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Interest income makes Stablecoins better than US Dollars, with some caveat

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stable coin and US dollar

The US dollar has lost about 15% of value in the last decade. While the US dollar will remain as one of the strongest currencies in existence for a foreseeable future, it is not immune to inflation.

Inflation eats away a dollar’s power each year. For instance, $100 in 2011 saved in a bank account with no interest would only buy you stuff worth $85 in 2020. This is assuming that the bank has not eaten into your $100 with fees.

Compound interest – antidote to inflation

Investing usually helps you stay ahead of inflation. However, we see financial meltdowns every once in a while.  In the 2008 financial crisis, people saw their 401(k)s and stocks plunge 40%, which is worse than the inflation hit.  To be fair, the market has since bounced back with vengeance only to take a nose dive in 2020.

Point is, you cannot hold onto your fiat currency as a safe haven because it loses its value each year.  You may not like the risk-reward aspect of the stock market

Another avenue to beat the inflation is earning interest and compounding it over a period of time.  

Compound interest was considered as the 8th wonder of mankind by Einstein.

If you had put $1000 into a savings account that paid 5% interest each year and you invested your interest back in, then you would have $4321 today.  

The inflation adjusted dollar value for the same period would give you: $1895. You are still better off by $2336.  

How to earn interest with US dollars?

dollar-interestMost banks do not pay any interest on the deposits you hold with them. Some banks like CapitalOne pay around 1.5% which may not be enough to help you catch up with the last five year average annual inflation of 2%.

However, Stablecoins could be a good avenue to earn interest with some Crypto Lending platforms offering 7.5% in annual interest.  

[Quick note: A Crypto Lending platform lends money using Crypto as collateral. They also pay interest to those who deposit their crypto with the platform.]

Steps involved to earn interest

Step 1: Convert US dollars to Stablecoins: Convert your US dollars to Stablecoins like USDC through a cryptocurrency exchange like coinbase. To be able to purchase stablecoins (or other crypto) you have to create an account with the exchange, connect your bank account with the exchange (some exchanges allow you to buy crypto with credit/debit card) and make your purchase

Step 2: Transfer your Stablecoins to a Crypto Lending platform: There are a number of options out there when it comes to Decentralized Finance platforms like SALT, BlockFi. We cannot speak to any of those platforms since we have not used them. We have used Celsius Network and we love it. You can choose whichever platform you like and create an account with them.

Step 3: Earn interest:  This is not so much a step as it is just reaping the benefits.

Single Step process: If you don’t want to deal with the hassle of transferring money to a crypto lending platform, you can simply open an account with coinbase and buy USDC which pays you an interest rate of 1.25% (low but something).

Disclaimer 1: Crypto lending is relatively new and you may lose your investment; do your own research before investing 

Disclaimer 2: If you decide to use Celsius Network, we may get a referral – so please consider using the referral, if you want to.

Celsius Network – My experience earning interest on cryptocurrency

In this video I discuss my experience of the Celsius platform, on which you can earn up to 10% interest on your cryptocurrency portfolio. Updated offer: Use …

Source: Straight Forward Money

There is a clear risk-reward aspect with stablecoins. Choosing wisely might pay off handsomely.

Reasons to consider Stablecoins as an alternative to holding US Dollars

Gold and US DOLLARWe cannot tell you what to do. We are only writing about our opinions and what we are personally doing.  Time will tell us whether we are right or blatantly wrong.

For instance, we have started putting our savings (however small they are) into USDC and then onto Celsius Network to earn interest.  

We are doing this for more than just interest income reasons. Here are the other reasons.

Bail in and Peer to peer transaction

The full blunt of COVID crisis has not been felt by the world yet. If this lock down continues any longer and if the economy goes into a tailspin the repercussions could be severe.  One of the consequences of a dire economic situation could be bail-in.

A bail-in is where the failing financial institution is taken over by another entity (or government) and in the process money owed to creditors and depositors could be cancelled, even if partially.  For instance, let’s say you hold $10,000 with Bank A. Due to the hardship Bank A goes into a Bail In and Bank B agrees to rescue Bank A by agreeing to pay 60 cents on the dollar on Bank As obligations, this includes money owed to the depositors.  Now, when Bank B takes over, you will have $6000 with Bank B, not $10,000.

The US may not face bail-in anytime soon. Other countries might face it sooner if the economic collapse reaches the 1930 depression levels (some think it may, some think it will not as the fundamentals are good).

Instead of betting on whether or not a bail-in will come – we decided to diversify into USDC to earn some interest while we wait.

Access to US dollars from anywhere in the world

US dollar digitalIf you are living in India but want to hold US dollars, the only way to do that is to jump the hoops to open an account in the US and then lose a lot of money in exchange fees, transfer fees, banking fees, minimum balances, and a lot other stuff.

With stablecoins, anyone from anywhere in the world can hold US dollars (equivalent).  

