I originally intended to share this on Monday, but after hitting my 10% growth milestone and yesterday being an opportunity to share my progress during August I put it back to today.
This post is relatively simple, but I have always been a greater believer that the complex always breaks down into simple component parts. Again those of you who follow me know I use a multi-faceted approach to invest in Crypto.
About a week or so ago I introduced a slight change to my overall strategy. In a nutshell I have temporarily halted putting my profits into TEZOs due to high volatility which meant my portfolio value was fluctuating almost erratically as TEZOs struggled to settle and find their new level (and in my opinion they are still struggling, although they are fluctuating less violently now). What I did was simple but it has had a profound impact on the stability of my profits and for example yesterday (1st September 2020) my portfolio value barely moved at all.
All I did, rather than directing my profits to my TEZOs wallet, was to put them in my DAI wallet instead.
On one hand this was good, as I have been able to hold my 10% profit. However, on the other hand little movement despite an overall market trend of approximately +3.5% meant little leveraging of further profits.
To look at the big pictures this isn’t such a problem though. My DAI wallet now represents about 12% of my total portfolio, it is pure profit, and it barely moves at all. It is also currently staking on Coinbase at 2% (more about staking at the end of this article).
This means that 88% of my portfolio is still operating as working capital and represents 100% of my original investment (remember profit only in DAI and to some extent TEZOs). This means that while I am up overall my investment fund is slightly under-performing with its current value being about 97% of what I originally invested.
This is actually good news because a recent slight downward trend means that it is just sitting and waiting to go again, then I will reap another harvest.
Stability also means that now I can afford to be more patient and rather than skimming the smallest of profits I can wait for significant movements and cash out larger amounts and thus release greater profits.
Finally, for today, I have been actively involved in some discussions on here about staking and am well aware that 2% on DAI (Coinbase*) is actually very poor and I am now waiting until I have a sufficient amount in my DAI account to justify moving it over to an alternative for pure staking. I should be able to stake at around 10% and I am open to suggestions.
* Incidentally Coinbase promise a staking reward every 3-6 days on staked TEZOs (which I am also planning to move on), but I haven’t received anything now for 9 days. Is anybody else in this position – or does anybody know why? BTW based on just this situation alone to shows how transparent and honest Publish0x are in handling their ‘delayed payment’ situation. This kind of honesty can only be respected.