It has been an eventful few days as I sold off all of my bond ETF holdings to raise cash to buy the dip in stock and crypto markets. I went in on a wide range of Chinese and US tech stocks, Ark ETFs and mid to large cap cryptos. There has been a rebound in these markets so I have stopped my manual buying activity on the dip. And let the automated regular purchases of ETFs and cryptos every week do its work. Consistent capital injections increase my investment positions while I build up cash for bigger purchases during dips and crashes. With salary income and bonus coming in the next few weeks, I expect a larger cash buffer to be built up. Some of which I will direct into stablecoins on Hodlnaut and Crypto.com to earn crypto interest.
The only crypto platform that I have not been injecting fresh funds into is Cake DeFi. And it’s for a good reason. The DFI price popped after the Fort Canning update and the introduction of decentralised assets and collateralised loans on the DFI chain. My frozen Cake DeFi holdings (staked DFI and liquidity mining pools) was underperforming my Hodlnaut ETH, BTC and stablecoin holdings for a while. This is no longer the case with the fall in ETH and BTC prices while the DFI price has gone up. While I plan to inject more capital into Cake DeFi in the future, my crypto holdings on it has grown proportionately larger than the other platforms.
So I’m going to take time to build up my crypto holdings more aggressively on Hodlnaut and Crypto.com first. Just to balance out my crypto holdings across the 3 platforms. A high volatility on cryptos means that I can wait for the dips to buy in more when the market is running cool and hold off when the market is running hot. While letting the crypto interest & liquidity mining increase my crypto positions over time regardless of what’s happening in the market. Speaking of which, Cake DeFi’s liquidity mining pools just got more interesting with the addition of decentralised assets so it’s not just cryptos anymore.
I noticed the yield on Cake DeFi’s liquidity mining pools has gone up as there is more activity on the DFI chain. I have been swapping my stablecoin liquidity mining rewards – USDC and USDT into DFI, DUSD, dQQQ, dSPY and dTESLA (no dGME for now). Then adding them into the respective decentralised assets liquidity mining pools while the yield is high. Not doing any capital injections and just using my liquidity mining rewards to participate in any gains. I’m hoping decentralised assets take off as it will result in even higher activity on the DFI chain and increasing the DFI price and value.
I view my crypto assets as one ecosystem separate from my traditional finance assets (stocks, ETFs and bonds) that is another ecosystem. While cash is just fiat money that supports the 2 ecosystems. I will inject cash capital into both ecosystems and keep it circulating inside because I believe their value will continue to rise. I don’t plan to withdraw any cash capital for as long as I have the ability to generate cash, whether it be salary income, bonus or a secondary income source. I’m late to building up a secondary income at my age with a family. Once you get older and have a kid, priorities change and you can no longer push as hard or as long as you want to pursue income.
There’s no point regretting the decisions I have made that led me to this situation. There were some key good and bad outcomes along the way that could have changed if I had done something different. But it would have led me to an entirely different life from the one I’m living now. I find it more useful to look ahead and make the most of what I can now. Changing my beliefs, strategy and approach with new information flows while adapting to the evolving world has been tough. If you remember, I used to be a primarily ETFs investor until I decided to open up to the possibility of achieving higher returns by investing in stocks and cryptos. It continues to be a learning experience and work-in-progress as I try to figure things out along the way.