Most people that will read this article are of the same mindset that bitcoin will be soaring to new highs in the near future. This of course will be an amazing thing for the people who have already accumulated a nice portfolio of bitcoin; generating huge profits for them. But for the people who have yet to reach their target bitcoin accumulation goals, it is about to become much more difficult to do so.
This makes it even more important to have your own strategy and plan in place to maximize your own portfolio growth potential There are many ways to jumpstart or steadily increase the amount of bitcoin you have and I will be going over some of these ideas, as well as sharing with you how I go about increasing the amount of bitcoin I have
Let’s dig into this more.
1) Dollar-Cost Averaging
For most people dollar-cost-averaging will absolutely be the best option This is when on a regular basis you purchase a set dollar amount each time. For example, every time you are paid from you job, you could then purchase $100 worth of bitcoin. Many crypto exchanges now let you set up reoccurring purchases which makes it just that much easier for the consumer. Just set it, then forget it. The benefit with dollar cost averaging is that over time this will help you to average out your purchasing price and will be able to take advantage of regular price drops.
2) Lump Sum Purchasing
When I recommend buying bitcoin to other people I will almost always tell them that dollar-cost-averaging is the best way to do it But with that said in my opinion there is a time and a place where lump sum purchasing can be life changing. For example; in March when the price of bitcoin dipped to around $3,700, if a person had the money set aside and was able to invest a large amount at that time they would be up by a lot this year. For many people those types of gains could absolutely be life-changing. While those sorts of price drops are incredibly rare; it is important to have money ready just in-case so you are able to take advantage of those opportunities. Personally, I always invest each time I’m paid putting me into the dollar-cost averaging camp, but at the same time I make sure to have enough set aside to take advantage of the massive drops. I was so glad I was able to do this back in March.
If you have been following my posts recently you will know this is something that I have become very passionate about. For the longest time I often would say; “not your keys, not your bitcoin.” But the crypto portfolio growth that lending can present is just too good to pass up. From the beginning of the year bitcoin has nearly done a 3x increase in price which is amazing. But by lending out a nice amount of my BTC I am able to compound my growth even more, by adding thousands of dollars in BTC to my portfolio just this year. Of course the drawback with lending is that like I mentioned you are giving the the keys of your BTC to someone else. But also that it does take quite a bit invested to make those big amounts in interest each month. The key thing is to have patience. Most of those services offer compounding rates which means your btc earned will increase every month and if you continue to deposit even more it really helps to accelerate the process.
For some people trading is the path they choose to accumulate more BTC. If you have the skills for trading this can be the most lucrative path by far. But also it is the highest risk as well. I have far too many stories about my friends who have lost their entire portfolio from trading and they were devastated. Because of the risk factor I would almost never recommend this path to most people, but it is important to remember that it is there.
5) Side Gigs
For many people investing a large amount of money into bitcoin just isn’t an option at the moment. Things are difficult out in the world right now and who knows when things will improve. But there are still ways you can find money to invest into cryptocurrency.
Perhaps it is selling your old things you no longer need on the internet. For example just a few weeks ago I sold some of my childhood Pokémon cards on eBay and then invested that straight into bitcoin. Selling games, electronics, or clothes that you no longer use or need can be a nice way to find some extra money. While the next idea most people won’t like, it is perhaps the most viable, and that is finding a part time job. If you were to just work one night a week extra and invest that income into bitcoin; it an very quickly turn a large amount. It is something to consider.
6) Cryptocurrency Blogging
This is a new avenue that I started at the beginning of 2020 and it has been very successful for me. If you are passionate about cryptocurrency this can be a very fun process. There are many great places to share your posts as well Publish0x, Hive, Read.cash, Uptrennd, and also video services such as LBRY or YouTube. While it is a slow process at first; as it takes time to build up your own follower base and content. But if you stick with it long enough. It becomes much easier the longer you do it and I would recommend this to any highly motivated crypto enthusiast.
So what do I do?! I actually do all of the above, but admittedly I have been done much less trading. Each month I heavily budget my salary and spending so that I can maximize my investing. I’m constantly selling things I don’t need around the house and then reinvest those earnings as well. Each month I’m dollar cost averaging into bitcoin and ethereum, but always keeping money on the side in case that rainy day price dump ever appears. I then lend out a portion of those cryptocurrencies to services like BlockFi, Celsius, or stake them. And finally I have been doing a large amount of blogging as well.
So what is your plan for how to increase your bitcoin portfolio as prices continues to rise!? And how successful have you been at it so far!?
As always, thank you for reading!