We are celebrating our son’s 2nd birthday this weekend with our families and took tomorrow off to have a long weekend. Nice to take a break from work though I wouldn’t call it much of a rest and recharge. Mostly because we still have to look after our boy and his energy level is going up as he gets older. While our energy is going down as we get older. Not a good combination as we struggle to keep up with him at parks and playground. He has hurt himself a few times simply because we are not fast enough to get to him in time to stop the accident from happening. At the rate we are going, we will never be quick enough and just have to teach him how to look after himself.
I had some time in the afternoon when he was napping to look into my Crypto.com account in more detail. I had opened my StraitsX account previously and linked it to my Crypto.com account to allow for a fiat-crypto transfer. It took me a while to figure out the various functions and decide how best to utilise my Crypto.com account. I noticed the recurring buy function and was sold on it immediately. Recurring buy gives me the ability to apply my Dollar-Cost Averaging (DCA) investment strategy to cryptos. Something that I have been meaning to set up so I don’t have to make manual purchases so often.
DCA investment strategy has always been a cornerstone of my investment portfolio as it lets me build up my positions over time. The DCA amounts are tied to our salary income levels so the drawdown every month is more manageable. I have been applying my DCA investment strategy to equities but not to cryptos. And missing out on the recent bull market because I didn’t invest regularly into cryptos when it was a bear or flat market previously is the price to pay. It’s time to start addressing this issue so I don’t make the same mistake going forward.
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A cash funds transfer from my bank account to StraitsX account is reflected as XSGD (Digital Singapore Dollar) on my Crypto.com account. I used it to purchase USDC (stablecoin) and hold it in my crypto wallet. This part is manual and I will probably do it on our paydays so it’s easier to remember. As long as I have enough USDC in my Crypto.com account, the next part is more important and is automatic as I set up weekly regular buys on Sunday for these 5 cryptos:
- Chainlink (LINK) – 100 USDC
- Terra (LUNA) – 90 USDC
- Polkadot (DOT) – 80 USDC
- Solana (SOL) – 70 USDC
- Polygon (MATIC) – 60 USDC
The total comes up to 400 USDC (about S$550) worth of regular crypto purchases every week i.e. about S$2,200 every month. This is about 30% of my total monthly DCA investment strategy that will now go into cryptos while the remaining 70% goes into equities. In addition to my BTC and ETH crypto interest earning on Hodlnaut and DFI staking, liquidity mining and freezing on Cake DeFi, I now have a bigger proportion of my monthly investments going into cryptos. I’m aware that cryptos are at all time highs but so are equities.
The whole point of a DCA investment strategy is to keep myself vested in both cryptos and equities so I don’t miss out on further gains. Even if the cryptos and stock markets tank (not a bad thing to be making purchases at lower prices), I can ride out the storm and wait for the eventual recovery as long as my income source is intact. My DCA investment strategy uses up half of my investable cash every month, which leaves me with the other half to save and keep for spending or bigger manual investments down the road when opportunities arise.
This also means I no longer have to monitor the 24/7 volatile cryptos market as actively. Similar to the equities market, I can take a more passive approach and wait for the big drops to go in. Otherwise, I just do capital injections and let compounding off a large capital base do the work for me. While I focus on protecting and growing my income source to keep the financial system I build to manage our household finances intact. More importantly, I get to free up more of time for myself and my family by not having to worry about how my investments are doing. It’s exhausting to keep worrying about whether we have enough money now or in the future. I’m looking forward to taking my mind off this.