My Crypto Strategies
THIS IS NOT FINANCIAL ADVICE. It is merely what I have done.
I started my journey into the Cryptocurrency world a little over a year ago. I have found a few ways that (in the past — I’m not predicting the future) have worked for me. Right now I use a 3 layer approach, which I’ll describe along with one approach that didn’t work for me.
Mining Crypto
I started mining with a few GPU cards in the fall of 2021. I started using Nicehash which is a good way to learn the ropes. I started with one GPU and now I’ve got a proper mining rig with 4 GPU that sits in my garage running 24/7. I run HiveOS on the machine, and it generally mines Ethereum + Toncoin (at the time of writing). It makes around $12+ each day (in dollar amount — but I get paid in BTC).
To make this money, I have to use HiveOS to manage the machine. I have it mine via a mining pool which pays me in BTC (I’m using 2miners at the time of writing). For Toncoin I have use the TonWhales pool and it pays out in Toncoin. I have to keep the Toncoin in a wallet for that currency. But the BTC goes into a hardware wallet. I really like hardware wallets and I use a Ledger Nano right now. I do this because I don’t like the idea of anyone else having access to my wallet. Only my wife knows where to find the seedphrase to this wallet.
Staking Crypto
I’ve been using Pancakeswap for a few months now and I feel like I’ve got the hang of making some passive income there. I chose this one instead of an Ethereum based exchange because of the lower gas fees on Binance Smart Chain. I can make about $100–150/mo right now from my basic plays on Pancake Swap. I just use my earnings from Mining.
Now it takes a bit of effort to change things over from BTC into the Binance Smart Chain. I generally use Simpleswap’s Bridge to convert the BTC to Cake or BNB. That goes into a metamask wallet (which is controlled by my hardware wallet — again for security).
I generally stake crypto (using the “Earn” tab on Pancakeswap) into liquidity pools or farms. I understand they are different, but I’ve grouped them together for the sake of easy description. I like the auto-cake option in “Pools” as it is paying out about 75% APR at the moment. Then I also provide liquidity into some “Farms” that pay out about 100% APR at the moment.
Swing Trading
I’m a little nervous about this one, as I’ve just started doing it. It’s your basic buy low and sell high strategy on a timeframe of longer than a day (usually) and shorter than a few months (usually). The idea is you use some technical charts to help you identify trends and then buy/sell based on that data.
Right now, I’m just attempting this by looking at the CAKE coin against USDT. I like the CAKE coin because I like the project that it funds/represents so I feel good about it increasing long term (but that’s just me — this isn’t financial advice). I traded from CAKE into USDT (a stablecoin) when I felt that CAKE had peaked recently. When I feel like it is at an attractive position again, I’ll buy CAKE with the USDT.
DAOs did not work for me
I put some money into Nemesis DAO, but I guess I timed it wrong because I lost 2/3 of what I put in. I like the concept of DAOs but I don’t understand enough about the financials to be able to guess accurately about their trends. It seems like it’s based on hype and I’m not really sure who the right hype voices are, so I don’t want to accept the risk. I’ve heard of people making tons off these, but it wasn’t me.
Conclusion
That’s my 3 layer approach to Crypto investing right now. Each of these 3 things can be done well and can make money. I figured out the first two and I’m in the process of working through the 3rd. I’m hoping to use my crypto profits to be able to pay for some of the many expenses that will come with having 3 teenagers in a few years.
Do you have any suggestions or comments about Crypto investing? I’d love to talk with you more in the comments.