BTC and ETH skyrocket, what other DeFi projects can you invest in?

At the time of writing, Ethereum has breached $600 and Bitcoin is hovering above $18,000. If we look forward to next year, it should be a high probability event for Ethereum to break through $1,000 and Bitcoin to break through $20,000.

But in the short term, the currency price has been going up recently but there has never been a decent correction. This is something that all investors should be vigilant about. Because even in a bull market, the rise of all currencies is spiral rather than linear. Therefore, we must remember not to be overheated, and the hotter the market, the more deliberate it is to act before acting.

The recent strong market has caused a lot of doubts for everyone. Today, I will answer some typical questions in a unified way:

1. What should I do if Bitcoin is completely empty?

This should be a question that many investors have encountered. We look at it from both long-term and short-term perspectives.

If you look at it in the long run (at least 15 years from now), I believe that Bitcoin may still exceed 1 million RMB. Therefore, even if you buy it now and hold it for 15 years, the return on investment will be very impressive. But the question is how many investors can completely ignore the ups and downs of the market within 15 years and firmly hold the currency? I am afraid that there are very few, and most investors will throw away their chips early and leave the market under the temptation of fear and greed.

In the short term (from now, within half a year), I always think that Bitcoin will have a callback, but I can't judge when this callback will happen and how far it can go. If it has a very large correction, such as falling to $10,000, it is an opportunity to cover the position, and we can restart the fixed investment; but if the correction is very small, such as only falling to $15,000, then it is of little significance to cover the position. Therefore, it is possible that investors who have been short-lived in this round of market will be short-sighted, and we will wait for the next round of bear market to restart fixed investment.

Therefore, if investors who are extremely optimistic about Bitcoin and only look at long-term returns, it’s okay to buy now; but if they can’t bear the pressure of market sentiment, and Bitcoin’s pullback is less than $10,000, then I suggest waiting In the next bear market, I will definitely invest in Bitcoin.

2. With frequent security incidents recently, can mining continue to be played?

This is a problem that all DeFi projects will face. Even if these projects have been reviewed by well-known security agencies, there is no guarantee that the projects will be 100% safe.

Therefore, my suggestion is to be cautious about participating in mining for new projects, and participate in mining of old projects if you want to participate. Although the income of old projects is low, after a long period of market testing, the safety factor will be much higher, and the safety factor of the principal will be relatively much higher.

The first thing we should consider when participating in any project is the safety of the principal.

3. About the value potential of DeFi tokens?

Readers often leave messages asking me about my judgment on the value of a certain DeFi token. Due to my limited energy and the limited number of projects I have seen, it is difficult to analyze all the projects.

I have also shared with you the projects I invested in, mainly: YFI, MakerDAO, Compound, Aave, SYN, UNI, BAL, CRV, UMA. They respectively represent the four major tracks of investment tools, lending, asset synthesis and exchanges. I didn't pay much attention to other projects in these four major tracks.

For these projects, readers often ask if they start at a slightly higher price, will they get rid of the problem in the future? In my opinion, if the bull market next year really comes as expected, it is still possible for these tokens to rise 3 times or more on the current basis. Therefore, you can estimate it according to this multiple, and see if the price at that time is likely to let yourself out of the trap.

4. About deposit and withdrawal.

This is a sensitive issue. I suggest that you search for related articles on bihu.com. My basic suggestion is to try not to use WeChat and Alipay, and don’t use cards from major banks, let alone cards used in daily life.

5. The investment value of the old digital currency XRP, LTC, BCH, etc.

These digital currencies have experienced several bulls and bears until now. They may also have a good market in this round of market, but in my opinion, in the long run, their value is already quite limited. Therefore, I suggest that when the market rises next year, throw them away and cash out, and use these funds to invest in Bitcoin and Ethereum in the next round of bear market.