Creating Liquidity For Your Favorite Token: A Comprehensive Guide by Gboyega Bisileko
Tracing back to over a decade ago, an anonymous visionary named Satoshi gave birth to a pioneering digital asset, Bitcoin. This sparked the inception of a flourishing alternative market, creating countless new professions and career trajectories. Now, this adolescent market has gained substantial traction, bravely challenging established foreign exchange markets, stocks, equities, commodities, and other well-established centralized financial systems.
As per CoinMarketCap.com, as of January 3, 2023, the collective value of the cryptocurrency market amounted to a whopping $804 billion, boasting an estimated market capitalization of $1.19 trillion. Although the world stock exchange's market capitalization stands close to $100 trillion, it's noteworthy that the cryptocurrency market, barely a decade old, has achieved such immense growth.
The Main Content:
Being an investor in this nascent market, you might have accumulated a collection of tokens, eagerly awaiting their ascension. You are not alone in this journey. The newly introduced path to wealth may demand patience, but the wait is often rewarding. Whether you've enjoyed the profits of a bullish market trend or have learned the lessons of endurance from the less fortunate tokens, the virtue of time becomes a common denominator in your crypto journey.
If you are willing to explore beyond reflections (dividends earned from the trading activities of a particular coin), there are various strategies to enhance liquidity for your preferred tokens:
Purchase, Hodl and Reinforce: This involves the primary method of buying and holding onto a token while periodically reinforcing your holdings. This not only stabilizes the token but also prepares you for potential market shifts, allowing you to strategically buy or sell.
Establish alternative wallets: If reflections are crucial to you, consider distributing your tokens among multiple wallets. This approach leaves room for some tokens to appreciate significantly before withdrawal, while others can be used for active trading. This cycle of selling high and buying low contributes to the community wallet, empowering the developers to further enhance the token's utility and market acceptance.
Advocate: If you have confidence in a token, spread the word. Ensure that your listeners have foundational market knowledge before recommending a purchase, allowing them to navigate market volatilities effectively.
Be a liquidity provider: Although this role typically necessitates involvement from a project's early stages, liquidity providers play a pivotal role in facilitating smooth trading activities.
Remember, liquidity providers are long-term project allies, often remaining committed until the project attains self-sustenance through widespread acceptance and increased trading volume.
To kickstart your crypto journey, consider investing in $WAR, $DTG, and $WKC.
This insightful piece was originally crafted by Gboyega Bisileko.