1 - Choose safe asset codes; ensure the team behind the platform has clear, transparent operations; and maintain a closely monitored development strategy for the project in line with the current conditions of society. The core objective is to keep the rate of projects abruptly stopping mid-way as low as possible.
2 - Focus on asset codes that can be used as collateral to borrow capital (but must also meet all conditions in Step 1). Because during the investment process, price will fluctuate up and down: when the price rises, we can DCA out to wait for a pullback, and when the price falls, we can DCA back in. However, when prices drop and the available capital becomes depleted, we can calculate an additional step using the main asset we are currently holding to secure the loan. Once we have the borrowed capital, we can optimize the DCA tool at the price levels we expect. This step is slightly riskier in terms of adjusting the collateral so that the liquidation price stays within a safe range; it requires careful research and calculation in this step.
3 - Create additional passive income from assets based on the Earn tool. Even though the interest rate is quite low, it’s still better than having idle assets sitting in one place. With a long-term approach, these small contributions will help well with paying the interest in Step 2.
Above are the 3 steps that I personally summarized based on my own investment process. I hope it’s helpful for everyone. Since I’m trying to keep it as concise as possible, if you think it’s useful and want to apply it, please research and calculate very carefully nhé.$XLM
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