What is the better strategy in the bear market, farming or straight accumulation – For non whales

I’m a regular crypto investor in that I put a small chunk each pay into my top picks. There is a layer one project (Cardano) that I am trying to accumulate for long term. I’m trying to figure out if it’s better to add liquidity and farm on a Dex or just accumulate ADA flat out. I guess this could go for any project not just ADA as most layer ones have a top DEX and are down right now. The specific farm is Minswap and the rate is about 60 APR. My thought is to farm while the market is low and when the market goes back up, I’ll be earning 60% on the gains and some passive income. Maybe the APR is a bit lower then. Or do I just straight up accumulate ADA and stake at 5%. Is farming worth it for small time non-whale investors?

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13 thoughts on “What is the better strategy in the bear market, farming or straight accumulation – For non whales”

  1. Been farming in DeFi (LPs) + staking on chain since day 1, have yet to be disappointed.

    You’re literally getting free money all day every day. LPs are a bit more complicated because of IL, but if the internal/external incentives are there it’s worth it. If you have the time and desire to become a “mercenary farmer” it’s quite profitable.

    I don’t have a single asset that’s just sitting there. My ETH and BTC are both in LPs in various DEXs (to spread farm token risk, DEX risk, bridge risk).

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  2. Less risky and less stressfull would be to just accumulate an X project that you wanna and taking it off an exchange to a hard wallet immediatly.

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  3. Worth bearing in mind that if you stake, a lot of these protocols have unbonding times which reduce your ability to sell quickly should you need to..

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  4. Get a job and buy a little every month but also set aside some cash as savings.

    In case of a big drop or possible black swan event then you can choose to buy in a larger lump down the line.

    It’s best to just stack and continue accumulation rather than try yield farming and expose yourself to impermanent loss.

    If you have the option to stake your holdings in your own wallet, then that will make for great returns once things pick up again in a few years

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  5. Accumulating and staking are the best strategies in a bear market. Farming is a bit risky due to big price swings which will lead to Impermanent loss in liquidity pools.

    My go to coins for accumulation are ETH, BNB, OCEAN ATOM and MATIC. I’m also staking some ATOM and BUSD. I plan to stake OCEAN in 2 months time once veOCEAN is launched.

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  6. My strategy was to accumulate Ada and provide liquidity once to the Min-Ada pair. So far it’s paid handsomely.

    So I would say do both and DCA into both

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