Digital assets have the ability to transform your wealth and life.
However, must of you suck at managing a well-balanced portfolio dependent on your risk profile.
Hereβs how one protocol can help you maintain the perfect balance: π§΅
However, must of you suck at managing a well-balanced portfolio dependent on your risk profile.
Hereβs how one protocol can help you maintain the perfect balance: π§΅
Iβm going to showcase you different strategies for a balanced portfolio by using agriculture on-chain through LandX (@landxfinance).
- Introduction
- Agricultural derivatives
- Why?
- Your financial goals
- Digital assets
- Asset allocation
- Portfolios
- Summary
- Introduction
- Agricultural derivatives
- Why?
- Your financial goals
- Digital assets
- Asset allocation
- Portfolios
- Summary
1: Introduction
There has been a big change to our access to agricultural investment due to LandX.
Say bye to the previous era in where farms could only be profitable for large investors.
With LandX Finance's on-chain, you can now get started playing with just $10!
There has been a big change to our access to agricultural investment due to LandX.
Say bye to the previous era in where farms could only be profitable for large investors.
With LandX Finance's on-chain, you can now get started playing with just $10!
You are essential to building a decentralised farming ecosystem where farmers are compensated fairly and are free from fraudulent lending practises and centralised supply networks.
You can invest in agriculture now to influence how food will be produced in the future!
You can invest in agriculture now to influence how food will be produced in the future!
2: Why include Agricultural Derivatives in a Digital Asset Portfolio?
Investors in digital assets, take note!
Say goodbye to the troublesome choice between only stablecoins and cryptocurrencies on-chain.
Introducing agricultural derivatives, a brand-new game-changer!
Investors in digital assets, take note!
Say goodbye to the troublesome choice between only stablecoins and cryptocurrencies on-chain.
Introducing agricultural derivatives, a brand-new game-changer!
Diversify your holdings, safeguard against inflation and political unpredictability, generate income, and promote sustainable investing strategies.
Surely you want to join the revolution by including agricultural derivatives in your portfolio of digital assets right away.
Surely you want to join the revolution by including agricultural derivatives in your portfolio of digital assets right away.
3: Why agriculture?
You can protect your investments from inflation!
Hard agricultural commodities, like wheat and corn, soar in price during times of food scarcity and climate change.
Ditch the centralised mishaps and hold onto xWheat or xCorn for tangible, physical value.
You can protect your investments from inflation!
Hard agricultural commodities, like wheat and corn, soar in price during times of food scarcity and climate change.
Ditch the centralised mishaps and hold onto xWheat or xCorn for tangible, physical value.
These trustless on-chain investments will offset losses from the very food you buy daily.
You no longer have to wait, add xTokens to your portfolio and beat inflation.
You no longer have to wait, add xTokens to your portfolio and beat inflation.
4: What are your financial goals?
Do you know what drives your purchases of digital assets?
Are you a speculator, a trader, or a long-term investor?
It's time to assess your objectives and create a portfolio that reflects your values.
Do you know what drives your purchases of digital assets?
Are you a speculator, a trader, or a long-term investor?
It's time to assess your objectives and create a portfolio that reflects your values.
Concerned with inflation? Short-term trader or long-term holder?
Think about holding agricultural derivatives like xTokens.
Do you desire DeFi yields? Put that at the top of your priority list.
Think about holding agricultural derivatives like xTokens.
Do you desire DeFi yields? Put that at the top of your priority list.
Stay away from government sanctions? Digital assets can help you better manage your money.
Develop a portfolio that represents your objectives and be aware of why you invest!
Develop a portfolio that represents your objectives and be aware of why you invest!
5: Digital asset portfolio
Time to build your digital asset portfolio!
Mix low, medium, and high-risk assets for a balanced portfolio.
Start with large-cap cryptos like ETH and BTC, mid-cap cryptos like AVAX, FTM, and ATOM, or stablecoins like USDC and xUSD.
Time to build your digital asset portfolio!
Mix low, medium, and high-risk assets for a balanced portfolio.
Start with large-cap cryptos like ETH and BTC, mid-cap cryptos like AVAX, FTM, and ATOM, or stablecoins like USDC and xUSD.
Add agricultural derivatives like xWheat, xSoy, and xRice for a touch of real-life value.
Expand with other options like NFTs, real yield projects or low-cap specs.
Get creative and build a portfolio that aligns with your risk tolerance and investment goals!
Expand with other options like NFTs, real yield projects or low-cap specs.
Get creative and build a portfolio that aligns with your risk tolerance and investment goals!
6: Asset Allocation
For this part of the thread Iβm going to showcase you the amazing work that was put together by a LandX medium article on asset allocation.
- Strategic Allocation
- Tactical Allocation
For this part of the thread Iβm going to showcase you the amazing work that was put together by a LandX medium article on asset allocation.
- Strategic Allocation
- Tactical Allocation
Strategic Allocation:
Extended time of passively maintaining a well-diversified portfolio without changing the allocations in response to market changes is known as strategic allocation.
Additional investments are made in the lower percentage assets to rebalance the portfolio.
Extended time of passively maintaining a well-diversified portfolio without changing the allocations in response to market changes is known as strategic allocation.
Additional investments are made in the lower percentage assets to rebalance the portfolio.
Tactical Allocation:
Advanced investors could use tactical allocation, which entails routinely modifying their investments across various assets based on market fluctuations.
