When I was younger I got into the habit of emptying my pocket of small change and dumping it in an old sweet jar. I would only dip into the jar if I needed small change for some reason and then I would change it for larger denominations (eg change 10 x 10p for a pound coin). I would then pretty much ignore it until Christmas and then treat myself to something nice for the seasonal period.
It is something I never got out of the habit of doing and even now anything less than £1 gets jarred!
This has been severely dented by the Coronavirus as I am not out and about as much and many of my payments have changed to electronic forms. Assuming life ever goes back to normal I intend to return to filling my jar up.
And what is more even if I am not doing it with a physical jar at the moment I have still got my crypto jar!
Over the last few weeks I have developed a number of overlapping strategies, many of which I have shared here.
You may ask yourself why I am so generous with this when I could potentially consult and advise for fees on this?
The fact is I am passionate that sharing is caring. If in sharing my insights with the community, and forgive me for sounding a bit sanctimonious, my knowledge helps others then why not (and especially if it isn’t harming me!)? Of course I am not refusing tips either so I am getting a little something out of it.
Anyway back to my coin jar…
As those of you who follow me know, the strategies I developed came about as a paradox of both despair and a sound financial grounding. Necessity has always been the mother of all invention and that drove me to create such approaches which I now employ and my financial training gave me the knowledge to develop and implement them.
Key to my new approach was to change my holding currency from my fiat currency (GBP) to TEZOs and this was a deliberate and conscious choice made primarily because of the staking opportunities it provided (4.03% pa). It does mean that I effectively removed TEZOs from my investment portfolio and many of you will have seen that TEZOs went crazy in the last week or so and are still holding well above the £3 mark after being stuck between £2.10 and £2.30 for quite some time. However, the benefits of doing this have far outweighed this slight shortcoming.
My TEZOs account became my coin jar.
I have employed three primary methods, which I have shared previously to fill my coin jar
Additionally, from time to time I add my Publish0x funds to my TEZOs too, but I am leaning more towards converting or leaving them as BATs as it is being well talked up at the moment. To find out more about how my primary strategies work please click on the links. Of the three the first has been of limited success where I play the TEZOs price off a stablecoin or another currency. I have yielded some results, but due to the recent meteoric TEZOs price rise this was limited as it should take advantage of a decreasing price.
More excitingly though Milking the Cow (taking profit from an inter-currency conversion and then taking the rest – small change if you like – as TEZOs) and Suckling the Pig (continuing to hold the currency but converting profit off the top directly into TEZOs) have had an extraordinary effect on my portfolio.
I started rigorously applying these principles at the beginning of August and the beauty of the whole plan is that my TEZOs represent pure profit. Nothing has been ventured and it is 100% gain, so it really doesn’t matter too much how the price moves because it will always be profit and not part of my general investment fund, which I am also growing in steady incremental steps.
While I am not prepared to discuss exact figures (nor should I be expected to), the fact is that by following such a strict approach my TEZOs coin jar now represents 15% of my entire portfolio, while my main portfolio (excluding TEZOs) is continuing to grow. Staking (which is rewarded in TEZOs based on the amount held – so the price is irrelevant) has accelerated to such an extent now that I am receiving regular rewards which are growing almost daily.
Furthermore, again as many of you know, I only started trading in June and I can discount the first 5 weeks as pretty disastrous, so my original seed money is still invested and I am yet to take any return. I read recently and agree that profit begins when you start drawing back into your bank account funds after taking back your seed money.
I have now decided that 90% of all staking rewards will be utilised to pay back the seed. I am recording everything and it will take a while to achieve my seed amount. In the meantime it will remain in my TEZOs wallet adding to the cumulative income.
You may ask the question why 90%?
Well it is simple. Leaving 10% of my staking rewards in means that there will be continuous growth while at the same time an aggressive approach to recovering the original investment. Once this is done it is profit all the way…
Based on the last two weeks of filling the coin jar 90% of my staking rewards should see this happen in about a year, but it will probably be much quicker as my portfolio will not remain still and only grow leading to ever increasing staking returns.
Once the seed is paid back, everything becomes profit… and that is perfectly fine by me.