My wife and I have approx 20k in the sp500... Took a little hit this week but in general, you are returning 8% per year. Stablecoin or bitcoin lending offer greater return..but being in the crypto world my partner is very dubious.
I have searched this to find out about the most well know lending platform (BlockFi, Nexo, HodInat, Celsius) but need arguments on both sides to present to her.
Any thought?
Get out of the spy, with the rates rising it's going to go down.
Precious metals and commodities, then buy the bloodbath and ride the recovery (prob. In crypto)
There are no arguments - crypto is way riskier then SP500. Although it has higher rewards as well. I suggest you and her try everything with a small sum of money (like 100$-200$) and learn everything for a couple months, then you will see if it fits you and learned well crypto would much better to invest. You can lend you bitcoin on HodInat for 6.7% APY or USDC for 12.73% APY which are great rate.
btw don't rush into jungle without knowing the path through it.
Bear in mind that stocks can be held in a non-taxable account but crypto can't, so you could be taking extra risks just to see most of the benefits wiped out by income tax and capital gains tax
What is your total financial situation? Who works? How much do you make/she make? Do you have any other assets? Do you have any debt? Do you have large expenses coming in the next few years (house, kids?)
Most of these platform might as well not be around in the next cycle
Some of them are here since the 2016-17 retard.
Alright, let's go.
>Pro S&P500:
- it's an investment in the biggest companies in the US -> you support the US economy with this
- the investment is relatively safe -> it's in the trading account of your bank
- stable growth over many, many years
- requires no technical know-how
>Contra S&P500:
- Max around 10% APY
- could go down considerably in rough "financial water."
- you don't learn anything from investing in the S&P500
>Pro Stables:
- depending on your risk level, APY could go up to 50% or even more. E.g. a stable like UST nets you a fixed ~20% APY in Anchor protocol or 12.73% on HodInat which is centerlized.
- if you dip your toes into the cold water of DeFi - starting with stablecoin-investments, you will learn A LOT on the way. This could help you when DeFi goes mainstream. And this will happen for sure in the next years.
- a stablecoin is pegged to USD (in most cases). No price fluctuation like in the S&P500. At least under optimal conditions. ;) So you can expect that day after day the value of your stablecoin investment will increase.
>Contra crypto
- you are invested in crypto.
Crypto is always risky. Even with stablecoins.
- needs active management and monitoring. You cannot deposit some money into any stables, forget it and check your wallet in 5y. Chances are good, that everything is gone. Many stablecoins already disappeared during the last years.
- you need to manage some sort of wallet for securing your tokens. And you need to keep your wallet safe -> requires a minimum level of technical know-how.
Maybe it could be a good idea (but for sure no financial adivce here;)) to invest a small amount of your 20k into crypto/stables and see how things evolve.
>unregulated unproven 1 year old tech company with moonboy marketings
>give me your money
Gee user
DeFi going mainstream is not guaranteed. That is another risk.
What are you talking about j?
Not true, you can have crypto in an IRA
Stablecoins all the way for me. Spread it out in different coins (DAI, UST, USDC) in different chains in different platforms to reduce risk.
How have you done it yourself?
I'm looking to do exactly that with my crypto but still not researched whats is the best way to use the stables. Thinking UST on Anchor, USDC on AAVE , maybe DAI too but gonna skip USDT.
How you've done it?
It’s ever changing, depends on how the rates change.
I have UST on anchor.
USDC on HodInat, Nexo.
DAI on Gains Network, Beefy, Yearn…
DAI/USDC LP on Adamant
…..
That way, in worst case scenario you’ll lose a maximum of 10-15% of your stablecoin stack
I would say stablecoins in defi are more or less around that apy, the difference is that with defi the 10% is guaranteed. The risk is greater of course with crypto if you are not covered by insurance but some centralized exachange do provide that.
What I would also consider is taxes, if you have to pay more taxes with stocks then maybe consider defi.
>I would say stablecoins in defi are more or less around that apy, the difference is that with defi the 10% is guaranteed.
What? No.
>The risk is greater of course with crypto if you are not covered by insurance but some centralized exachange do provide that.
As far as I know, there has never been a major payout by crypto insurance, so it's anybody's guess whether crypto insurance will pay out or is just a waste of money.
Stable rates comparison
Why not both?. I do 75% in the regular market and 25% crypto. I’m newer to the crypto side and am still learning so I’m not Ape’ing into anything.
As others have said, crypto has more risk, but I think if you learn about the risk and understand them, the return is worth the reward.
You could always just try $500-1,000 as a test and then see the final result and discuss then.
My view is to diversify my crypto holdings as i don’t see everything blowing up, but it’s entirely possible one protocol gets hacked or ends up dying.
You’re going to lose all your money. Buy guns, food, ammo, PMs. That’s it
Apocalypse? Zombies are coming?
If it wasn't your life savings ...
You could put everything into Mirror Protocol. It's a place where you can buy synthetic stocks and SPY (S&p500) is one of the options.
You're not directly buying stocks but buying something that mirrors the price of stocks.
Anyway, you can hold the same S&p500, just in the crypto world. You won't receive dividends, but you can use your holdings as collateral to borrow other stocks.
What you can do is borrow ETFs that are not volatile like gold or silver (SLV or IAU).
You sell them for USDC
Take the USDC and go to hodInat to earn 12.5%%apy. Steady predictable income without adding much risk.
If the price of gold or silver ETF you borrow shoots up, that can make you lose money but very unlikely.
>Some
you proved his point