This is quite an interesting topic because we can often wonder which token can provide us with the most profit over time? However, what should be taken into account before investing, is that, no matter in which we decide to place our Moxies, what you should know is the risk you are assuming in each of them, for example; it is not the same to invest in a token with high LTV and a large number of “Fans”, than in one with a moderate or low LTV and few fans. What is the difference?
High LTV and many Fans: When a token has a high LTV and a large number of fans, it means that the risk of the price dropping is much lower since the tokens are mostly spread over all of them, so if 2, 4, or 6 people sell, it will not cause a big impact on the price, which means that they are much safer, with less volatility and a long term growth.
Low LTV and less Fans: Generally these are much more volatile, since having a low LTV, there is still not much investment in them, and if there are not many fans, the price can fall more strongly if 1 or 2 sell, however, these in the short term can report large profits, which can also be used to grow.
With this in mind, we can now discern which tokens to invest in.
Before I go any further, these recommendations are based on my own analysis, not at all an investment recommendation, however, my intention is to provide the community with education and awareness about Moxie and Fan Tokens, with that being clear, let's move on:
In the image above you can see the main community tokens ordered by the TVL, you can also see the number of fans that each one has, which means that, the amount of tokens they have are distributed in many of these fans, so, if your intention is to grow in the long term and with the lowest possible risk you definitely have to acquire any or all of these fan tokens.
For example, to safeguard my “Moxie” as much as possible, I have decided to buy daily some of these tokens that I showed in the image, if I buy daily at least a small portion, what I am doing is averaging the price, which in the long run will bring me a lot of profits in Moxie.
On the other hand, I can allocate part of my rewards to new “Auctions”, or higher risk tokens, to try to double my portfolio, of course, I also focus on investing in good friends and those who always support me, it is important to be grateful and this is also an excellent long term investment, do not believe for a second that I have managed to grow alone, there are many involved and my way to repay all that effort is also buying their Fan token.
I hope this article, although somewhat short, is helpful for all those who are starting in Moxie, remember that it is very important to grow, increase your “FarScore”, use your allowance and reward quality content in the community.
Let's keep growing, coming soon more strategies, LP performance, my experience in “Moxie Earn” and much more, so follow me and stay tuned to my content in “Farcaster and Warpcast”.
Lenonmc21