Welcome to our trading marathon! We will document our progress regularly, you can follow our thoughts in real-time on our Discord. Treat everything as educational content and not financial advice
- Starting Balance: $1,400
- Why? Stimulus Check.
The initial goal is to reach $10,000. Given the low amount, we can’t risk losing everything in 1 trade. So we will diversify across different projects, even networks for different yield farming strategies.
Any trading on Uniswap or liquidity mining on Ethereum is out of the question as network fees will eat up our profits. So we’ve chosen two farms initially one on Binance Smart Chain and one on Solana. If you’re a beginner, you don’t want to fall victim to weak hands, so farms are ideal for you as you will see the rewards come in. Helps us stay patient if it’s not easy to click the sell button.
1) We’ve put $250 into the bDIGG/BTCB pair on Pancakeswap to stake in Beefy Finance. We’re bullish on BTC long term, and currently, the vaults provide 1% Daily. Plus bDIGG token features a rebase system that aims to protect you from Bitcoin’s volatility. We believe it’s a perfect combo for conservative investors. Lastly, Beefy is integrated with Yieldwatch, so you can monitor your vault easily.
Tips: If you’re just starting out on BSC then the easy route is to buy BNB on Binance to withdraw to your MetaMask wallet. If you need help, check out our full tutorial on Pancakeswap or Venus Protocol as the steps are similar. Once you have BNB in your wallet, 1inch Exchange to swap for bDIGG and BTCB.
2) This is an AMM on Solana, so you can’t use MetaMask and have probably never used it before. But don’t let that stop you! The product has a very easy onboarding flow. You’ll need to deposit SOL into your wallet (recommend using Sollet). Open the Farms tab on Raydium to stake your RAY/ETH LP and earn RAY. The only downside is these farms are not auto-compounding like on Beefy, so we will need to do that manually.
We’ve allocated $250 to the RAY-ETH pool, which currently has 196% APY. The main reason behind this choice is that Raydium is brand new, has a lot of room to grow as the Solana ecosystem matures. And we want exposure to Ethereum, as Layer2 integrations should bring us another DeFi summer.
Tips: Easiest way to get started is to move funds through FTX Exchange as a bridge. Sollet does have a decentralized bridge, but that means paying ETH network fees. If you’re on Binance, you can move BUSD to FTX using the BEP2 options for low withdrawal fees. Then you can buy SOL on FTX and withdraw to your Sollet address. Recommend reading through this guide from Serum Academy on using Sollet.
This means we now have $880 left, considering you will need to allocate $10 to BNB and $10 to SOL for network fees. The aim is to use these funds for trading on futures or spot, reinvest funds into more yield farming.
We are still uncertain about the strategies our readers would benefit from the most: scalping, swing trading, spot trading? Or a little bit of everything. Stop losses will be important as a big key will be to preserve capital.
Today we pretty much discussed all the different options, not from an immediate profit point of view, but as content creators, so our balance remains untouched and we move forward tomorrow.