With a preference for dollar cost averaging, I have been looking for an alternative crypto to purchase. One token that has my attention is the Celsius token, CEL, which is an ERC-20 token. Celsius uses the utility token to power the economics of their business. For example, members can choose to be paid interest in CEL rather than in-kind, which yields a higher return. The interest payments are made from tokens that are purchased from exchanges. Members are also able to pay off loans using CEL. Celsius aims to pay 80% of their profits to members. Thus, there will always be a buy pressure on the CEL token from Celsius themselves.
Presently, I am accumulating BTC. To some degree, my interest in CEL is hypothetical. It makes sense to buy BTC as the price is getting ready to take off as it tends to do a few months post-halving. At the same time, if I'm dollar cost averaging, it makes sense to buy as much as possible when the price plateaus leading up to the next halving. In other words, why would I stop buying BTC at all? With DCA, it is good to buy when price goes up, when price goes down, and when price doesn't know which way to go. This is especially true when my goal is not to sell BTC. Rather, it is to use BTC as collateral for loans. Thus, my accumulation only serves to increase my credit line.
Assuming that I find my way out of that mental paper bag, I think CEL offers some advantages. One advantage is that holding CEL at Celsius earns interest. The second advantage is that Celsius will profit from a bag of different crypto coins deposited by members. Celsius will take that profit and pay it out in CEL. In this respect, CEL acts like a stock ETF that pays dividends. This, essentially, de-risks having a large stake in any one crypto coin. On the flip side of that, it also squelches potentially huge gains on any one crypto coin. So, good-bye asymmetric gains. But, then again, good-bye big crypto dumps.
Another way I am looking at it is that by loading up on CEL, I would essentially be buying 80% of Celsius profits. The employees of Celsius benefit from hodling their CEL because they can borrow against their holdings at great interest rates, avoiding tax consequences. They have no incentive to sell. Members who also hodl have the same advantage regarding loans. Ultimately, that is my end game with dollar cost averaging. I want to own as much BTC, and possibly CEL, as possible. This will get me a growing credit line that I can use to finance other business ventures.
I suspect that in the long term CEL may not be as much of a roller coaster ride as individual crypto coins. I may not have the crazy gains. However, my gains would be rather consistent. And, the consistent gains would mean a consistently growing credit line.
I'm still accumulating BTC. I haven't quite reached my BTC goal. However, once I do, CEL might be my next crypto asset to accumulate for stable growth.