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AllenBauer.com

Personal Investing

Crypto: What I Own & Why

I don't own dozens of cryptocurrencies and I'm not interested in chasing every new coin that comes along. My approach is concentrated and pretty simple.

The three cryptocurrencies I focus on are:

XRPSTXBTC

Each serves a different purpose in my portfolio, and I own each for a different reason.

Crypto is the higher-risk, higher-potential-growth side of my investment strategy. My increasing-dividend stocks serve a very different purpose: building dependable and growing income.

My long-term idea is simple. If some of my crypto investments appreciate substantially, I can take portions of those gains and move them into increasing-dividend investments that can produce income.

I'm not interested in hype or trying to predict exact future prices. I'm interested in utility, scarcity, long-term adoption and what role these assets could potentially play in a changing financial system.

Core holdings

My Three Core Crypto Holdings

XRP — Moving Value

XRP

Why I hold XRP

I view XRP primarily as financial infrastructure.

XRP was designed to move value quickly and efficiently across borders and between currencies and financial systems.

My investment thesis is based on the possibility that blockchain technology becomes increasingly integrated into global payments and financial infrastructure.

I don't know what XRP will ultimately be worth, and I don't assume any particular price target will happen.

I hold it because I believe the potential utility of XRP and the XRP Ledger gives it an interesting place in the future of moving money and value.

Role in my portfolio

Potential financial and payments infrastructure.

STX — Building on Bitcoin

Stacks

Why I hold STX

Bitcoin is extremely good at being Bitcoin, but I'm also interested in what can be built around it.

Stacks is designed to bring additional functionality, applications and smart-contract capabilities to the Bitcoin ecosystem.

That is what makes STX interesting to me.

If Bitcoin continues becoming an important global digital asset, I believe there may also be significant value in infrastructure that makes Bitcoin more useful.

STX is a substantially smaller and more speculative investment than Bitcoin, which also means I view it as carrying substantially more risk.

Role in my portfolio

Higher-risk exposure to applications and functionality built around Bitcoin.

BTC — Bitcoin: Digital Scarcity

Bitcoin

Why I hold Bitcoin

Bitcoin is the foundation of my crypto strategy.

Under Bitcoin's existing monetary rules, its maximum supply is 21 million Bitcoin.

That scarcity is one of the primary reasons I hold it.

I view Bitcoin less like a technology stock and more like a scarce digital asset.

I don't need Bitcoin to become everyday spending money for my investment thesis to work. I'm primarily interested in its potential role as a long-term store of value in a world where traditional currencies can continually increase in supply.

Role in my portfolio

Long-term scarce digital asset.

Different jobs

How the Three Fit Together

XRP

Moving value

Financial infrastructure

STX

Building functionality around Bitcoin

Higher risk / higher potential

BTC

Digital scarcity

Long-term store of value

Portions of long-term gains, if they happen

Increasing Dividend Stocks

Growing long-term income

My crypto investments and dividend investments have different jobs.

Crypto gives me exposure to technologies and digital assets that I believe have significant long-term upside potential.

Increasing-dividend stocks are designed to create growing cash flow.

If my crypto investments produce substantial gains, my long-term strategy includes moving portions of those gains into increasing-dividend investments.

The goal isn't simply to have a large number showing on a screen.

The goal is financial freedom and sustainable income.

My cash reserve: USDC

How I Use USDC

USDC isn't one of my three core crypto investments — I use it differently.

I also keep part of my available cash in USDC on Coinbase.

USDC is a stablecoin designed to maintain a value of approximately $1 per coin.

Depending on eligibility and Coinbase's current rewards program, holding USDC can earn rewards.

I use USDC as a place for part of the cash I want readily available while receiving whatever rewards Coinbase currently makes available to me.

That gives me liquidity that I can potentially deploy when I decide to make another investment.

Coinbase USDC reward rates, eligibility and terms can change. Check Coinbase for the current offer.

My platform

How I Use Coinbase

Coinbase is the primary platform I personally use for this part of my crypto strategy. I use it for more than simply buying cryptocurrency. I also use USDC rewards and eligible card rewards as additional ways of putting my money to work.

1 · USDC rewards

Earning Rewards on Available Cash

Instead of leaving all of my available cash sitting idle, I keep part of it in USDC and receive the rewards available to me through Coinbase.

I like having money available while still receiving a return on that balance.

Rates and eligibility can change, so I look at Coinbase's current terms rather than assuming today's reward rate will continue indefinitely.

