Cryptocurrency, blockchain, and De-Fi are the fastest growing technology in all of human history and have created more wealth faster than any investment strategy.
However, it’s speculative and not right for everyone. For those seeking a relatively lower risk way to profit from the crypto gold rush, there are two strategies that I personally use.
High-yield crypto savings accounts, using stable coins backed 100% with US dollars, can be a reasonable alternative to junk bonds, and offer an 8.25% yield.
Combining crypto with high-yield blue-chips like BTI, can pay you up to 4.1% yield that grows over time, and pays you generous and safe yield today while waiting for potentially life-changing returns tomorrow.
A modest 1% to 10% allocation to crypto, including yield farming stable coins, can significantly increase your retirement portfolio’s returns, with only modestly higher volatility. Using appropriate asset allocation and risk management, through semi-annual or annual portfolio rebalancing, is how you can minimize risk to what you can personally stand, and potentially achieve the rich retirement of your dreams.
This idea was discussed in more depth with members of my private investing community, The Dividend Kings. Learn More »
artisteer/iStock via Getty Images Cryptocurrencies, blockchain, and decentralized finance (De-Fi) have taken the world by storm. Adoption rates are 2X faster than the Internet, making crypto the fastest adopted technology in all of human history.
Today I want to not only explain why I am investing 10% of my long-term savings into crypto but explain two relatively low-risk, high-yield ways for anyone comfortable with this speculative asset class to profit from the current crypto gold rush, which is expected to last for decades. The transformative potential of crypto and blockchain is ‘difficult to overstate,’ Bank of America says in its debut report on the sector
It’s difficult to overstate how transformative blockchain technology, digital assets, and the thousands of decentralized apps that have yet to be created could potentially be” according to the report. My small investment in crypto, targeting 10% of invested capital, is based on my personal expert consensus consisting of Marc Andreessen (one of the greatest venture capitalists of all time) “crypto is the new Internet” – recommended Bitcoin at $350 in early 2013, it’s now $58,000 a 165X return in seven years
Mark Cuban (10% risk cap recommendation)
Kevin O’Leary (one of the first VCs to invest in the space and now invested in every part of the industry)
Cathie Wood (60% CAGR Bitcoin forecast through 2025)
Chamath Palihapitiya (the king of tech SPACs)
Bill Miller (one of the best value investors in history, 16 consecutive years of beating the S&P, his personal portfolio is 86% Amazon and 13% Bitcoin)
Fidelity – 70% of asset managers plan to invest in crypto over the next five years (flood of money coming from sovereign wealth funds and $65 trillion inheritance by Millennials in the next 30 years) – 80% CAGR price forecast through 2038
Bank of America
Wells Fargo (recommends a 1% to 10% allocation to crypto)
Stanley Druckenmiller: legendary hedge fund manager George Soros: legendary hedge fund manager whose claim to fame is currency trading Crypto is certainly not for everyone (Buffett, Munger, Dimon, and Paulson are not fans), just as no stock is.But when the best tech experts in the world say something is potentially revolutionary and has a bright future, I’m willing to put 10% of my savings into that speculative alternative asset class. How I’ve Personally Invested In Crypto Asset Value Allocation Annualized Personal Returns Time-Weighted Returns Ether $24,699.58 1.47% 304.10% 4.48% Bitcoin $23,477.04 1.40% 157.85% 2.21% Crypto $48,176.61 2.98% 227.26% 6.69% BlockFi (GUSD) $10,000.00 0.62% 8.25% 0.05% DS Phoenix $1,617,554.94 96.53% 24.16% 23.32% Total Portfolio Value $1,675,731.55 30.07% Dividend Aristocrats (My Benchmark) 24.19% (Source: DK Real Money Phoenix portfolio tracking tool) My 3% allocation has boosted my annualized returns by 7% so far. With the best performing asset class in history, a little goes a long way.I’ve invested 2.5% of my capital so far, equally into Bitcoin ( BTC-USD ) and Ether ( ETH-USD ) and another 0.6% into GUSD, Gemini’s stable coin, which allows me to earn 8.25% interest at BlockFi.My personal long-term target allocation is 5% into BTC/ETH and 5% into BlockFi via GUSD.Why just these two when there are over 6,000 cryptocurrencies with more launching all the time?88% of fund flows, including from a steadily growing number of institutions, are going into BTC and ETH.These appear to effectively be the Coke and Pepsi, Mastercard and […]