Arthur Hayes' latest blog includes his top four crypto assets to hold amid the bear market because they may pay off.
Arthur believes true investors should hang onto investments that will increase in value and yield token holders during market downturns.
Crypto assets to hold during the weak market because they might pay off later.
The co-founder of the BitMEX exchange, Arthur Hayes, recently posted an article on his personal blog detailing the current state of the cryptocurrency market, the price of Bitcoin, the FTX scandal, lending companies, and his top four crypto picks to "hold" in this choppy bear market in order to benefit when the tides turn.
In these times of downturn markets, genuine investors, in Arthur's opinion, should keep onto investments that will not only increase in value when the market turns around but will also provide a yield to token holders.
He chooses four of his favourite cryptocurrencies and further divides them into "Reserve Assets" and "Super-Powered Assets." He chooses Bitcoin, the top cryptocurrency by market capitalization, as the first Reserve Asset, with Ethereum coming in second. LOOKS and GMX are the other two cryptocurrencies that are included in this list of Super-Powered Assets.
While Bitcoin and Ethereum can aid in capital appreciation when the bull market takes hold, Arthur adds that it is tokens like these that would generate him yield, which none of the aforementioned two coins do at the time.
Happy days if there are low-cost protocols that allow me to obtain the return profiles of Bitcoin and Ether as well as yield from actual service usage!
According to him, many DeFi projects were "shellacked during the two downward waves of the 2022 crypto credit crisis," which allowed investors to invest in them at significantly lower valuations and costs.
I should only invest in projects with a P/F ratio of 5x or less if I want to earn a 20% yield annually. Although everyone's hurdle rate will be different, that is mine. I could buy Bitcoin or Ether, but neither of these cryptocurrencies offers me a sufficient return.
The price of Bitcoin "may" have bottomed out at $15,900, Arthur further stressed in his blog, and it's periods like this that make buying seem hazardous but lucrative.
