Crypto Staking Alternative Investing

Crypto Staking Alternative

Crypto staking is a newer type of investment strategy that started in the crypto mining world of proof of stake (PoS) and proliferated.  It’s pretty simple.  Hold an amount of a PoS crypto asset while validating a block and get rewarded for securing the new block.  This income strategy got popular and eventually made it’s way to popular exchanges like Kraken. Recently the SEC has fined Kraken for Staking as a Service of unregistered securities.  Are there alternatives to staking as a service for investors? 

For investors that want to dabble their portfolio into the crypto world there are some ways to be in those assets with your portfolio.  This can be done in the US public markets with various crypto assets with the ability to generate income by selling premium in the option contracts. This is commonly referred to as covered call writing.  With weekly option contracts, an investor can create many different strategies for income.

Also, the benefits of the US public markets are the liquidity that’s available. With recent crypto custodianship risk (Celsius, BlockFi, Voyager, FTX), an investor can go to the US public markets and get liquidity almost daily. 

Because the US capital markets are regulated by the SEC, the markets are fair, orderly, and efficient.  This transparency is important to many investors for full disclosure of risks.

A crypto covered call strategy can generate weekly income.  Talk to our advisors to see if a crypto income strategy makes sense for your portfolio.