Sirwin
Sirwin

Multiply your crypto assets - where to begin?

By Keilun | Decrypto | 1 Apr 2020


For many people, buying large amounts of Bitcoin is not a financially-viable investment strategy. But the good news is that there are now more alternatives than ever that make it easy for people to earn bitcoin.

Especially when you have none or little money to invest, you need to get creative, but there are viable options that can get you started.

Let me be clear, there is no recipe to become rich, what you learn here is how to put your little resources at work to maximise your return. If you invest little, you will earn a little more. The method relies on the now popular model of interest-earning accounts.

A number of companies now offer the ability to earn interest on your crypto holdings. The basic structure is that you send your crypto to a service provider and earn interest over time.

The magic word is "compound interest". As I hinted in my previous article, this is the best way to earn crypto, especially now that we are at the very beginning. Interest rates are relatively high and cryptocurrencies like bitcoin are bound to multiply in value during the next few years.

Although we've seen BTC raise and fall, the projected value could be tenfold in a relatively short amount of time, and if you add that there is a finite amount of it available, the more you hold the higher the multiplier is.

Coming back to our topic, what we need to put in place is a way to invest our coins and add to our pool over time.

As mentioned in my previous article, cashback is a way to earn coins or money to buy coins. We have only a few options for crypto cashback, but fiat (USD, EUR) currency is also useful to buy coins. Earning coins is another way, but we will get into that in another article.

My suggestion is: whatever coins you have, convert them to BTC. Even little amounts will stack into a nice sum if projections are right. There are many altcoins to look into, but I'd suggest to begin with the safest choice. 

I personally use Crypto.com to buy crypto or to convert altcoins because the app is easy and straightforward and you have nice useful graphs, easy to understand even for true beginners. For each currency you can check the BTC rate over 6 months so you know the average conversion rate you should wait for to maximise the conversion. 

Let's say that you have some BAT tokens earned from referrals, content creation and tips. Looking at the past months, any rate between 0,000027 and 0,000030 is good, so you transfer all your tokens into the service of choice (like Crypto.com) and buy BTC with it.

Then you sign up to an interest-earning provider, like BlockFi. Crypto.com has a similar service, but the interest rate for BTC is lower than BlockFi and it doesn't compound interests. You can obviously do it yourself every month, but it's tedious and error-prone.

With BlockFi you earn compound interests automatically and you can add to your investment at any time, you're not limited to a fixed period.

Then you continue to gather coins or money and invest it into BTC, then add to the BlockFi account. Since interest are paid in the same currency you deposit, you will earn interest in BTC. You can also request interests to be paid in USD, but I highly discourage that, as BTC will gain more value over time, especially now that US FED is printing money like there's no tomorrow.

If you want to get more info on compound interest for BTC, I suggest to check this article.

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Keilun
Keilun

Technology enthusiast and avid photographer.


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Decrypto

Crypto is a complex universe. Decrypto is a place where people from the outside world can glimpse it and hopefully understand it better.

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