HOW TO NAVIGATE THE CRYPTO SPACE WITH LITTLE OR NO CAPITAL/LIQUIDITY

During a live session yesterday, I heard a couple of crypto degens and enthusiasts ask repeatedly how they could maximise their capital or grow it over time. Some of the responses from the host were not ideal and I thought to use this post to throw some light on the subject because of its importance to newbies in the crypto space.

Now, my first advice might not be what you want to hear but it's the truth. Many of the OGs in this space won't say this but you have no business assuming high-risk investment with your small capital. It is reckless, to say the least, and the crypto market will punish you. In fact, you don’t need to allocate capital to any project until you know what you are doing.

It is easy to get enticed by the huge gains people in the crypto community flaunt–most of which are based on luck or outrightly fake. The truth is that 1/100 do make life-changing money speculating on a plethora of projects. It is an extreme waste of human and financial resources. You want to zero down on a few projects, do proper research and grow slowly. This is a sustainable way to make wealth in crypto.

I was on a Twitter space a couple of weeks back where a popular individual in the NFT space spoke about how useless most of the NFT projects are and I am sure a lot of people already know this but are still in the game because as much as I don’t want to admit it, people don’t care about the fundamental. They only follow the money which sets the trends and distractions that make people lose money.

Finance capital isn’t the only thing lost in the pursuit of quick gains. There is the time factor which the crypto community never talk about. Understandably, when you do not have capital you have to use your time creatively to spot opportunities. In that process, you can find hidden gems and learn more about the industry.

So to the question, how do you grow your capital whilst exploring the crypto space in the safest way possible. I will suggest SOCIAL-FI. By this, I mean decentralised social platforms that reward users for contributing to the network. There are a number of them out there. Leofinance is one of my favourites. Social-Fi isn’t talked about in the crypto space because it is very difficult and only a few projects have been able to pull it off (example: Hive)

Why leofinance?

Leofinance is a second layer community centered around cryptocurrency and finance. Asides from Twitter, this is one space to get alpha–relevant and legit information about crypto projects. Unlike Twitter, you also get the unique opportunity to share your knowledge and experience about finance/crypto, and help grow the community by participating in the various initiatives which are incentivized. You earn the leo token as a reward for your contribution.

These rewards (in form of the leofinance token) can be stake or invested in other projects in the leofinance ecosystem like polycub (a DeFi 2.0 project) and cubfinance. This can be a constant source of revenue for you and in the long run, you can choose to diversify or branch out of the ecosystem and assume more/less risky positions.

In conclusion, investing in crypto isn’t like playing sports bet, well it can be if you are willing to lose money. There are success stories but not that many. So you need to be intentional about how you use your resources(capital and time). Social-Fi has worked for many people and I will recommend it to anyone getting started in crypto.

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