I think it is safe to say that we’ve officially resumed the bull run. During times of volatility, it is tempting to mess with your portfolio. I’ve definitely messed with my portfolio a little bit since the September Portfolio Update. There are a couple of things I’ve been able to do to take advantage of the upward price trend of Bitcoin.
Additionally, I’ve found myself with a couple of opportunities within the Sovyrn ecosystem that I decided to take advantage of. I recommend you check out a couple of my past letters in order to familiarize yourself with the current state of my portfolio.
Portfolio Allocations
Bitcoin (BTC) - 85% (A few changes since September)
50% Cold Storage (Retirement)
15% Trading (Active Growth)
18% on Crypto.com as collateral for loans
2% on Binance.com for Longing Bitcoin with 50x leverage
20% Earning / Lending / Yield Farming (Passive Growth)
18% on Crypto.com Earn
16% in 3 month lockups
2% in 1 month lockups
2% on Sovryn for liquidity farming on Sovyrn earning 90- 120% APY
Crypto.com (CRO) - 6% (No Changes since September)
1.5% locked on Crypto.Org Earning 12% APY
1.5% locked on Crypto.com for Icy White Card + earning me 10% APY
1.5% locked on Crypto.com Exchange for perks + earning me 10% APY
1.5% open on Crypto.com Exchange for supercharger rewards
Cardano (ADA) - 3% (No Changes since September)
2% on Crypto.com Earning 4% APY (2% in ADA, 2% in CRO)
1% on Cardano Mainnet earning 4 - 6% APY
Binance Coin (BNB) - 2% (1 big change since September)
100% on Sovyrn for liquidity farming on Sovyrn earning 90- 120% APY
Sovryn (SOV) - 2% (One Change Since September)
1.5% staked for 4 years earning ~30% APY
.5% farming for liquidity on Sovyrn earning 90- 120% APY
Stacks (STX) - 1% (No Changes since September)
Staked on Stacks earning 5% APY paid in Bitcoin
Bitcoin Standard Hashrate Token (BTCST) - 1% (No Changes since September)
Staked on BTCST ecosystem earning BTCB and more BTCST
I haven’t picked up any additional tokens in the last month, I’ve just shifted a couple of things around. I want to elaborate on a couple of things that I am doing right now. Specifically the liquidity farming on Sovryn, and the Longing Bitcoin with 50x leverage.
Liquidity Farming on Sovryn
Yes, you did correctly read the APY’s on liquidity farming for Sovryn. I’m currently getting more than 90% APY on each pool.
I’m only supplying $200 worth of rBTC and SOV to the rBTC/SOV pool. I had some extra funds and rewards in my account and I decided it would be best if I put those idle funds to use. The reason why the APY is so high, is because Sovryn is promoting the rBTC/SOV pool and giving extra rewards.
Yes, this is inflationary to SOV, and will not last forever.
The extra SOV is locked for 10 months after I decide to claim it.
I don’t mind the 10 month lockup in exchange for a high APY on a platform that I think will be around for the foreseeable future.
The second pool is where my BNB tokens ended up. In total, I’m supplying about $12,000 worth of BNB and rBTC to this liquidity pool. This is where I am really accruing a good bit of SOV. I’ve been at this exactly 2 weeks, and have obtained 21.27 SOV. Give or take 10 SOV per week. If SOV is trading about $20, that’s $200 USD per week. I’ve seen the APY go as high as 160%, it all depends on the number of people supplying liquidity to the pool.
SOV is pretty far down on the list of tokens on coinmarketcap.com. I admit that it is a bit of a hail mary in terms of an investment, however, the team behind Sovryn is working on some rather interesting technology, i.e. connecting the lightning network to Sovryn.
This would allow you to convert lightning network BTC to rBTC and back again. This is a huge step in allowing BTC to flow freely from a transaction and payments layer (Lightning Network) to a DeFi layer (Sovryn).
Longing Bitcoin with 50x Leverage on Binance
Playing around with derivatives and leverage is what got me in such a pickle last May. I’ve learned to be more careful about the game of trading with leverage. I’ve been building this new Long position on Binance for about 2 months now, around the time I gave the September portfolio update. Let’s take a look.
From left to right on the bottom of the screen, you will see three red boxes.
The first box is the entry price which is essentially my average cost basis1. One way to think about this is if Bitcoin went back down to $53,251.80, then my current trade would net me $0 if I sold it. If bitcoin were to go lower than $53,251.80, then I would start losing money on the trade.
The second box is my liquidation price. It is at this point that my entire futures account would be liquidated and I would lose roughly $2,000.
The third box is my current P & L. I’ve already sold some of my position in the last couple of days that Bitcoin has set a new ATH. This is called taking profits or taking money off the table.
I’ll be honest, futures are a lot of fun, however, they’re pretty dangerous. It is really easy to lose a lot of money quickly on futures, much like gambling. When I am talking with clients about futures, that is typically how I describe it. If you’re not sure how it all works, but want to figure it out, start with the least amount of money you’re willing to lose. You’re not “missing an opportunity” by not playing with futures right now during this bull market.
Business Portfolio
99% in Bitcoin, no changes.
Things I’m looking forward to
November 8th: Crypto.Org EVM goes Live
November 16th: Adopting Bitcoin Conference in El Salvador (I’ll be there)
Not Determined: Atomic.Finance goes live with automatic options trading for Bitcoin
Lighting network continuing its exponential growth
An idea that I’ve been percolating is whether I should make some “how-to” videos on how I conduct some of my trades or where I allocate some of my capital. For example, I could record what I’m doing on Sovryn, and talk through my rationale. If this sounds like something you’d be interested in watching, hit on the reply button and let me know!
Regards,
Keegan
Resources
Cryptocurrency Memes / Podcasts / Charts - v5HP7yBZAzuGVVJ&