I trade mainly currencies, but I only hold a small portion of my savings in currencies as I believe that all fiat currencies will eventually revert to their intrinsic value, which is zero.
If I keep savings at the bank, then I will certainly lose on my savings in the long run. Therefore I only hold short-term savings at a bank. These are savings I keep for expenditures such as holidays, house maintenance, tuition fees, etc. These are expenditures, that I know are coming. Besides that, I also hold savings at a bank for known unknown expenditures and emergencies.
I invest my long-term savings in:
- precious metals
Investing in Stocks
As an investor I invest in (ETFs that hold) three kinds of stocks:
- Dividend stocks
These are blue-chip stocks that I intend to never sell and that pay me dividends. I will reinvest these dividends to grow my portfolio.
- Growth stocks
These are stocks of new companies that have the potential to grow their revenue as they are breaking into new markets with a lot of growth potential. These companies typically do not pay dividends as they reinvest all of the profits in growing the business. I hope to grow my portfolio as the value of these companies increases over time.
- Mining stocks
These are stocks of companies that mine for precious metals.
Investing in Precious Metals
I hold some long-term savings I have in the form of precious metals. To read more on Why I buy Gold and Silver, please see this post.
Gold and Silver have been a store of value for thousands of years. Fiat currency may be government money, but Silver is Gentlemen’s money and Gold is God’s money. Gold and Silver have proven to store value throughout history.
I do not keep Gold and Silver at home, because of the security risk. And I also do not keep my precious metals in safety deposit boxes in banks, because these are not accessible at all times and are not insured.
I hold positions in Gold and Silver ETFs at my broker and besides that I …
Hold Gold and Silver fully insured in a Professional Vault.
You can do this through companies that act as a custodian.
Here are some companies you can check out:
- Bitpanda Metals (Operates out of Austria, Bullion held in Switzerland)
- GoldMoney (Operates out of Canada)
- BullionVault (Operates out of the UK)
- Gold Republic (Operates out of The Netherlands)
- Bullionstar (Operates out of Singapore)
Also, many local bullion dealers will offer vaulting services. Most custodians offer vaulting services in different countries, like:
- The Netherlands
You can also buy Gold-backed tokens on the blockchain. I am currently aware of these options:
- Mintx (Gold is stored in Hong Kong)
- Digix (Gold is stored in Singapore)
- Pax Gold (Gold is stored in London, regulated by the state of New York)
The interesting thing about tokenized Gold is that it is low-cost and flexible to hold and transact. You can use it to buy a cup of coffee.
Investing in Cryptocurrencies
I hold, or HODL cryptocurrencies. Cryptocurrencies are incredibly volatile. I believe that in the long run, a small holding of Bitcoin and other coins can have the potential to grow into a significant holding. I see it as insurance against another potential failure of the financial system as we know it.
Because cryptocurrencies are so volatile, I rather not try to time the market. Instead, I buy a fixed amount in Euro every week. This is known as averaging in. I do this via Bitpanda. At Bitpanda I have set up weekly recurring buys. It is all automated. Every now and then I transfer crypto from my Bitpanda wallet to my non-custodial wallet.
Read this post to learn three ways to automatically buy Bitcoin or other cryptocurrencies.
I have outlined some of the most useful resources I use for trading, investing, and saving myself. I hope it is helpful. Links on this site can be affiliate links. If you use them to open an account or buy something, then I might receive a commission. This is at no additional cost to you. If you have any questions about these resources or the site itself feel free to get in contact with me.
Here is a list of my latest investing related posts:
- Building my investment portfolio: a first look This is the first video in a series I plan to do on my investing journey. I will try and do regular updates as the portfolio progresses. Currently, I have 5000 EURO invested in Gold, Silver, Cryptocurrencies and dividend stocks. My goal is to grow this to 20.000 […]
- Finding the right stocks to invest in For a long time, I have been hesitant to invest in the stock market myself. The main reason I told myself is that I am already heavily invested in the stock markets via my pension plans. The thing is I have no control over my pension plans. I […]
- No, it’s not because of the Ferrari I am a coder by day and trader by night! Coding is my day job. I am fully aware that only having a job will not allow me to provide for my family and myself consistently in the long run. This is because most of the western societies […]
- I have been researching strategies to invest money for my retirement in a smart way, that does not take a lot of time and does not keep me up at night. After many, maybe hundreds of hours I finally came up with a very simple strategy. In this video I show you what my back […]
- Today I came across the following post: When SPY Falls 2 Times More Than Average Change on the Quantified Strategies blog by Oddmund Grotte. As I am looking for a more quantified approach for my investing / trading, I decided to do a back test on the strategy explained in the post. The strategy is as follows: We calculate the 25 […]
- Sharpratio For one of my trading projects I am looking to calculate something called sharpratio for pricing of an equity over time. This can be done in a spreadsheet, but this becomes a bit laborious as I want to do this for more than 1000 of data sets. So I set out to write a […]