My goal with this blog series is to present my personal journey with a "high stakes" investing option. I heard about Ethereum Capital at the beginning of August, did some research, and decided to invest 3 ETH into it. I want to be clear, I am not a financial advisor, what follows is my personal experience and should not be taken as financial advice; what you do with your money is up to you. My personal goal, through monthly reinvesting, is to try and get to 1 ETH in dividends daily through this smart-contract.
For an overview of what Ethereum Capital is, please read my previous post: Ethereum Capital — Earning Daily Dividends, Part 1: My First Five Days
Two Weeks of Data
I began with an investment of 3 ETH, 20% was taken off the top, giving me 2.4 ETH worth of Ethereum Credits (175.021 credits). As of today I crossed 0.3 ETH in total dividends, a return of 10%, recouping half of the original 20% investment cost. So as a long term investment, there is absolutely huge potential. On the short term side, Ethereum and Ethereum Credits have both gone up giving me a 44% return on my initial investment if I were to cash out today.
The Raw Data
- August 4th & 5th I didn't track the current value of the ETH Credits, and subsequently can't project a true "cash out" value.
My Goal and Plan
My goal is to get to the point where I'm earning 1 ETH per day in dividends. To do this I will be reinvesting my dividends on a monthly basis, slowly increasing my holdings. At this point I'm reinvesting monthly to minimize ETH gas fees, if/when gas fees return to normal (10%-15% of what they currently are) I'll consider weekly or bi-weekly options.
Currently, I'm averaging 0.0227 ETH a day (or 0.76% of my initial investment) in dividends daily. If this continues through August I'm looking at around 0.6 ETH in total dividends by September 1st, recouping the 20% buy in. At this rate, it's a very slow climb to my goal but it is very much achievable. Dividends seem to fluctuate quite drastically, but even on the low end, a consistent daily 0.33% return on an investment is good.
Projecting out further then September will most likely be inaccurate; but as of now there is the potential to be earning .07 ETH daily by Feb 1st, that's about 3x what I'm earning now... and assuming that holds, I'd reach my goal around April of 2022.
Transparency and Concluding Thoughts
First, I'm not advising anyone to invest, I'm just providing my personal experience using Ethereum Capital. If you do decide to invest, the link below contains my personal referral providing me 3.3% of your investment while the remaining 6.7% (of the distributed 10%) is then divided among the remaining investors. You of course do not have to use my referral; but if you do, thank you.
Second, I will be posting my next batch of raw data on 8/31/20 and every two weeks moving forward.
We'll see how close my projections come and whether Ethereum Capital is a good long term investment or not.