Let’s say I have a hypothetical value of 10K USD and I have a long term goal of growing this into 1M USD. To simplify things, I would not be anymore adding to this amount.
My question is, If I were to focus on a defi only strategy (again, to simplify things), how would you advise me on going about on this? what would be the ideal time horizon? What are some stable vs risky plays I can look at? Are there any transition points that I should think about?
For reference I’m mid 30s M in SEA – Risk wise, 10K USD is not small, but my aim is to make it and I’m defining it as 1M USD (for starters atleast). I’m open to both stable and high risk plays and whatever advise everyone can give.
This is a hypothetical scenario, currently my portfolio is eth / btc / axs – and a few altcoins all staked somewhere. I’m trying to broaden my thinking and approach and would like to pick everyone’s brains. Feel free to ask questions or talk about your journey.
30 thoughts on “help me on my long term strategy”
Ok, let’s try to get the ball over the line in a timeframe of 5-10y.
1. Check out the hottest chains right now. Based on TVL, daily transaction growth, and wallets activated, these are at the moment: Ethereum, BSC, Avalanche, Terra, and Fantom.
2. Check out the biggest DeFi projects on each chain -> [https://defillama.com/chains](https://defillama.com/chains)
3. Find sweet spots (LPs) on every big DEX -> LPs with the native chain token paired with a stablecoin or the native token of the DEX. This will yield you between 30-150% APY per investment.
4. Be prepared to constantly move things around as the DeFi space is a very fast moving target.
So, after 10y, assuming that you will have a net gain of around 60% per year, you have 1m.
Assumption: Tokens don’t go up or down in price, which is highly unlikely. ;)If you think a little bit positive and assume that the average token price also goes up by ~60% per year, you have the 1m in 5-6y.
Good luck to you! 😉
10k to 1m is less defi and more gambling.
Long term in DeFi is 3 months.
In numbers terms if you start with $10,000 and try to 2x ur investment every year (100% return) that would be ESTIMATED/AROUND to earning 0.3% per day on ur portfolio.
Starting = $10,000
Year 1 = $20,000
Year 2 = $40,000
Year 3 = $80,000
Year 4 = $160,000
Year 5 = $320,000
Year 6 = $640,0000
Year 7 = $1,280,000
EASIER SAID THEN DONE!!! DISCLAIMER there are always risks of hacks/rugs/failed projects!!!!!
Now we need to find projects in DEFI that are yielding around 0.3% per day to achieve this goal. Use websites like beefy.finance to find different protocols on different blockchains that are paying out for their liquidity pools. I’m not going to recommend a specific pool you should DYOR on those and find which ones you feel are good!
Also I think starting year 4/5 is really when you start looking into desrisking and adding more stables to farm then crypto coins.
One more thing to add don’t start ur DEFI journey on ethereum for now the gas fees are too high and the capital ur starting with won’t make sense and you will lose a lot of money to gas fees.
Get low mcaps<10m and ride em up, then get midcaps and play it safer. Then rotate into large caps like eth/btc
Fastest way is also the hardest and the riskiest. Many newer projects can achieve several hundred or even thousands % APY for a short time in liquidity pools, but this doesn’t last very long, and most projects will tank once the bonuses dry up, so timing is very tricky and risky. This path would involve being very active in switching between projects, and a whole lot of luck, but best case could achieve $1M in a few years.
Slightly slower, and still risky but much easier, is put into projects like [Yieldnodes](https://yieldnodes.com?a=OkWqAQ5AWVQnmb1) where you wouldn’t need to move it around it manage it. They target 10% gains per month, though have been closer to 8% average since I got in last May. Depending whether you use 8% or 10% as the estimated return, you could reach $1M in either 4 or 5 years. There is no guarantee the program will keep up those returns that long, and my best guess is it will begin to taper off in 1-2 years, but still a good option to set you on your way.
You can always try your luck picking coins looking for the next 100x alt, but you’re basically playing the lottery at that point, and most will lose money. I don’t know if BTC or ETH still have 100x in them, but could likely do 10x-20x in the next decade. So if you want to reach $1M without adding any additional funds, you probably need to be generating income of some kind, not just price appreciation. It’s a lofty goal without adding funds along the way… Good luck!
