In this clip from the LeoFinance AMA, we compare the 2018 Crypto Bear Market to the 2022 Bear Market we're experiencing today.
Bear markets hurt especially hard relative to stock market pullbacks. In typical fashion, crypto bear markets can tank your portfolio 90% or more.
I've made it through many market cycles but this one is truly different for me. In this clip, I talk about one of the strategies I used to see my portfolio lose only 35-45% of its value as opposed to the 90% losses that were typical in the last bear market.
Much of this is centered around the adoption of stablecoins. I'm holding a lot of my liquid capital as stablecoins in the pHBD-USDC and bHBD-BUSD pools. These are stablecoin pools and the bHBD one is paying 30% APY.
So now a good chunk of my portfolio is not exposed to the broader crypto market. Simultaneously, it is earning yield and compounding itself.
Outside of that, the name of the game in crypto winters is to stack sats and hodl. Its just a matter of time until it all comes back, but that could be 1-4 years. It's important to keep a solid runway and be prepared for a long winter.
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Lovely article and I believe on the last comments that said - "It's important to keep a solid runway and be prepared for a long winter".
I planned on a long crypto winter. Having at least a 2 year runway is 100% essential in my opinion
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Nice research
It's a very, very different thing indeed to sit out the bear market with stablecoins in a pool than just holding the stables.
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The longer the bear lasts the better. It gives us more time to collect. Enjoy the winter. Have a !beer
It's a cycle. Now the buying season is back. Odd how BTC price has fallen to practically the previous high that blew everyone's minds ... and it isn't the first time
I also see a different bear to bull cycle market this time. The cycle is broken. Crypto is becoming a term very common to people. I like the fact that they do proper research now compared to just riding the hype before.
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