John Lee Quigley

There were key moments during the last bull market that skewed people’s ideas of a reasonable return. For those with more conservative investment strategies, it was hard to log onto Reddit and see dozens of users posting +300% gains on the day after chasing the latest short squeeze or the dead cat bounce of a failing retailer’s stock. Without a doubt, these days were the hardest for some investors to sit on the sidelines and stick with their more conservative investment plans.



They knew that these kind of returns were unsustainable and so they stuck with automated investing — a strategy that lets investors “set it and forget it.” Automated investing enables people to automatically put away a portion of their earnings into investments that generate sustainable growth over time. While it may not put anyone on the front page of Reddit, this is a remarkably consistent path to growing wealth.&nbsp;



The massive adoption of 401(k) accounts and similar retirement savings plans in recent decades reveals the benefits of automated investment strategies. In fact, there are an <a href="https://www.ici.org/faqs/faq/401k/faqs_401k" target="_blank" rel="noreferrer noopener">estimated</a> $7.3 trillion worth of assets held in 401(k)s by 60 million-plus US employees. Yet, the 401k’s long-proven automated strategy is largely <a href="https://www.gobankingrates.com/retirement/planning/alarmingly-high-percentage-of-americans-dont-have-access-to-retirement-plans-through-work/" target="_blank" rel="noreferrer noopener">inaccessible</a> to most investors due to a lack of financial education and tools required to tap into it. 



Thankfully, the emergence of blockchain technology and cryptocurrencies is changing this. These systems&#8217; digital and permissionless nature give people the ability to build wealth through automated investing. It’s also given rise to several new crypto-investing hacks ranging from automated salary payments in bitcoin to earning crypto credit card rewards through apps like <a href="https://www.curve.com/en-us/features/crypto/" target="_blank" rel="noreferrer noopener">Curve</a>. 



This article dives deeper into why automation works as an investment strategy and the numerous crypto-investing hacks currently available to investors. It also reveals how companies like <a href="https://www.curve.com/en-us/" target="_blank" rel="noreferrer noopener">Curve</a> empower users to tap into automated crypto investing through their credit card.



<h2 class="wp-block-heading">How automation provides the key to sustainable wealth building</h2>



The biggest obstacle to investing is the investor. The fear of loss makes people invest conservatively, while greed prevents investors from realizing profits following a substantial market uptrend. Both of these emotions can derail an investor’s future and ultimately prevent them from reaching their objectives.&nbsp;



In a classic example, greed causes investors who try to time the market to miss the market’s biggest gains. A <a href="https://www.putnam.com/literature/pdf/II508-ec7166a52bb89b4621f3d2525199b64b.pdf">Putnam investment analysis</a> found that an investor who kept $10,000 in U.S. stocks over a 15-year timeline would make $24,753 more than someone who missed the market’s best ten days by trying to time it. It’s statistics like these that prove the famous adage, “time in the market beats timing the market.”



<figure class="wp-block-image"><img decoding="async" src="https://lh6.googleusercontent.com/N40FLgkCx9F_KJMAHr0fMBeR9boBWnsyO6gLS2VRrAcjY1TbsqxtPIktF9q3I9p8KMN4xd3J1VHH_RMYw8NPSsC-Qfkf3y3uzprgoU3fhh-3S0XdgFEIhkaZ89vCzY_TnvfpmqmqGcehADfazcr9xRA" alt=""/></figure>



An automated investing plan is an ideal antidote to fear, greed, distraction, and, perhaps worst of all, <a href="https://en.wikipedia.org/wiki/Shiny_object_syndrome" target="_blank" rel="noreferrer noopener">shiny-object syndrome</a>. When money is automatically deducted from their paycheck or bank account, an investor is more likely to hold appreciating assets for the long term.



Blockchain technology and cryptocurrencies bring even greater solutions to automated investing than those offered in the traditional financial system. The underlying technology enables near-instant payment settlement and transparency. At the same time, the crypto industry’s immense potential means investors that choose blockchain-related automated investing are also tapping into a market that historically outperforms other asset classes.&nbsp;



<h2 class="wp-block-heading">Automated investing through crypto apps&nbsp;</h2>



“The near $1 trillion cryptocurrency market provides notable automated investing hacks for investors. The most popular examples include tools that allow users to convert a portion of their paycheck into Bitcoin, as well as automated dollar cost averaging (DCA) features on different exchanges.



Users can tap into decentralized finance (DeFi) protocols that support automatic reinvestment of staking rewards and more recently, the option to earn crypto credit card rewards through services like <a href="https://www.curve.com/en-us/features/cashback-rewards/#" target="_blank" rel="noreferrer noopener">Curve</a>. The Curve Credit Card offers 1% back in crypto with every swipe, giving users ten currencies to choose from including bitcoin, ether, and cardano.



