Asides the regular profits from bull runs and day trading, do you hold crypto savings?
Here, we take a look at a crypto investing strategy. This strategy seems to model a “Personal Crypto Piggy Bank” or a “Cryptocurrency Savings Account”. Let’s see how this works.
The basic idea here is to build a cryptocurrency saving portfolio, which allows you to accumulate crypto coins; and saves you the need to buy at bulk prices. This strategy is similar to the common Buy and Hold strategy – where individuals buy a choice cryptocurrency, and hold till profit or till its price rallies before selling off.
However in this case, you get to set a daily, weekly or monthly buy sequence for your choice cryptocurrency while you accumulate and sell off in profit.
Here’s a classic example: Mr Bayo wants to invest in Bitcoin (BTC) but he at this time cannot afford to buy 1BTC = $9313. Now Mr Bayo sets up his Bitcoin savings wallet /crypto piggy bank strategy; that is he buys $10 = 3,600 naira worth of BTC weekly and stores in his Bitcoin wallet.
The above strategy is a sample strategy and will have Mr Bayo saving $480 in Bitcoin over 12 months. Using a Bitcoin savings calculator, $10 x 4 weeks in a month = $40, $40 x 12 months in a year = $480.
Since the start of the year, savings in Bitcoin till date have risen by over $150%. Using Bitcoin as savings has sure yielded huge profits when compared to other assets. Now calculate the gains on your Bitcoin savings account at the end of the year and extra profits on every bull run.
Why Is This Important?
Just like every good financial instrument, holdings or savings in cryptocurrency as an asset class offers benefits in the short, medium and long term.
When compared to other traditional assets and bank savings in fiat currency, cryptocurreencies offer a certain ROI over a period of time. Hence, while your fiat savings are subject to low or no yields over a duration; crypto investing or savings have been known to yield double figure growth in months or a year.
This is evident as over the course of the first six months of this year, these coins have yielded multiple gains with a potential for more. See here: https://btc.ng/market-news/top-10-performing-cryptocurrencies-of-2019-q1-q2/
How satisfying would it be to have the Bull Run met your prepared strategy? It becomes a profit galore and wholesome reward for saving and holding.
What Are Other Benefits of Crypto Saving or Holding?
- Crypto offers higher returns on investment or holding over fiat (cash savings)
- Cryptocurrency is a less inflationary asset
- No charges on holding and storing
- Offers leverage to Buy and Hold little amounts in crypto without stress on your financial capacity
- Double profits during Bull Runs; as your saved coins get pumped too
In all, the decision on what saving pattern to apply is solely yours. Is crypto saving or holding a part of your investment portfolio or future? Start small, grow your portfolio!
A Final Tip
Maintain a diverse portfolio: This would require you study and research coins with potential in the long term and make them a part of your saving tokens. That is, saving or holding altcoins (other coins asides BTC).
Note however, a common crypto portfolio guide says your portfolio should consist of at least 30%-50% BTC while choice altcoins make up the rest.
Also, DO NOT INVEST IN SHIT COINS.
This article does not serve or replace financial advice. Always Do Your Own Research! (DYOR).