$$$ KPO and CZM $$$: 1% Net Worth to Crypto

Friday, March 19, 2021

1% Net Worth to Crypto

Our crypto investment has more than doubled (142.7%) since I experimented with a small sum of money and I think we should start including it as part of our portfolio/investment strategy as it becomes more mainstream with listed companies buying BTC too.

Our plan is simple, we will invest/allocate 1% of our net worth to crypto and the 1% will be tracked based on the capital used to invest. For example, 1% of 1 million net worth means the capital of our crypto investment will be $10k. If it drops to $5k or runs up to $20k, we will not do anything and there will be no rebalancing.

To be honest, I have been following crypto for the longest time but never really had the courage permission to touch it until recently. The thing is CZM doesn't believe in crypto (like most people) and is waiting for it to crash so she can laugh at me. Although she agrees with the above allocation, she emphasizes that she will not be contributing to it. Regardless, she will be the biggest winner from this allocation. If crypto goes to the moon she profits from it too because my money is hers. If it goes to the drain, I lose all my money while CZM gains bragging/suaning rights for life.

Anyway, how I got started is quite hilarious/unexpected - when COVID-19 strikes last year and renders miles useless + the increase in expenses and the thought of no travelling in the near future with the birth of Baby Ong led me to search for a cashback card. All the traditional cashback credit cards are simply too weak/pathetic in terms of the "returns" we can get from our spendings considering the premium flights we have taken using miles. There was only one cashback card which I thought was more "decent" and I ended up applying for the Crypto.com Ruby Steel Visa card (it was called MCO Visa card previously) which requires me to buy and stake some MCO coins. Unfortunately, my card took an extremely long time to arrive because they were indirectly impacted by the Wirecard fraud. When the card finally arrived, it can only be used/processed by local merchants which means I never got to enjoy the "free" Spotify benefit. Anyway, the metal card has now become a nice paperweight and we are still accumulating miles but that is beside the point.

Through the Crypto.com app, I realized that one can now earn interests/dividends on your crypto which got me really interested. I started by buying some of the stable coins (USDT and DAI) that have a yield of 10% per annum. As the price of BTC kept rising, I bought the minimum amount of coins (0.025 BTC) required in order to deposit them into Crypto Earn. In my previous Portfolio - January 2021 update, I cut my losses by selling away First REIT and that money went into Cardano (ADA) and ETH.

As you can see, most of the money/coins are in Crypto Earn.

These are the coins I am holding. They are generally still the "safer"/"blue-chip" coins. 

I am currently still evaluating if I should just remain on Crypto.com or shift some of the coins elsewhere where I can get better returns (e.g. Binance or BlockFi). The thing I dislike about Crypto Earn is we are required to stake the coins which meant it will be locked/untouchable while staking is not required for the other platforms.

These are the available options for BTC:
1. Buy BTC on Binance SG (lowest fees but not much features) --transfer--> BlockFi (Flexible, 6%)
2. Buy BTC on Luno  --transfer--> BlockFi (Flexible, 6%)
3. Buy BTC on Luno and transfer to Luno BTC Savings (Flexible, 4%)
4. Remain on Crypto.com (Stake 3 months, 4.5%)

As far as I can tell, it seems that the transfer fee is extremely annoying (both Binance SG and Crypto.com are charging 0.0004 BTC for the transfer) and I might end up just staying with Crypto.com or using Luno savings. Based on my observation, withdrawal/transfer from Luno is typically much cheaper than Binance SG and Crypto.com even though the fees are dynamically priced. 

Having said that, it simply doesn't make sense if one wants to DCA a small amount (e.g. $100 per month) and pay a high fee (e.g. 5%) to transfer to BlockFi for a 6% interest. 

ETH options are pretty similar to BTC.

For ADA:
1. Crypto.com --transfer--> Binance (Stake 2/3 months, 7-9%)
2. Remain on Crypto.com (Stake 3 months, 2%)

I could not find the withdrawal fees for ADA online so I will have to wait till the current stake ends but based on the difference in interests, I will likely transfer it to Binance and stake there. I am also considering replacing the stable coins I owned with either BTC, ETH, or ADA.

I don't think I will blog much about crypto besides including them in our monthly portfolio updates because honestly, I do not know how to value them or determine if they are over/undervalued. I did not and will not spend much time to deep-dive/understand them. Let's just say I got lucky in the last few months and these are money I can afford to lose without losing any sleep with the potential for high returns.

With the inclusion of crypto in our portfolio, I believe we are pretty near/may even exceed the next milestone - $800k! Stay tuned to our March update!

If you are interested in the platform I am using, do sign up using our referral links for some bonus :)
Crypto.com: Sign up using our link, stake SG$500 worth of CRO and we both get US$25 in CRO
Luno: Sign up using our link, deposit, and buy SG$100 worth of BTC (Luno exchange not included) and we both get SG$5.00 worth of BTC

You might be interested in these articles too:

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  1. Replies
    1. Hi Steve,

      Interesting, SG start up! Unfortunately, they are charging fees for withdrawal. I am looking at Celsius Network which was introduced by another reader.

  2. crypto.com not accepting new signups from SG since late last year sadly

    1. Hi Muna,

      Oh, I did not know that! I guess you can try out other platforms then. Even if one can sign up for it, the card is unfortunately still pretty useless.

  3. Anyone using coinhako? Any comments or feedback? Heard is hassle free w deposit and withdrawal except of higher fees..

    1. Hi JJL,

      I have not use coinhako so can't really comment much. With xfers, deposit and withdrawal of SGD are pretty easy but if it has higher fees, I think people will generally choose somewhere else with lower fees.

  4. Hi, saw your post on seedly, like about what Blockfi can do...

    FYI, I'm using Gemini as the exchange now, 0.35% for any trades (use the ActiveTrader mode), use FAST to transfer SGD over, but can only trade BTC & ETH, which is good enough to accumulate blue chip crypto. You can wire transfer USD to Gemini & trade other coins.

    Nexo is also good for Hodling... can google & read more, you can swap for other coins. PM me if you need a referral code for Nexo, thanks!

    P/S: same as you, DeFi is not for me at the moment because I just started on this.

    take care & stay safe!

    1. Hi czs,

      Thanks for your comment and sharing! It has been a while since I blogged about this and I have moved on to try DeFi. lol. Personally, DeFi isn't that scary and can actually be quite fun/rewarding (higher yield). Do read some of my latest articles :)