So I've seen a lot of videos now on the value of compound interest and DeFi platforms, but I like to read about this stuff and it occurred to me that I haven't found any articles that really dig into the gains to be made... yet... so I decided I'd write my own. Maybe I'm not looking in the right spot...maybe I don't actually look, but it definitely hasn't popped up on my radar outside of youtube.
This is the follow up to Viral DeFi and my specific strategy developing since the last 6 - 8 months and realistically, this is all thanks to one guy known as Cryptoonestop. He seriously is worth his salt. It's just starting to become a trend now but his videos are based on earning potentials on crypto platforms and his delivery is nothing less then perfection. Well armed with precise information and his no gimmicks presentation style, anyone can understand what he's saying with limited knowledge of cryptocurrency. His videos inspired me to write these articles. I want to share in any way that I can the benefits of going outside the system, to generate wealth like the wealthy do.
If this is treated like a normal high interest savings account, united with the flux of Bitcoin's market cycle, the rewards yielded are far superior to banking institution. So if you want a less risky and more involved way of earning more of an appreciating asset class, here's my Positive Yield Loop strategy to get you started.
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It starts with a POOL.
Celsius and Crypto.com are 2 of the best platforms to earn you high amounts of compound interest.
Using these 2 as pools, we bank our coins to extract the most profits based on the 2 native tokens and their yields.
Cro with 23% on Crypto.com
Cel with 5 - 35% extra earnings on Celsius Network
Yields from other sources should be added to your pools to increase the multiplying effect so I'll take you through each that I have discovered...
Yield 1. I have Celsius generating compound interest in cel token at the bonus rate of 35% because I hold 15% of my portfolio in cel token. The more btc and eth I hold will generate an additional 35% yield in cel tokens. If I want to earn in btc or eth instead, I can change this back anytime in settings. 
Yield 2. Utilizing the Syndicate deals on crypto.com exchange to earn 200% on the allocated token. Even if I don't want the token, I'll trade it to bitcoin and add to my Celsius account (Pool) and begin earning the 7.27% compounded interest, with an additional 35% cel.
Yield 3. Use the interest yielded from cro tokens on the crypto.com exchange to add to my pool. I am currently sitting at 122/180 days remaining on my lock up period which I won't be renewing only because I'll be needing to access my coins at all times from 2021 onward. But if I didn't need that, this is a great system to keep adding to and earning 20% from cro interest plus the added soft stake feature adding 3% on top. The 10500 staked tokens will generate about 1300 cro equivalent of roughly $73 at present value of 5 cents.
Yield 4. Once my cel tokens hit an amount where I'd rather reinvest into another favorite coin eg: xrp, btc, I could trade it out, increasing my pool's principle and increasing the cel token multiplier. At the end of the day, I want to hold more bitcoin, ether, xrp, tezos and link. So when I hit a threshold value in cel, I can trade back for one of the other coins again, adding to that base multiplier.
Yield 5. Referrals are a little way to incentivize both new users and affiliates. I have recruited a couple people to Celsius, Crypto.com and BlockFi now and we each received $10-$50 in bonuses paid in btc when you use the platform to deposit and hold some tokens.
Yield 6. After hitting the Threshold Value in my exchange account, add this to the pool to start compounding. Or, you may consider using these smaller profits to go towards small cap trades you have your eyes on. Coins below 5 cents that have had any news or speculation are worth looking into. Cardano/ada and Stellar/xlm have popped up on my radar again and they're spot on for price.
Yield 7. Using a crypto backed loan to expand your portfolio. Although not advised, I have used this to pay off my credit cards because the fee's I pay in crypto are less then I pay on my credit cards. I am now accruing loan interest faster than compound interest but I got a little greedy, so be careful with that. I still have half the debt being paid for by the credit, but I always try to aim to have a net positive on these systems. You could double down by getting a loan to buy more btc or eth and then wait for the price to go up over the next 9 months and reap massive rewards.
Eg.
You are holding 1 btc worth $10,000
You then get a loan to buy more bitcoin
You can borrow 50% of your total bitcoin value - LTV - so $5,000 usd
Your new total becomes 1.5 btc worth $15,000
The price of bitcoin doubles tomorrow and your wallet goes to $30,000 still with 1.5 bitcoin
You pay your loan back with $5,000 usd or .25 of btc's new value
Leaving you with 1.25 btc or $25,000 usd in your wallet. You have profited $5,000 from the loan
There's a reason sayings like - 'Be Fearful When Others Are Greedy and Greedy When Others Are Fearful' - exist.
This is pretty quick example.... and it may not be as naive as you think. After that recent dip mid March everything has come back up by almost 50%. If you had taken a loan at that dip to buy more bitcoin, you would have been in profit by now. And considering how big that dip was, the risk was far less severe.
I almost forgot one thing......
An obvious but sometimes hard to deploy tactic..... only...buy...dips. I learned this way too slowly as I didn't continuously read into the markets. Now I have a solid level of understanding as to what justifies a DIP.
I'm no market analyst, but if you're watching the market as we speak, you can see why it's probably a risky time to buy; we had a 50% drop in the March shakeout just over a month ago but we've already recovered most of that now. I was unable to buy at that stage unfortunately but that is the perfect example of an opportunity to buy a huge price drop...in any market.
So even though it's obvious, don't buy anything if you've just seen it go up 4-10% over night...instead focus on the same coins that are going negative those same amounts. Buy $5 or $10 amounts at a time then adjust accordingly when the price varies and double down on tokens your familiar with. After waking up and seeing 50% dip last month, I wished I had spare funds to play with. If I did, I would have doubled my bags again by now.
So essentially the more yields you can apply to your total multiplier pool, then the more you can add to the benefit of the multiplier. The higher weekly/monthly interest distributions and the higher the value of bitcoin, the higher each of those little payments will rise in value
I look for potentials to add to my bags without letting go of any. Again, you only lose when you sell for a loss. If you take into consideration all of these methods...
Pool + all Yields = greater multiplier effect < greater pool principle
This is my Positive Yield Loop
Do some research, watch the youtubers I've recommended in other posts and average in a cost that you think this asset class is worth buying into. Put in more and more if it decreases in value. At this point in time it's already worth buying bitcoin, the question is, just how much?
For a final example on compound interest, let's have a look a more exciting (and maybe slightly hypothetical) figure...
You have $50,000 in a 8% compound interest account being paid daily.
The interest you would receive in 1 year is $4,224.08.
If you were to be able to withstand a long term savings account and leave it locked away for 10 years.
The interest you would receive is $62,510.21 with the total being $112,510
Like any normal savings account you might want to add $100 into it each week to help it grow.
The interest received on $100 extra per week becomes $90,358 with the total being $191,758.
If you held this $50,000 in 5 btc and in 10 years the price has gone up to $1,000,000, you'd then be $4,950,000
I don't know about you but I am doing anything I can to invest my money into making itself work instead remaining stoic. The Dollar Bill is only worth the paper it's printed on... and it has become a ticking time bomb.
How will you hedge yourself against a potential worldwide fiat system crash?
Related videos:
How our money system works
C1S BlockFi Review for beginners
Celsius explained by the CEO Alex Mashinsky
Compound Interest explained
CEO Alex Mashinsky explains the utility of cel token
Related articles:
My Crypto Explosion blog for further reading
How to maximise your apr percent lending returns with defi
How much growth have stablecoins and defi brought to ethereum?
May the fonz be with you....
