Bienvenidos mis ositos, tu siempre eres mis queridos! (Welcome back little bears you are always my dears!)
Well frens, it’s been a grim 2022. Thank goodness year’s half over. We still need to survive for the next two years.
Why two years Panda?
I’m making an assumption that the Bitcoin four year halving cycle will hold for the foreseeable future.
Let’s hope that theory stays intact until late 2024.
If you’re lucky “only” half of your crypto portfolio vanished with a snap of a finger. Maybe Crypto Thanos decided to show you mercy.
But what if you pissed off Crypto Thanos? Maybe you decided to listen to some rando influencers and they dumped their bags on you. Maybe you decided to roll the dice on some $#!tcoins. Whatever the reason, your portfolio probably faced a literal decimation.
If your portfolio hit the ugly negative 90% or more drawdown, your chances of a recovery are very slim. If it does recover it will take years and a lot of effort.
I don’t mean to rub more salt in the wounds but I want you to face reality. You will need to make some difficult choices and rebuild.
As usual this isn’t financial advice. This will be the 6 digital assets that I will use as my core going into 2024. Of course, this is subject to change as even any of these six could get blown up. You can never be certain.
1) Bitcoin – this was my first and has a special place in my heart. But I don’t want emotions to cloud my judgement.
There’s a reason why BTC has remained top of the digital asset food chain. A lot of altcoiners dismissed Bitcoin as a boomer coin. Some ETH maximalists have even called for a flippening.
Is Bitcoin done for?
Not so fast!
Sure it’s not the fastest or the flashiest. It’s just reliable and I can count on it to be there.
It’s kind of like when you’re visiting a foreign country and you need something to eat NOW. Is McDonald’s healthy or tasty? Heck no, but it’s good enough and does the job.
2) Ethereum – I’ve had a love hate relationship with Ethereum. When the OG smart contract platforms gets busy, it’s brutal. NFT mania made DeFi transactions unbearable in 2021. Now that the hype has died down, surviving NFT projects can iterate and start creating value.
DeFi projects can also concentrate on building but they need to move fast. Yields have gone down to TradFi level as people have started moving to protocols that share fees that are based on real revenues.
However I expect Ethereum to survive as people flock back to secure and profitable blockchains.
3) USDC – This serves as a necessary evil. The whole point of crypto is to create an alternative to the US dollar dominated financial system.
However, we still need food, shelter, and bills to take care of. In my opinion USDC is the least horrible stablecoin to use when you need to take some profits.
USDC also serves as a good bridge back to the TradFi realm.
4) UMAMI – this up and coming protocol can make or break Arbitrum. Currently they pay out their rewards in ETH. However keep an eye out for their delta neural vaults.
The one I’m looking forward to is their USDC vault. Not only will you have rewards in USDC, there will also be insurance to protect your investment.
This approach towards safety and sustainability gets my seal of approval.
5) CRV - Curve Finance has served as a DeFi backbone since inception. It’s absolutely criminal how underreported this protocol is given the amount of transactions they process.
I’ve written favorably about the “DeFi Godfather” before so you can check it out here:
6) CVX
I’ve described Convex Finance as the DeFi kingpin before in this article:
They control so much Curve Finance voting power that an incentive platform called Votium distributes rewards every two weeks. I intend to collect my share throughout the bear market.
Don’t fall in love in the digital asset space. These are digital abstractions. If any of these protocols starts to fail, they will not be in my portfolio.
Being sentimental gets you nothing, protect your precious capital so you can enjoy future bull markets!
Obviously none of this is formal financial or tax advice. You need to find qualified professionals in your jurisdiction.
Be sharp, stay hungry let’s get that money!
