Keep your portfolio liquid

ETH 2.0 has reached it's launch threshold and funds are continuously pouring in to participate in this monumental event...
The following post uses Ethereum as an example not because I am bearish on ETH.. in fact I am a massive ETH bull.
But due to this event many in my community are talking about staking their hard earn ETH to join in the fun. In fact, some are fomo-ing by buying ETH just to participate.

After dabbling for a while in Crypto Certificates of Deposits (eg Hex,T2X and it's various clones) and anything that generally needs you to lock your crypto for a certain period of time to get a supposed APY...

I have come to a conclusion.

KEEP YOUR PORTFOLIOs LIQUID!!!

Crypto is volatile in nature, by locking your funds you are essentially disabling your reaction to the markets...

Lets give an example to illustrate my point...


ETH gives an initial APY of 22 percent for locking your crypto for a duration of time (I'm not sure the exact time, but I heard it is 2 years).
However over time more and more people will be staking their ETH thus essentially reducing the reward APY.

The changing of ETH from POW to POS is actually bullish for the price... Because this changes the tokenomics of ETH... 
Essentially there is no supply cap for ETH and miners are constantly selling ETH to upkeep their mining operation.... This is why there is a constant selling pressure. Converting to PoS not only lets miner to save money from upgrading their mining operation. It also locks up ETH thus creating less selling pressure and will result in price appreciation.

However... there is nothing certain in crypto and volatility will always be there...
Your APY could be 20 percent per year but what if ETH in general dumps by 50 percent... resulting in your initial capital shrinking by half...

If you are a long term believer in the project like me and you don't bother about short term price movement.
You are essentially treating this project as your retirement fund... then sure... go ahead and lock your coins...

But If you are looking to actively grow your portfolio from 10000 USD to 1 million USD... The best way to go is to keep your portfolio liquid... ride the waves and take profits to reinvest....
Keeping your portfolio liquid and being reactionary to the markets is tiresome... but it is the best strategy to grow your portfolio in time...

In the future, I will talk about when to take profits... and how to take profits...
Stay tuned...

Have a nice day :D