Hi all and welcome to this first post in my crypto adventure.
In this adventure, I aim to discover multiple options to gain some nice yields with my crypto, while not having a huge balance. This last part is going to be the biggest challenge! We all know that the transaction fees can eat the profits alive, if you are not careful.
If you would like to discover the best yield strategies for low amount (<$100) with me, then stay tuned. If you have some nice strategies you use/would like me to have a look at, leave a comment!
First, I will describe the methods I will use. I will have them all set up by february and give updates on a yet to be determined rate (most probably weekly). Again, I hope that some of you have some nice tips for me as well, since I by no means claim that my strategy is optimal in any way. The goal of the first few months is primarily to discover the best methods and optimize the allocation strategy.
Disclaimer: I report my balances in EUR, I included USD as well in this post.
What is my starting balance?
- About $160 / €130 BTC
- About $190 / €160 ETH
- About $105 / €85 BNB*
- Between $30-$50 / €25-€45 of: DOT, ADA, SPARTA**, VET
- About $240 / €200 NEXO***
- About $1500 / €1250 of stable coins (part of which is gonna be converted to BTC)
*BNB is necessary for a lot of the strategies I will use
**Sparta is a reccomendation of a friend of mine, I think it's a cool project and it also fits in nicely with this strategy
***NEXO has a very high percentage in my portfolio, this is also due to one of my strategies, in combination with a 35% appreciation since I bought them.
As you can see, my crypto portolio is not that big, with more than half of it still in stable coins (used to farm bonusses), they will slowly but surely be converted. I also will add €100 to my portfolio each month.
Methods I will use
CEFI
- Nexo, the main reason for using nexo is that it is one of the only platforms that gives a high return on euros. The platform offers 5-8% APY on crypto and 8-12% APY on stables.
- Celsius, very similar to Nexo, but with slightly different rates and more of a focus on referrals instead of more traditional advertising.
DEFI
- Pancakeswap, Beefy, SpartanProtocol
All these projects are on the Binance Smart Chain, which has average gas fees of about 10cents, which I think is doable for the size of my investments. I am most interested to see the results of these projects. So far I have provided liquidity towards BNB-BTC and BNB-Sparta, after which I staked my LP tokens. I also staked my DOT-balance.
ETH 2.0
A part of my ETH is staked towards ETH2.0 using Binance. This will yield between 5-10% on a yearly basis, however it is only redeemable when ETH2.0 goes live. Soon Binance will provide a BETH/ETH pair, so if I want to get rid of my ethereum this will be possible.
CRYPTO CARD
Last but not least, I will try to gain a little crypto while doing groceries. So far I have tested the Binance Card on level 1. The card works perfectly fine, haven't had any issues with it. However there is a 0.9% third party fee, almost completely negating the cashback you get for level 1. This week I will also receive my Crypto.Com Card, I will use it for a week or two, and then decide whether I'd prefer a level 2 Binance Card or a Tier 2 Crypto Card.
As you can see, I am discovering quite a lot, but there is always room for more! I hope you are as interested in the results of this blog as I am, and if you have other exciting strategies for me to test out, please share them in the comments. Especially strategies using ADA or VET would be very welcome.
Stay tuned for my next post on the first or second of february: Episode 0, where we will focus on the transaction costs of entering my strategies.
