Investing in cryptocurrency, this is the easiest and most effective way


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Two days ago, the well-known blogger He Taiji posted a message on Weibo:

“The simplest and most effective method for lazy investment”:

1. Long-term holding of Bitcoin and Ethereum

2. Invest in DeFi main track leading coin (DeFi blue chip stock)

3. Stablecoin mining​​

Although the content of this Weibo is short, I basically agree with it. It is also a concept that I have repeatedly emphasized and instilled with you over the past few years. Today I will share this content with you.

1. “Long-term holding of Bitcoin and Ethereum”.

The scheduled investment of Bitcoin and Ethereum were bad words in my article. I have been yelling for almost two years, from 4,000 dollars in Bitcoin to 10,000 dollars in Bitcoin when I wrote the article.

Bitcoin has now surpassed 18,000 US dollars, exceeding the historical peak of 19,162 US dollars is just around the corner. Ethereum has also exceeded $500, and I believe that more than $1,000 will be the next target price to be achieved.

The current trends of Bitcoin and Ethereum have witnessed the correctness of the strategy we have been adhering to. Friends who have insisted on fixed investment like us in the past two years have also seen good gains.

If the fundamentals of Bitcoin and Ethereum do not undergo major changes, investing in and holding them seems to me to be a strategy for all digital currency investors to stick to forever. They will be the ballast in our portfolio. .

In the imaginable and upcoming wave of market, Bitcoin and Ethereum may reach new highs. At that time, I will sell most of the two coins in my hand to make a profit, but still keep a small portion. In the bear market after the bull market, I will once again practice the strategy of the past two years: restart fixed investment.

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The bear market fixed investment and bull market cashing out of Bitcoin and Ethereum will be my way of practicing forever.

2. “Invest in DeFi main track leading coin (DeFi blue chip stock)”.

DeFi is also a track that I have always indicated in my articles. DeFi is also divided into different ecosystems. I am most optimistic about DeFi in the Ethereum ecosystem, and I also invest in DeFi in the Ethereum ecosystem.

The reason why I am so optimistic about DeFi is because I believe that DeFi will become the infrastructure in the Ethereum ecosystem. They are like the cornerstone of a building. The value projects in the Ethereum DeFi ecosystem will be the bottom layer on which various new applications in the future depend, and will also capture the value of new applications in the future, which will continuously create value for investors.

The leading projects in the DeFi field will also, like Ethereum, gradually widen the gap with their competitors, and eventually stand out from the crowd and occupy a monopoly position in the entire track.

Regarding the leading coins on the DeFi track, I gave a more detailed introduction in the article “Which high-quality DeFi projects are worth investing in” on November 16.

These top DeFi projects, I will also sell them at close to high prices in the upcoming market, and buy them back in the subsequent bear market. They will also become my long-term holding and attention goals like Bitcoin and Ethereum.

3. “Stable currency mining”.

Mining is an emerging concept and investment method in this round of DeFi tide. The most important thing about this type of mining is to provide liquidity. The so-called provision of liquidity is to mortgage two tokens into the liquidity pool at a certain ratio at the same time. However, the biggest problem with mining with liquidity is “impermanence loss”, which means that investors who provide liquidity will lose part of their original tokens due to market volatility.

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There is currently no 100% solution to this loss. However, in the liquidity mining of different tokens, if two stablecoins of the same type are provided, this kind of “impermanence loss” is very small and almost negligible.

Therefore, providing stable coins to participate in liquidity mining is a better mining method.

But I have certain reservations about this, mainly because the current mining income is already very low, and the Ethereum Gas fee that will be lost during the mortgage process, on the whole, if the principal is not large enough, participation in this mining can be obtained The benefits are very limited.

Furthermore, if we use these stablecoins to buy promising value projects at low prices, the future appreciation potential of these value projects may be greater than the benefits we get from mining. The advantage of this operation is mainly robust and not too risky.

The above method is also a plan that many long-term and value investors have been practicing. I believe this plan will also be recognized by more and more investors.