My Coinbase Portfolio: Year In Review (2021)
Back in 2020, I opened a Coinbase account, and it turned out one of the simplest ways to buy cryptocurrency in Sweden. You can easily top up the account with money from a credit or debit card, and it is easy to connect to Koinly to declare taxes in a quick way.
Some of the nicest things about Coinbase are:
- You can earn a $10 bonus after buying your first $100 in any crypto, and this includes any stablecoin.
- They have a “Learn and Earn” program where you can take online lessons about certain projects, and they pay you! I’ve already earned $75 since the start just by watching videos.
- Coinbase is backing up the “USD coin” project (USDC), which is backed 1-to-1 with a real USD and is one of the largest stablecoins out there.
- You can earn interest on your money if you hold it on their Coinbase Wallet. For example, they have a 4% APY variable rate for USDC, so just for holding $1000 USDC in your wallet, you can get $40 yearly.
- They also offer a Coinbase Card (visa debit) that you can use to spend your crypto/coins directly.
Personally, I like the Crypto.com project a lot more. They have far better incentives, rewards, and promotions, so the majority of my portfolio is there. However, I still have some money on Coinbase, and I wanted to show you the evolution of my account since I opened it.
I started buying around SEK 3000 (€300) of crypto between May and August 2020, mainly Bitcoin and Ethereum. If you look at the window between May and December, I basically took those €300 and started converting them to USDC each time bitcoin increased its value, and then when it went down, I bought it back. This way, each time I sold and bought back, I was buying a little bit more crypto.
I wasn’t doing this on a daily basis, maybe once a week or so, every time I saw a big jump. In December, I reached a maximum of 19.000 SEK, so I decided to convert everything to USDC and stop there, it was already a big increase from the original 3000kr I started with! (that’s why you see the flat period in there).
Then in April 2021, I started again and converted back to Ethereum and Bitcoin, it even reached a higher peak of 22000sek (€2200), but I decided to keep it as it is and not convert back to USDC.
Then, we entered a period where both Bitcoin and Ethereum lost value, and we went back to 10k SEK or so (a €1200 LOSS! compared to the peak a few months ago). That’s why, when it started increasing again, I decided to settle and convert back to USDC in September (another flat line until November).
Most recently, I needed to convert back to some Ethereum because of my aviation NFT project, and hence why it is fluctuating again.
- I managed to turn €300 into €1500 (today), and at its peak €2200! (a 7x return)
- It’s impossible to predict what’s gonna happen with the market! Don’t think you can outsmart it easily or follow some rumors! But, that said, it is possible to take some intelligent baby steps towards growing your money.
- My approach: I buy when the market is read, and sell when the market is green. If you buy €100, then sell when you have €120, and buy back when you see it is €110.
- If you invest in crypto, be prepared for volatility and don’t get desperate if things turn down, just HOLD it until it comes back again.
- Once you have earned back your initial deposit, take it back and “consolidate your earnings.” This way, you’ll have peace of mind that you have made your money back, and now the remaining part is your “return on investment” and also working for you.
- Try to take advantage of earning interest on your crypto and also the promotions where you get extra cash from Coinbase to invest even more.
- Use the “USD coin” (USDC) as a way to get out of the volatile market at any time (my “flat lines” in the figure). You can take USDC back to your bank account, and you’ll get the equivalent in Euro or USD.
- You can get $10 for free after buying your first $100 using my sign-up link. You can earn an extra $75 by taking their online lessons on different coins!
- If you’d like to chat with me about this, reach out to me on Instagram 🙂