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Writer's pictureJames Agenda

Crowdloans: My Strategy on the Best Projects for Parachains Auctions on Polkadot


Stake Polkadot on Polkadot JS Staking DOT

Hello, friends!


This is James Agenda and my mission here is to make Polkadot easier for you!


Tomorrow, on November 4th, the Crowdloans contributions will start!

This means that projects may already start accepting contributions via Crowdloan, despite Auctions beginning on November 11.


In the next few days, I'll be posting a step-to-step guide on contributing to each project.


Subscribe for free to do not miss it!


Today, I'm sharing my Strategy for the Crowloans!

Topics:

If you want to save some time, you may navigate using the underlined topics above.



CROWDLOAN vs STAKING vs SELLING at the End of the Bull run: Which is the best?


Many people are asking:


"What is better? To lock DOT on Crowloans or to keep Staking them? Or to sell DOT at the End of the Bull run and rebuy after a huge correction?"


Well, it's impossible to predict which strategy will bring better results in the future.


My personal strategy is based on my characteristics:

  • First, I understand that Polkadot has a huge potential for the next years.

  • Second, I understand that the crypto market will get a significant correction at some point, like past cycles, but I'm not a trader.


Based on this, I'll spread my DOTs, aiming to expose my investments to possible asymmetrical opportunities.



I'm keeping some DOT on Staking and will try to sell some at Bull run's peak.


But most of my DOT are going to Crowdloans.

That's because the asymmetrical opportunities are more likely to happen on the Parachains project's rewards.


Mainly because:

  • Staking Rewards won't increase significantly.

  • It's very hard to guess when the bull run will peak and when to rebuy after the correction, making 10x, 5x or even 2x gains.

  • Successful Parachains Projects may explode in market cap on next years.


How much % to invest in Crowdloans for Parachain Auctions?


I'll diversify my investment like this:

  • 60% Crowdloans

  • 20% Staking

  • 20% Trading (trying to sell at a Bullrun Peak and rebuying).


trade staking crowdloans polkadot projects parachain auction.jpg

Best Parachain Projects to invest on Crowdloans


First of all, I would like to say that we have no partnership with any Parachain project.


I studied all the Parachain Candidates long before Parachain Slot Auctions started on Kusama, last semester.


That being said, I'm very enthusiastic about some projects and teams, in which I'll invest more.


As I said in my post about my portfolio, I really care about the team behind a project when investing in it.

That's why, in this first round, I'm aiming to invest in the teams that won Kusama's Parachains Slot Auctions.


And this is how I'll spread my contributions on them:


  • 50% to ACALA

  • 25% to Moonbeam

  • 5% to Astar

  • 5% to Phala

  • 5% to Bifrost

  • 10% reversed to adjust between those and other projects during the auctions.

strategy best crowdloans polkadot projects parachain auction.jpg

For more details about each project, check the step-by-step guides that I'll release:

  • ACALA

  • Moonbeam

  • Astar

  • Phala

  • Bifrost


Subscribe for free to keep yourself updated on the Crowdloans!


And if you have any question, just leave it here in the comments.


Cheers and good Auctions! 🥂



11,681 views14 comments

14 Comments


Joey Shanahan
Joey Shanahan
Nov 23, 2021
Like

sheppard.brendan
Nov 19, 2021

Hey James, great article. Are the best projects first and therefore should they take a higher weighting of your crowdloan allocation or do you plan to evenly distribute your 60% across all auctions? Cheers

Like
James Agenda
James Agenda
Nov 20, 2021
Replying to

"do you plan to evenly distribute your 60% across all auctions?"


Take a look at the second chart! I'm starting on those projects, but I'll adjust the distribution on some others.

Like

sebasalazar108
Nov 17, 2021

Thank you for sharing! Where can i see what is the minimum DOT I can stake? Polkaview.network is not working

Like
James Agenda
James Agenda
Nov 20, 2021
Replying to

There should be a specific comand on "https://polkadot.js.org/apps/#/extrinsics" to get this information. I'll try to find it.

Like

Artur Borges Reis
Artur Borges Reis
Nov 14, 2021

James, what is your thought about the two major projects (Acala and Moonbeam), receiving huges amount of Dot's, will the rewards still be worthy ?

Or we should go in a different % for the other 3?

Like
Artur Borges Reis
Artur Borges Reis
Nov 15, 2021
Replying to

Thank you very much for your answer.

I will keep an eye for your other projects changes. 👍

Like

Dies Das
Dies Das
Nov 07, 2021

What happens when you vote for 2 projects (Acala and Moonbeam) during the first Auction (11.-18.Nov) and one or both of the projects dont win the Auction? Are the votes also valid for the sscond auction?

Like
James Agenda
James Agenda
Nov 07, 2021
Replying to

I'm almost sure they are valid until the end of this first batch of 5 auctions (december 16), but keep tracking it anyway.

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