Advanced investors could use tactical allocation, which entails routinely modifying their investments across various assets based on market fluctuations.
By replacing stocks with cryptocurrency, the "100 minus age" rule, a well-known tenet of conventional finance, may be applied to cryptocurrency investing.
According to this formula, a trader should invest the proportion of their portfolio in crypto equal to 100 minus their age.
In the case of a 25-year-old, 75% of their wealth might be invested in cryptocurrencies.
However, depending on a person's risk tolerance.
In the case of a 25-year-old, 75% of their wealth might be invested in cryptocurrencies.
However, depending on a person's risk tolerance.
7: Example portfolios
LandX have provided some excellent example portfolios incorporating agriculture on chain:
Iβve copied these directly from the LandX medium article to avoid any confusion.
- The Solid Portfolio
- The Barbell Portfolio
- The Conservative Portfolio
LandX have provided some excellent example portfolios incorporating agriculture on chain:
Iβve copied these directly from the LandX medium article to avoid any confusion.
- The Solid Portfolio
- The Barbell Portfolio
- The Conservative Portfolio
The Solid Portfolio:
- 50% BTC (or ETH)
- 25% Medium risk tokens (mix of Low-caps & Mid-caps)
- 25% xTokens (or other chosen low-risk/long-term holds)
- 50% BTC (or ETH)
- 25% Medium risk tokens (mix of Low-caps & Mid-caps)
- 25% xTokens (or other chosen low-risk/long-term holds)
A solid and moderately aggressive portfolio that is still diversified with xTokens.
Suited to those who have time on their side but less starting capital. The medium risk part of the portfolio will likely need to be rebalanced more often.
Suited to those who have time on their side but less starting capital. The medium risk part of the portfolio will likely need to be rebalanced more often.
The Barbell Portfolio:
- 50% safer assets
- 50% high-risk assets (low cap cryptos)
- 0% medium risk
- 50% safer assets
- 50% high-risk assets (low cap cryptos)
- 0% medium risk
This strategy works well with a yield-paying or fixed income portfolios.
Half the portfolio contains long-term assets and the other half short-term holds, but nothing in-between. The long-term holds may include locked up digital currencies for yield.
Half the portfolio contains long-term assets and the other half short-term holds, but nothing in-between. The long-term holds may include locked up digital currencies for yield.
Traditionally, the Barbell calls for investors to hold safer fixed income assets (such as xTokens and stablecoins), along with riskier assets which would be sold before the end of the bull market.
The Conservative Portfolio:
- 33% BTC
- 33% xBasket
- 33% stablecoins
- 33% BTC
- 33% xBasket
- 33% stablecoins
An even split between hedging options (stablecoins) and crypto minimizes risks during bear markets but will not experience high growth that comes with other high volatllity portfolios.
Although this conservative portfolio will still have room for growth itβs main goal is safety and conserving capital while earn income from yield and compounding.
This makes it ideal for those with larger amounts of capital or those who are closer to retiring age.
This makes it ideal for those with larger amounts of capital or those who are closer to retiring age.
7: Portfolio thoughts
Getting the Most Return from Your Investment Portfolio.
Income generation from your assets can be crucial for long-term investing success.
Getting the Most Return from Your Investment Portfolio.
Income generation from your assets can be crucial for long-term investing success.
Depending on your level of risk tolerance, you can decide to use decentralised protocols like Aave or Uniswap for lending or liquidity provision while keeping half of your assets in cold storage.
For safe assets like Bitcoin or Ethereum, the annual percentage yield (APR) can be as high as 10% or even higher for mid-cap currencies and higher-risk investments.
By compounding you will enable yourself to gradually increase your earned yield.
By compounding you will enable yourself to gradually increase your earned yield.
Staking:
You could own xSoy, xWheat, xRice, xCorn, or xBasket in the case of xTokens (a combination of the four main agricultural staples).
Holders of xTokens receive cTokens in the form of agricultural yield:
Each year, one staked xWHEAT token generates one cWHEAT.
You could own xSoy, xWheat, xRice, xCorn, or xBasket in the case of xTokens (a combination of the four main agricultural staples).
Holders of xTokens receive cTokens in the form of agricultural yield:
Each year, one staked xWHEAT token generates one cWHEAT.
Borrowing:
You can lower the risk by taking out a loan against your xTokens or other holdings in your portfolio.
For instance, farming xTokens on DeFi platforms like Uniswap or Aave by borrowing stablecoins at a safer 30β50% loanβtoβvalue (LTV) ratio.
You can lower the risk by taking out a loan against your xTokens or other holdings in your portfolio.
For instance, farming xTokens on DeFi platforms like Uniswap or Aave by borrowing stablecoins at a safer 30β50% loanβtoβvalue (LTV) ratio.
8: Summary
Small investors can gain access to the agricultural market by purchasing xTokens from LandX, which trade in agricultural derivatives.
Small investors can gain access to the agricultural market by purchasing xTokens from LandX, which trade in agricultural derivatives.
This urges investors to think about dedicating a portion of their portfolio to agricultural derivatives by describing the advantages of doing so and using LandX as a platform for doing so.
I hope this collaborative thread with @landxfinance provides you with food for thought #Ad
I hope this collaborative thread with @landxfinance provides you with food for thought #Ad
Must is the new most π.
Thank you for reading this thread! Most******
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Thank you for reading this thread! Most******
If you enjoyed this thread then please:
- like, reply, retweet, or bookmark ππ»
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