Does it make more sense for me to hold on to my CAKE tokens or trade them? I share my thoughts.
Hey, guys. For the past couple of days, I’ve been a little bit more active with my DeFi adventures. And let me explain why. So this is the Pancakeswap-USDT trading pair, and this is the 4 hour chart. And as you can see here, the market is moving in a very predictable manner. Very predictable swings up and down..
And with this in mind, I realized that
every one dollar move, from let’s say here at the bottom, $23 to $24,
from $24 to $25 and $25 to $26. Every $1 move is about a 4% return. So this compares to approximately
a 6% return per month if I had just kept my positions open and collected the passive income..
So that’s one way to do it,
but I think the more efficient way is to move in and out based on my read of the market. So this obviously takes up more time and effort, and it takessome experience. But generally this has been working out pretty well for me, just buying
the lows and selling the highs. So let’s take a look at what I’ve
been doing over the past few days..
So initially, over here,
from the 20th to the 24th… I deposited this amount over here to collect some passive income. But over time, as the market made highs,
let’s go back to here. As the market made a high and a low
and a high and a low, I scaled out of my position,
and it was between the 25th and the 26th when I realized that I was
actually making significantly more.
in profit, then holding on to
my positions for passive income. So from this perspective, I’m thinking I
can do both at the same time. During the times when the market is not
moving too well, I will just be holding. But during the times when the market is moving quite predictably,
as it is here, we can see….
During these times, then I would prefer
to be moving in and out of my positions. So just over the past one week or so I made a return of about 7% of my initial investment capital. And just today, I closed out my full position for a 1.6% return. So this to me makes a lot more sense given the current market situation..
Of course, I can’t predict in the future if this will continue, it will probably not continue, but I’m comfortable staying out of this market for now. If it falls down back towards the low here, I might enter again. But this will depend on a number of other factors, most notably how Bitcoin and Ethereum are moving..
So right now, both Bitcoin and Ethereum
are moving quite in a weak manner. So let me give you an example… So let’s take a look at the Bitcoin chart. We can see here the market has moved
down and it is consolidating over here. So depending on how the market moves, I may or may not enter into that
Right now I’m out of the market, but I will be considering to jump in again
depending on how the market moves. So this video is just to let you know that I don’t necessarily have
to buy and hold all the time. That’s one way to do it, but because I am monitoring the market
pretty much every few hours,.
I think it makes sense for me to move in and out of my positions and generally to try to get more returns out of the market while reducing
risk as much as possible. So I will keep you guys updated on how this is going. Generally, I still – as much as possible – want to be holding onto my positions to collect passive income,
but looking at how the market is moving.
right now, I think it makes more sense
for me to stay out of the market. And maybe if it falls back down towards
the $24 or lower levels, then I might want to start accumulating
there at that point in time. Okay, so that’s just how I’m
looking at the market right now with regards to DeFi. To summarize,.
I will be looking to enter an exit
a little bit more actively, but still with the intention of holding
to collect passive income over time. I do not expect this predictable trend to last for too much longer, so I
want to be careful of where I exit and enter. And as usual, depending on how the market moves and depending on what I
do with my positions,.
I will keep the this spreadsheet updated
and let you know how I’ve been doing. So if you have any questions about this token, the pancakeswap token,
or what I’ve been doing, or what DeFi is about, feel free to let
me know in the comments section. If you like this video,
please click the thumbs up button.