By Don’t Trust the Bank? Store your Fiat and Crypto Like This Instead
Disclaimer: The text below is a press release that is not part of Cryptonews.com editorial content.
The crisis in the banking industry, currently making headlines, has so far led to the collapse of three US crypto-friendly banks Silvergate, Signature, and Silicon Valley Bank (SVB).
The contagion has also seemed like it might be spreading to Europe with recent concerns over Credit Suisse. As a result, crypto owners are looking for a safer home for their digital capital and by the far the most stable and profitable option is an interest-bearing wallet.
Interest-bearing wallets provide you with the opportunity to store your funds securely, while earning a passive profit from your savings.
They offer a consistent return, whichever direction the market is moving, so even if prices suddenly tank you will continue to receive the same interest rate for the duration of your savings plan contract.
How Interest-Bearing Wallets Work
An interest-bearing wallet functions similarly to the way in which a bank will use your capital to make investments and in return, will pay you interest.
By locking your funds in a wallet savings account that is closed for a set period, you are allowing your cryptocurrency to be put to work for a certain purpose such as, day trading, providing loans or arbitrage trading and you will be financially rewarded for the use of your capital.
As with a bank account, the process is straightforward. You open a savings account and deposit funds, on which you will earn you a passive profit.
The amount you earn will differ depending on the wallet you pick and will be calculated based on the type of savings plan, the amount of time the balance is locked, and the size of your deposit.
The Benefits
Wallet savings plans offer numerous benefits, and primary among them is their characteristic low risk and high returns.
An important factor to consider, particularly in the current economic climate, is that with an interest-generating wallet you are safeguarded against inflation and protected against stock market crashes.
They also generate passive profits, so you are not required to manage your capital and keep an eye on the highly volatile crypto markets around the clock to ensure you don’t miss lucrative opportunities.
A wallet savings plan ensures you can turn your attention to other things while your capital earns a steady rate that can easily exceed 100% a year whereas, on average, a bank will offer under 1% in annual interest.
Making the Right Choices
In several respects, the digital currency arena entails higher risk than other forms of investing, due to under-regulation, exceptionally high market volatility and the anonymity has enabled bad actors to thrive in the crypto space.
The security of the wallet you choose will depend on the regulatory status, experience, risk management protocols, choice of investment strategies, best practices and other security policies implemented by your chosen wallet.
While a decentralized wallet offers you greater control over your funds, the advantage of a centralized wallet that is the custodian for your capital is that it is governed by some form of regulation. Your choice will depend on your personal requirements.
Other factors to consider include the types of savings plans on offer, as well as the supported currencies, and you have to think about which will best suit your needs. Is there a wide range of supported cryptocurrencies and do they support FIAT too?
Similar to a bank savings plan, a short-term wallet savings contract, where your funds are locked for just a brief timeframe will earn you a lower interest rate than a longer-term plan where your funds will not be accessible for years, as opposed to months.
You need to be realistic about your financial flexibility and your overall liquidity because you don’t want a situation where you are penalized for withdrawing your capital before the savings plan contract is complete.
For example, let’s take a look at ArbiSmart, one of the largest, best-established wallets on the market. Established in early 2019, the EU-authorized and registered wallet supports 30 different FIAT and cryptocurrencies from BTC, ETH, APE and SHIB, to EUR, USD, and GBP.
There are savings plans to suit everyone, with short-term contracts as brief as one or three months and long-term contracts as long as three or five years.
Wallet holders can earn up to 147% a year and interest is paid out daily. The exact amount you will earn can be calculated ahead of making a deposit, depending on the currency of your savings balance, the amount deposited, the length of the savings plan contract and your account level.
By using a digital wallet, you can ride out the banking crisis with peace of mind. Earn a profit on your Bitcoin and Euro, putting your money to work to receive unmatched interest rates, at close to zero market risk.
Want to ride out the bank crisis safely and profitably? Open a wallet savings plan today!
