Crypto Investing
Putting Your Crypto Assets To Work
This is how I generate weekly passive income from my crypto assets
To kick things off, let’s receive some words of wisdom from the man famously known for being the greatest investor of all time.
“If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.”
— Warren Buffet the ‘Oracle of Omaha’
Warren Buffet has become a successful investor because he figured out the art of differentiating the winners from the losers, he looks at the long-term value of what a company could be in the future as well as selecting dividend-paying stocks which will be reinvested and go through the process of compounding.
If by any chance you’re reading this; and holding any sort of drink — let me ask you something, “Never have I ever invested in crypto assets.”
If you drank to that question, great!; and if you didn’t then don’t worry because we’ll be getting into a discussion on how you can start your crypto investing journey, safely. For those who were confused with what that was all about, do a simple search on Google, and you’ll find out.
My Story
I started putting my crypto assets to work when I realized that hoping a token would increase in value 1000(x) times would not be a sustainable investment strategy if I were to stay in this industry for a long time. A sustainable investment strategy should allow you to continuously own the asset for a period of time until you don’t need it anymore and not to speculate (like you do when you trade). Also, keep in mind that ‘sustainable investment strategy’ here is intended to mean “Is this investment able to maintain its performance at a certain level”.
When I started my investing journey with cryptocurrencies I had no idea what I was doing (really, read my bio) but I took the time to learn and study about the different types of cryptocurrencies available to me at the time. I still practice this today and you know what they say “It’s never too late to pursue knowledge”, I’m not sure who really said this but I’m sure it came from someone smarter than I am.
In a way, investing in the crypto market is similar to investing in the traditional markets — do your research, buy a stock and hope it appreciates; buy a stock and earn monthly dividends from a dividend-paying stock. But you’re probably asking yourself “dividends in the crypto market?”. In the cryptoverse they’re called payouts, and these payouts differ from platform to platform; what you earn is dependent on the Annual Percentage Yields (APY) the platform pays out. APY’s are the rate of returns of your investment after taking into account the effects of compounding interest. In crypto, these figures go up to 15% (considered conservative, but safe!).
Is investing in the cryptocurrency market the best idea?
If you’re not afraid to lose some of your hard-earned money from DeFi and exchange hacks; and also the possibility of losing your hardware wallet or forgetting your password — you are a risk-taker. People in this industry are persistent and thick-skinned. The crypto industry is still at a very early stage in its lifecycle and taking some risks during this time is inevitable. However, the industry is currently building infrastructure to improve security, regulation, and accessibility for users invested in this industry.
So, is this market the best way to invest your hard-earned money?
The straightforward answer is — yes. If you do it right and take every precaution to minimize your risk you will do great with your investments. Similar to traditional investments, there are always risks — just keep that in mind.
Investing in the cryptocurrency market will give you the ability to diversify your traditional investments (if you already have those) into the digital world. Everything you are about to explore in the cryptoverse is digital.
So, do you believe in that?
Are you someone who is able to believe in something that is intangible?
Most people can’t.
You’re still here and serious about putting your crypto assets to work
I’ve spent some time making sure you have what it takes to start your crypto investing journey in the previous paragraphs. Now, let’s jump straight into it.
If you’re serious about investing in crypto and putting your assets to work ask yourselves this question:
“How long is my time horizon to hold an asset?”
If you answered 1 to 2 years, you should probably re-think your idea of “investing”.
Again, if you’re serious about putting your crypto assets to work, you should be holding your assets for at least a time horizon of 10 to 20 years. Every investment advice I have heard says you should start investing as early as possible if you have the means to do so. The chart below explains how Jack followed the concept of investing and compounding with $200 every month compared to his older sister, Jill; and Grandfather Joey at different ages with the assumption of an annual rate of return of 7%.
Kickstarting your journey to crypto investing will provide you opportunities to save and reap the rewards of high-yielding payouts (sometimes up to 15%) *wink*. The longer you keep your assets with an investment vehicle/platform, the more rewards you will receive throughout your period of investing from compounding effects (as seen above).
Many who come into crypto expect to make a quick profit, although this might be true in many cases; things can turn the other way very quickly. This is why as a crypto investor you should prepare yourself with knowledge about the industry and learn how to pick winners from the losers like our dear old friend, Warren Buffet. Sure, in crypto, you won’t be able to find information like a balance sheet and cash flow statements of the company of these native tokens. You would need to do more than that.
Picking the best of the best
Picking assets for your crypto portfolio is no easy task. Lucky for you, I’m here to share some advice I learned along the way of building my crypto portfolio. In my early years of investing in crypto, I thought the more assets you have the better the returns. Although it is a good practice to diversify your assets, it’s not a good idea to diversify too much. You need to make sure you have a good percentage in good working projects that show proof of concepts. Do your own due diligence. Crypto is a world of communities and network effects. A good project to invest in should have a great community, network effects, and a working proof of concept.
Often I have a few friends ready to explore crypto seeking my advice on what they should invest in first. I always tell them that they can never go wrong with investing in Bitcoin and Ethereum.
Where to invest your crypto assets?
So, you’re ready to invest, now it’s time to determine where you should invest your crypto assets. I’ll share some of the platforms I have used in the past and the ones that I have continued to use.
Disclaimer: I Will be shilling the platform I use with my promo code
In the very beginning, I used an exchange to put my crypto to work. It was amazing, and it was nothing like I have ever imagined it would be. At the time I was very gullible being new to crypto and all. The exchange had a lending and borrowing feature so I lent out my crypto to other people who needed to borrow those for margin. It was good for a couple of months but I wasn’t too happy with the returns I was getting and security-wise, I wouldn’t say it was the best.
As I got more mature with my investments, I did some research on crypto investing and getting payouts on crypto assets. I stumbled upon Celsius Network:
“A platform of curated services that have been abandoned by big banks — things like fair interest, zero fees, and lightning-quick transactions. Our goal is to disrupt the financial industry, one happy user at a time, and introduce financial freedom through crypto.”
That’s their description. I did my own due diligence on them and eventually tried their services for about 3 months and found that they weren’t lying about paying weekly payouts to their users. Their ability to provide high-yielding APY’s for most of their listed assets. Some up to 15% APY. I was hooked and never turned back. So now, I keep earning weekly ‘free money’ on my assets on Celsius’ platform. The interest I receive every week, I let it compound in my account and let it grow slowly over time.
If you invest your crypto assets and HODL (Hold On For Dear Life)for long-term gains, your earnings will one day surpass your contributions. When that happens, you’ll feel a rush of excitement and be on a constant high; and one day become financially free.
Remember, Jack invested $200 every month; and at the end of year 11, his earnings surpassed his contributions each month. Be Jack.
Disclaimer: Thanks for tuning in, Any expression of opinion (which may be subject to change without notice) is personal to me (the author) and I (the author) make no guarantee of any sort regarding accuracy or completeness of any information or analysis supplied.
Follow me on Twitter: @0x_idkcrypto
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