Hey guys, I want to experiment with a new format. Throughout a week I gather little stories and events that I would like to share with you. Yet they seem too small for me to share as its own article. So here is the summary of the 27th calendar week.
This week lead me deeper into the rabbit hole of crpyto currencies. So, take some more tea and listen.
Disclaimer time! Let me make one thing clear. None of this should be interpreted as financial advice!
I am mostly fooling around and the investments I do make are questionable at best. The money I use is money to burn and it does not hurt me - too much - to lose it.
As much as I am a proponent for advancing crypto currencies as a genuine alternative to fiat currencies, I still like to play around a little and do some not so serious investments. A meme coin is the perfect catalyst for that.
So I went with Shiba Inu tokens which have one big advantage … they are cheap. With a relative small investment of 50 Euro - which is not as small now that I think about it - I was able to get a couple million tokens. Roughly 7 million.
I was pleasantly surprised to find that I could buy those on binance which is a mainstream crypto
I could not believe my eyes when I checked on my wallet the next day. My investment has grown from 50 Euro to 61 Euro. Overnight! The most logical conclusion I could come to was that I am a genius crypto investor which I hastily proclaimed in a Twitter post.
But whatever rises up must fall down eventually. In this case I am talking about my ego and not the value
of SHIB. Because the next time I checked the value went down to 50 Euro.
The first impulse was to attest this to the high volatility on crypto markets but I could not find such a big price movement for SHIB. Instead I noticed that the value of my Euros in the wallet was denoted in Dollar so it dawned on me. The 61 Euros from before were not Euros but Dollar instead.
Turns out, I am not a genius crypto investor after all.
Staking stable coins
My brother brought my attention to the site youhodler which allows you to stake certain cryptos to earn interest. Which is nothing new. You can do that in many places.
Staking is a good way to let your crypto work for you if you have no plans with it anyways and is also necessary for the health of a proof of stake coin.
Of course it would be a bad idea to convert your fiat currency into crypto only to stake it since crypto prices are so volatile. This means you cannot benefit from the interest rates on the crypto market with your fiat currency.
That would be the case if it were not for stable coins which are a crypto currency that has a fixed exchange rate to a fiat currency. Tether for example can always be exchanged 1:1 to USD.
These stable coins can only have small interest rates. Right?
They come along with an impressive 12% APR.
So in theory you could convert USD to a stable coin, earn interest on that coin, convert it back and you essentially have earned interest on you USD.
There is a small caveat here - at least for me. There is only one stable coin for Euro and it is not as big as the USD variants. Into the latter I would not want to invest because of potential currency risk.
So far I have not invested in a stable coin to stake it because it somehow sounds too good to be true. So i am still looking for the catch. Will keep you updated.
I found myself allured by another crypto coin that week. It was a mixture of the retro wave aesthetic of the web site and the fact that it is even cheaper than SHIB which allows you to easily hold billions of those coins that drew me in.
But please do not think little of me. This was of course not enough to convince me to buy. It was the fact that this coins rewards every person holding it by letting him / her participate in the transaction fees. Meaning: just by having OSM in you wallet you will get more OSM without having to do anything.
So I bought it and found that it works. The number of OSM mysteriously gets bigger and bigger. As a gamer easily fall for numbers getting bigger. The question whether this is worth it is still open. As far as I could tell my amount was increasing by the fraction of a fraction of a percent.
It should be mentioned that it was moderately difficult to buy OSM. I could do it on pancakeswap.
How could that be a problem? I already have funds there. I just select the coin and buy it.
Only issue was that I could not select OSM under exchange.
In my bewilderment I checked the website of Supermoon that luckily had a tutorial on how to buy. Turns out that you have to add the token address to pancakeswap and then you can buy. Being presented a warning that everyone can create a token so you should be careful what you buy because it could be that you cannot sell it.
Well, let's see how that goes.
That wraps it up what I wanted to tell you. As of now I am in a phase of great excitement about crypto currencies and DeFi as a whole. There goes no day without me finding something new.
So stay tuned for future content.