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Which sector has the most short term potential on Ethereum?

My bread and butter is making big long term bets on macro trades. 

But there is more than one way to make money as an investor. And you might be interested in taking more risks for more potential rewards on a shorter time frame.

For that you will need to pick a sub-category of crypto assets. But which one?

This issue of the newsletter is answering a subscriber question. If you are a paid subscriber you can send me questions and if the answer is too long I’ll dedicate an issue of the newsletter to the reply.

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Which sector has the most short term potential on Ethereum?

The takeaway

If you want to build wealth fast but you only have a limited amount of capital to start with, then dollar cost averaging isn’t going to cut it. You will need to make some concentrated bet on a fast growing asset.

Targeting assets in one of the main sectors of applications running on Ethereum is one way to do that:

• DeFi has the largest potential for growth but unfortunately it is also the more likely to be hit with the regulatory stick.

• NFTs are less likely to be regulated any time soon and the overall market still has a lot of room for growth.

• Gaming tokens are the least likely to attract the attention of the regulators in the near future but the in the short term the size of the total market is more limited.

So if I had to make bets on specific assets I would focus on NFTs and gaming, picking blue chips and clearly defining my exit point. 

Otherwise I would stick to betting on Ethereum as a platform bet with a lower potential growth for sure but a much greater likelihood of success.

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