Invest in cryptocurrency, the easiest and most effective way

A few days ago, the well-known blogger He Taiji posted a message on Weibo:

"The simplest and most effective way for lazy people to invest":

1. Long-term holding of Bitcoin and Ethereum

2. Invest in leading coins in the DeFi main track (DeFi blue chip stocks)

3. Stablecoin mining

Although the content of this Weibo post is short, I basically agree with it, and it is also the concept that I have repeatedly emphasized and instilled in everyone in recent years. Today I would like to share this content with you.

1. "Hold Bitcoin and Ethereum for the long term."

I have been talking about investing in Bitcoin and Ethereum many times in my articles. I have been saying this for almost two years, from the time when Bitcoin was $4,000 when I wrote the article to the time when Bitcoin reached $10,000.

Now Bitcoin has exceeded $18,000, and it is just around the corner to exceed the historical peak of $19,162. Ethereum has also exceeded $500, and I believe that exceeding $1,000 will be the next target price to be achieved.

The current trends of Bitcoin and Ethereum have proven the correctness of the strategy we have always adhered to. Friends who have insisted on regular investments like us in the past two years have also seen good returns.

If there is no major change in the fundamentals of Bitcoin and Ethereum, investing in and holding them is, in my opinion, a strategy that all digital currency investors should stick to forever, and they will be the ballast in our investment portfolios.

In the upcoming market, Bitcoin and Ethereum may reach new highs. At that time, I will sell most of the two coins I hold for profit, but still keep a small part. In the bear market after the bull market, I will once again practice the strategy of the past two years: restart the fixed investment.

Investing in Bitcoin and Ethereum in bear markets and cashing out in bull markets will be the way I will always practice.

2. "Invest in leading coins in the DeFi main track (DeFi blue-chip stocks)".

DeFi is also a track that I have always expressed my optimism about in my articles. DeFi is also divided into different ecosystems. I am most optimistic about DeFi in the Ethereum ecosystem, and I also invest in DeFi in the Ethereum ecosystem.

The reason why I am so optimistic about DeFi is that I believe DeFi will become the infrastructure in the Ethereum ecosystem, just like the cornerstone of a building. The valuable projects in the Ethereum DeFi ecosystem will be the underlying foundation for various new applications in the future, and will also capture the value of new applications in the future, and will continuously create value for investors.

The leading projects in the DeFi field will, like Ethereum, gradually widen the gap with their competitors, and eventually stand out from the crowd and occupy a monopoly position in the entire track.

Regarding the leading coins in the DeFi track, I have given a relatively detailed introduction in my article on November 16, "Which high-quality DeFi projects are worth investing in?"

I will also sell these top DeFi projects at prices close to highs in the upcoming market, and buy them back in the subsequent bear market. They will also become my long-term holding and focus targets in the future, just like Bitcoin and Ethereum.

3. “Stablecoin mining”.

Mining is a new concept and investment method in this round of DeFi boom. The main purpose of this type of mining is to provide liquidity. The so-called liquidity provision is to pledge two tokens into the liquidity pool at the same time in a certain ratio. However, the biggest problem with providing liquidity mining is "impermanent loss", which means that investors who provide liquidity will lose some of their original tokens due to market volatility.

There is currently no 100% solution to this loss. However, in the liquidity mining of different tokens, if two stablecoins of the same type are provided, this "impermanent loss" is very small and can be almost ignored.

Therefore, providing stablecoins to participate in liquidity mining is a better way of mining.

But I have some reservations about this, mainly because the current mining income is already very low, and the Ethereum Gas fee consumed in the mortgage process. Overall, if the principal is not large enough, the income that can be obtained from participating in this type of mining is very limited.

Furthermore, if we use these stablecoins to buy promising value projects at low prices, the future appreciation potential of these value projects may be greater than the income we get from mining. The main advantage of this operation is that it is stable and not too risky.

The above method is also the solution that many long-term and value investors have been practicing. I believe that this solution will be recognized by more and more investors.