- The Monetary Authority of Singapore (MAS) may ban leverage trading for retail participants
- However, other aspects of crypto, such as airdrop farming, remain profitable
- Creating a long-term vision, and sticking to it, is essential
Two recent proposals by the Monetary Authority of Singapore (MAS) indicate headwinds in crypto adoption for retail participants in Singapore.
While these proposals are still just that – proposals, they are very real threats to crypto traders. With a sizeable percentage of Singaporeans holdings some form of cryptocurrency, and a majority of them actively trading, the local Web3.0 may dwindle should such proposals pass.
Despite this, crypto rewards the tenacious and adaptable. As such, let’s look at 3 ways you can profit in crypto, without leverage trading.
Crypto is driven by narratives and shifts in the cycle.
The current narrative seems to be airdrop season, with millions, if not billions, of dollars being given away between various protocols. Furthermore, some airdrops can be farmed with multiple wallets, making the risk-to-reward ratio an appetizing one.
During the bull market, participants who simply farmed airdrops and sold them for stables outperformed many of their peers. In fact, many created 5-6 digit portfolios, simply from airdrops.
The Ethereum Name Service airdrop, for example, was worth almost 5 figures to anyone who simply created an ENS.
With the recent Aptos launch, many users are hunting for airdrops both within the ecosystem, and in parallel opportunities. Upcoming networks like Sui and Sei are good places to start as well.
However, one section of the MAS proposals hints at a potential ban on airdrops. Should it pass, it seems like Singaporeans will be eventually protected from free money and have to explore other opportunities.
Real Revenue Protocols
While TradFi valuation metrics have been blown out of the water in Web3.0, one rule still stands.
Profitable companies will stand the test of time.
One of the narratives running the bear market has been that of “real yield”, or protocols that generate actual profits, instead of “ponzinomic” profits, for its users.
GMX has been the golden child of this narrative, with up to 19.48% APR for $GLP stakers on the Arbitrum network. Furthermore, stakers are paid out in a variety of blue-chip tokens, instead of inflationary native governance tokens.
Taking it one step further, users can instantly convert the rewards to stables, or re-invest the tokens to earn compounded yield.
Compounded daily, a 19.48% APR translates to 20.92% APY, and if users keep losing money on the protocol – the interest keeps increasing.
While this runs the risk of the staked token declining in value, a long-term belief in the protocol and its value share over time is important. Doing your own research and finding gems in this ecosystem will help you outperform simply staking on GMX.
It is an open secret that NFT trading volume has dwindled alongside the rest of crypto. However, the NFT scene and whitelist hunting has remained a fiery place to be, with communities still building heavily.
While NFT trading may require a sizeable capital and dedication, there are narratives that drive them as well. For example, the “free mint” narrative was one that drove the NFT scene for awhile, and hopping on any project with a decent community and free mint had high risk-to-reward ratios.
However, getting a whitelist for the mint is a lot of work.
Furthermore, identifying NFTs that will take off, and have a team that will not simply slow rug the project is a difficult task.
By using tools such as Dune Analytics and Nansen, however, you can gain an edge and see what top NFT traders are accumulating. Simply copy-trading them, given enough conviction and a long time horizon may be the best bet here.
Get a Crypto Side Hustle!
“During a gold rush, sell shovels.”
Despite the bear market and crushed valuations, Web3.0 still pays well, really, really well.
The average pay for a full-time social media lead in Web3.0 is a tad above USD$50,000, or approximately SGD$70,000 annually.
If you are jumping over from TradFi and have experience in Development or Finance, salaries can easily peak past 6 figures. The best part? Thanks to the decentralized nature of Web3.0, many jobs can be worked remotely, and do not require paper qualifications – just a tenacious attitude and a willingness to learn.
Even if you are unable to get a job at an established Web3.0 company, many companies are still getting funding during the bear market, and those that have an established protocol and strong war chest are likely to come out dominant on the other side.
Freelance work such as NFT design and protocol research are also abundant in crypto, with the right connections. If you have no idea where to start looking for crypto jobs, you can even reach out to founders on twitter, or build a brand in order to show others your worth.
If you never try, you never know.
The Best Bear Market in Crypto History
This bear market is different.
The prices are in the gutter, the protocols are getting hacked, and Elon has stopped meme posting Dogecoin.
But if you’re still in crypto, you probably believe in it for the long term.
The opportunities to both profit and work in Web3.0 have never been better. With everyone having access to a myriad of research tools and twitter being a source of unlimited free alpha, putting in that extra 10% will give you a huge edge over your peers.
Whatever you choose, do your research and stick to it. Long-term conviction, is, after all, what prevents you from selling your Bitcoin at $3.
Remember, however, that crypto also rewards the nimble. If you hold onto your conviction despite your thesis and research being invalidated, you end up bag holding bitcoin from $69,000 to $20,000, instead of selling the top.
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
Featured Image Credit: Chain Debrief