Health, Wealth, and Happiness

June 28, 2024

"Fear of looking stupid is the No. 1 killer of dreams. The worst part? The people who make you feel stupid are usually the ones least qualified to judge someone else's life."

- Anthony Moore

Howdy, investors!

Many financial advisors suggest regularly rebalancing your portfolio. But does rebalancing make sense for crypto investors? Check out the surprising results in our all-new research report below.

Our top news includes an excellent video on stablecoin yield from Messari. Well worth your time. Also, Solana has been climbing this week after VanEck announced its filing for a spot SOL ETF.

And Hadley Stern at Blockworks suggests Wall Street isn't prepared for handling the capital associated with crypto ETFs. Read on to find out why traditional finance companies are not ready for the new wave of crypto investors.

Read on!

This Week in Bitcoin Market Journal

Our latest crypto investing insights and ideas.

Should I Rebalance My Crypto Portfolio?

Burton Malkiel, the renowned economist, fundamentally changed the way we think about investing with his groundbreaking book A Random Walk Down Wall Street. In addition to advising investors to simply buy and hold a stock market index fund for the long term (our approach exactly!), Malkiel was also a proponent of regularly rebalancing a portfolio. Does rebalancing make sense for crypto investors? Find out the surprising results in our new research.

Click to compare the investing returns of rebalancing >>

Stablecoin Lending: Best Stablecoin Interest Rates

Stablecoins, which are tied to an underlying asset and maintain a fixed value, can help protect investors against crypto’s volatility. They can also generate interest (a.k.a. yield), meaning your crypto assets work for you. While there are various yield-generating opportunities in crypto, one of the time-tested strategies is to put them to work on reputable lending platforms. Here are the best interest rates you can earn this week.

Learn more about lending stablecoins (+ how much you can earn) >>

How to Build a Diversified Crypto Portfolio (+ Charts)

The three most important words in investing? Diversify, diversify, diversify. In this piece, we lay out a diversified approach to investing in crypto, with major exposure to dominant networks like bitcoin and Ethereum, along with minor exposure to altcoins and smaller projects. We put together a sample portfolio using tokens with strong fundamentals -- then backtested our portfolio to see how it would have performed over the last three years. (The short answer: really well.)

Learn more about how to diversify your crypto portfolio >>

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New Risk Scorecard: Near Protocol (NEAR)

The NEAR protocol is a Layer-1 blockchain network on which developers can build scalable decentralized applications. NEAR is the native token of the ecosystem.

While NEAR has suffered a sharp pullback from its May highs, it remains up by 260% since the start of the year, and is one of the top 20 tokens by market cap, highlighting its resilience in this year's topsy-turvy market.

Our analysts ran the NEAR token through our industry-leading Blockchain Risk Scorecard to determine how much risk is involved with keeping your wealth in NEAR.

Premium members can download the Near Protocol Risk Scorecard here to learn what our analysts say about the stability of NEAR.

Not yet a Premium member? Sign up now to access our complete library of tools to make you a better crypto investor.

Must Read Snippets

This week's most important stories for crypto investors.

A Guide to Stablecoin Yield in Summer 2024

(Messari) - Stablecoin holders now to have a number of new ways to earn yield, making it difficult to know about all the options, let alone compare them against each other. If you're looking for ideas beyond our guide above, check out this excellent video with the latest yield-generating opportunities.

SOL Surges on VanEck Spot Solana ETF Filing

(The Defiant) - Some think that Solana is a worthy candidate to become the third cryptocurrency to underpin a spot ETF, but others have argued that the SEC’s recent efforts to classify SOL as a security likely undermine its chances. We've been of a mixed mind on Solana, due to its close ties to this years memecoin craze, which could also be a negative for SEC officials.

The Transformational Power of Tokenizing Assets

(McKinsey) - Tokenizing financial assets has been a long-standing use case for blockchains, and it seems like Real-World Assets (or RWAs) are getting traction at last. As traditional financial institutions finally jump onboard this train, there could be massive upside for the first-movers in the space. (See our Guide to RWAs here.)

Wall Street Isn't Ready to Manage Crypto ETFs

(Blockworks) - This piece argues that the TradFi companies issuing spot ETFs are not ready to deal with the massive inflows of capital, largely due to security concerns around centralization and counterparty risk. While the floodgates are opening for the rest of the world to get on board crypto, the bigger gap is in TradFi's knowledge of how it works, and how to best invest in it. (That's why we're here.)

Biden Admin Rehires Crypto Advisor Critical of S EC

(Decrypt) - In a sign that the White House may be turning more positive on crypto, President Biden has rehired a former member of his National Security Council to advise on crypto policy. The rehire of Carole House, a known crypto advocate and critic of the SEC , signals a more pro-crypto policy stance could be coming from the White House ahead of the November elections.

Stripe to Support Base

(The Defiant) - Base, the Layer-2 solution from Coinbase ($COIN), has a new on-ramp: Stripe. This is a very big deal, as it will allow anyone to easily purchase stablecoins via Stripe, effectively acting as an enormous on-ramp to crypto. It also highlights the central role that Coinbase is playing in integrating the TradFi and DeFi worlds. (Read our guide to Coinbase and BASE here.)

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Chart of the Day

Stablecoin Supply is Growing

The growth in stablecoin supply, as shown in our chart above, shows how the crypto market is continuing to build infrastructure. Stablecoins help liquidity, stability, and adoption, contributing to trust and potential market growth.

For example, increased stablecoin supply increases liquidity within cryptocurrency markets. This liquidity is crucial for the network's stability and its ability to attract individual traders and institutional investors.

The increased stablecoin supply also suggests that more fiat is being converted into crypto assets. This can signify overall market growth because stablecoins are used so widely in trading and other market sectors.

The expanding supply of stablecoins reflects growing confidence and participation in crypto markets, making it a virtuous circle. By providing stability, liquidity, and utility, stablecoins help mitigate some of the inherent risks of this asset class, making crypto investing appealing to a broader audience.

In short: it's a bullish sign.

ICYMI