2 · Coinbase debit card

Turning Everyday Spending Into Crypto

I also use the Coinbase debit card for purchases when the available rewards make sense.

Coinbase card reward offers can change, including which cryptocurrencies are available as rewards.

When Bitcoin is available as my selected reward, I can earn small amounts of BTC from purchases I would have made anyway.

I view those rewards as another way of gradually accumulating Bitcoin without making a separate investment every time.

I don't spend extra money just to earn rewards. The idea is to get something back from spending I was already going to do.

3 · Coinbase One credit card

Earning Bitcoin Without Carrying Credit Card Debt

I also use the Coinbase One credit card to earn Bitcoin rewards on eligible purchases.

But I have one very important rule:

I don't carry the balance.

When I make a purchase, I wait for the transaction to post and then pay it off.

I'm not using a credit card because I need to borrow money. I'm using it because if I'm going to make the purchase anyway, I want to capture the available reward.

For me, the strategy only makes sense if I'm not paying credit-card interest to earn a smaller reward.

My rule

  • Earn the Bitcoin reward.
  • Pay the purchase off when it posts.
  • Don't carry credit-card debt just to chase rewards.

Coinbase One Card reward rates, eligibility, limits and program terms can change. Check Coinbase for current terms.

Note: USDC rewards come from holding USDC. Card rewards come from eligible purchases. They are separate Coinbase programs, and neither is a bank savings account.

Small Amounts Add Up

One part of my strategy is accumulating Bitcoin without treating every purchase as a separate investment decision.

If I'm going to buy groceries, gas or something else anyway, earning Bitcoin back turns part of an ordinary expense into a small investment.

One purchase isn't significant.

Hundreds or thousands of normal purchases over years can add up.

I don't spend more to earn rewards.

I simply try to earn something back from spending I was already going to do.

The bigger strategy

My Overall Investment System

  1. Cash / USDC

    Stability, liquidity and opportunity

  2. Crypto

    XRP + STX + BTC · Higher-risk growth potential

  3. Take portions of major gains

    If and when they happen

  4. Increasing dividend stocks

    Growing income

  5. Financial freedom

    The goal

Crypto gains are never guaranteed — this shows my plan, not a promised outcome.

I don't view these investments in isolation.

Cash gives me stability and opportunity.

Crypto gives me exposure to assets where I believe the potential upside can justify taking additional risk.

Increasing-dividend stocks give me ownership in businesses that can generate growing income.

If some of my crypto investments appreciate substantially, I can take portions of those gains and move them into increasing-dividend investments.

That can potentially turn speculative growth into productive assets generating cash flow.

That's the bigger strategy.

Coinbase

Want to Try Coinbase?

Coinbase is the platform I personally use for much of my cryptocurrency activity.

If you're interested in opening a Coinbase account, you can use my personal referral link below.

I may receive a referral benefit if you sign up and meet Coinbase's applicable referral requirements. Depending on Coinbase's current promotion, you may also be eligible for a benefit.

Coinbase determines referral eligibility, requirements, reward amounts and terms, and those offers can change.

Visit Coinbase Using My Referral Link

Referral Disclosure

This is my personal Coinbase referral link. I may receive compensation or another benefit if you use this link and satisfy Coinbase's applicable referral requirements. Coinbase determines eligibility, requirements and rewards, and those terms can change.

My approach

The Big Picture

I'm not betting my entire financial future on crypto.

My financial strategy has several pieces.

I want cash available.

I want increasing-dividend investments producing growing income.

And I'm willing to put part of my investment portfolio into higher-risk assets where I believe the potential long-term return justifies the risk.

For me:

I'm not trying to get rich overnight.

I'm trying to steadily build financial freedom.

This Is What I Do, Not Financial Advice

This page describes my personal investments, opinions and financial strategy. It is provided for educational and informational purposes only and is not individualized investment, financial, tax or legal advice.

Cryptocurrency is highly volatile and involves substantial risk. Prices can fall dramatically and investments can lose some or all of their value.

Stablecoins also involve risks and should not be assumed to have the same protections as money held in an FDIC-insured bank account.

Crypto rewards, card rewards, USDC rewards, Coinbase programs and referral offers can change or be discontinued.

I may receive compensation or another benefit from the Coinbase referral link on this page.

Do your own research and make financial decisions appropriate for your circumstances, financial situation and tolerance for risk.