So in theory, someone living in India can go to an India exchange and buy stablecoins and then deposit them into a reliable crypto lending app to start earning interest. Even if you are not allowed to earn interest through crypto lending app, you can save yourself from higher inflation compared to 2% in the US. 

For example, even if your country’s currency loses its value due to inflation similar to Argentina, you can hold value in one of the strongest currencies in the world – the US dollar, through stablecoins.

Stable coins – earn interest

Obvious reason on which this whole article is based is the ability to earn interest using your stablecoins. This will be an even bigger game changer when insurance comes to the crypto lending space providing greater assurance to the investors on these platforms.

While there are some reliable crypto lending platforms – it is always prudent to not put ‘all your eggs in one basket’.

Use your crypto instead of cash with Crypto.com Debit Card

For those who want to get involved in crypto but still want to spend their crypto, Crypto.com (MCO) might be a good solution. MCO offers crypto debit cards that allow you to spend your crypto similar to the way you use your bank debit card.  Their Metal Visa Card is available in the US, UK and Singapore and offers up to 5% money back on all spending.  

In addition, Crypto.com offers 8% to 12% in interest on stablecoins held in their app.

Essentially, you can have your cake and eat it too, that is, you can keep your crypto principal and spend the interest, if you choose to.

How to set up Crypto.Com Wallet Account

💲 OPEN A CRYPTO.COM ACCOUNT 💲 Use my referral link https://platinum.crypto.com/r/cryptodad to sign up for Crypto.com and we both get $50 USD 🙂 Or use the co…

Source: Rex Kneisley

Conclusion

Stablecoins can prove to be beneficial in helping individuals all over the world to benefit from:

  • Access to US dollars to save your wealth from higher inflation
  • Earn interest income from Crypto Lending platforms
  • Use your Crypto for day-to-day transactions through crypto cards

We believe stablecoins will pave the way to mass adoption of cryptocurrencies.

Thank you for reading and sharing this article. Stay safe and healthy!

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Crypto Roundup: All Your YouTube Influencers in One Place

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Crypto Roundup

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: Bitcoin Will Be OVER $20,000 By Christmas 2020! BIGGEST WEALTH SHIFT OF OUR LIFETIME! Cryptocurrency

Date: 19-Nov-20

  • World’s biggest wealth shift of our lifetime is happening right now and no mainstream media is talking about it, except CNBC.

  • Preston Pysh predicted on August 26th that: “Bitcoin should be reaching its all time high by Christmas.”

  • If you are looking to buy a dip, there may not be one.
  • Ricardo Salinas Pliego, a mexican billionaire, has just revealed that 10% of his liquid assets are into bitcoin.

Lark Davis

Video Title: STOCKS HIT NEW HIGHS! WILL COVID VACCINES LEAD TO MEGA PUMP IN 2021? [Are You Ready?]

Date: 19-Nov-2020

  • Stock markets and bitcoin pumps higher on the news of the second successful covid vaccine.
  • There could be more chances for the new stimulus. Means more inflation, more debt and simultaneously pumps stocks, gold and bitcoin.

Crypto Zombie

Video Title: BITCOIN $18.5k TOP!!?! DON’T BE FOOLED!! HODL FOMO BEGINS!!! $TRILLIONS FLOOD!!

Date: 18-Nov-2020

  • Overall sentiment of Bitcoin has changed drastically from ICO craze in 2017 to a time where people are FOMOing to own more bitcoin.

Ivan on tech 

Video Title: BIG WARNING TO ALL HODLERS!!!!!!!!! DO NOT GET REKT!!! BITCOIN $18,500 REJECTED – NOW WHAT?

Date: 18-Nov-2020

  • Ivan expects bitcoin to shoot past $20K resistance before end of this year, giving it 85% probability

Chico Crypto

Video Title: World’s Most Powerful Turn BULLISH on BITCOIN

Date: 19-Nov-2020

  • All those who hold big bags of Bitcoin will come out of the shadows to talk up the Bitcoin rally, a $20K bitcoin could be on the cards before the end of this year
  • Ethereum mining could act as a big catalyst for Ethereum’s price
  • Big companies like google could play a bigger role in mass adoption of crypto

Let the FOMO begin…

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Continue Reading

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Lessons from the Veteran HODLERS to the Newbies!

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Lessons in Crypto

For all those who entered the crypto market after the 2017 bull run – here are few lessons from the HODLERS from the last bull run(s).

This is our attempt at making all you newbies aware of the mistakes veteran cryptoers did.

Let’s get started…

Don’t FOMO in to all the hype

FomoIt’s hard not to FOMO in crypto.  The trick is to make sure you don’t lose your shirt in crazy bets.  Always limit your bets to what you are comfortable losing.

The common ways you can become victim of FOMO are:

  • Following your favorite YouTuber without actually doing your own research on the project.
  • Investing into projects at the top.
  • Believing in promises of 100x or 1000x without any substance behind those claims.