The greatest advantage of automated crypto investing solutions is that investors build holdings in the top cryptocurrencies without worrying about their entry price. Unlike lump sum investments, automated solutions typically support weekly and monthly DCA purchases and compound profits. It also protects investors from distractions since the amount is automatically deducted from associated accounts and invested on their behalf.



Another benefit is that such strategies free investors from tax headaches linked to regular crypto trading. Since the income is only taxed when the investor sells or exits a portion of their position, it becomes much easier to calculate the taxable value.



However, there are risks beyond the obvious volatility associated with crypto assets. One of the most prevalent risks is that some automated crypto investing platforms make it difficult or impossible to self-custody, instead encouraging users to store funds on centralized platforms. These platforms offer additional rewards and emphasize the convenience for customers to store their assets on the given exchange. The <a href="https://blockworks.co/news/ftx-bankrupt-hacked-investigated-a-timeline-of-events">recent collapse</a> of centralized exchange FTX is a perfect reminder of why investors must remain wary of platforms discouraging self-custody.&nbsp;



Automated crypto investing solutions like Curve implement a new feature that enables users of its crypto credit card program to take custody of accumulated rewards into their own wallets. Such an innovative feature adds to Curve&#8217;s unique strength as a leading crypto credit card service and provides greater value to users.



<h2 class="wp-block-heading">Crypto credit cards </h2>



A credit card that pays out rewards in cryptocurrency is one of the simplest hacks for continuously accumulating cryptocurrency assets. As teased above, cards like Curve’s work just like other rewards credit cards, with the primary difference being that they pay out cashback rewards in assets like bitcoin and ether. From there, users can choose to withdraw or store the earned crypto in the wallet of their choice. 



Despite the huge opportunity posed by crypto credit cards, adoption remains relatively low. The current earnings systems implemented by most crypto credit card companies are clunky and hard to manage. The reward options are often limited, while the process of redeeming earnings is overly complex.&nbsp;



The Curve crypto credit card reward system lowers these barriers- just swipe the card and get crypto.&nbsp;



But what really makes the Curve card unusual is that it allows users to combine their existing credit and debit cards into the Curve App. So when they swipe their Curve card, they’re receiving not only a fixed 1% crypto-back reward, but the points or cash back they’d normally receive with that third-party card.&nbsp;



Since the Curve card combines multiple credit cards into one, their algorithmic <a href="https://www.curve.com/en-us/smart-rules/" target="_blank" rel="noreferrer noopener">Smart Rules</a> system determines the optimal credit card for each purchase based on rules the user sets. For example, they could select whichever credit card is best optimized for grocery store purchases to trigger anytime they swipe their Curve card at Kroger. They would receive the maximized cash back from the underlying card and then Curve’s 1% crypto-back reward on top of that.



Finally, Curve has developed their <a href="https://www.curve.com/en-us/features/go-back-in-time/" target="_blank" rel="noreferrer noopener">Go Back in Time</a> feature that allows users to move transactions to different cards up to 30 days after the original purchase. This can avoid embarrassing and costly mistakes like using a company credit card on a personal expense. 



<h2 class="wp-block-heading">Supercharge your crypto cashbacks with Curve</h2>



Automated investing is a proven strategy that, while simple to set up, delivers outsized results over time. Even a $100 investment monthly allocation into a relatively low-risk index fund with an average 8% annual return<a href="https://www.nerdwallet.com/banking/calculator/compound-interest-calculator" target="_blank" rel="noreferrer noopener"> would yield</a> $95,103 after 25 years. 



With history as a guide, the cryptocurrency market has historically appreciated much more than 8%, and credit cards like Curve expose users to crypto without any upfront costs. Since these rewards are on top of other credit card points and cash back programs, it’s a truly risk-free and simple way to participate in the powerful wealth-building exercise of automated investing.



This content is sponsored by <a href="https://www.curve.com/en-us/" target="_blank" rel="noreferrer noopener">Curve</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>
</ul>

credit cards

The Secret Behind ‘Set It and Forget It’ Crypto Investing Hacks

Ben Strack

<div id="highlights-block_634004df07692" class="highlights">
 <ul>
 <li>Card allows users to make purchases using crypto at the 80 million merchant locations that accept Visa</li>
 <li>Product rollout in Latin America and Europe is planned by the end of 2022, with additional regions slated for next year</li>
 </ul>
 
</div>



Crypto exchange FTX is set to begin offering Visa debit cards to its customers internationally as part of an expansion to its global partnership with the payments giant.



