Is it really more profitable to play DeFi with a full position than to buy pancakes and ethers with a full position?
The opportunity to go long on Bitcoin mentioned in yesterday’s article has not yet arrived, but it is getting close
And if it falls to around $11,530, it would be ideal to buy more.
One is that the lower stop loss is relatively close, and the second is that the drop is not deep, and the possibility of continuing to touch $11,900 is very high.
And if the drop is deeper, for example, it falls back below $11,500, then the price-performance ratio of opening a long position is not high.
Because, in this case, the probability of the previous $11,710 becoming an upward shock in this wave is very high.
In this case, if you take more, you have to go to the bottom to do it.
In addition, there is not much to say about the current market of pancakes, and the market is still volatile.
In terms of mainstream currencies, there are not many bright spots at present, and the hot spot in the market is still DeFi.
And I also mentioned in yesterday’s article that DeFi should pay attention and buy some, but it should not take up too many positions.
After all, there are a lot of current projects for this thing, and there is no absolute leader.
The greater probability is that a project is fired and replaced by another project, such as comp, which was very popular before, and the popularity of these two months has been taken away by projects like my uncle.
Therefore, if you are not the kind of DeFi researcher who is particularly in-depth, I do not recommend that you stare at a project and bet heavily.
After all, once you bet wrong, what you miss is not only the loss of the wrong bet, but also the loss of missing the big pie and the bull market of mainstream currencies.
That is what we often call the opportunity cost. As far as ether is concerned, ether is currently about $400, and the peak value of ether is $1400.
This is about 3 times the price, and this wave of bull market, we use the lowest lower limit to calculate, that is, the peak of Ethereum is only twice as high as the previous wave, to 2800 dollars.
Then it is already 7 times the profit, and this is only calculated based on the current price that has risen.
If it is the price before the end of July, that is at least 14 times the earnings. And this is based on the fact that the price of ether in this bull market is only twice as high as that of the last wave.
Conversely, the DeFi projects you invest in not only have high risks, but it is also difficult to achieve at least 14 times the return.
Even if you don’t do it well, you will lose money. Don’t think this is alarmist. From what I know, there are very few people who really make a lot of money from DeFi.
Those who really made several times their money often just invested a little money for fun. I have never seen a large number of people who have heavy positions and have made more than several times.
Therefore, I still say that for ordinary investors, DeFi should participate, but they should not take heavy positions. The only thing that can make ordinary investors make money is the big pie and the mainstream of the big cycle.
And when you see the crazy DeFi market and want to stud, you should also think about: what investment opportunities you missed and what risks you took.