HODLing far too long

Remember why you are into crypto – to make the money.

Never fall in love with your crypto, and HODL the tokens even when they are 10x and more.

Have a strategy to take your capital out before you become a HODLer.  

If you believe the project really has what it takes to go beyond 100x and more, just sell in instalments so as to not miss the ride.

One of the best ways to HODL is to take your capital in full and profit in tranches.

This rekt story will give you a right perspective of what it looks like, it’s one of many:

Don’t put all your eggs in one basket

Never go all in on one project. No matter how strong the project may look, even the projects with strong fundamentals don’t do well sometimes. 

And, you will be kicking yourself watching other projects go up and your portfolio just doesn’t seem to make a move.

And don’t over do it and have a portfolio with over 100 projects either. It is very difficult not to have invested in more than 15 projects but anything less than 20 is a good way to go, in our opinion. 

Put aside the share of Profits for Taxes.

One way you can get a good night’s sleep is by paying taxes. 

Always keep a habit of putting aside a % of your profits in USDT or other stable coins, as a reserve to take advantage of market volatility and also to meet your tax obligations. 

Exchanges are more evil during bull run

Foreign ExchangesDon’t trust exchanges. Yes we already know that, but they play more games during bullrun, some intentional and some technical. 

Many exchanges tend to go under maintenance when the prices shoot up too high too soon (Coinbase?), and you can’t sell. 

And the shady exchanges scam out before you know.

Regulators seem interested when the market cap of these projects goes through the roof, which then adds FUD around the project crashing the prices.  

Exchange may freeze funds pending investigations when such issues arise.

Take for example OKEx. Users are unable to withdraw their assets from the exchange for almost a month now, not certain if they ever will, and all that started with the legal dispute.

Never fall for Arbitrage gains

Arbitrage is when you buy in one exchange at a lower rate and sell on the other for a higher rate to take some profits. 

Some shady exchanges show a lot higher prices than the other genuine exchanges and when you deposit your assets to sell at those prices there won’t be actual volume to execute the trade. You may be stuck with either a high fee for withdrawal or other funky rules to take your own money out. 

Remember, there is no free Giveaway

Free CryptoScammers rise with the rising market.  

When the crypto market buzzes with all time highs – scammers cash in big time on newbies.

The most lucrative scam in crypto is ‘Free Giveaway’. Whether it be through YouYube ads or discussion groups and wherever they can get your attention.  Read this article on various sophisticated scams that are being deployed.

We hope these lessons help you through your trades and crypto life.  Stay safe and always DYOR.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

Continue Reading

CryptoSpace

Crypto Roundup: All Your YouTube Influencers in One Place

Published

on

crypto news

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: The United States Just Brought Bitcoin into the National Conversation!! | Cryptocurrency in 2021

Date: 16-Nov-20

  • Former National Treasurer and the new US Senator Elected, Cynthia Lummis, said Bitcoin fits the bill as a good store of value as it is finite and limited, unlike the inflationary fiat currency.

  • Grayscale adds over 7000 more bitcoin in just the last 24 hours.
  • Just over 16% ETH staked for ETH 2.0 launch on Dec 2 2020.
  • Bitcoin Cash hard fork takes place tomorrow.

Crypto Zombie

Video Title: WARNING!!! BITCOIN 2017 BEAR FRACTAL RETURNS!!! BTC WORST CASE SCENARIO…

Date: 14-Nov-2020

  • Institutional money starts flowing into bitcoin.

  • Paypal goes live with its crypto trading platform for eligible customers. They have also raised the buying limits from the initially set $10,000 to $20,000 per week.
  • DIA, an DeFI Oracle provider, integrates with Polkadot.

Ivan on tech 

Video Title: BITCOIN WILL DO SOMETHING INSANE THIS WEEK!!!! -30% DUMP AHEAD vs $20,000 PARTY – Programmer

Date: 16-Nov-2020

  • Bitcoin could make a big move this week, either hit 20K or we may see a 20% to 30% drop
  • Chainlink partners with Etherisc to deliver agricultural insurance in Kenya.

Ellio Trades

Video Title: UNLOCKING $100 TRILLION? This low cap gem seeks to bridge CeFi and DeFi

Date: 15-Nov-2020

  • DeFI could be similar to the ICO craze in 2017
  • Low cap gem: AllianceBlock
  • AllianceBlock is bridging the gap between DeFi and CeFi
  • AllianceBlock Partnership with Orion Protocol and Chainlink.

Chico Crypto

Video Title: WARNING! An “EVIL” Entity Wants Control of BITCOIN…

Date: 15-Nov-2020

https://www.youtube.com/watch?v=45Ac-5y2ofg

  • 90% of Bitcoin’s mining pools are controlled by China based mining pools
  • As the value of bitcoin goes up – there is a threat of push to ‘control’ the network from China
  • Binance is looking to push through the 50% mining share and Chico believes this could be dangerous

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place. 

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Continue Reading

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