The increased dollar-cost averaging amounts into the stock markets since early Sep 2021 is starting to pay off with the recent rise in equities. Not changing these amounts anytime soon as they are using up quite a bit of our salary income. It stops us from building up too large a cash balance going forward, which will be a problem in an inflationary environment. Yes, I don’t think inflation is transitory globally and you can see the higher inflation rate in many countries now. Made worse by the fact that it may just be starting to climb and possibly accelerate as countries open up further. Even in Singapore with a partial reopening, I find myself paying more for petrol, food, groceries and utilities.
But my salary income is not keeping pace with inflation as I only had a minimal salary increase in early 2020 and none in early 2021. This is why staying in the same job at the same place for a long time is a terrible idea. You end up being underpaid and lose the ability to increase your pay by moving around companies (whether in the same role or otherwise). Because the firm only gives you the minimum salary raise to keep you around to manage their internal employee costs. While they pay external hires higher salary to keep pace with the employment market demand. Understanding this is important because it allows you to extract a better value from the hours you put in at work over time. Don’t be overworked and underpaid for the same work you can be doing elsewhere as you will feel resentful and leave eventually but with a higher risk of burning bridges.
Anyway, I had some spare cash built up over the past 2 months and didn’t know what to do with it. I don’t actively dollar-cost average into cryptos by doing regular automated purchases like what I do with equities. Mostly because I have no idea how to execute and automate this property. However, I recently opened a Crypto.com account and it allows for fixed weekly, fortnight or monthly regular purchases of cryptos. This may be a good way to dollar-cost average into cryptos automatically. I’m still looking into this and learning more about the Crypto.com mobile app interface. May write a post about it when I figure this out.
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My BTC and ETH holdings in Hodlnaut are continuing to earn crypto interest with the payout in BTC and ETH respectively. My USDC holdings in Hodlnaut are earning crypto interest with the payout changed from USDC to ETH recently. I guess you can call this some form of dollar-cost averaging but the amounts are not sufficient to build up my positions significantly. It’s an interest payout after all. The stablecoin holdings in Hodlnaut are also useful for swapping to BTC and ETH when I see dips in their prices. My BTC, ETH, USDC and USDT holdings in Cake DeFi are earning DFI by way of staking, liquidity mining and freezing. DFI price performance has not been good compared to BTC and ETH price performance. But I take a long term view of my DFI holdings and have no issues waiting for the price to go up as its utility increases. This will take time and patience.
BTC and ETH prices have been going up and up causing my Hodlnaut account balance to be quite a bit more than my Cake DeFi account balance. Interesting stuff especially when I started them off at the same account balance a few months ago by letting Hodlnaut and Cake DeFi have 50% each of my crypto holdings. Hence, I decided to transfer the spare cash I had into CoinHako, buy DAI and transfer it into Hodlnaut before swapping the DAI into USDT for the higher crypto interest. I changed my USDT crypto interest payout to BTC to even out the USDC crypto interest payout of ETH. This move ensures I’m building up my crypto holdings along with my stock and ETF holdings. Don’t want to just be focusing on the latter because I’m used to it and forget about the former. Next up is for me to take a closer look at my Crypto.com account to see how I can utilise it.