Crypto Alpha, Investment Precautions, Liquidity Pools, Bitcoin & Resource Credits -> 250th 🦁 Curation

over 1 year ago

@HODLCommunity presents to you the 250th LeoFinance Curation Post

We feel very excited as we think we will address one of the most important issues on the leofinance.io platform: Curation.

We truly hope that big stakeholders will support this initiative in order to spread rewards to some amazing writers.

Our goal is to support content creators and generate qualitative interactions between LeoFinance users.

We will set a 5% beneficiary for every author selected in this curation report.

So Lions 🐯, let's roll!

So Many Coins, So Many Choices: Speculating for Moon Gains by @scaredycatguide

So holding top 20 coins is great, but you are for the most part going to get returns similar to the overall crypto market.

This is fine, this is mostly what I have done. I mean, I do have some random flyers and also some projects in the top 100 I love (example: RUNE)

We should create a community called "Crypto Alpha" where everyone is throwing in their ideas on low marketcap coins and new projects they are excited about.

Crypto has thousands of projects which make it impossible to catch up with all of them. While we are searching about some other, we sometimes miss the gems that have potential to make 20 to 100x in a bull run.

Depending on the investment strategy and risk appetite, anyone can have some principles in crypto investments (e.g. Only top 50) However, what makes crypto different is the strong hype and potential 100x for solid projects.

Why not a Crpyot Alpha Community 😉

How can we determine if an "Investment Platform" is legit? by @katerinaramm

Who is the team behind the company?
Nice, smiling faces. Do you think that there are links of their linkedin/facebook profiles??
No, of course NOT!

There are many smaller details, but I will end with the 'who is' where I will search the domain name.

They claim to be a company since 2014.
But if you visit the who-is page, you will see that they only registered the domain in May 2022 (just a few months ago)

Katerinaramm made an incredibly useful post to spot scam projects while investing.

In crypto, we all witnessed scam projects stealing the funds of people with their "fake" system. I'm one of the victims of Legendary Bitconnect and Cloud Mining Services 🙃

Without thorough knowledge, investment is not different from gambling in crypto. Follow Kate's way 😉

Things To Consider When Investing In Liquidity Pools by @muratkbesiroglu

Investing in LPs means spreading the risk. We make half of our investment in one coin and the other half in another coin. Even if one of the coins loses value, we protect ourselves against losses if the other one gains value. However, if the increase or decrease in the value of one of the coins is at extreme levels, it also affects the value of the other coin in the pool.

If the liquidity pool we invest in is small, a high amount of slippage occurs when trading. The price volatility of tokens in a small liquidity pool is also high.

Despite their unique risks, need for analysis, and implementation difficulties, liquidity pools are essential because they allow us to generate significant returns without giving up our liquidity.

Liquidity Pools!

They are the closest things of "be your own bank" motto that is powered by blockchain. Via LPs, people put their money and make it work for them considering the pros and cons. In some cases, providing liquidity can be a bit riskier if the price of an asset fluctuates a lot. To be in the safer side, you may go for stablecoin LPs or the digital assets that are not wildly voliate 😅

I have liquidity on 5-8 different blockchains and many of them have different features that make it easier and safer for liquidity providers. Always have an eye on De-Fi but calculate the risks, as well ✌🏼

Bitcoin Is Not Just Another Asset by @ph1102

After today's 8-minute talk by FED Chairman, Jerome Powell, the markets went crazy... His statement was like any other political statement where they say things, but in the end, they don't say anything new... It was the same today... But, markets responded...

Now, all that isn't a surprise as it has happened before a lot of times in traditional markets... Now, with crypto, we would expect a different thing, but, as the same players are sitting on both sides, the results are the same... the reaction is the same...

The correlation of Crypto market and TradFi is still high. For that, I check Pearson Correlation matrix and assess the market actions and have a clearer idea about the next move in the markets.

As Zoltan highlights, all these similar actions are for the short term. Bitcoin and crypto ecosystem is devastating not because many people put their money into the system but mostly because the products with real utility will build the bridges for IOT and tokenization 🔥

Are Resource Credits Getting Expensive? by @ifarmgirl

imagine5

"50 HP would probably get one through," I thought.
But then I was proven wrong when I ran out of RC 4 days ago while doing threads. With 80 HP delegated to this alt account, I thought it would be enough but not so. I added a bit more and made it to 150 HP. Guess I want to test how long it will take me but I forgot to track my numbers, lol!

I mean, wow! Broke it the second time around within a week, lol! I can only assume that my RC has not refilled yet and my activities in the morning drained it fully. But I wasn't really that active and probably made only about 20 comments and threads. And while drafting this post in the afternoon, I checked through the Hive Keychain and it was showing me 0% resources and it will take almost 5 days to refill fully.

Resource Credits are the second mysterious things of Hive for newbies after Conversion between Hive and HBD 😅

RCs are auto paid renewable fees for each transaction with the bare form of explanation. As our talented writers highlight, they are pretty important because, without them, you cannot initiate any transaction on-chain.

With more people joining Hive, they will need these RCs for every single transactions. Who knows, maybe RCs will be too expensive when thousands of people join Hive in the upcoming years 🔥

idiosyncratic1 hive crypto hodl community curation.png

This post is created by @idiosyncratic1 to curate quality content on LeoFinance.

Hive on!

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