2020-10 Investment Strategy Review

This isn't an outright full blog post. It's just an update to mention that I am reconsidering my investment strategy. BTC has had the good courtesy to remain relatively flat for some time. It has been in the $10K range despite the political and economic news. The advantage is that this gives dollar cost averaging investors, like myself, time to continue to accumulate.

I have the opportunity to trade some CRO for BTC. I had originally accumulated CRO for the 18% interest it pays over at Crypto.com Earn. However, we have all been expecting BTC to start to make its move to around $100K by next year. Granted, BTC is not guaranteed to rise. However, I am counting on enough people believing that it will so that they will actually make it happen. Earning 18% on CRO is great. However, one of the disadvantages is that I can't use that position for anything other than earning more CRO. If I move that CRO position into BTC, then I can use the BTC as collateral for borrowing.

My biggest concern in this economic downturn is to have to sell my crypto because I need cash. Therefore, having a line of credit with BTC as collateral means that I potentially have a growing line of credit when BTC moves up to whatever dizzy heights it can achieve. I can eat my cake and have it too.

With this in mind, I have been waiting for my locked up CRO to become available so that I may convert it to BTC. The interest on the BTC will be less than the CRO. However, I would have access to cash if needed.

An alternative strategy is to take the interest that my CRO position pays every week and use that to buy more BTC, in addition to contributions from my income. In this way, my dollar cost averaging has a boost from the interest income. This is currently what I am doing while my CRO is locked up.

I have a month until my CRO becomes available and I have to decide what I will do.