Passive Investing Strategies with Cryptocurrency

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Raymond Yeh
The Capital

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Photo by Artem

You have purchased your first Bitcoin or Ether, now what?

My relationship with Bitcoin & Ethereum began back in 2017 after figuring out how to buy cryptocurrencies in Singapore. Since then, I’ve tried all kinds of strategies to rake in extra dollars with crypto. The strategies that outperform the rest are all simple passive strategies — the only exception is arbitrage trading.

In this post, I’ll share some of my favorite ways of making the cryptos work for me. In each section, I’ll also discuss the associated risk and suitable environment to employ the strategy.

Long Term Investment Horizon

Your crypto investment strategies cannot truly be passive when you are exposed to an underlying asset which you do not believe to succeed in the long term.

For that reason, I’ve kept my portfolio really simple. I own only cryptocurrencies I believe in.

My crypto portfolio consists of only two cryptocurrencies, Bitcoin and Ethereum. Bitcoin’s role in the portfolio is digital gold — providing hedge against inflation and other asset classes in the long term. Ether on the other hand represents my optimism on the…

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