Key Takeaways

  • Significant Shorting Profits: Taiki Maeda made $578,000 shorting ETH in two months.
  • Bearish Outlook: Maeda believes ETH is still in a difficult position and has fundamental flaws as a long-term investment asset.
  • Investor Advice: Maeda advises prioritizing capital preservation, avoiding chasing quick gains, and focusing on alternative strategies like airdrop farming.
  • Alternative Strategies: Maeda shares his personal strategies for airdrop farming and stablecoins.

Detailed Analysis of Taiki Maeda's Views

Shorting ETH: A Success Story

Taiki Maeda, a well-known trader and analyst in the cryptocurrency space, revealed that he made a profit of $578,000 by shorting ETH over a relatively short period. Maeda explained that he began shorting ETH when it was priced around $4150, then increased his positions when the price reached $3387.

Why Did Maeda Decide to Take Profits Now?

Although he still believes that the price of ETH may fall further, Maeda decided to take profits because he reached his initial target of $3000. Maeda believes that the easiest part of the trade is over, and that the risks and rewards are now more balanced.

Fundamental Flaws in ETH

Maeda believes that ETH suffers from fundamental flaws as a long-term investment asset. He argues that ETH has underperformed over the past five years, and that there is no strong reason to believe that this situation will change. Maeda describes buying ETH as like touching a hot stove, a painful experience to be avoided.

Advice for Investing in a Bear Market

Maeda offers a range of advice for investors trying to navigate the bear market:
  • Capital Preservation: The top priority in a bear market is capital preservation. Avoid risking capital in an attempt to make quick gains.
  • Avoid Chasing Quick Gains: Don't rush after quick gains or promising projects. Focus on research and analysis before making any investment decisions.
  • Focus on Alternative Strategies: Explore alternative strategies such as airdrop farming and stablecoins. These strategies may offer opportunities to make a profit in a bear market.
  • Be Patient: The bear market may last for several months. Patience and not giving in to temptation are crucial.

Maeda's Personal Strategies

Maeda shares some of his personal strategies in the bear market:
  • Airdrop Farming: Maeda focuses on airdrop farming, as he believes that new coins are often launched at very high valuations.
  • Stablecoins: Maeda invests in stablecoins, earning 8.5% returns in addition to points for future coins.

Conclusion

Taiki Maeda offers a realistic and perhaps pessimistic view of the future of ETH and the cryptocurrency market in general. However, he also offers valuable advice and strategies for investors who want to stay in the market and overcome the challenges. The main message is to preserve capital, be patient, and focus on alternative strategies.

Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients. 

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