In today’s Exponential Investor

  • Things you can’t do today
  • This time last year…
  • Summer or winter?

It’s Easter Monday which means…?

Well, the answer to that depends on your religion, or lack of one.

But for all in the UK it is a “bank holiday”.

That means the markets are on holiday. It means the banks are on holiday. It means the entire traditional financial system is on holiday.

I hope you don’t need to:

  • Deposit any cash
  • Organise any kind of loan
  • Need any kind of assistance in getting, moving, or transacting in money or investments
  • Move money from one country to another
  • Open any accounts
  • Close any accounts.

Today is not your day. That’s because… it’s a bank holiday!

The I see no problem with a public holiday for certain events throughout the year.

I do, however, have a problem with the idea that you can just shut down the entire financial system for the average person because of a religious holiday that fewer than half the world’s population even recognise.

The very idea that on particular days you cannot participate in banking and finance is frankly ridiculous. It’s based on old, antiquated views, rules, systems and operations that today are not relevant.

So, as far as I’m concerned, the idea of a “bank holiday” should be obliterated.

Thankfully though, today, while the banks and traditional markets are taking a day off and locking you out in the process, not all markets are closed for business.

Actually there’s an entire financial system just waiting for you to have fun with today.

No bank holidays when there’s no banks

I usually hate Easter. If you want to find out why, just read my editorial from 30 March 2021.

You can read it here.

Here we are, a year down the track and my views hasn’t really changed.

And I have every intention of continuing to function in a financial system this Easter that allows me unfettered access.

I suggest you do the same.

Although there’s a pretty good chance that you’re still held hostage by the traditional financial system over this weekend.

That’s ok, I’m here to help your liberation.

By the way, if by chance you didn’t read my editorial link above from 30 March 2021, here’s the TL;DR…

I can’t transfer money from Australia to the UK over Easter, ever. Why? Bank holidays.

What I can do, is send it over the crypto “airwaves”. In a practical sense, I’m sending value over a distributed, decentralised blockchain network. These networks are global and have nothing to do with banks.

Granted the traditional financial system is global too. But crypto networks don’t have operating hours, so it’s a bit freer in that sense.

Nonetheless, in crypto I can do what I want over easter. I can buy, trade, sell, swap, invest in the crypto markets. I can generate income, through decentralised finance platforms, I can lend, borrow… do whatever I please because it never has a “bank holiday”.

With that in mind, considering it’s a Monday, you’re likely not doing too much, and the crypto markets are open.

If you by chance felt like having a bit of a dabble in the market, where perhaps is it worth looking? What crypto sectors this Easter Monday are a decent hunting ground while the “TradFi” markets are all closed?

Seasonal crypto investing

For some strange reason, the crypto investing world like to talk about period in the market when they’re good as a “summer” and when they’re bad as a “winter”.

I think the winter might have some deeper references to Game of Thrones, where “winter is coming” is the ongoing threat to the very existence of the main characters.

Or just that many people really don’t like winter.

I like winter.

I like the cold. I like snow, snowboarding, big warm jackets, mulled wine, fires, you catch my drift.

But a “crypto winter” is nothing to be very excited about… if you happened to join the market as the “crypto summer” peaked and now in the depths of winter are in the depths of red in your portfolio.

I bring up the idea of these seasons because within the broader market are smaller submarkets that also go through these seasonal changes.

We could be in the depths of a broader crypto winter and yet some pockets of the market are in the midst of a summer.

That’s why it’s important to know your seasons and know which segments of the market are in which season relative to the overall market and its season.

In short, you need to become a crypto weatherman to read and understand it all.

And if you know what season you’re in, you’ll know what season is coming next, you can find great potential in the market where winter is on, but summer could be just around the corner.

That’s where, on this Easter Monday with the TradFi market on holiday, I think it’s worth having a look… in the sub-markets sitting in the midst of their own mini-winter.

For me there are two segments of the market that might not be in full-blown winter but are definitely in autumn.

Two specific suggestions

Decentralised finance (DeFi) and non-fungible tokens (NFTs).

DeFi has already gone through a couple of summers and winters. The DeFi summer of 2020 was one of the craziest and most exciting. And its resurgence in April 2021 was equally as fun.

But it is a pot on the crypto stove that has come well off the boil. And in 2022 it’s a fair argument to say DeFi-related crypto and projects are in a bit of a lukewarm patch.

That’s not stopping the progress, I might add. The “buidl” is still strong in DeFi. But there have been a number of high-profile hacks. Also, the potential returns aren’t as blindingly wild as they used to be (some are still mystifyingly incredible and can be jumped on). Overall, the market just doesn’t seem as impressed by DeFi as it was.

That’s great. That means that there’s an opportunity to sniff out great projects trading at discount prices to previous highs. That’s a season I like.

NFTs are in a similar situation. The boom in NFTs in 2021 wasn’t the first.

2017 was the first real NFT boom. However, it just didn’t capture the attention of the mainstream media that last year’s boom did. So, as the wider market went through the “winter” of 2018 to 2020, so did NFTs. Then they boomed and trailed and boomed again and now have trailed right off.

However, NFTs are more than what you might think.

NFTs are not just the tokens themselves. They include the underlying projects that are developing NFT innovation and development. In this context, we’re talking about blockchains and projects that are focused on NFT gaming, NFTs for things other than PFP (profile picture) avatars, and so on.

That’s where the real opportunities exist. While that part of the market is clearly suppressed following the 2021 mania, that signals opportunity to me.

With a bit of time up your sleeve today, I’d suggest that you spend a little of that time looking further into those two areas of the crypto market – DeFi and NFTs.

You won’t regret it.

Until next time…

Sam Volkering
Editor, Exponential Investor