When 2 Farm & When NOT 2 Farm
Farm yourself a great crypto yield

When 2 Farm & When NOT 2 Farm

By AlucardLife | cryptoinvesting | 16 Jan 2021


You've got to be kidding, right? A farm that is producing 3-digit APY is a bad idea?

Under certain circumstances, yes. There are definitely times that you should stay away from them. If you can determine those times, you can make a lot of money from farming, even degen farming.

The first step — avoid the damn scams. If you get rugged, all other strategies are null and void. So any 6-digit APYs from pop-up sites that look like other sites, yeah. Stay away from those.

There are plenty of vetted farms that you can grab 3-digit APYs from. Pancakeswap, Linkswap, Badger, Harvest, Pickle (those farms both came back strong after the hacks; they just didn't get any attention).

Two rules to remember in crypto, no matter what. I mean no matter what. I don't care how complicated the tokenomics are or how sophisticated the platform is, these two rules always apply.

1. Buy low, sell high.
2. Adoption is necessary for all profits.

How does this apply to farms?

Buy into the farm when the price of both coins are at a bottom. The secret of farms is that no APY will ever overcome capital losses. The opposite of that is also true. If you get a 100% boost in the price of both your coins while you're farming because you bought at a low, you'll never have to take those coins away from farming again. You'll always be in profit. Forget impermanent loss.

The only thing that can beat you at this point is a severe loss in adoption on the platform. That's why you choose well-traveled platforms like Pancakeswap. When you see that 167% APY on the Cake-BNB pool, you don't need to be scared. If you buy in when BNB is $30 and Cake is $0.25, then you get a boost to $41/$0.53, you don't have to worry about the few hundred dollars you "lost" through impermanent loss. Your capital gains more than make up for that loss. What's more, you gain the infinite peace of mind to know that you will probably never have to pull that farm out again, because Pancakeswap is the #1 farm on Binance Smart Chain. 

These are the opportunities you need to look for.

Now — when do you know when to stay out?

The same rules apply for farms as for coins. Don't buy into pumps. When you see one or both of the coins in a farm pumping, stay away. This is the trap that many people get caught in. New farms offer great APYs for a coin that's just come out, but that coin is on its initial pump. When it dumps, the APY can't make up for the 75% loss in value for that coin. It's best to wait until that coin bottoms out. Then participate in the farm, and as the coin slowly makes its way back up, you get the capital gains and the farming rewards.

Watch the BTC price as well. If BTC dumps, the entire market dumps.

You must also be aware of technical risk within the platform. The non-shitcoin in a farm is probably connected to the platform itself. This coin is usually the less volatile of the two, but if the platform itself undergoes some hack, then the value of that coin will drop. Why? Because adoption at that point will drop.

BUT! If your entry point is really at the bottom, you'll probably just return to the bottom during a hack. That's what happened when Pickle dropped to $10 after its hack. That was the time to buy more, not get out. So again, it's all about buying low. And watching adoption. During a hack, monitor the Total Value Locked (TVL) on the platform through https://Uniswap.Info. As long as TVL doesn't drop below its initial value, you should be ok. The TVL chart can be monitored in the same way, with the same indicators as, price charts. There is much trading psychology here. It will take a number of new posts to break down completely, but it's actually not that complicated unless you want it to be.

1. Buy low, sell high.
2. Adoption is necessary for all profits.

Get it? Got it? Good! Now go farm profitably with blessings from Alucard and the Belmont family.

———

YOUR GUIDE TO MAKING MONEY IN CRYPTO STARTS HERE ---> Making Money in Crypto Part 1

Always remember:

Burgerswap Bridge will steal your crypto
Deus.Finance is led by a psychotic wannabe despot
AllianceBlock is a shit project
All algorithmic stablecoins (Basis Cash, Mithril, Empty Set Dollar) are a SCAM

Don’t get your bitcoin from PayPal
Trade on BSC, not Ethereum
Ivan on Tech, Elliotrades and Bitboy are complete liars, and
If you are always losing money trading crypto, read here.

Gems I'm investing in:

NFTs - Doki Doki
Trading - Unimex
Finance - Soar

 


AlucardLife
AlucardLife

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