The world of crypto is massive, and it gets bigger every day. So, where should we begin our crypto voyage? We just learned about stablecoins as a good entry point.
Welcome back to the Crypto Investing 101 series (101, 102, 103, 104), where we go from zero to hero in the crypto universe.
Consider stable coins as high-yield savings accounts, certificates of deposits, or bonds. They are relatively safe and the safest investments in crypto.
What Type of Home Business Should You Start 5: Consulting
So now we need to find the next layer of safe investments in cryptocurrency, akin to index funds on the stock market.
Smart Chains. The next layer of safer investments in crypto is smart chains. You can call these chains many names, such as base blockchains or layer-1 chains.
Smart chains are the base of operations for the rest of crypto and decentralized finance. Consider these like the freeways and roads so that others can travel.
Have you ever been to Walmart? When Walmart builds a supercenter near you, multiple smaller businesses and gas stations sprout up around the area.
Grace & Passive Income
Smartchains are the Walmarts. They want to bring in developers to build decentralized apps (DAPPS) and smart contracts over the top of their layers.
DAPPS and smart contracts are the future of decentralized finance (DeFi), allowing things like borrowing, lending, and staking protocols.
Why invest in smart chains? Smart chains are the infrastructure of cryptocurrencies, NFTS, altcoins, and DeFi. Thus, the smart chain will grow as various coins and projects become more prominent.
What are some smart chains? Here is where things get interesting. You may have heard of various coins but didn’t realize they were smart chains. The graphic below is the best way to visualize blockchains.
I Live Paycheck to Paycheck 4
As you can see, some of the top smart chains are Binance, Ethereum, Solana, Cardano, and Polkadot. To me, these are great places to start venturing into crypto investing.
How to invest in smart chains? I invest in smart chains through a centralized exchange. I use Voyager (affiliate link) to do all my crypto investing. I currently have Ethereum, Cardano, and Polkadot.
USDC vs. Savings Bonds vs. Treasuries
It’s easy to dollar cost average into these positions over time. I plan to hold these coins for the long haul, just as I would real estate. Essentially, they are the real estate projects on DeFi.
How much should I invest in smart chains? This is a good question. Cryptocurrencies, overall, shouldn’t be a significant part of your investment strategy.
Cryptocurrencies are still speculation plays; thus, they shouldn’t account for more than 5% of your portfolio. Even though smart chains are major platforms, they can still go bust.
Recently, Terra smart chain went up in smoke and burned many investors. You don’t want to over-commit your resources based on the “bigger fool theory.” This theory means you are buying your crypto for the sole purpose of selling for a higher price (to a bigger fool).
Real Estate Investing in Your 40s
Instead, you should focus on building an investing thesis in your smart chains. Find projects, DAPPS, metaverses, and altcoins that make the smart chain grab people’s attention.
Luckily, Voyager gives us an idea of how much to invest. Voyager pays interest once you reach a certain amount of smart chain coins or altcoins.
For example, for Ethereum, the amount is 0.5 ETH. Once you have this amount of ETH, you’ll earn 4% interest, paid in ETH.
You can see Ethereum and Polkadot above. I use this as a starting point for my investing habits. It’s always a good thing to earn interest on your coins.
Smart chains vs. Bitcoin. Bitcoin is a blockchain, but developers can’t truly build upon it. Most believers say it is more akin to gold.
Investing in Interest 103: Treasury in Treasuries
As you know, the world of crypto flows along with Bitcoin. So I find it helpful to buy Bitcoin along with smart chains; no need to pit them against each other.
Learn your projects. You also want to be familiar with the various projects developers are building upon your smart chain. Things like NFT projects and virtual worlds can lead to massive cash inflows.
Thus, your smart chains will also grow as these projects become more extensive. Growth leads to price increases; therefore, invest in smart chains with the projects you feel will be huge.
Conclusion. The world of cryptocurrencies is growing every day. We learned about stablecoins and now smart chains.
These should form the base of your crypto investing habits. You can build a diversified portfolio of stable coins, Bitcoins, altcoins, and smart chains to reap the benefits of crypto’s growth.
Voyager gives us the ideal starting amounts to invest in smart chains via their interest payments. Follow the example, diversify across a few smart chains with significant projects, and your portfolio will grow along with DeFi. Good Luck!
- PDF of the Month: Don’t Gamble with Retirement 7 (Free 424-Page PDF)
- Free PDF Downloads: Download FREE PDF LIST here
- Financial Mindset: Become CEO of Yourself 2 (Free 196-Page PDF)
- Retirement Planning: Your Retirement Planning Guide 2 (Free 255-Page PDF)
- Investing: How We Plan to Retire on Dividends 2 (165-Page Free PDF)
- Cryptocurrencies: Counting on Crypto 2 (Free 159-Page PDF)
- Real Estate: Financial Independence through Real Estate 2 (Free 123-Page PDF)
- Business: Retire Rich, Retire Comfortable with a Business 2 (Free 185-Page PDF)
- Latest DGWR: Don’t Gamble with Retirement 6 (Free 409-Page PDF)
- Everything!: The Biggest Book on Passive Income Ever 2! (book)(Web Edition)(Art Edition)
- I bought a Kindle Oasis: Check it out on Amazon
- Read My Books for Free: Free Kindle Books Schedule
- Crypto Exchange: My Favorite Crypto Exchange VOYAGER (Join Voyager)
- Kindle Unlimited: Why I Finally Subscribed Kindle Unlimited (learn more)
- Book Reviews: 505 Takeaways from 101 Books (pdf)
- Writing: The Publishing Chronicles (Part 1, Part 2, Part 3, Part 4, Part 5)
- Best REIT- Fundrise: REITs vs. Homeownership (Join Fundrise)
- Follow us: On our Facebook Page and Join our Facebook Group
- Support the Channel on Cash App: $Kingmarine1981
- For more detailed analysis, join my Youtube: MFI YouTube Channel
Monthly Dividend Tracker Template: Buy on Etsy
Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
Leave a Reply