Seth trading platform

Dear Friends,

After much contemplation, I'm doing something I've never done before:

One double-down recommendation for my public Facebook friends today and a new recommendation next week for our private VIP's.

As you’ll see, this is strategic -- a way to hedge our risk in the coming “flight to boring.”

I’ll explain.

The Memecoin Massacre!

As the crypto market matures, investors will increasingly seek stability and predictability.

We’re already seeing that with the recent monumental rise of stablecoins. While this is bullish for the crypto market, it’s also an early sign that we might be seeing a flight to “boring.”

This is predictable.

The pendulum always swings. And with the recent memecoin craze, I suspect we'regoing to see a hard swing back to more sustainable DeFi protocols.

In the library, I just added a piece called “The Coming Memecoin Massacre (Stay Safe. Look Ahead).”

It shows where the pendulum might be headed after most (if not all) of the memecoins get flushed out.

Over the past few weeks, I've been exploring ways to get ahead of this puck.

The conclusion this week?

Sometimes, to get what you want, you have to want more of what you have.

Yes, that means a double-down.

In addition to the “Memecoin Massacre,” I’ll be adding a piece or two on where else I think the puck is headed during the weekend.

Some of it has to do with Coinbase and its Layer 2 blockchain Base.

Stay tuned for that.

Now, without further ado, here’s today’s recommendation.

Double Down on AAVE 👊🏻👊🏻

Crypto Wealth Coach deals in signals, not noise.

Behind the noise of memecoins and political diversions, lending markets in the crypto space are quietly gaining popularity.

Currently, lending is the largest sector in terms of total value locked (TVL) at a whopping $37.5 billion, with 418 protocols operating in this space.

TVL shows the level of risk people are willing to take on a contract. It also shows how fast a protocol is being adopted.

Aave (AAVE) is the major player right now.

The market cap is $1.54 billion, while the fully diluted valuation (FDV) is $1.66 billion.

That might sound high, but here’s the thing: AAVE’s TVL is $13.9 billion. Meaning, the FDV to TVL ratio is insanely low compared to other lending protocols: 0.13.

Net treasury holdings are at $56 million and have grown over 11% in the past month. With operational costs at about $12 million per year, AAVE could coast for five years.

Of course, that’s not what they’re doing. Right now, they have all hands on deck. Net deposits have just crossed $20 billion. Up $10 billion since January. A sign of much bigger things to come.

This wouldn’t be a HUGE deal if the AAVE token didn’t have a great value-capture mechanism. And, fortunately for us, it’s about to get better.

Currently, there’s a proposal in the DAO for a “fee switch,” where holders of AAVE will get automatic payments from the interest and fees earned on the network.

According to Marc Zeller, founder of the Aave Chain Initiative, this mechanism is in development now.

If implemented, which I think is likely, it will drive huge adoption into AAVE.

All of this is to say…

CWC recommends a “soft” double down on AAVE.

We say soft because: Next week, we’re going to recommend another, earlier-stage, lending pick to counterbalance AAVE.

It has perhaps bigger price potential, but with a lot more risk. This strategy will allow you to hedge your risk as the lending market takes off.

Right now, AAVE is a great bet that could pay you dividends.

When the flight to boring kicks into full gear, you’ll be glad you have exposure. Because there’s nothing boring about where AAVE seems to be heading.

CALL TO ACTION:

Buy Aave (AAVE) on Coinbase at the market price and get signed up with my website for access to our private recommendation which have totaled over 65,000% to date. NO, thats NOT a typo!!!

Have an exceptional week,

Seth Jason Maniscalco
Author, Prohibited Profits
Founder, Crypto Wealth Coach LLC

Dear friends,

Use Established Exchanges!

When first starting out, it's best to stick with the most established and widely adopted exchanges.

Start with Coinbase. (A favorite centralized exchange.)

Also, buy some established cryptos -- to get a feel for it.

Think of major cryptocurrencies like Bitcoin as the "blue chip" stocks of the crypto world -- they have a proven track record and are less volatile than speculative penny stock-like altcoins.

Bitcoin is the original and still most prominent cryptocurrency.

Ethereum is an even better option.

In my opinion, Ethereum has better upside potential than Bitcoin.

Established cryptos won’t go up 1,000x… but they’re still a good asymmetric bet.

Understand the Technology!

Cryptocurrency blockchains are like a global public ledger that securely records all transactions…

Sort of like an automated encrypted Google Doc that everyone can view, but nobody can edit.

This “Google Doc” enables secure, decentralized transactions without the need for intermediaries.

Understanding the basics of how these cryptos and their underlying technology work is important before investing heavily.

In my own crypto research service, I provide an ever-growing “Members-only” crypto research library that was started in 2017.

Set it and Forget it!

One of the best ways to invest in crypto is through dollar cost averaging (DCA).

This involves investing a fixed amount on a regular basis, like weekly or monthly, regardless of price fluctuations.

DCA helps smooth out the volatility of the market, ensuring you buy more when prices are low and less when high.

The Coinbase exchange allows you to automate DCA purchases. You can do as little as $5 per week.

Move Crypto to a Cold Wallet!

Once you purchase crypto, don't simply leave it on the exchange.

Centralized exchanges can be hacked or go bankrupt (like FTX), putting your crypto at risk.

Instead, transfer your holdings to a "cold" wallet that is not connected to the internet for safekeeping.

Hardware wallets like Ledger or Trezor are best for long-term storage. Make sure to securely back up your private key, preferably split between two confidential locations, as losing it means losing access to your crypto.

Tip: ONLY BUY DIRECT FROM THE PRODUCERS. Never buy a hard wallet from a third-party. Not even Amazon.

Start Small!

When you transfer crypto to your own wallet for the first time, start with a small test amount to ensure you're doing it correctly.

Double check the wallet address and don't rely solely on copy/paste. Once you confirm it works, then you can transfer larger amounts.

Remember, crypto transactions are irreversible!

Research. Research. Research.

Keeping up with crypto is a Herculean task.

One good crypto news aggregator is cryptopanic (dot) com.

Bookmark it.

But let me tell you a secret: 99% of the “news” is noise.

The 1% is where you find the gold that will make you money.

More tomorrow.

Until tomorrow,

Seth Maniscalco
Author, Prohibited Profits
Founder, Crypto Wealth Coach LLC