Debit cards linked to a user’s FTX accounts are currently available in the US, as the company now intends to launch the offering in 40 more countries.



The exchange plans to roll out the FTX Card in Latin America before bringing it to Europe and Asia, Adam Jacobs, the company’s global head of payments, told Blockworks.



He declined to share additional details about the upcoming rollouts.



“We’re excited to partner with one of the world’s largest payment networks to give our users the ability to utilize their crypto to fund purchases at millions of merchants around the globe,” FTX founder Sam Bankman-Fried said in a statement. “This card allows users to make use of their FTX crypto balances 24 hours a day, 365 days a year securely and with no administrative or processing fees.”



<a href="https://cms.blockworks.co/visa-partners-with-50-crypto-platforms-on-card-programs/" target="_blank" rel="noreferrer noopener">Visa revealed in July 2021</a> it was partnering with 50 crypto platforms on card programs that allow users to convert and spend digital currency at 70 million merchants. FTX competitor Coinbase launched a Visa debit card linked to crypto accounts for users in the United Kingdom and European Union in 2019 and rolled it out to US customers earlier this year.



Gemini inked <a href="https://cms.blockworks.co/gemini-mastercard-to-launch-crypto-rewards-card/" target="_blank" rel="noreferrer noopener">a similar partnership</a> with MasterCard in April 2021, to offer credit cards which allow customers to spend US dollars and earn cashback in their crypto of choice. But Gemini does not yet allow a customer’s exchange balance to be used to pay the monthly credit card balance.



Visa executives said in January that customers made $2.5 billion in payments with its crypto-linked cards in its fiscal first quarter of 2022. The payments company <a href="https://cms.blockworks.co/visa-launches-crypto-advisory-unit/" target="_blank" rel="noreferrer noopener">launched a crypto advisory practice</a> last December and <a href="https://cms.blockworks.co/visa-launches-program-for-nft-focused-entrepreneurs/" target="_blank" rel="noreferrer noopener">a program for NFT-focused entrepreneurs</a> in March.



“We believe that digital currencies will have a lasting impact on the future of financial services and money movement,” Cuy Sheffield, Visa’s head of crypto, said in a statement. “We’re excited to partner with leading crypto exchanges like FTX to bring more flexibility and ease-of-use to the way people use their crypto.”



Cardholders will be able to use a crypto balance to fund purchases anywhere Visa is accepted. Crypto held within a user’s FTX account will automatically exchange the exact amount at the point of sale, according to the company.



“This is just the beginning of our global partnership with Visa,” Jacobs said. “We look forward to working with them…to make other aspects of Visa’s suite available to FTX cardholders.”



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>
</ul>

FTX Seeks to Roll Out Crypto-Linked Visa Cards Globally

Bessie Liu

<div id="highlights-block_62dae0c60be70" class="highlights">
 <ul>
 <li>Taiwan’s FSC said credit cards should not be used for payments tied to gambling, stocks, futures, options and other transactions</li>
 <li>Credit card issuers in Taiwan have three months to make adjustments and comply with the new law</li>
 </ul>
 
</div>



Taiwan’s securities watchdog has implicitly banned cryptocurrency transactions with credit cards on the island nation.



The country’s Financial Supervisory Commission (FSC) issued a letter to the banking industry association earlier this month, asking that they not grant “merchant status” to virtual asset providers which service credit card holders.



Details of the letter stated that digital assets are highly speculative and prices are often extremely volatile, <a href="https://money.udn.com/money/story/5613/6476972" target="_blank" rel="noreferrer noopener">local media reported</a>. Further, credit cards should not be used for payments tied to gambling, stocks, futures, options and other transactions.



The move follows strict anti-money laundering laws for cryptocurrency services providers enacted last July.



Credit card issuers in Taiwan have been given three months to make adjustments and comply with the new law. Once that time is up, an independent audit unit will review compliance and report results to the FSC, which is effectively Taiwan’s equivalent of the Securities and Exchange Commission.



Cryptocurrency is tightly regulated in neighboring China, but lawmakers worldwide have looked to <a href="https://cms.blockworks.co/congress-mulling-stablecoin-regulation-after-terra-crash/" target="_blank" rel="noreferrer noopener">hasten crypto supervision</a> following the implosion of <a href="https://cms.blockworks.co/tag/terra/" target="_blank" rel="noreferrer noopener">Terra</a>’s algorithmic stablecoin in May, which sent <a href="https://cms.blockworks.co/how-cryptoasset-markets-have-changed-since-terra-crash/" target="_blank" rel="noreferrer noopener">cryptocurrency markets tumbling</a>.