40% BTC, 30% ETH and the rest into alts like ADA, AVAX, OCEAN or layer 2s like MATIC and LRC.
That’s one option
Or you could use an automated DeFi middleware that will calculate yield and adjust capital allocations in accordance to that to maximize its benefits inside of your risk limits, for that I only know of SPOOL.
I have the same goal as you. I have 10k+ to start this journey + great credit score so I can get an extra 10-20k easy. (I know, it’s not ideal to get in debt but I’m young 33 and I really wanna get out of the rat race)
So at the moment I’m in research mode like you…
It’s great to read post like this because there are some really great advices from some users.
Here is my first idea to approach this 10k to 1m challenge.
1, research all chains and upcoming projects.
2, pick a handful of promising projects and stake/provide LP to them.
3, farm their tokens for 2-4 weeks and take your initial investment and leave the “profit” on the platform staked. Hopefully some of these coins will blow up. Think of like pancake swap. If you were to stake 10k into pancake for a month when it started you would of earned roughly 1k worth of CAKE ~ 4000 coins. 6 months later the coin went up to $40
Just do the math. 4000x$40… and all you did is staked 10k for a month and took it out. Of course it’s risky but hey… you can do the same strategy with 100 bucks. 😉
4, during this journey you will find some really great and genuine projects. Invest a big chunk into them for long term.
5, always keep your eyes on the market, move in/out of positions, move your money around, etc… what ever it takes… 🙂
Anyways… I put my research hat back on and try to educate myself on how not to lose my money. Lol
Fortune favors the brave!
Check out delta-neutral farming, you get the high apr but no appreciation/depreciation. Alt has to be paired with a stable. Francium on Solana makes it easy
It can be done. Here are 4 I have money in. I’m Invested in 3 others, as well. There is risk to any defi protocol, but I spend quite a bit of time doing my due diligence. I get out when I see the TVL, MC, and/or the Coin price drop by 15 to 25%. It depends on how high it was to begin with. Highest yield and quickest way to $1 million listed 1rst to last.
APY Compounds Daily with all 4. Libero compounds and rewards you every 30 minutes. All of these have high degen APYs and have excellent entry points right now bc price of the coins have dipped. They won’t stay low for too long, but DYOR before aping in.
1. https://libero.financial/ (Get BNB and swap it for Libero. Just keep it in your wallet. I’m also staking for more Libero through Thoreum)
(Swap Avax for VPND. 1,000 VPND = 1 Node. I got each of my nodes for about $68. They changed the minimum yesterday. You earn daily and can reinvest it to compound your earnings)
3. Looksrare.org (ETH swap for Looks. Stake it, and earn WETH and LOOKS)
4. https://app.step.finance/ (Get SOL and swap it for Step and ACM for the Pool/ Farm pair or pick one you prefer. I’m also staking Step for xStep)
Hope this helps…………..Happy earning!
I’ve been in crypto since 2015, and though I’ve been lucky a few times, and smart a few times, I’ve been dumb and unlucky plenty. Just some tips (sorry if repeated elsewhere)
ETH has been growing pretty consistently at 500% + per year, but this is not a coin I’d want to do any trading with, or anything on the Ethereum network for that matter just for gas fees. But for holding, it tends to drop less and gain more than BTC during swings.
Keep 30-50% of your investments in large cap stable coins like ETH or the like. But be aware of what coins move against your chosen coin, and have an exchange on hand that you can swap to it if you start to see more red candles than you like. Swapping back and forth for larger market trends will cost you gas, but protect the bulk of your assets, and maybe even make you profit. Coinbase has a good list of what coins move with or against which coins (not for DeFi, obvi.)
Conversely, depending on your risk tolerance, nodes on $STRONG, $POWER, $THOR (there are lots) can make you lots of coins, but these are usually deflationary protocols that tend to plummet when they change anything (like when $STRONG rebalanced contracts, then rebounded, or like $THOR is doing right now.). Buy these at rock bottom and hope your lockup period expires before it drops again.
Staking on LPs (preferably without leveraging to mitigate risk) can be very profitable, but as projects age past 3-4 months they tend to drop and never recover. Watching Discord channels and Twitter will give you lots of insight as well as future plans for each project, and you’ll be able to tell the people who have it nailed versus those who are fishing. Yieldfarmer or beluga.fi can help you find projects to investigate further.
