Chasing Alpha with pHBD-USDC

By Steve Hodl | My Path To Fire | 18 Apr 2022


In stock market investing, only the likes of Warren Buffet have managed to consistently achieve Alpha and outperform the S&P Index.

Most active investors usually try to beat the returns by investing in a growth strategy, this is usually tech stocks or some company that could be the next big thing. Some examples are the Netflix's, Microsoft or Google's.

Another popular active investor strategy is a dividend income strategy. These investors look for companies paying dividends as they measure their success by dividend income. Usually this strategy could be much lower than alpha.

For passive income investors in the stock market, they are happy to accept the market returns. They don't try to beat the market or get higher returns.

They purchase an index fund and buy the market. This is the strategy pioneered by Jack Bogle from Vanguard fame.

Crypto Growth v Income Strategy

If we are to seek alpha and pursue a growth strategy, the highest returns have been from Bitcoin and Ethereum historically. Here a buy and hold strategy has paid off well over the years.

For those seeking crypto income, the importance of seeking alpha cannot be underestimated too. The difference of a few % points could increase the growth of your portfolio substantially.

This could include to looking around for the best stable coin rates, to other yield optimisation strategies like staking pHBD-USDC pairs on Polycub.

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If you are comfortable with the risk, you could supercharge your stable coin returns from 20 to 60%!

Of course taking part in liquidity pools can be more risky and therefore you should receive a higher yield. It is important to note that someone seeking Alpha, should also try to limit the downside.

In this case, you can see that the pair is a stable coin pair, so it should be more stable than some other pairs.

How do you seek Alpha in your crypto investments?

This article is for educational purposes only. Please do your own research before investing.

Thanks for reading.

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Steve Hodl
Steve Hodl

Blogger and Investor


My Path To Fire
My Path To Fire

Personal Finance Blog

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