Welcome back to the Tribe! In this post we dive into Crypto Gains and how to make them.
Nothing should be considered investment or financial advice. Enjoy the ride!
It’s surprising how many people still believe that cryptocurrencies are unsafe or are an ‘alternative’ investment option.
The fact of the matter is that any fund manager or business executive would be stunned by the sheer potential of what cryptocurrency has to offer, if they did some basic research.
Smart contracts can be written to do pretty much anything that a traditional financial product does. Cryptocurrency also offers a whole new arena for household investors who want to climb the ladders of financial freedom.
Crypto Loan Options Explored
Practically all of the conventional fiat options are now available via cryptocurrency products. And they are not just available – they surpass any fiat products, with less risk and increased reward, not to mention far fewer barriers to entry.
You can earn between 4% – 8% on your crypto deposits through the CDAI token. This is launched through the Defi application on the Ethereum blockchain. And, as we all know, the world of fiat offers generous negative interest rates for deposits, and they still lend out your money.
Think about it: you get penalized for depositing in banks and rewarded for depositing in crypto finance.
Similar to Compound Dai, Nexo offers between 4% – 12% return on your assets (the rate is different for fiat, stablecoins, and standard crypto deposits). The platform is insured against theft by BitGo, the custodian. Nexo has processed more than 1.5 billion dollars from over 2 million users across 40 jurisdictions. In other words, it is as safe as the fiat model with a far greater rate of return.
You can also stand on the other side of this and get a fiat loan on your crypto assets. You will then be paying this higher interest rate. Now it is true that this rate is heavier than your typical fiat loan, but with less red tape and bureaucracy. If you need cash in a hurry, you will most likely get it without all the typical hassle.
The Benefits of Crypto Loans
As compared to the traditional banking sector, crypto loans have many advantages:
- Rate of return is far higher.
- Interest is paid daily, resulting in higher compounding interest rates.
- No need to sell assets to unlock fiat (which would be a taxable event).
- KYC is less invasive.
- More control over your assets.
- More transparency with the funds.
- Blockchain algorithmic processes are more efficient.
- Increase analytical and tracking options through an online dashboard.
Other crypto loan options aside from Nexo and DeFi include Binance, Blockfi, and crypto.com. Remember that you will get all of the features typically associated with the banking sector – a debit card, credit card, insurance, regulation, etc.
You can also deposit fiat and receive a guaranteed 12% rate of return, depending on the platform. This is a huge rate of return. In other words, if you have fiat money in the traditional banking sector, you are essentially throwing it away. You could be getting a powerful return if you choose to deposit it in a crypto platform.
Crypto Investing Options
You can also deploy a standard buy and hold option. This is also (humorously) known as HODL: ‘Hold On For Dear Life’. So far, this is 100% true for all major cryptocurrencies. The longer you have held them, the larger your profit will be.
Crypto investing is actually very easy. Just invest in a diverse range of solid coins, such as :
The end result will be an increase in your holdings simply because the crypto sector as a whole is on the rise. Once you find a rising sector (following a sector trading model) picking an individual trading product is less important. Invest in a number of strong trading products within that industry and your investment is going to grow along with the industry.
Remember that flexibility is the keyword with all cryptocurrencies, as well as creativity. Even if you need fiat to pay for current expenditure, you can simply purchase cryptocurrency (like BTC) and link it with a card to pay for current expenses. Your cryptocurrency is an asset that doubles as cash, when you need it.
You could also use crypto trading bots. The risk is greater and you will probably need to spend some time getting familiar with how they work (each bot having unique trading characteristics). You can rent out a bot to see if it works for you. This is not recommended if you don’t already have trading experience. It’s simpler and safer to buy and hold the more established cryptocurrency tokens. Why take a risk when you don’t really need to?
Crypto Gains Post
We are in the midst of a transition from fiat to crypto, a much more versatile and creative form of financial transfer. Right now, it simply does not make any sense to continue to use the traditional banking sector and its associated low rate of return.
Even institutional traders are now turning their eyes towards cryptocurrency, though it is the consumer decision to use this more democratic kind of finance that will ultimately turn the tide and result in a better standard of living for the entire globe.