“Hyperliquid’s successful launch) that projects will need to offer liquidity to the public earlier and at fairer valuations in the future. More opportunity for you.”
Network effects will congeal around projects who recognize this. This will be one of the biggest edges those projects will have.
Anyone who can help projects achieve this will be well rewarded. <cough> <cough>
I own a ton of ETH but don’t farm or stake. Can you critique my thought process please?
1) staking is low APR and it seems like there is risk involved. Not sure added risk is worth 3 percent?
2) same thoughts for farming but with added risk and added time and attention involvement. If you were going to farm with ETh where could I educate myself on that?
1) The added risk is very correlated to the risk you already have being long ETH. If there was a major slashing event then the price of ETH probably crashes too. You can also run your own node to have more control of the risk, diversify between staking providers, and we should add that some potential issues affecting Lido and staking like the supermajority client bug are likely solved. So it's low risk, low reward. Whether the extra 3% is worth it probably depends on the tax consequences for you if you swap ETH for Lido staked ETH or Aave's aETH for yield. We can't give tax advice.
2) Farming definitely isn't worth it for single digit returns. It costs time and risk. Rough threshold for us is between 20-40% APY net of costs. If you get a rare opportunity like Hyperliquid points then you obviously max it out.
Truly thank you for all you do - I ended up buying subscriptions for a few friends just so they could get up to speed and I could have in person convos without eye rolls
We're probably due an update on all the main hardware wallet options...and Tangem and Satochip deserve a more detailed review then we have space for in comments. Thanks.
Missed the bulk of Hyperliquid run/airdrop, unfortunately. Any thoughts on how to recognize a similar protocol/opportunity again in the future? Thanks!
Great article as usual! But I have my doubts that we are still early. With BTC hitting $108k last month I got many uninformed friends/colleagues asking about crypto, wanting to catch the bull run before it ends. The same vibes I got back in November 2021. I believe that we do not get the usual standard 4-year cycle. A shorter cycle is what I expect. Say 3.0-3.5 years until we find a new major low correlating with stocks correcting after the yield curve un-inverting, which no one is talking about.
Although everything sounds bullish for crypto (similar to March 2021 with Tesla and Saylor buying BTC:
1) How do you gauge the current sentiment? What is the probability of being near a top in Q1 or already topped in Q4?
2) If not, what is the rational in your opinion of everyone FOMOing around these prices? After all, with XRP and Dino coins pumping, retail is already here.
* Background: this is my second cycle. I bought BTC and ETH @ 17k and 1.5k, sold at doubles, and have been free riding since then. Sold early as BTB mentioned due to PTSD from last cycle.
Always solid value from your newsletters. Happy to continue subscribing, and hope more do as well. Happy new year everyone. Wishing you all good health, peace and prosperity in 2025. God bless you.
“Hyperliquid’s successful launch) that projects will need to offer liquidity to the public earlier and at fairer valuations in the future. More opportunity for you.”
Network effects will congeal around projects who recognize this. This will be one of the biggest edges those projects will have.
Anyone who can help projects achieve this will be well rewarded. <cough> <cough>
I own a ton of ETH but don’t farm or stake. Can you critique my thought process please?
1) staking is low APR and it seems like there is risk involved. Not sure added risk is worth 3 percent?
2) same thoughts for farming but with added risk and added time and attention involvement. If you were going to farm with ETh where could I educate myself on that?
Thanks!
1) The added risk is very correlated to the risk you already have being long ETH. If there was a major slashing event then the price of ETH probably crashes too. You can also run your own node to have more control of the risk, diversify between staking providers, and we should add that some potential issues affecting Lido and staking like the supermajority client bug are likely solved. So it's low risk, low reward. Whether the extra 3% is worth it probably depends on the tax consequences for you if you swap ETH for Lido staked ETH or Aave's aETH for yield. We can't give tax advice.
2) Farming definitely isn't worth it for single digit returns. It costs time and risk. Rough threshold for us is between 20-40% APY net of costs. If you get a rare opportunity like Hyperliquid points then you obviously max it out.
Tax considerations are also a headwind.
Depending on your jurisdiction, any swap/sale is a taxable event.
Is this true when you stake on Lido? That would be incredibly complicated if that's a taxable event!
I believe in the US swapping ETH to stETH would be a taxable event, yes (and the rewards are also taxable, of course).
Definitely consult an accountant to be safe, though.
Not a tax professional, but yes, most say ETH -> stETH is a taxable event because it is a crypto to crypto transaction.
However, you can hold wstETH which is an interest bearing token to avoid immediately realized taxes on the yield.
wstETH should just be subject to capital gains tax when sold.
Check out the vault on moonwell. About 10% apy on your ETH
2) last few posts on BowTiedBull's Substack.
Truly thank you for all you do - I ended up buying subscriptions for a few friends just so they could get up to speed and I could have in person convos without eye rolls
Great way to get started!
Being able to buy gift vouchers with USDC and make small payments for nearly free is a nice gateway drug to crypto.
Thank you for existing, Defi! Lots of exciting learning was for me this year. Still bullish for ETH and alts in 2025 I hope!
You're welcome, will be lots of opportunities in 2025, stay toon'd!
Awesome. I look forward to it!
Thanks sers! Cya in the new year. What are you all farming next?
You're welcome. Will be covered here!
Thank you all for everything you do you’re the best!
Thank you very much!
Any thoughts on tangem wallet? It does use a smartphone for an app but no keys are stored on device. Thanks!
We're probably due an update on all the main hardware wallet options...and Tangem and Satochip deserve a more detailed review then we have space for in comments. Thanks.
Missed the bulk of Hyperliquid run/airdrop, unfortunately. Any thoughts on how to recognize a similar protocol/opportunity again in the future? Thanks!
Read the newsletter and do the academy course.
Starting 2025 off with your academy course. Excited for what's to come in 2025.
Great way to start!
Great article as usual! But I have my doubts that we are still early. With BTC hitting $108k last month I got many uninformed friends/colleagues asking about crypto, wanting to catch the bull run before it ends. The same vibes I got back in November 2021. I believe that we do not get the usual standard 4-year cycle. A shorter cycle is what I expect. Say 3.0-3.5 years until we find a new major low correlating with stocks correcting after the yield curve un-inverting, which no one is talking about.
Although everything sounds bullish for crypto (similar to March 2021 with Tesla and Saylor buying BTC:
1) How do you gauge the current sentiment? What is the probability of being near a top in Q1 or already topped in Q4?
2) If not, what is the rational in your opinion of everyone FOMOing around these prices? After all, with XRP and Dino coins pumping, retail is already here.
* Background: this is my second cycle. I bought BTC and ETH @ 17k and 1.5k, sold at doubles, and have been free riding since then. Sold early as BTB mentioned due to PTSD from last cycle.
Always solid value from your newsletters. Happy to continue subscribing, and hope more do as well. Happy new year everyone. Wishing you all good health, peace and prosperity in 2025. God bless you.
1) Is there a good way to setup a multisig Bitcoin that you like?
Thoughts on HYPE staking?
Great article. thank you!