What's good crypto fam. This article will be a very brief summation of what TokenSets is as well as my own personal experience having used it for roughly about a month or so now. If you don't have the time or care to read the whole article, let me break it down for you: if you're going to hodl ETH for the long term, you can use TokenSets to achieve profits and mitigate risk based on many different set options and strategies - all smart contract based and super easy to use.
This is not financial advice and you should never trade more than you are willing to lose. Everything has risk associated with it so do your own research ESPECIALLY with each set that you might want to get into.
Introduction
I don't like to mess around so I will try to keep things as succinct and as to-the-point as possible.
A "set" is essentially a smart contract with a specific set of parameters built into it to automatically buy & sell an asset in accordance with the indicators and criteria of that specific set.
TokenSets currently supports the following wallets: MetaMask, Coinbase Wallet, TrustWallet, and ImToken.
*Full Disclosure: the above link for Coinbase is my personal affiliate link. If you sign up using that link I will get a small reward at no cost to you.*
The main cryptocurrency used on TokenSets is Ethereum. As of writing this, with select sets you can also use USDC, DAI, wBTC, and LINK.
The main aim of TokenSets is to help provide a buffer for the volatility that is found in the crypto asset class. Most (if not all) sets are designed around the concept of maximizing profits and minimizing loses.
There are two main types of sets that someone can choose to put their money into (or "buy"): they are Social Trading Sets and Robo Sets.
Social Trading Sets are created by members of the TokenSets community. These people are experienced traders with history in financial markets and have put a solid amount of time into creating these sets - I was denied becoming a social trader so not just anybody can make a set to be featured on their site.
Robo Sets are generally based off of price trends and are more simple across the board than social trading sets.
I don't want to go into how many sets there are and what kind of sets and all that shit so you'll have to check out their website for that. There are tons of options available for all types of risk profiles and strategies.
My Experience
I have been using TokenSets for little over a month now and I think it is one of the best things that has come out of crypto in a while in terms of protocols.
I have only used a few of the Robo Sets so far. For me the social trading sets have not been as consistent with profitability and risk mitigation as the robo sets so I would recommend doing the same if you are new to the protocol.
The sets I have used so far are as follows: ETH 26 EMA Crossover Yield Set, ETH/BTC RSI Ratio Trading Set, LINK RSI Set.
My absolute favourite is the ETH 26 EMA Crossover Yield Set. Basically this set rebalances your ETH into USDC after the price of ETH spends 2 days below the 26 day EMA. This signals a downtrend, so therefore the smart contract trades your ETH for USDC to prevent any further loses. What I love about this set is that it automatically puts your USDC into Compound and that money is collecting interest until the set rebalances back into ETH; once the ETH price crosses back above the 26 day EMA for 2 days - signalling the start of an uptrend.
All of this is done automatically by the smart contracts which is amazing. Be sure to read the descriptions of each set as some have shorter time-frames for rebalancing than others depending on the indicators, risk level, and other criteria.
At the bottom of each sets page you can find out the rebalancing parameters.
I have no complaints about the ETH/BTC RSI Trading Set. The LINK RSI Set is another story.
As TokenSets is a relatively new platform there are of course going to be technical issues here and there. Unfortunately this fact - combined with my own lack of research - cost me some LINK. The set is still down considerably and doesn't seem to be rebalancing anytime soon. This may be because the criteria for a rebalance is too strict, or potentially the different price feeds that TokenSets uses to rebalance sets might not be as accurate as others. I'm still not entirely sure where that set is going wrong - I'm just glad I hopped out when I did. Just be warned to do as much research as you can before diving into a set.
Conclusion
I loved the idea of TokenSets since the first time I heard about it through the one and only Chico Crypto. Shoutout to Chico.
It is an amazing alternative to hodling that will potentially help mitigate risk while maximizing accumulation. Depending on which set you choose.
I have little more than 1/3 of all my ETH on TokenSets right now. And as they continue to come up with different sets with different tokens I will be researching and most likely adding some of my alts to the mix. They also have a way to fork their sets and make your own but unfortunately that is too complex for my skillset right now but at some point I would love to try to make one and have other people benefit from it as well.
For me TokenSets is more of a strategy that is used alongside hodling to maximize returns while managing risk. Automation is fantastic, but being in control of that automation in terms of which set and strategy you can choose is amazing. The overall ease of use, different types of strategies, and profit potentials with TokenSets are the reason why I will continue to use the protocol for a very long time.
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