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Summary

The author discusses the impact of gas fees on the profitability of three crypto investment strategies and outlines the necessary adjustments to maintain or increase profitability.

Abstract

The author of the article has analyzed the effect of gas fees on the weekly profits of three crypto investments: BNB Miner, DRIP Network, and Pig Pen. Initially, the high gas fees were causing losses in two of the projects, DRIP Network and Pig Pen. After reevaluating the strategies, the author decided to maintain the current approach for BNB Miner due to its weekly profit of $9.50 and imminent return on investment (ROI). For the DRIP Network, the author has devised a new plan to compound earnings twice a week and withdraw on Saturdays to achieve a weekly profit, with an option to accelerate ROI by increasing the investment. In the case of Pig Pen, the strategy is to accumulate BUSD and AFP token earnings without withdrawing until reaching 100% vested status to avoid gas fees and reassess the position then. The author emphasizes that their writings are not financial advice and encourages readers to do their own research (DYOR).

Opinions

  • The author believes that gas fees significantly impact the profitability of crypto investments and require careful strategic planning.
  • For BNB Miner, the author is satisfied with the current profitability and does not see a need for strategy changes.
  • The author has determined that the initial approach to DRIP Network and Pig Pen was unsustainable due to gas fees exceeding weekly profits.
  • The author suggests that a more conservative investment strategy with DRIP Network, involving strategic compounding and withdrawals, can lead to a weekly profit and a more appealing ROI timeline.
  • With Pig Pen, the author advocates for a long-term holding strategy, waiting until the AFP token is fully vested to avoid gas fees and maximize potential gains.
  • The author is keen on sharing their insights and experiences with the community but explicitly states that their articles are not to be taken as investment advice.

I’ve got GAS!!!

Gas fees!!!

So a few days ago I wrote an article about gas fees, see below:

In that article I wrote about how the cost of gas fees effected weekly profits.

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I used 3 of my crypto investments as examples:

  1. BNB Miner
  2. DRIP Network
  3. Pig Pen

This is how that article has effected a strategy change concerning these 3 projects…

(NONE OF WHAT I WRITE IN MY ARTICLES IS TO BE TAKEN AS INVESTMENT ADVICE. I am not an advisor for this nor am I suggesting any financial action on your part. DYOR)

I discovered that if I compounded a certain number of times per week then that would cost me a certain amount in gas fees. In order to make a profit for that week I would need to withdraw more than what was spend in gas fees.

I also realized that with 2 of these projects (DRIP & Pig Pen) I was going in the hole every week because of the gas fees alone. This needed to be changed. I needed a new strategy for these projects. After much thought I have come up with different strategies with these projects.

Current Strategy

With BNB Miner I was already making a good profit, of $9.50, every week, & should make ROI this week. So no changes were needed.

With DRIP Network, the gas fees were costing me $4.56 & I was only withdrawing $2.31 every week. This means that I was going in the red $2.25 every week because of gas fees.

With Pig Pen the gas fees were $3.38 per transaction (Compound or withdraws). I was only withdrawing $0.009 BUSD, because Animal farm hasn’t launched yet. This put me in the red every week again!

New Strategy

No changes needed with BNB Miner…

I ran the math with DRIP & Pig Pen & came up with a new strategies for each of them.

Crypto Math…

With DRIP, I needed to earn more per week than the gas fees. DRIP daily earnings = 1% of my DRIP deposit amount. If I compounded 2 days per week, earned 5 days per week, & withdrew on Saturday evenings then I would make a profit of $1.57 every week. This is with no extra investment required.

This would get me to ROI in about 14.5 months, like most other DRIP investors. If I added an extra $75 to the deposit then I would make ROI in about 7.8 months…which is much more appealing.

With Pig Pen, it works quite differently. In the Pig Pen, I earn BUSD & AFP dividends as stated below.

I also earn 2% vesting over 50 days, so that I can withdraw all my pigs.

You can find out more detailed info here.

At this time Animal Farm has yet to launch. So there are very little fees to earn AFP & BUSD from, which greatly reduces the amount I earn every day with my pig.

Also, at this time I’m still earning 2% vesting of my AFP token. I’m currently at 0.14 AFP vested. At current prices this = $18.2196. (2% daily = $2.6028.) Once I’m at 100% vested then I would be able to withdraw all of my pig. This would be $130.14 at current prices.

Therefore, I will let my BUSD & AFP earnings build up until I reach 100% vested, without compounding or withdrawing any earnings. Once I’m at 100% I’ll reassess my earnings & either compound or withdraw. Either way, no gas fees until then.

In Summary…

  • BNB Miner will stay the same.
  • I’ll add $75 more to my DRIP deposit & make ROI in about 7.8 months.
  • I’ll also HODL my AFP token & let it earn BUSD everyday, while vesting up to 100%.

Here’s the next article in this series on gas fees.

Let me know what you think about my revelation.

Now following anybody that interacts with my articles… God Speed!

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Cryptocurrency
Bnbminer
Animal Farm
Strategy
Investing
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