In this article, the cryptocurrency financial service platform Matrixport will share the investment strategy of BTC and ETH from the combination of risks, benefits, difficulty, and operation.
(This article is an extensive editorial, provided by Matrixport, and does not represent the position of the dynamic zone.)
The annual cryptocurrency event Bitcoin2022 was held in Miami as scheduled this year. Cathie Wood, CEO of Ark Investments, reiterated her $1 million price target for bitcoin, calling the cryptocurrency “an excellent hedge against inflation,” during the Zhitong Financial Reporting Conference.
This is undoubtedly another powerful voice in support of Bitcoin as a currency of value, which can be a good choice for any investor, both now and in the future. Ethereum, the second-largest cryptocurrency by market capitalization, has also become another popular investment currency with the support of multiple applications.
So how to invest in perpetual motion in an orderly manner when holding BTC and ETH at the same time? How to avoid risks through financial management in the volatile crypto market? The following will make the investment sharing of BTC and ETH from the combination of income, difficulty and operation.
1. Coin-earning income and “coin-raising income” of ETH/BTC grid trading
1. Briefly introduce the profit method of grid trading
By setting the pre-judged currency price range[top pressure point price + ideal bottom-hunting price]setting the number of grids[affecting the frequency of arbitrage]and investing money, you can continue to sell high and buy low in the grid range, making frequent arbitrage. It is a good tool to overcome human investment fears, and it points a good direction to those who invest in BTC and ETH on the way of chasing up and down.
Further reading:Matrixport launches automated grid trading today! The target initially supports BTC, ETH, BCH
2. Common selection of grid trading pairs
Most people use USDT to trade on the grid with other currency pairs, invest and earn USDT.
When trading sideways, choose mainstream value currency trading pairs for grid trading, such as BTC/ETH/FIL/LINK, etc. for hedging and arbitrage investment.
Selecting high-quality small-currency trading pairs for grid trading in a sharply rising market will yield considerable returns. For example, some time ago, the FIL project was favorable, and the rise was significantly higher than that of BTC. If you choose the grid trading arbitrage of the FIL/USDT trading pair during this period, it is obvious that the income will explode other trading pairs. Of course, choosing mainstream currency trading pairs for grid trading is still a conservative and value investment.
It’s also great for grids during waterfall slumps. However, it is not recommended to choose a small currency. Who knows whether this currency will return to zero directly after collecting the currency, and whether there is any hope of rising back. It is unknown whether the rise can surpass the mainstream currency even after the decline is stopped. Or the mainstream currency’s currency is more valuable.
3. Grid’s ETH/BTC trading pair selection
Most of the money earned in general grid trading is USDT/USDC, and the stable currency is how much you actually earn.
But what I am sharing is the grid transaction of BTC and ETH trading pair. The income BTC or ETH includes the value of earning coins and increasing coins. At the same time, these two coins are also the most mainstream in the current cryptocurrency market, and the ETH/BTC exchange rate is relatively the highest. stable currency.
This reflects the difference in value between coins and USDT, and also reflects the way of thinking of cryptocurrency investors:
Use the currency as the principal to make more money, and the increase of the principal is also the income, instead of only using the USDT stable currency as the principal, and other currencies as investment products, and earning income from trading transactions.
Taking the ETH/BTC grid trading pair as an example (for ETH/BTC, BTC/ETH, please go to the exchange to see the exchange rate, it is more accurate), if I judge the exchange rate of ETH to BTC as an upward trend, that is, the increase of ETH exceeds that of BTC.
After selecting the direction of[Shock/Rising]set the exchange rate range, which can be set wider according to the exchange rate market, but should not be too wide to avoid the inefficient use of funds affecting the number of arbitrage after setting the number of grids.
After my BTC is invested in the ETH/BTC grid trading pair, the changes in ETH/BTC with market fluctuations will cause the grid to automatically buy ETH low and sell ETH high. The BTC still held in the order is earning the benefit of the price increase of BTC/USD, and when the increase of ETH exceeds that of BTC, it has the benefit of faster increase of ETH.
Of course, you can also terminate this grid transaction at any time according to the market judgment. At this time, the income can be 2 currencies BTC+ETH and the corresponding increase income of the two currencies. This can be several times higher than the grid income of the BTC/USDT trading pair whose income currency is USDT.
Of course, if I make a mistake in my judgment, the exchange rate of ETH/BTC has become a downward trend in the short term, that is, the increase of BTC exceeds the increase of ETH. After I invest in BTC, it will help me to buy ETH at the bottom. I can choose to stop the grid in time to get the BTC+ETH spot and wait and see.
Here, when the exchange rate of ETH/BTC becomes a downward trend in the short term, there is also a situation where both currencies are falling at the same time, that is, when ETH falls more fiercely than BTC, more ETH is bought through the grid and waits for ETH/BTC When the BTC exchange rate increases, the ETH in this part of the village is a higher income.
