Crypto: How I HODL and Profit!
Crypto has been one of the hottest investments for years now. Some people may think that it is just a passing fad but let me tell you that it is here to stay. As long as the internet is up, I cannot imagine a world where some form of a blockchain wouldn’t exist.
The crypto market has gained a lot of credibility in the past few years. We now have major merchants who are accepting Bitcoin and other cryptos as forms of payments, plus we have major companies who are holding Bitcoin on their balance sheet, and not to mention all of the institutional investors who are holding Bitcoin in their portfolio of funds.
While this may be the current state of the crypto market, it has not always been that way. If you have been following me, then you may remember that I held some positions in crypto back in 2016 and 2017. The market was a lot newer then but I was able to earn some profit during the crypto bull market of that time.
I did manage to make it out while earning a profit but it didn’t take long before I had decided that the market had started to bottom out which lead me to starting a new position in Bitcoin.
While this isn’t my first time in the crypto market, I am still very cautious about having too much of my portfolio in the crypto market. Despite, not having a large portfolio of crypto coins, I have learned a lot about the market and have been maximizing some tricks to reap some very nice rewards.
So, I thought that it would be good to sit down and explain how to get into the crypto market, as well as how you can setup a system that will continue to pay you interest and to reinvest that interest for you.
How To Get Started In Crypto?
There are many different entry points into the world of crypto. The path that I will lay out for you will be very common route but stay aware that there are a lot of other ways of going about it.
To get started you will have to obtain your first crypto. The most common way to do this would be too sign up for an account at Coinbase. Once you complete the process of signing up for an account and linking a bank account, then you will be prepared to begin your journey into the world of crypto currency.
To begin your journey, you will first have to convert some USD (US Dollars) to BTC (Bitcoin). The acquisition of the Bitcoin can be completed in one large lump sum or you can pursue a dollar cost averaging strategy. Much time has been spent contemplating which strategy I think would work best. The final result that I have decided on is a combination of both strategies.
Each week I have a automatic purchase of Bitcoin which allows me to dollar cost average into the position. With that being said, I will also make larger purchases at times if I believe that I am buying the Bitcoin at a good price!
Now that you have a position of Bitcoin building up on your Coinbase account, you will be able to collect all of the gains that are incurred during your possession of the Bitcoin but the benefits do not end there. If you decide to take it a step farther, you can actually start collecting a very nice interest yield on your Bitcoins.
How Can I Earn Interest On My Crypto?
This seems to be a question that I hear a lot of people asking. I am always looking to have my assets earn me more so I have asked myself this exact question. The best solution that I was able to find was in the form of the Celsius Network.
By signing up on Celsius Network, you can then send your newly obtained cryptos to their new wallet on Celsius Network. If you also hold a wallet containing some Celsius coins then you will be able to receive interest on the coins that you hold on the network.
Currently, at the time of this writing, I have been receiving around 4% interest on my Bitcoin, 6% interest on my Celsius, and 8% on my USDC stablecoin.
This works right in line with my investing strategy. Not only will I get the capital gains when I sell the asset but I will also collect payments for owning the asset as well.
There has been a lot of talking going on in Congress about regulation of this industry. So that always has the possibility to change my thinking for using this as an investment vehicle. Instead of worrying about what might happen in the future I am going to continue to make the best decisions based on the data that I have right now.
How Diverse Is The Crypto Portfolio?
To be honest, currently my crypto portfolio is not very diverse. I have already mentioned that I am currently holding Bitcoin, Celsius, and USDC. I also have a wallet containing BATs (Basic Attention Tokens) which I obtain by using the Brave Browser. BATs are not the only other crypto that I own. I also hold a strong position in XYO coin. In the near future, I will be revealing more about my interest in the XYO coin. IT seems to me to be a good crypto with a very good potential for success.
Needless to say, I hold a few cryptos in my overall portfolio.
My Future With Crypto
I am not married to the idea of holding crypto coins. I have been building up my overall position in the crypto space but I have been doing this by diversification and reinvestment. When I see something that seems to present a better buying opportunity then I will reallocate the funds as needed.
The crypto portfolio just adds another layer of diversification in my overall portfolio. I love dividend paying stocks as much as the next guy but I also believe in being prepared.
Hopefully as I navigate the waters and pick and choose my investments they prove in time to be good decisions.
I have been saying this for years but I am not out here trying to hit home runs with my investments. I am constantly trying to hit singles and doubles because that is how you win ball games!!!
Do you currently hold any positions in the crypto space? Why or why not? If so, which coins or projects are you currently keeping and eye on?
As always I look forward to reading all of your comments and questions, until then….. happy investing!
-Jason from MoreDividends.com
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