I’ve been thinking about my Banking category this week. To be honest, it’s been bothering me.
You’ve hopefully read my main post about Banking, and know that the idea is to hold some crypto as crypto, rather than as stablecoins, and earn interest (also in crypto) on it so that it can gain in value over time. That means BTC and ETH, with a little SOL staking thrown in for good measure – not banking as such, though I include it in the Banking category.
The thought that’s been nagging at me this week is that it’s not growing like the other categories.
- Trading is medium risk (especially with my incompetence) but grows as I trade
- Copy Trading is very high risk (relying entirely on someone else) but grows fast
- Banking is extremely low risk and only grows at about 1% per month (plus value change)
I’m not complaining at that 1% monthly compound interest, of course. That’s huge in banking anywhere, especially when TradFi offers 4% per year.
I’m just not satisfied with it when the other categories have more growth potential.
So I’ve reassessed and decided to change my approach.
Banking v1.1
I’ve accepted an increase in risk that will, hopefully, build the banking part of my investment a bit quicker.
To do this, I took about 20% out of the banking setup and moved it into copy trading, but tagged it for Banking.
Every 4 weeks, I’ll take the profits from that piece of copy trading and put them into Banking (i.e. send the USDT, trade it to BTC or ETH, and get the ~1% per month on it).
I’ll track it in the Banking category, same as before, to avoid any confusion.
I’m also going to add any earnings from Cointiply, TrustDice (those are ref links) and any other faucets and small earners (I forgot the Bitcoin Aliens mobile apps in my earlier post) to the equity of that part of copy trading. Not to the profits that I withdraw, but to the equity that builds up over time.
I’ve just moved about $60 that I had in those places.
My spreadsheet’s going to get a little more complex lol.
Splitting Banking: Another Tweak
I also had a light-bulb moment for people who have enough banked that they need to split the total between several accounts.
Percentages work the same on any amount.
If you have $1,000 and get 12% interest per year, that’s $120.
If you have 10 lots of $100 and get 12% interest per year, that’s $12 on each $100, times 10. The same $120.
So what?
So if you’re splitting a large sum between several CoinEx accounts, you can put 0.00893 BTC and 0.175 ETH in each, and you’re good for a year’s interest, without faffing around every month.
That’ll save me some work!
Are you banking some crypto? Do you have a better system? I’d love to know… and don’t forget to join me on Sunday for this week’s numbers update!
