I have added Bitcoin to my portfolio and you should too.
If you are new to Bitcoin and would like to learn more, I list the best Recommended Resources at the bottom of this post.
For now, here is where I am “stacking sats.” (<–Bitcoin Lingo)
I use BlockFi to purchase and hold my Bitcoin.
(P.S. Use this link to create an account on BlockFi and we will both receive $10 in Bitcoin.)
I have purchased Bitcoin on three platforms: BlockFi, Coinbase and Gemini. They all have very user friendly dashboards which is nice.
I prefer BlockFi with their security features and interest earning ability (see rates).
I can select my interest to be paid in Bitcoin. Yay!
I fund my account with USD, that is converted to USDC in BlockFi, and while I wait to purchase Bitcoin (because I want dollar cost average — more on that in a few), my USDC is earning 8.6% interest.
Time for some math.
Let’s say I have $1,000 in a traditional bank savings account. The national average interest rate for savings is 0.05% annual percentage yield (the amount of interest an account earns in a year), but many national banks pay only 0.01%.
At the end of the year, I will have earned $0.50 cents in interest($1,000 x 0.05%). Horrible!
If I put that same $1,000 in my BlockFi account (converting it from USD to USDC), at the end of the year, I will have earned $86 ($1,000 x 8.6%). Cool!
I hold money in BlockFi.
So I can dollar cost average my Bitcoin purchases, it’s too hard to pinpoint the market. Plus, I found myself staring at a screen watching the market like a hawk. What a waste of time (how ironic).
Instead, I pick a consistent amount of money each week that I want to spend and buy Bitcoin.
My hold money is earning interest (8.6%) while I buy Bitcoin week in and week out.
That’s it. That’s the plan.
Do the math.
Pick a weekly amount of $$ that’s right for you and your family. Maybe it’s $20, or $100 or $1,000, or more (big baller), it doesn’t matter. The key is to be consistent.
Let’s say each Tuesday, you plan on buying $50 worth of Bitcoin. That’s great!
There are 52 weeks in a year and that means you will have purchased $2,600 (52 weeks x $50) worth of Bitcoin in a year’s time. By dollar cost averaging, you don’t have to worry about timing the market.
You’re getting skin in that game and that’s what’s important.
That is how I purchase Bitcoin for my portfolio and you should too.
(P.S. Use this link to create an account on BlockFi and we will both receive $10 in Bitcoin.)
Recommended Resources on Bitcoin:
VIDEOS
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Ben Horowitz explains the rise of crypto (a 3 minute explanation of crypto’s potential)
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But how does Bitcoin actually work? (Invaluable, easy-to-understand YouTube explainer)
- Bitcoin Macro Strategy with Michael Saylor and Ross Stevens (Bitcoin is the solution to the store of value problem faced by all corporations & their customers.)
ARTICLES
- Explain Bitcoin Like I’m Five (Angel investor Nik Custodio does exactly what the title says)
- The Bullish Case for Bitcoin (Vijay Boyapati’s article comparing Bitcoin, Gold and Fiat currencies)
- The Internet of Money (Investor Naval Ravikant’s Wired article that introduced a lot of people to Bitcoin’s wider potential)
PODCAST
- Michael Saylor and Saifedean Ammous on The Fiat Standard (Bitcoin for Corporations, Asset classes obsoleted by Bitcoin, Will we see another big crash in Bitcoin?)
BOOKS
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The Bitcoin Standard by Saifdedean Ammous
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Hard Money You Can’t **** With by Jason Williams
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The Little Bitcoin Book by Multiple Authors
ONLINE COURSE (Free)
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Bitcoin for Everybody (Explore the fundamental concepts behind Bitcoin and how everyone can use this open-source, strictly limited digital money that operates on a peer-to-peer network.)
