2.0 and recent rallies in the ETH price it is hard to imagine that just a couple of years ago, ETH was also in a similar boat. The once loved darling was getting dumped and not attracting many investors or positive sentiment due to an overwhelming bear market.
Sentiment appears to be shifting for Zilliqa and at a little over $0.02, with a 21% staking reward via Atomic, is looking pretty good. Zilliqa is ultimately a scalable platform for developers and enterprises who are looking to build dapps. The ecosystem is growing and Zilliqa is once again being heard on the lips of Crypto enthusiasts.
My Own Personal Staking Rule
Apart from lending out BTC and ETH, I choose not to stake any coin that offers a yield lower than 10% per annum. This can sometimes be forgiven, provided the project is pretty decent and is above 8% or 9%. I don't consider projects below this level for any reason, unless of course it is a project that I really want to accumulate and also just so happens to be a staking coin. This dynamic will most likely increase as there is a strong shift towards POS.
So I have been doing some shifting and reorganizing in order to take advantage of well priced staking alts. Bitcoin has just surpassed 17K and alts are making very small moves apart from coins such as Litecoin, which I mentioned would move significantly with Bitcoin despite what people think in regards to being "outdated" etc. Most Top 10 alts are up approximately 3% to 5% over a 7 day period, while Litecoin is up 22% in the same time frame.
There are a number of really good staking opportunities that are still very much on sale, when you take into account recent highs. This is not investment advice but merely my opinion regarding an opportunity I believe the market is currently offering.
All the best, as you continue to create and build your own Passive Crypto Income Economy!
What do you think of xrp?