One common investment strategy for crypto is to simply HODL, which basically means to simply hold and wait for price appreciation.
On the surface, this makes perfect sense, however it isn't the most ideal method of HODLing.
In fact there are a couple of methods that people HODL, aside from simply holding it in one's wallet.
Stake it on lending platforms like AAVE. Doing so, you earn yield for providing collateral that people can use to borrow.
Provide liquidity on Uniswap. Doing so, you earn trading fees whenever someone swaps and the price is within the range of your liquidity pool. For long term HODLers, providing liquidity within range may not be something that one would want because of impermanent loss, however. You don't need to provide liquidity within range.
For any investment strategy, one should always have a predetermined plan. A specific price/percentage appreciation might be one of them.
By having a concrete exit strategy, one can provide single sided liquidity with the minimum price range set to your sell point. This should be higher than the current price. Being out of range, you won't receive any trading fees, but you'll have a leg up catching the pump. Instead of waiting for notifications or hearing on the news that your crypto has pumped, it'll already be trading at your designated range plus, since it would finally be in range, you will also be earning fees while selling (instead of paying fees to sell).
Not only does this give you a leg up, it also helps with price discovery. Since everything is on the blockchain, it provides more transparency on what price people are waiting for. The more HODLers that provide single sided liquidity instead of letting it sit in their wallet, the stronger bullish price sentiment it creates. Not only that, people looking to earn transaction fees may also adjust their minimum range higher to be closer to the medium range of the overall liquidity distribution.
Try it out, from a personal gain standpoint, it gives you a leg up during the pump.
From a community gain standpoint, it strengthens positive price sentiment.
