Last Updated on
I am a big fan of diversification, and that comes down to diversifying your digital asset investments also when using stablecoins like GUSD and USDC on BlockFi and Celsius Network.
Limited Time: From now until December 2, 2019 – Get $30.00 in Bitcoin after you deposit just $100.00 worth of crypto in to any BlockFi currency wallet and hold it through the end of the year using my special code of matt30.
That’s it! A big thanks to BlockFi! Take advantage of this special offer, even if you are already a BlockFi customer or if you are new.
Now is your chance to maximize your Bitcoin holdings!
Use code: matt30 or click here using this special link to get started.
Previous reviews on both BlockFi and Celsius Network have generated quite a bit of interest here on the site and questions received regarding the two services. You can see the citation section below for links to those previous reviews.
One of the most popular questions received was this:
Should I convert my USD to the Gemini Dollar (GUSD) by Gemini Exchange or should I go with the USD Coin (USDC) from Coinbase and Circle?
My answer was always – have you considered diversifying into both?
If you are putting anything over $1,000.00 into either BlockFi’s Interest Account or into Celsius Network’s wallet to earn more coins – why not consider splitting the difference to both forms of digital assets called stablecoins that are pegged to the dollar?
By doing this, you are not only diversifying your investment across two well-backed digital assets, you are also improving your chances of liquidity should you need to change your stablecoins back to USD in the future.
Let’s use the $1,000.00 USD example to explain this concept.
Take $500.00 of it and convert to the Gemini Dollar and take your other $500.00 and convert it to USDC and get it from either Coinbase or Circle.
Now you have split the risk of your investment across two quality stablecoins – both of which have several different exchanges to redeem your stablecoins back to cash when you need to.
You see, during bull markets and times of high traffic to exchanges, there could be a period when there is a backlog to redeem digital assets back to cash because everyone is trying at the same time.
When you split up your holdings across multiple stablecoins, you have a greater chance of being able to go liquid again in the case that one exchange is having technical difficulties or a backlog of some sort. Or an absolute worst case scenario, one of the projects fail.
You could also take this same logic and split your investment of $1,000.00 between BlockFi and Celsius Network – further diversifying your investment between services.
Here is an example of one way you could consider the investment of $1,000.00 into stablecoins for earning more interest with.
$250.00 converted to Gemini Dollar (GUSD) and sent to BlockFi.
$250.00 converted to USD Coin (USDC) and sent to Celsius Network.
And then switch stablecoin types:
$250.00 converted to USD Coin (USDC) and sent to BlockFi. (USDC Coming Soon)
$250.00 converted to Gemini Dollar (GUSD) and sent to Celsius Network.
Now you have further minimized your risk of investing in digital assets, specifically stablecoins here, by splitting not only your initial investment across two different stablecoins – but you have also split your investment across two services.
If you want to learn more about diversifying your assets in not only stablecoins, but other types of investments also, take a look at the citation section below for strategies you can put in place.
- BlockFi Referral Code and Review.
- Celsius Network Review and Promo Code.
- Investing Strategies With Diversification – Part 1 Investment Strategy To Diversify.
- Investing Strategies With Diversification – Part 2 Investment Strategy To Diversify
- BlockFi Interest Account Setup
- Celsius Network App Download.
Listen to the Podcast that goes with this article.
Watch the YouTube video that goes with this article.