3 Topics I’m Actively Managing in My DeFi Portfolio Right Now

Strata Trader -

The 3 topics I'm continuously improving and focusing on these days are:

Topic #1: DeFi Portfolio Management

I'm continuously analyzing market structure and sentiment to adjust my portfolio, aiming to improve my risk-adjusted returns.

It's feedback on my strategies and a way to improve. At its core, it's about understanding my risk tolerance and its impact on my portfolio. Given the current market cycle, here's my allocation strategy as of today:

  • 25% HODL
  • 20% Blue-Chip
  • 40% Semi-Blue-Chip
  • 15% High-Risk

I'm aiming to maintain consistent returns between 20 to 40% APR over the next year as I continue to grow. IMPORTANT, everyone's risk tolerance is different, only you can decide how much to handle.

Topic #2: DeFi Due Diligence

I first got interested in DeFi a few years ago.

After some mistakes, I’ve learned the importance of doing your own research (DYOR) before investing. This means evaluating a DeFi platform’s team, security audits, and community.

Also, it means systematically reviewing tokenomics and overall market potential to make informed decisions.

Topic #3: Concentrated Liquidity Pools (CLPs)

DeFi gives me the power to become a market maker and earn trading fees with CLPs.

CLPs let you earn money by providing your crypto for trading within a specific price range. You earn fees each time a trade happens in that range. By focusing my funds where most trades occur, I can earn more with less, and adjusting to price changes helps reduce risk. By allowing traders to use my tokens in this concentrated range, I can generate passive income.

It would be great to connect with others who are interested in these same topics. So, if any of the above resonates, feel free to reach out!