Are you interested in the crypto world and want to allocate some Bitcoins, Ethereums or any other Altcoins (alternative cryptocurrency other than Bitcoin itself) as part of your portfolio? If that is the case check out how to invest and earn passive income with Newton and Celsius.
We’ll go through two platforms that in combination will not only allow you to easily buy them but to earn interest on your holdings as well.
Disclaimer: I am not a certified financial advisor/analyst nor an accountant nor an economist nor a lawyer nor a CPA. Hence, do your own due diligence before putting any amount of money in any kind of asset. Invest only in things you understand and that make sense toward your financial goals.
Due to the high volatility nature of cryptocurrencies, I would never recommend investing more than 1% to 5% of your entire net worth in this asset type. However, you could be missing out on astronomical returns if you decide not to invest at all.
A safe strategy is to dollar-cost-average your contribution to an amount you are still comfortable with losing if cryptocurrencies were to completely crash, but that would still give you exposure to its amazing gains. A good example could be putting $25 to $50 monthly, money that otherwise would end up disappearing from your bank account on miscellaneous purchases of things you don’t really need.
The platforms I am talking about are Newton, which is the exchange we will be using to buy our cryptos and Celsius which is where we’ll stash them to make them work for us (i.e: earn interest).
Newton and Celsius are not the only combinations you can use to achieve these exact same goals. Personally, I like to choose platforms that are beginner-friendly, do not charge hefty fees, have a good reputation and make it really easy to deposit and withdraw funds, characteristics both these applications provide.
Another important point is that they need to be available in Canada which is where I am based, although, that doesn’t have to be your case. That said, it’s not the goal of this post to compare the different options out there, but here are some of the ones I came across when doing my research.
Anyhow, without further ado let’s jump right into it.
Step one is to create an account with Newton, which you can do by clicking right here. This will take you through a KYC (Know Your Customer) verification process where you’ll have to provide common information such as your Name, Date of Birth, Email and Phone Number.
Once the signup process is completed you’ll be presented with the dashboard. This page will show at a glance how much is your total portfolio value, how much of it is cash (i.e: what you have available for buying cryptos), how much of it is divided into the different cryptocurrencies you hold, and finally how it is balanced among your different assets.
Some other useful information you’ll find is your recent activity and the real-time valuation for the cryptocurrencies this exchange allows you to trade. Clicking on a particular currency will take you to a more in-depth analysis of its performance over time.
Step two is to fund your account to start buying cryptos. Newton offers multiple methods for funding, from Pre-Authorized bank transfers, Wire-Transfers which could take a couple of days to simply moving your coins from another wallet to Newton.
The one we’ll be using instead is Interact e-Transfer due to its convenience and the fact that you’ll receive your funds as fast as in 5 to 30 minutes. Being able to have your money available that fast allows you to take advantage of any drop in price that could be long gone if you would have to wait a couple of days for them to settle.
The process is pretty straight forward. On the top right corner click on the button that says ‘Add Funds’, select ‘Via Interact e-Transfer’, specify the dollar amount and click on the ‘Send Fund Request’ button.
Shortly after that, you’ll receive the Interact e-Transfer request in your email inbox, and after you accept it and complete the transaction your funds will be added to your Newton account (between 5 to 30 minutes).
It’s time to buy some cryptocurrencies to add them to your portfolio. Newton allows you to buy a set number of coins, at the time of writing this post at least 10 of them. I am really optimistic that as the company grows more cryptos will be added to that list.
For the sake of this post let’s just buy some Bitcoin. On the right menu click on the ‘Trade’ button, specify the desired amount of dollars and submit your trade. The transaction will happen instantly and you can start visualizing how is your coin performing since the second you bought it. Pretty awesome right?
Now for some people, this might be enough. You could hold your investment for as long time as you wish and sell it for a profit in the future. This strategy is not bad, but you’ll only be able to benefit from capital gains when you decide to actually sell your position. However, even better would be to generate passive income from our cryptos, and this is where Celsius comes into play.
Celsius is a platform that acts as a lender. It provides crypto loans to individuals and corporations and will pay you interest for using your coins. Think of it as a savings account, where you stash your money, the bank uses it to make investments and provide loans and then it pays you a small interest for it (even though they call it high-interest).
There are two main differences between these two. The first one is that you’ll be lending your cryptocurrencies instead of your cash, and the second one is that Celsius will be actually paying you high-interest (weekly), in contrast to a bank’s interest rates that don’t even keep up with inflation (i.e: your money is losing purchase value year after year).
Step number four is to create our Celsius account which you can do by clicking right here. Unlike Newton, one downside of Celsius is that is only available as a mobile app, for that reason, you’ll have to download it to your cellphone.
If this is a deal-breaker for you then other alternatives such as Blockfi, Crypto.com or Gemini might be a better fit. Although, I am somewhat confident that sometime down the line Celsius could also implement the desktop app for its service.
Similar to Newton, once you install the app it will take you through a KYC (Know Your Customer) verification process where you’ll have to provide common information such as your Name, Date of Birth, Email and Phone Number.
Once the signup process is completed you’ll be presented with the dashboard. This page will show at a glance what is your total balance in the wallet, how much you have earned in interest and some extra information such as the coins the app supports and the ones that will be supported in the near future.
Step number five is to transfer the coins we purchased in Newton to our Celsius account. Celsius makes really easy to do this. By clicking on the ‘Transfer coins’ button a new page displaying your Bitcoin wallet address will appear.
Once on this page, we must copy the wallet address and go back to the Newton dashboard, where we must click the ‘Withdraw’ menu button on the right and select the ‘Crypto to Wallet’ option.
Specify how much Bitcoin you want to transfer. Newton gives you the convenient 25%, 50%, 75% or Max options, or you can actually type the exact amount of satoshis you would like to withdraw. Once you have your magic number is time to submit the request.
Bear in mind that sometimes if there is a surge in network transactions for the cryptocurrency you are trying to transfer, Newton will cover the first $5 but you must cover the remaining cost. Newton will let you know before submitting the exact amount that must come out of your pocket before you complete the transaction. If that is the case you’ll be paying in the same cryptocurrency you are trying to transfer.
The transaction will happen instantly and you’ll receive both an email and a notification from Celsius.
Now you can sit and relax while your coins earn you interest week by week. That’s right, that’s the end of it. By simply holding your cryptos on Celsius they will automagically start working for you and will earn you high-interest returns. From here and moving forward it is just a matter of rinse and repeat.
I hope you’ve enjoyed this mini tutorial on how to invest and earn passive income with Newton and Celsius and even better how to make cryptocurrencies work for you.
As an alternative to shelter your investment from the intrinsic volatility of cryptocurrencies consider buying Stable coins instead, such as USDT, USDC or QCAD. Even though they are digital assets as well they manage their volatility by tracking more stable assets like FIAT currencies (USD, CAD, etc.).
Some of the URLs on this post are affiliate links that will pay you and me should you decide to use them to create your accounts. I’ve only shared affiliate links for products I use myself and consider valuable. Thanks for checking out how to invest and earn passive income with Newton and Celsius.
Make your money do more.
Offers shown here are from third-party advertisers. We are not an agent, representative, or broker of any advertiser, and we don’t endorse or recommend any particular offer. Information is provided by the advertiser and is shown without any representation or warranty from us as to its accuracy or applicability. Each offer is subject to the advertiser’s review, approval, and terms. We receive compensation from companies whose offers are shown here, and that may impact how and where offers appear (and in what order). We don’t include all products or offers out there, but we hope what you see will give you some great options.