You may have heard the expression "Sell in May and go away" recently at least once or twice. Its origins are not from the crypto space but have proved quite accurate in this space as well since we are closely correlated to stocks, particularly the tech ones.
I tend to believe it will hold true from the price standpoint this summer too. That doesn't exclude short bursts of volatility during the summer, but mainly I believe we will move in range or slightly in a downtrend. Basically, boring and maybe even exasperating, for anyone wanting prices to pump and keep pumping. Note that there may be tokens that will likely pump during the summer before the market moves a muscle (HIVE was a small example this weekend and will likely be again). If you hunt and catch them, good for you! I'd rather walk the paths I'm familiar with.
This period of calm is very important in the bull market. We can't all and the entire bull market run around aimlessly like headless chickens. That's left for the end of the bull market, when, trust me, very few will be able to stay cool and have a clear mind.
This is another period that can be used for building (without much pressure), accumulating, and positioning. Don't hate it, embrace it! Be happy for it! Learn to use it!
On the accumulation side, I'd like to offer a tip for a boring market...
There are multiple ways to approach it, but one is quite easy and mostly passive.
What I am talking about is being a liquidity provider and earning fees (and maybe rewards too). Now, not all pools are made equal. I wrote a post with tips and tricks about diesel pools in the past, so I won't go into that again.
If you expect the market to go mostly sideways or maybe in a slow downtrend during the summer, as I do, then a more defensive pool could be a good choice. It protects to some degree from a potential downtrend, and, if you are not expecting a serious uptrend, you are not expecting to lose that momentum.
Here I would consider pools that have at least on one side a stablecoin or a token that acts like a stablecoin (maybe surprisingly, LEO, for long periods, and more loosely, DEC). I wouldn't disconsider Bitcoin either separately or in a pool, during this summer.
Of course, HIVE has the advantage you can earn curation rewards which add up even when the price doesn't go up. And there's also HBD in savings, but 3 days may be too long for some people (and too short for others).
If you want to profit from potential future P&Ds on HIVE during this summer without actually participating actively in trading them, having liquidity in the SWAP.HIVE-SWAP.HBD diesel pool is a way to do it because you capitalize on the increased trading fees between SWAP.HIVE and SWAP.HBD during these events.
When you choose your liquidity pools outside the Hive ecosystem, be sure you understand the conditions under which you offer liquidity. Is your stake locked for a certain period? Are you taxed for early withdrawal? What are the fees you pay? Does it autocompound or do you need to manually compound? Is there a farm token? Etc.
Also outside of Hive, you would find the so-called concentrated liquidity (EVMs - Uniswap, Osmosis - called supercharged liquidity). That's a way to define in what range would you make your liquidity available, instead of making it available at any price point, in which case, only a smaller portion of your position is likely to collect fees for swaps. With concentrated liquidity, you practically earn much higher fees if you set the range well.
Want to check out my collection of posts?
It's a good way to pick what interests you.
