Sirwin
Sirwin

Being Nimble in Crypto Will Determine If You Survive

By johnwege | johnwege | 28 May 2024


If there is one thing that determines the most how successful you are in the crypto market, it is your ability to be nimble. Always paying close attention to the market, being able to make decisions quickly, and adjusting your strategy in an instant. It can mean the difference between making gains and protecting your portfolio, to possibly losing everything. When everything changes, will you be able to not only make smart decisions but take advantage of great opportunities? Being able to always look forward, and see what is next.

The longer that you are in the cryptocurrency market, the more likely you are to encounter these situations, seemingly on an increasing basis. As cliche as it sounds; in the cryptocurrency market literally making 3 to 5 different decisions could change your life financially. Today I will be talking about some of the ventures that I made in crypto in order to accumulate even more. Some of them worked out fantastically, while others did not so well. But no matter the conclusion of good or bad, we must still be ready to make quick decisions. 

59ec723aecff65da664771c9068949c73b2987ebf87877e5214cb4e19a662ae3.jpg

My first scheme to jumpstart my accumulation was to mine Ethereum. At the time Ethereum wasn’t as respected as it is today. The initial cost of mining machines plus the high energy cost in my area made this a risky venture in my opinion. 

However, it turned out to be one of the best things I’ve ever done. The price of Ethereum greatly appreciated after, making this move a home run. At first, my goal was to simply convert my ETH mined into Bitcoin. But as time passed I began holding onto it. But all good things must come to an end, and the Ethereum merge was coming up on the horizon. Therefore while the prices of machines were high, I decided to sell my gear at a much higher price than I originally paid. Better to exit early, than too late. The Ethereum that I mined is now all sitting in cold storage or being staked. 

f6e152d2381260c08632d55d40ae60fa2b3ef9acae4eecbfb9547914b8a04ae2.jpg

That is an example of everything working out very well, but in the cryptocurrency market, we know that the longer you are here, the more likely you will be bitten by the danger lurking around you. From 2019–2021 I was one of the biggest fans of lending out crypto. By simply lending out a portion of my Bitcoin and Ethereum, I was earning roughly $1,000 per month. It is one of the biggest factors that allowed me to accumulate and grow my portfolio at a lightning-fast pace. I wrote many articles explaining my methods to readers, but also warned of the dangers as well. That I was always aware of the risk and therefore was watching for signs of trouble like a hawk. When BlockFi lowered lending rates, I moved my funds to Celsius. When rumors of trouble became spreading about Celsius I withdrew everything. I deposited some funds at FTX to take advantage of their 8% interest rate. But once again rumors about FTX became circulating, and so I withdrew everything. I was fortunate, but many people lost everything. 

a606ded9344fcd2a30eb46cbb81b169ab3b3dac4019191f8b9ecf923002f1e54.png

Although not everything was perfect in the lending landscape for me. I did lend UST on anchor for the 20% interest rate. Even though I did watch the market closely, not even I was to escape the de-peg. But I was able to sell everything for 80 cents on the dollar. Taking a 20% cut on the stablecoin holding I had. While the lending situations in crypto turned out bad, being nimble and making quick decisions saved a large amount of my portfolio.

The same can be said for DeFi summer. Many people have forgotten, but during the summer of 2020, DeFi on Ethereum was the biggest narrative in crypto. Earning yields, farming, swapping tokens on Uniswap and the list goes on. There was money to be made if you were watching the market. Those who took action quickly were rewarded.

fede553970199803293d24e8879f33165d274a05e03c38994db69683ec36c3e3.jpg

One of the other areas that I would later regret is taking out crypto-backed loans. Prices in the crypto market were soaring and FOMO got the best of me. We were going to the moon and I wanted to accumulate while I still could. However, the path toward all-time high prices is a bumpy road. With many up and downs. I wasn’t ready for some of the deep valleys that would soon appear. Because I didn’t have sufficient capital on the lending website, thus resulting in me being liquidated. I would have been much better off not taking the loan and just continuing to accumulate by making spot purchases. This was an example of how an impulsive decision in crypto turned against me.

In the crypto market, not every decision you make will be home runs. But, the key is to try to limit bad situations from becoming disasters. If you can do that, you will likely be successful in this market. Each day is a journey towards making smarter decisions, and always paying attention to the next opportunity. Above all, we must always be ready to adjust in an instant.

How about you? What quick decisions have you made in crypto?

Follow me on Twitter

Read my articles first on

Medium

or

Substack

As always, thank you for reading!

How do you rate this article?

153


johnwege
johnwege Verified Member

Stay Curious. | Bitcoin | Macro |


johnwege
johnwege

The Bitcoin Frontier

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.