Crypto Update

Here's an update on the "Top 10" cryptocurrencies by market cap (courtesy of coinmarketcap.com).

Clearly, Bitcoin continues to lead the pack at a market cap of $206.9B.  Rounding out the top three are Etherium with a $43.1B market cap and Ripple with a $13.2B market cap.  Bitcoin has almost tripled in value from a year ago, while Etherium has increased 4x during the same time frame and Ripple has increased 3x.

With returns like these, it's no wonder many people are seriously considering investing in cryptocurrencies now.  I have long advocated for keeping a small portion of your portfolio in crypto for diversification and the potential for large gains.  I also think crypto is a nice hedge against depreciation of fiat currencies, which seems to be accelerating in the post-pandemic world.  Below is one of my favorite charts that tracks the declining value of the dollar over time.


Of course, with that level of volatility there is also the potential for large losses, which is why it makes sense to keep your exposure small.  I consistently invest a small amount in Bitcoin every month and have been pleased with the overall result, since I can dollar cost average down when Bitcoin is trading lower and I never sell my Bitcoin, only accumulate.

While I have invested in the other coins in the past, I feel like the risk/reward isn't always there and it's better to focus on Bitcoin since it's clearly the leader in terms of market cap and liquidity.  I use the Crypto.com app which has several different services on their platform, all of which I would recommend.  First and foremost, they will pay interest on your crypto coin deposits - currently 6.5% simple interest on a three month deposit of Bitcoin, for example, and the interest is paid weekly.  Interest rates vary depending on the coin.  Getting that rate requires "staking" 500 MCO coin for 6 months (cost of about $2,000), but that stake pays 6% simple interest in MCO coin, also paid weekly.  I also have their debit card and earn 3% cash back on all charges (paid in MCO coin), which I use periodically to buy more Bitcoin.  Recently they have been running a promotion where you get 10% cash back (maximum of $50 per month) if you use your card for a delivery service like DoorDash, which I have been doing a lot lately.  They pay a $50 referral fee, also in MCO coin.  A deposit of CRO coin (which I was surprised to see on the top 10 list below) pays a whopping 18% simple interest for a three month deposit.  The minimum amount to deposit is 5,000 CRO (or about $800) and they are also running a special currently to waive the normal 3.5% credit card fee to purchase crypto.

Stay safe, healthy and positive.  I hope you find this post useful as you chart your personal financial course and Build a Financial Fortress in 2020.

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1Bitcoin$206,976,420,671$11,218.56$29,708,335,07118,449,468 BTC-3.60% 2Ethereum$43,100,578,424$384.77$20,198,167,673112,015,550 ETH4.98% 3XRP$13,234,532,763$0.295001$5,201,382,35144,862,646,997 XRP *5.03% 4Tether$9,996,828,694$0.999861$46,704,695,8079,998,221,723 USDT *0.16% 5Bitcoin Cash$5,344,422,295$289.22$3,542,516,09818,478,956 BCH-7.32% 6Bitcoin SV$4,086,400,739$221.15$2,750,899,68818,477,596 BSV-7.22% 7Litecoin$3,743,275,296$57.44$3,738,016,15165,164,883 LTC-4.56% 8Cardano$3,500,104,564$0.134998$513,368,27425,927,070,538 ADA-3.69% 9Crypto.com Coin$3,095,061,090$0.166618$124,951,76218,575,799,087 CRO *-2.46% 10Binance Coin$3,000,624,737$20.78$322,651,594144,406,560 BNB *-1.04%