This article will explain the most basic ETH investment layout method in popular language. Because the content is too real and simple, many people cannot implement it.

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The first question: what is the value of ETH?

The Ethereum network or this project has contributed the solidity programming language, smart contracts, and DAO community governance models to the blockchain world.

Remarks: Although the smart contract is not the first creation of ETH, ETH has carried it forward.

From 2017 to 2018, if you ask friends in the circle, what is the value of ETH? The answer is often "issuing coins". Specifically, ERC20 token issuance.

If the respondent is a mining friend or a computer hardware expert, he will say that the value of ETH lies in the fact that mining with a graphics card yields a good profit.

Today in 2020, what is the value of ETH you ask? More answers lie in DeFi. It can be considered that more than 90% (or even 95%) of the DeFi ecology is built on the ETH public chain ecology.

The locked value of TVL (total value locked) is an important indicator to measure the development of DeFi. Now it has locked more than 14 billion US dollars. In March this year, the number was less than 1 billion US dollars. The speed of development can be seen in the picture by the soaring upward red arrow.

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The second question: how to distribute ETH?

This question implies another question, I hold BTC (if you have a lot of BTC), how can I increase my income. A few days ago, the price of ETH against BTC dropped to the lowest point since June 1, 2020, reaching around 0.0233. Then when I saw an article in the media, I started publishing it. The general meaning is as follows:

"The price of mainstream currencies such as ETH and Bitcoin has been decoupled"

"Bitcoin becomes an independent market".

It is too early to say this. On the second and third day when 1ETH=0.0233BTC, the price of ETH/BTC quickly rebounded to exceed 0.027. As one of the two investment targets generally favored by institutions, ETH, as a project that has truly contributed to the development history of the blockchain, its market value is still small compared to BTC. The market value of Bitcoin is about 489 billion US dollars (close to 500 billion US dollars), and the market value of ETH is 80 billion US dollars. The market cap of Bitcoin is nearly 5 times that of Ethereum.

If it is said that the appreciation space of Ethereum is greater, many people must disagree, and they cannot sell all Bitcoins for ETH. Investment is not a bet on gambling. What is needed is the control of positions: increase positions, reduce positions, adjust positions, and so on.

According to the observation in units of years, the price ratio of Bitcoin and Ethereum is regular and can be referred to.

Examples are as follows:

Examples are as follows:

As shown in the figure, the ratios drawn by hand are 0.038, 0.026, and 0.021.

If it is above 0.038, some ETH will be replaced with BTC. If it is near 0.026, it will not be bought or sold. If it is below 0.021, some BTC will be replaced with ETH.

The above image data and location suggestions are just a very rough reference example. For more detailed multiple pressure levels and support levels, you can open the weekly chart and find it yourself. This method can increase the number of Bitcoins in your hands, or increase the amount of Ethereum. The adjustment ratio depends on which investment target you are more optimistic about.

Going back to the beginning of the article, this method is simple and easy to operate, and in many cases it is operated less than once a month, and the transaction frequency is extremely low. But there are very few people who can do it according to the discipline over the years. Today I just briefly analyze the basic logic of the given strategy, throw bricks to attract jade, how to determine the specific point of buying and throwing, readers need to observe the ETH/BTC chart line to make their own layout strategy.