Crypto Winter: Weathering the Storm

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Written by

beastion

I love cryptocurrency, novels, technology and pretty much anything that caught my interest... [more]

1 year ago

In community: Cryptocurrency and Blockchain(7b7f)

Topics: Freewrite, Writing, Thoughts, BCH, Motivation, ...

How I’m weathering the Storm

It’s been many months, and the crypto space is still experiencing a long crypto winter. For many of us, seeing our portfolio constantly in the red must be very depressing. I know, I’m feeling it too. It’s like 2018 again.

For those who don’t know or remember Bitcoin reached a low of $3,100 in December 2018. Am I saying that Bitcoin would fall that low this year? No, most likely not. But there’s a possibility that Bitcoin would continue to see red till next year. Some experts even predicted that it might fall to or below $10,000. But since they’re nothing but predictions, it’s okay to take them with a grain of salt.

That being said, the continued crypto-winter made me realize that I shouldn’t just keep holding my cryptos and wait till the prices go up. After all, bills still needed to be paid, moreover, it would be better to make my cryptos work for me instead of just letting them accumulate virtual dust.

Indeed, instead of just waiting for the prices of cryptos to go up, I decided to exchange my BTC and BCH for other tokens like SWAP.HIVE, DEC, and SPS, and put them in liquidity pools in TribalDex thus allowing me to earn passive income.

Putting my tokens on liquidity pools allow me to be rewarded a certain amount of different tokens available on TribalDex every day. But considering that the amounts of rewarded tokens were minuscule, I considered it more of a bonus than anything else. No, the real reward is in Splinterlands.

By pairing DEC and SPS, and/or SWAP.HIVE and SPS in the liquidity pool, I could earn and collect SPS every day through Splinterlands’ Pool. The more investment one put in, the more SPS one can earn. There’s one caveat though; to earn from the (Splinterlands’) Pool, one must be a Splinterlands player. That is to say, one must first purchase the Summoner’s Spellbook. Not an issue for me since I’ve been playing Splinterlands for more than a year now.

Besides, investing in liquidity pools, I’m also investing in other assets like for example; cheap Splinterlands cards. That was to say, I’ve been buying Chaos Legion and Riftwatcher cards, the newest edition of cards. Since I’m not a big spender; I can only purchase cheap and strategic cards that can make my deck a little stronger.

Purchasing cards not only increases my deck’s Collection Power which will allow me to play in higher leagues, but it will also increase my winning rates during Ranked Battles and Brawls, thus allowing me to earn more SPS. Also, cards can be rented and sold for DEC, another Splinterlands token. For a Splinterlands player like myself, I think the investments that I recently made were sound.

Of course, a non-Splinterlands player won’t care much about the investment that I made but for current players, as well as potential new players, investing in cards and the liquidity pool are another way of earning in the game besides battling and winning against other players.

That being said, I’m not telling anyone to blindly invest in Splinterlands or in any liquidity pool for that matter. No, I’m just telling everyone how I used my cryptos to weather the storm (crypto-winter). Moreover, just like any investment, investing in NFTs (Splinterlands’ cards) and liquidity pools have its risks.

For NFTs, the risk of an asset depreciating will always be present; for liquidity pools, one should consider impermanent loss; that is to say when one’s share in a liquidity pool is worth less than the present value of one’s deposit due to changes in the prices of tokens.

Although impermanent loss is only temporary, it’s difficult to predict when the prices of a token would recover, especially during a bear market. As such, I suggest investing only in liquidity pools if one is willing to wait or is in it for the long haul. What I’m trying to say is that do your research and be prepared for the risks if you decided to invest in NFTs or liquidity pools like what I did.

Anyway, that’s all I have for now. I’m aware that this article is short but I’m hoping that you’re still able to find value in it. Goodbye for now. Thank you for your time and till next time.