The UK recently <a href="https://cms.blockworks.co/uk-to-regulate-stablecoins-as-a-form-of-payment-via-new-bill/" target="_blank" rel="noreferrer noopener">introduced a new bill</a> that seeks to regulate stablecoins and Russia has <a href="https://cms.blockworks.co/putin-amends-law-to-broaden-russias-crypto-payments-ban/" target="_blank" rel="noreferrer noopener">extended its crypto payments ban</a> to specifically include security tokens, utility tokens and non-fungible tokens (NFTs).



Meanwhile, the Taiwanese central bank has been exploring a no-interest CBDC (central bank digital currency). The CBDC is in its second stage of development and is currently being distributed in five selected Taiwanese banks.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>
</ul>

Taiwan Bans Crypto Purchases Using Credit Cards

Casey Wagner

<div id="highlights-block_61f8004c030ad" class="highlights">
 <ul>
 <li>Bitcoin’s transaction volume has increased by 100% annually over the past five years, a new report says </li>
 <li>Consumer spending has slowed amid rising inflation and new Covid variants </li>
 </ul>
 
</div>





Bitcoin eclipsed $3 trillion in payment transactions last year, surpassing American Express and Discover, according to data from cryptocurrency investment firm NYDIG.



“Bitcoin has jumped into the number three spot in this ranking through significant growth in transaction volumes,” NYDIG researchers wrote in the recent report. “That transaction volume growth, while not always even year-to-year, has kept up at a torrid pace when looking at 5-year compound annual growth rates.”



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="280" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Bitcoin-Network-Transaction-Volume-Surpasses-AMEX-Research-Shows_Img0-1024x280.jpg" alt="" class="wp-image-16278" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Bitcoin-Network-Transaction-Volume-Surpasses-AMEX-Research-Shows_Img0-1024x280.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Bitcoin-Network-Transaction-Volume-Surpasses-AMEX-Research-Shows_Img0-1024x280.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Bitcoin-Network-Transaction-Volume-Surpasses-AMEX-Research-Shows_Img0-1024x280.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Bitcoin-Network-Transaction-Volume-Surpasses-AMEX-Research-Shows_Img0-1024x280.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Bitcoin-Network-Transaction-Volume-Surpasses-AMEX-Research-Shows_Img0-1024x280.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Bitcoin-Network-Transaction-Volume-Surpasses-AMEX-Research-Shows_Img0-1024x280.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Bitcoin-Network-Transaction-Volume-Surpasses-AMEX-Research-Shows_Img0-1024x280.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Bitcoin-Network-Transaction-Volume-Surpasses-AMEX-Research-Shows_Img0-1024x280.jpg?w=50 50w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Bitcoin-Network-Transaction-Volume-Surpasses-AMEX-Research-Shows_Img0-1024x280.jpg?w=1119 1119w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /></figure></div>



Bitcoin’s transaction volume has increased by almost 100% annually over the past five years, data show.&nbsp;



NYDIG’s report comes as consumer spending starts to rebound after the pandemic-induced slump, but it is unclear if the trend will continue, given inflationary pressure and rising concern over new Covid variants.&nbsp;



AmEx announced record cardholder spending in its fourth quarter earnings report. Cardholders spent $368.1 billion in the last quarter of 2021, up from $285.9 billion in 2020.&nbsp;



Discover also reported increases in transactions, with debit card spending up 18% year-over-year, according to its fourth quarter <a href="https://investorrelations.discover.com/newsroom/press-releases/press-release-details/2022/Discover-Financial-Services-Reports-Fourth-Quarter-2021-Net-Income-of-1.1-Billion-or-3.64-Per-Diluted-Share-and-Full-Year-Net-Income-of-5.4-Billion-or-17.83-Per-Diluted-Share/default.aspx" target="_blank" rel="noreferrer noopener">earnings report</a>.&nbsp;



While analysts had previously predicted consumer spending to increase through 2022, shifting monetary policy has created uncertainty. Consumer spending was <a href="https://tradingeconomics.com/united-states/personal-spending" target="_blank" rel="noreferrer noopener">down 0.6%</a> in December, a surprising drop, considering seasonal spending trends. The trend could mean bitcoin is due for a rally, some researchers believe. 



“On the one hand, the US Federal Reserve has a mandate to control inflation, but it also has a mandate of stable prices. It is very challenging to see how the Fed can control both at present,” researchers from CoinShares wrote in a recent <a href="https://coinshares.com/research/2022outlook" target="_blank" rel="noreferrer noopener">report</a>. “Consequently, we see there being a high risk of a Fed policy error (waiting too long and then raising interest rates too aggressively), with the USD then selling off, both of which are likely to be supportive of Bitcoin and other real assets.”&nbsp;



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>
</ul>

credit cards

Newsletter

Blockworks Research