Personally I’m soured at any OHM fork DAOs thanks to Butterfly, OHM and Wonderland all taking giant dumps.
Don’t trade with emotion, if you feel like “I just gotta grab this token” or “if I don’t buy now it might go higher” you probably missed the boat already and are about to make an emotional trade. I know, I have done it too. It ends badly 100% of the time for me.
If you see a big price jump, save those precious moments of excited celebration and sell that puppy, right effing now. A big drop always follows. This means you need either limit orders set up to sell out on those spikes, or alerts set up on your phone so you can hop on Metamask browser at 4AM and do a manual sell. It sucks to wake up hours later to realize you should have sold and locked in big gains, and now it’s down 30% below your buy in price 5 hours later. (See $3SHARES for last week’s example of this.)
Time in the market always beats time to market. My best trade was buying 2000 ETH when it was $12, and doing my best to ignore it for the next 4 years.
Best of luck to you!
Buy a deflationary token like pulsex
A risky recent play would be Matic Staker.
Theyre audited and KYC but it does have a ponzi element.
You stake MATIC and earn more MATIC back, can be anywhere from 6-10% a day.
Its brand new project so it’ll still be around awhile as their native coin comes out and the airdrop in April.
This is why I’m out of crypto, literally everyone thinks their shit is worth millions… just lol 😂
its a new blackchain
How do you find & compare APYs across new & existing protocols?
It can take you 20.5~ years to grow 10k to 1m on Anchor at 19.5% on UST. Alternatively, 10.5~ years via the Abracadabra Degenbox. It should be noted that it’s extremely unlikely DeFi in its current form, let alone those particular projects will exist 10 years from now.
That’s going to be one long and tough journey mate but best of luck to ya. I’d definitely place some on a few top 10s like ETH and BTC of course but I’d focus more on the altcoin game. I’d look at DeFi centered projects like UnidoEP, early projects that are about to introduce staking to their platforms. Really big APYs if you get to get in early.
If there were a non-gambling answer to this, no one would tell you
We are talking about multiply your initial capital for x100. It’s a long way, bro. If you are really risk wise and want to stick up with Defi, I belive you should consider leverage yield farming, but not following a strategy of basically supplying assets. I’m 6x leverage on Kalmar and also using Pancakeswap and Venus. You can make huge profits when both tokens of the pair goes up.
Hmm if you’re really looking for something long term you might want to check out QANX. It’s one of the better Layer 1s in my opinion and its got a lot of promising traits, my favorite being devs can use any coding language when building on it. Lot of potential to be a top 100 coin, but ofc, DYOR.
at 8% with a stable coin at 10k would double in 9 years
Not a bit, I’m actually in the same boat as you, looking for a better strategy as my industry is dying (pot grower) and I’ve got more debt than liquid assets, not a happy place for me.
Far too much overproduction in a depressed economy, disposable cash is very low, several states allowed unlimited legal production so, they grew 18X the amount their state needed. So a lot hits the black market, dropping prices. Which forces many people to either quit, or produce even more to compensate for the lower profit margin. Been doing it for 20 years and I may just be too small to survive on it anymore, it sucks.
Checkout the new sphere finance ( titano fork ), they will be doing the presale shortly
One of the amazing features of this protocol is there will be only 5 billions token ever with an APY of 99,990%
https://discord.gg/u2PThwKvT6 join the revolution now!
You can try investing on some projects that has good credentials & offers a wide scope of security measure. We can set an example this , ebox is a DeFi platform which is known for its outstanding services such as on-chain escrow where in you can safe send transaction w reversible feature . The platform also has been audited by certik
i keep it simple holding on to major gem like ETH and other promising low cap gems with good potentials like Sylo a Decentralized network and communication platform with a real life usecase that can also be staked for decent apy around 70%.
10k to 1M is possible if you are ready to take that risk trading futures but you might end up getting liquidated best is to stake and hold on good low cap gem and also tokenize other intangible assets of yours into F-NFT with protocol like DEIP.
Get a time machine and buy BTC. You’re late and it’s over if you want 10k to become 1 mill. You also sound like a lazy investor, you and everyone else wants the same thing, the gains aren’t so easy anymore.