Stacking sats, which refers to acquiring small amounts of bitcoin, has become popular among Bitcoiners looking to grow their bitcoin wealth over time.
In this article, you will discover three ways to stack sats you may not have heard of yet.
What Are Sats?
‘Sats’ is a shortened version of the word ‘satoshis,’ the smallest units of Bitcoin you can hold. One Satoshi is equal to 0.000001 bitcoin.
One of the most effective Bitcoin investment strategies is building your bitcoin holdings through small, incremental investments. Hence, the term “stacking sats.”
Popular Ways to Stack Sats
Below are some proven ways you can use to start stacking sats.
Bitcoin Cashback Apps & Cards
A popular way to stack sats is by using apps that offer cashback on bitcoin purchases.
New apps are consistently appearing on the market offering to pay users back with bitcoin when they shop at participating merchants. These applications allow people to earn small amounts of bitcoin every time they purchase from an approved retailer.
Lolli, for example, provides a browser extension that informs users every time they access a partner e-commerce platform that they can receive cashback in the form of bitcoin (up to 30% back). Moreover, the app processes the transaction after you have made a purchase and sends your bitcoin cashback to your wallet.
Lolli and apps like it have received so much positive attention on social media that bitcoin cashback apps are now one of the most popular ways to stack sats in 2022.
Some crypto credit cards, such as BlockFi and Nexo, also offer between 1.5%-3.5% cash back on every purchase (depending on which card you get).
Setting Up a Bitcoin Savings Plan
Another popular way to stack sats is by setting up a bitcoin savings plan.
An automated bitcoin savings plan allows you to set a regular purchase schedule. You can set it up so that it automatically buys a certain number of bitcoin for you. This method of investing is known as dollar-cost averaging (DCA).
Dollar-cost averaging is based on the idea that if you invest a set amount each day/week/month, at an average price, you can reduce the effects of market volatility on your portfolio, especially when working with a volatile asset such as bitcoin (BTC).
Many platforms allow you to do this. So, shop around and find the right one for you and your investment needs. If you don’t have the time to research, then consider setting up an automated monthly investment straight from various companies such as Coinfinity, Coinbase, or Kraken.
Running a Lightning Node
Finally, you could stack sats by supporting the growth of the Bitcoin Lightning Network by running a lightning node.
By providing payment channels to Lightning Network users, you can earn satoshis by charging them fees for using your nodes. The amount of money you will earn is negligible compared with that from cashback apps, for example, but it’s still a solid way of stacking sats. Furthermore, in addition to earning a little extra bitcoin, you’d be supporting one of Bitcoin’s most exciting scaling solutions.
It’s important to regularly reexamine your investment strategy, especially in volatile markets. Many people involved with crypto at the height of its popularity have since dropped out—likely to return when prices hit another peak. Stacking sats can help you to accumulate a lot of bitcoin, but only if you stay persistent and continue stacking sats.
This article was provided by Roselyne Wanjiru, one of Kenya’s leading blockchain consultants, a crypto economist, and a senior writer at Rise Up Media.