I think the opportunities in the crypto space are fair for everyone, but why many people can't seize them is due to not understanding themselves, whether it's mysterious confidence or blindly following trends. I’ll give a few examples of myself: my risk tolerance is basically zero, that's just my human nature. I entered the crypto space in 2019, didn’t trade B, didn’t touch HY, very simple; it’s not that I’m wise, but I can’t afford to lose. I know what kind of person I am. Then I looked at posts everywhere and found a play called shorting, and plus the fight between BN and HUOBI that year, crazy shorting, so I jumped right in; after all, it only cost me time, and my most worthless asset is time. From the start of shorting domestic airdrops, I became familiar with it, learned more, and had broader information; shorting international airdrops could yield dozens of oil a day at a minimum, over a thousand at a maximum, averaging about one to two hundred oil a day. Is that low? But at that time, I told my friend that this was very stable and let him try it. The result? He threw me a BN HY order, 176% in 3 hours; he laughed at me for eating these 'leftovers', saying I’d never get ahead. What happened? In 2021, the pancake disaster struck; he directly lost his house. This is the blind confidence that came after the airdrop, and he started getting harvested. I switched to NFT and blindly bought those $1 ones, 80% of which sank without a trace. The highest one rose from $1 to 70,000. I asked my friend whether to go or not. For example, in recent years, my strategy has been to hedge interest rate differentials more easily than before.
For example, these two figures, just captured.
Figure 1 is the largest exchange on this side, and now the price of a large pancake is 148 million local currency.
Figure 2 is a certain exchange, everyone is familiar with it, a large pancake 74.9W
Let's do a simple calculation
Let’s compare with the largest settlement center on this side, WISE.
Now, one local currency is 148 million, which equals 783,000 for us.
Now the certain exchange is 74.9W.
There is a difference of 34,000 between the two sides, this is the interest rate differential.
The emergence of interest rate differentials is due to exchange rate issues. Here, the local currency is used to buy directly, without needing oil, while pancakes are priced in USD as the anchor; therefore, the exchange rates between USD to us and USD to the local currency create an unequal exchange rate difference, leading to the emergence of interest rate differentials.
Then what needs to be done is very simple.
Buy large pancakes domestically, send them to the local exchange, sell them for local currency, don’t mention it, directly transfer to MID COIN, and then bring it back; that’s it.
Completed all on-chain, with no CASH involvement and no potential risks.
It takes about 20-30 minutes for a round trip, excluding GAS fees, transfer fees, wear and tear, fluctuations, etc. In reality, you can probably eat 60-70% of the interest rate differential each time. In other words, after hedging each large pancake, you can get 2400-3100 oil and need to run 4-5 laps to fully hedge one large pancake.
The information gap mainly comes from the following points
1. Because there is no CASH involved, the KYC here can be bypassed, many people do not know
2. Many people think the whole world uses oil, but it actually does not.
3. Many people think that the price of pancakes is the same worldwide, but it is not; that is the USD price, while many countries buy with their own currency, resulting in completely different prices with a significant gap.
Hedging the interest rate differential has been over 4 years now, working 10 hours a day, anyway, I am full-time in the crypto space, it doesn't matter, after a year, averaging can yield around 2000 oil per day, I think that’s quite good.
Those who play HY might look down on it; it’s just this much in a minute, but for me, stability is the most important.
So back to the topic, don’t think about things like 1000 battle gods or 10 oil battle gods; the crypto space is not just about HY. Don't think about getting rich overnight; why would such a low probability happen to you? Think carefully about how much knowledge you actually have. If you don’t even understand finance, trying to touch HY is really a natural fate of being a victim.
Choosing what suits you is always much better than choosing to go with the flow.
Because I have been through the rain, I want to help the newbies who just entered the market to avoid the biggest risks!!!
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