How I Made 13% Profit On Ethereum In 5 Days

Ethereum

Last month, the price of Ethereum rose 43.77%. I bought in at S$4,079.52 on 2nd May and sold it off at S$4,594 today on 8th May. Exactly 5 days, I made a nifty profit of 13% on Ethereum.

For those that are not familiar with Ethereum, it is the blockchain network in which decentralized applications are embedded. The token or currency that enables or drives these decentralized applications is known as Ether (ETH).

Ethereum has the second largest market capitalization after bitcoin. Will Ethereum continue to rise? Let us look at its potential and problems Ethereum currently is facing.

Ethereum Potential #1: Smart Contracts

Ethereum is a blockchain like Bitcoin. The difference is that it is programmable. A “Smart contract” a piece of code that is running on Ethereum. It is because of its programmable feature that makes Ethereum possible for a wide range of purposes such as payment and financial services.

Ethereum Potential #2: DeFi

DeFi is known as decentralized finance and I believe many financial bloggers have thrown their money into it. I have also used Crypto.com DeFi Wallet to stake and earn crypto.

Since Ethereum is programmable, it creates opportunities for creating financial products that are completely new.

Ethereum Potential #3: NFT

NFT stands for Non-Fungible Tokens. “Smart contracts” are pieces of code that are stored on the blockchain but they are actually worthless. NFT is a way to represent anything unique as an Ethereum-based asset. For example, NFTs provide a unique ID for a piece of digital art.

You can explore more of NFT on Crypto.com here.

Ethereum Problem #1: Slow Execution of Transactions

Ethereum has been plagued by the network inability to scale to meet growing demands. This resulted in high transaction fees and slow execution of transactions.

Ethereum Problem #2: Slow Migration to Ethereum 2.0

Ethereum 2.0 refers to a set of interconnected upgrades that will make Ethereum more scalable, more secure, and more sustainable. Personally, I felt the upgrades are slow and may lose out to competitors out there that are scaling faster then Ethereum.

Summary

There is a huge potential for Ethereum and we can see the prices reach new heights if it is able to solve its current problems. Having said this, investors should be caution that cryptocurrency is highly volatile and you need to be able to stomach the risks involved.

If you are keen to purchase Ethereum (ETH), Crypto.com Exchange is a good way to start for buying and selling Ether.

Sign up using my Crypto.com Exchange referral link and if you stake 5,000 CRO, you and I will each receive $50 in CRO.

SBJUN21 GX21060Z is 1.61%

Singapore Savings Bonds SBJUN21 GX21060Z

The effective interest rate for June 2021 Singapore Savings Bonds (SBJUN21 GX21060Z) is 1.61% if you held it for 10 years. As you can see from the chart above, the interest rates for Singapore Savings Bonds jumps from the previous month of 1.56% to the current month 1.61%.

The minimum amount you can purchase is S$500. If you decide to hold and sell the current issue (SBJUN21 GX21060Z) after 1 year, the effective interest rate is 0.38%.

I wouldn’t put my money into the Singapore Savings Bonds as the interest rate is simply too low. What are the alternatives? You can check my previous post on What can you invest with 500 Dollars?

Singapore Savings Bonds Alternatives

You can consider Dash EasyEarn or Dash PET which offers you a return of 2.0% and 1.5% respectively.

Is Singapore Savings Bonds still Useful?

Most of the financial products out there require you to invest using cold hard cash. This is where the Singapore Savings Bonds outshine them. You can purchase the Singapore Savings Bonds using your Supplementary Retirement Scheme (SRS) funds.

The interest rate for Supplementary Retirement Scheme (SRS) fund is only 0.05% per annum. You can top up your SRS account to offset your annual taxes and then use the funds from your SRS account to purchase Singapore Savings Bonds to earn a higher interest rate.

Tracking Singapore Savings Bonds via Stocks Café

My favourite website, Stocks Café has allows adding of Singapore Savings Bonds into your portfolio. If you didn’t know, I signed up as a Friend of Stocks Café as my most favourite feature of Stocks Café is the automated tracking of dividends payout.

This is the third year that I continue to use Stocks Café to track my dividends.

Tracking Singapore Savings Bonds via My Savings Bonds Portal

MAS has launched My Savings Bonds Portal where you can track your Singapore Savings Bonds purchases separately from your stock purchases. I have done up a simple guide here. (Read more: Guide to My Savings Bonds Portal)