It began as a little experiment to compare Active Trading vs Passive Gains

    In the beginning, given my trading skills are extremely amateur, I fully expected passive gains to perform better over time, but, it's good to see what an amateur trader might actually experience – and how anyone can use DeFi to make money.

    Each position started with 1 ETH.

    Trading Position.

    All trades have been completed using Cow.Fi with a greater shift on limit orders to save time and catch momentum changes while I sleep or work.

    The current goal is to see how long it will take to trade 1 ETH into 2 ETH, comparing to lending on Aave.

    Lending Position

    On AAVE, the current APR is 1.66% for ETH on Arbitrum. This has slowly been ticking away, doing it's thing. As easy as that. APY tends to vary between 1.5% to 2.5%, depending on how much borrowing is taking place, but as the overall market sentiment diminishes, the borrowing rate tends to reduce.

    Current Balances

    Trading Position

    • 0.0022 ETH
    • 1.0550 wETH
    • 1,020.28 USDC

    Lending Position

    • 1.0095 wETH

    Position Balance Values

    Trading Position = $3164
    Passive Position = $2046

    Previous Trading versus Passive difference: +796
    Current Trading versus Passive difference: +1118

    Looking Ahead

    The conflict in Iran has continued to provide market volatility, which in turn has made for some nice swing trading opportunity.

    Over the last 6 months, I am now approximately 55% towards the goal of doubling my initial trading position.

    With March nearly over, we shall see what April brings us… I'm not expecting a huge breakout in swing direction at this stage, but I have no doubt range trading will continue to yield positive results.

    Feel free to share your own trading experiences, strategies and upcoming predictions!

    Trader Tuesday: Active Trading vs Passive Gains. #9
    byu/DBRiMatt inethtrader



    Posted by DBRiMatt

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