I’ve receive a lot of texts and calls these days about how to get into “crypto”. I’ll post the most conservative strategy I’ve been offering up. I went back and forth about whether I should recommend using 100% DeFi, but I settled on the CeFi route for the the following reasons.
The people I talked to recently are US retail investors that have never had an issue with the TradFi system. They do not mind being spied on and they do not mind that a bank/government controls their money. They have not experienced hyper inflation and are just looking for alpha. Thus, if I want them to start the rabbit hole journey sooner it would be best to go for convenience and use a tool set that matches their current experience. They will not spend a few hours with me walking them through DeFi. I also want them to start with a low risk entry so they don’t get burned off the bat with the wild swings of crypto…and yes that includes Bitcoin :(
Goal
Get exposure in a crypto asset with low to no volatility
Value convenience over privacy and custody
Strategy
Hold USDC in Celsius Network and earn 10% apy
Details
Bank Transfer into Coinbase
Convert USD to USDC (free, no cost)
Transfer to Celsius and earn
Security and Regulations
Celsius and USDC (Circle + Paxos) are US regulated companies and are following the rules so far. Both have ample security and have not had a major hack yet. Though, both are custody solutions, ie Celsius and USDC can blacklist your address, these retail investors do not care.
Disclaimer
This is not financial advice. I am not qualified to say any of these things. I am a random person on the internet.
Easiest way to get for US retailer investor to start in crypto