At the same time, you can also choose the direction of the ETH/BTC grid[Shock/Down]that is, it is believed that the current ETH/BTC exchange rate is too high, and it will decline in the future when it reaches a high point. It is expected that if the market goes up in the future, the increase of ETH will be lower than that of BTC, or if the market declines, the decline of ETH will be greater than that of BTC.
Investing in ETH, within a certain preset range, some ETH sell BTC high and buy BTC low, you can earn BTC+ETH, or all ETH.
The above premise is that I am bullish on BTC and ETH, and recognize these two value coins.
4. Pros and cons of choosing an ETH/BTC trading pair for the grid
Advantages: It belongs to the conservative lazy investment method of the bullish BTC and ETH groups, because the setting of the grid interval overcomes the psychological tendency of chasing up and down, and can achieve 24h trading, avoiding the anxiety of watching the market at all times.
Disadvantages: The fluctuation of ETH/BTC is more obvious from the daily line, which means that the short-term investment profit is far less than the medium and long-term, and it needs to be able to hold it. It also requires the holder’s belief in the two currencies.
5. Risk assessment
3 stars — average, a medium- and long-term investment with considerable returns
2. DeFi AMM automatically makes market-making investments and deposits ETH+BTC
1. A brief introduction to AMM’s automatic market making and wealth management, and the method of depositing BTC+ETH investment income
The emergence of AMM has changed the traditional order book transaction matching mode, everyone can become a market maker, provide liquidity for the trading market, and greatly improve the transaction efficiency. The income includes LP (liquidity provider) basic annualized income + token sale annualized. At present, the high-quality platform AMM automatically makes the market and deposits BTC+ETH at the same time, and the income can reach 10%.
2. The pros and cons of choosing AMM to invest in ETH+BTC
Advantages: Generally speaking, AMM financial management is very skilled, and the income is relatively stable. For those who hold dual currency BTC and ETH, it is a good choice to carry out financial management at the same time.
Disadvantages: A reliable platform is required to choose AMM investment, and platforms that have experienced the risk of currency theft are not considered. It is also necessary to bear the risks of DeFi contracts and the volatility of returns brought about by unilateral market conditions. It is best to deposit BTC and ETH at the same time to avoid depositing a single currency to reduce income.
3. Risk Assessment
2 stars – A good platform has introduced AMM financial management to achieve one-click investment, one-click estimated income, and achieve safety and authority in screening projects. It is a very simple investment process for anyone holding spot BTC, ETH. When the currency rises, you can get an annualized 10% currency income.
For details, please refer to the previous article:Crack the wealth code of cryptocurrency AMM automatic market making
3. Trend Zhiying’s BTC and ETH investment
1. A brief introduction to Trend Intelligence’s income method
Select multiple asset combinations such as Defi mining, debt, options, etc., and build different structured risk-return models, which can obtain enhanced returns based on the judgment of market trends.
Under the fluctuation of currency price, investing in BTC can obtain a guaranteed return, or the corresponding return rate rising in the range. Among them, Trend Zhiying’s guaranteed minimum income comes from the platform’s lending business. The deposited BTC and ETH can provide very stable interest income. The platform can then use this interest income to purchase a series of option combinations. In this way, extra income is achieved in the process of rising market prices, that is, the profit of the option.
Of course, the gains from investing in BTC are also BTC. The same is true for ETH investment in Trend Intelligence. Trend Zhiying contains bullish and bearish 2 directions. It is a good choice for stable investment in BTC and ETH.
2. The pros and cons of choosing Trend Intelligence to invest in ETH and BTC
Advantages: It is an investment with a closed period. It is guaranteed to hold the coins in hand, and it can well control the tasteless operation of chasing up and down. If there is an investment in Zhiying with a trend of more than 30 days, it is basically a good investment. No matter whether the market judgment is accurate or not, there will be guaranteed currency-standard returns. If the market rally is judged correctly, then the currency-standard returns will be even more impressive.
Disadvantages: The overall average rate of return is 5% to 8%, and the income is only considerable when the individual market fluctuates. Trend products greater than 30 days are not common.
3. Risk Assessment
1 star – I understand that the projects selected by Trend Intelligence are the safest defi projects, and there is basically no asset security risk.
Of course, if there are few coins, no combination is required, just choose one.
Digital currency investment is a game for value believers. While holding dual mainstream currencies BTC and ETH, portfolio investment allows you to gain market opportunities without watching the market 24/7.
The investment example comes from the financial management on the matrixport app.
The grid is located in app-transaction, AMM is located in app-defi, and Trend Intelligence is located in the app homepage.
Matrixport official website:https://www.matrixport.com/zh-tw
Matrixport app download link:https://invest.matrixport.com/newRegister/cn?invite_code=WQLKSG
Matrixport Official Community:https://t.me/matrixportTW
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