Learn From The Past
I was present in the 2016 and 2017 ICO craze and that has helped me navigate my way through this recent DeFi frenzy. Most of the projects from that time fell by the wayside or at least fell to the bottom end of Coinmarketcap where they were quickly forgotten and became yesterday's news.
Though that is the case for most, there are those projects that not only survived but thrived. Cardano and BNB are two such cases with BNB being one of the best, possibly even the best performer of 2019!
I must be honest, yield farming did not really get my attention because if you are a trader there are less riskier ways to make good gains. Like I have said before, I do take a gamble from time to time and that is how I view this "food" DeFi craze, a gamble and so far it has not managed to get a gamble out of me. Maybe one or two will actually survive but to be honest, I don't really care as there are loads of quality projects out there that I am desperate to get my hands on. That being said, why would I waste my time and money on a token that dumps 99%!
This may change in the future due to the fact that Sam from FTX has recently taken over SushiSwap. This guy is a modern day Crypto genius in my opinion and if anyone is going to make anything out of SushiSwap it will be Sam Bankman-Fried. So, Sushi is the only one I will be watching.
So What Have I Been Buying In The DeFi Space?
Generally, I have been looking at projects that are below $30 million in market cap, projects with good partnerships and hardworking teams. It is obviously very difficult discerning between the gems and gravel at this early stage. I have, for the most part avoided the bigger guns like Aave and Ren, though I do like to pick up small amounts on strong retracements.
Akropolis has been a firm favorite for accumulation and continues to have my attention. This project has some really great partnerships and their aim to provide services in the space of undercollateralized loans is a game changer and will definitely be a service in high demand, provided Akropolis find an effective and safe way to execute it.
Loopring is a firm favorite and thanks to Publish0x I don't have to buy LRC, I get to earn it each and every day. As time passes, LRC looks more and more attractive to me. I still want to spend more time really navigating and exploring the Loopring DEX. I am looking to eventually do all of my trading via DEX's as many exchanges will lose more and more customers. As that happens, so does the likeliness of a once legit exchange pulling an exit scam because they are bankrupt. I use DEX's daily and it is really the best experience, apart from Uniswap. It's a great idea but it needs polishing. I don't enjoy the user experience very much and obviously with gas fees, it's very expensive. I think it can be a great service, I just don't think it's there yet.
Band Protocol is another one I have been accumulating since it collapsed from it's recent all time high. I think had BTC not dumped it would have had a steady rise north. Current conditions are definitely creating amazing buying opportunities and I have been taking advantage of them! LINK cannot take on the entire space of oracles and BAND is a very likely candidate to pick up the slack, along with DOS.
Looking at chart patterns, one of the ripest projects for fresh accumulation is Kyber Network. I currently do not own any KNC but at a little over $1.20 it is looking very inviting as an addition to my long-term DeFi hodls. Then there are others like Serum, which I bought the day it listed on FTX, as well as RSR and Nest Protocol. DIA is another project I am very bullish on long-term, as they are another alternative for the oracle space. Oracles are a necessity, so any project providing these services in an attractive package, service and delivery will benefit long-term.
These are some of the projects I am looking at in the DeFi space, as I try to seek out the stable long-term safer plays that can still provide decent returns into the future. Once again, please do your own research as this is not investment advice in any way, shape or form.