The Journey to Break Even
This week in the crypto world has been a wild ride, and I’m inching closer to breaking even on my journey. I’ll admit, I might be a little closer if I’d just held onto my 7 Ethereum instead of tossing it into a liquidity pool. (Don’t worry, I’m already kicking myself.) But as we’ll dive into, these pools aren’t without their hidden treasures. Let’s unwrap what’s been happening.

The Ups and Downs of My Crypto Adventures

1. Profit & Loss (P&L): The More You Know
The good news? The value of Ethereum has gone up since I first entered the pool! The closer my entry point was to the “left” of my price range, the fatter my profits. This means the greater the increase of my Ethereum within the pool. When the price shoots “out of range” to the right, it all converts to USDC (a stablecoin). However, the farther to the left my entry, the higher my concentration of WETH (wrapped Ethereum) at that initial point. Simply put, cheaper Ethereum at entry meant a bigger opportunity for profit. Note to self: Maybe next time, just hold onto the darn Ethereum.

2. Unclaimed Fees: A Pleasant Surprise!
With all the recent buzz around Ethereum (and Bitcoin, of course), more people wanted to buy it. This excitement was great for my pools, generating a substantial amount of unclaimed fees over the past few days. Cha-ching! I didn’t see that coming, but I’ll gladly take it. It’s like finding a forgotten $20 in your winter coat pocket, but way better.

3. 24-Hour Earnings: You Read That Right!
In a single 24-hour period, my WETH/USDC positions raked in $145.19. If all my funds were in the larger position, I would have made even more. But relying solely on that top position would have meant no earnings when it was out of range. It’s truly a juggling act, and I might tweak my strategy next time. I’m sure juggling flaming swords while blindfolded would be safer, but this? This is my crypto circus.

4. APR: Not Just a Snapshot
When my top position was frequently out of range over the last couple of weeks, the Annual Percentage Rate (APR) dipped into the teens. But with all the recent interest in acquiring Ethereum, the APR is now at the low end of my desired range. That’s fantastic news! It’s a stark reminder that the APR is not a “snapshot” statistic; you need to look at the bigger picture. A great APR is like a good relationship—it’s built on consistency, not just one great night.

5. Price Range: Learning from Two Positions
This is where having two positions has been a valuable learning experience. Will Ethereum hover between $3,000 and $3,100 for a while? If it does, my top position will keep me in the green. If Ethereum leaps beyond both of my set ranges, I can certainly factor that experience into how I set up future positions. Next time, I might even use a price range that doesn’t require a fortune teller to predict.

Lessons Learned and Calluses Gained

After I pocket my profits, I’d be foolish not to learn something from this bull market. The bear market from the beginning of the year definitely left its scars, and caution is always assumed when investing in crypto. But now? I’ve got some serious calluses on my caution. May this newfound resilience give me confidence, but also a healthy reluctance to try anything new without first checking in with the guru. (Or at least Google.)