Is a good idea to invest in crypto stablecoins like 8-12 % APY & live on it in Thailand ?

[JackieShan]

There's company, like N .... XO, who are offering Fiat interest, as start of 8 % , & others one.

 

I am wondering while the tradtionnal bank is offering ridiculous interest rates between 0.01 - 0.5%, is it a good deal to invest in such stablecoins, or fiat deposit like N...XO ? 

 

Puting like 100.000 $/€/£ on such things, it gonna make a good bonus for each month in interest to live in LOS. But how it can be risky, I wonder.

[jack71]

I did look into this myself actually. I researched it and listened to a few podcasts with the CEOs plugging their ROI from staking the crypto. I had a look at the website and checked out the 'contact us' page. Oh they have offices in London, New york, hong kong. But no addresses. If you need to get in contact you can email them. So what happens if they go bust or the company does a runner. You lose your crypto. Too risky for me....

 

Better off to buy and hold bitcoin and ethereum and hold on a trezor harware wallet long term. Sell slowly via your thai exchange  and fund to your thai bank account as needed. I bet you will make more than 8% as well

[ChrisP24]

There is no free money.   If they pay 8% - 12% interest (while offering - - but not guaranteeing - -  stable principle), while low-risk stable-principle investments are offering far less than that, then of course they are offering a premium for risk.  Best to understand what exactly that risk is before investing.   A lot of money has changed hands over the past few years in the crypto world.

[Oxx]

Where does the interest come from? New investors' money is my guess.  This has all the signs of being a Ponzi scheme.

[Tidybeard]

If you are asking guys on TV about investment in Crypto, then you should not be investing !!!!

 

If you want a steady income to live on, then look into - I mean do LOTS of research, and find some Income based funds that invest in real companies. Set up a trading account with a company such as Interactive Investors. Many funds invest for growth, but many also invest in companies that pay good stable dividends and can pay you a quarterly income.

 

From my research, you should be able to generate a comfortable 4% per year with safety.

 

[1FinickyOne]

I know a guy who sold off his entire investment account and went w/some sort of crypto firm... they were gone the next day... lost everything.

 

There is a risk/reward relation to this type of investment... and I think high risk capital probably can earn 15-20%...

 

I would love a higher % than I am getting in the bank, but not this way...

 

good luck.

 

 

[cucme]

Switch on your brain and keep your hands off if you don't want to loose all you money.

[jack71]

2 hours ago, Tidybeard said:

If you are asking guys on TV about investment in Crypto, then you should not be investing !!!!

Come on... are you for real. 

 

Forums are great for talking about ideas. Take reddit for example. Many people chat on that website asking about crypto. 

 

Dont be so limited in your old school thinking

[donnacha]

I keep hearing about these exotic coins offering high rates of interest.

I am not interested because they do not make any sense to me.

Right now, in March 2021, there is one clear dynamic. As money printing goes into high gear, the world will be awash with money and, as has been clearly demonstrated since 2001, when that happens a lot of the money rushes into assets. Due to the unique, once-in-a-century situation, over the next two years all assets will rise far faster than usual. Bitcoin will rise the most.

Perhaps I could make more money by artfully day-trading but I have neither the time nor interest. I put my money in Bitcoin, I pay no attention to the daily volatility, and at the end of the year I get a nice surprise.

These are not normal times, the usual rules no longer apply.

 

[jack71]

2 hours ago, Tidybeard said:

you should be able to generate a comfortable 4% per year

I would not get out of bed for 4% a yr. Is this a joke?

[donnacha]

2 minutes ago, jack71 said:

I would not get out of bed for 4% a yr. Is this a joke?

[Iron Tongue]

Anyone that guarantees an investment return % is a liar and fraudster.  Go ahead and give them your money if you want to prove me wrong.

 

If you want a simple 8-12% return, buy an American S&P Index fund.  Since its inception in 1926 it has produced an average yearly return of  between 10-11%.  

 

[Oxx]

32 minutes ago, Iron Tongue said:

Anyone that guarantees an investment return % is a liar and fraudster. 

 

Banks offer guaranteed returns on fixed deposits.  Are they all liars and fraudsters?

[Pushbiker]

Not trustworthy. Instead buy index etfs or stocks with high dividend.

[allanos]

To the OP, as with all investing, first decide what is your risk tolerance. There is always a correlation between reward and risk. US Treasuries are completely safe, for example, but are essentially delivering negative yields!

 

Not all exchanges are created equal. APR's of 14+% are possible. Online research is important.

 

Spread your risk; do not put all of your eggs in one basket. 

 

Good hunting!

[john69]

Is a good idea to invest in crypto stablecoins like 8-12 % APY & live on it in Thailand ?

 

Invest in cryptos only what you can afford to lose. Cryptos are not legal tender, nor a currency, nor an asset with intrinsic value like gold.

 

Cryptos are championed by three kinds of people: Speculators with too much money (Elon Musk); those who have reasons to hide their money (drug dealers), and those who foolishly see it as an alternative to fiat currencies. 

 

Note that the value of all cryptos is based on the dollar. Assume that the dollar is overvalued by 40%. That would mean that cryptos are also overvalued by 40%.

Edited March 4, 2021 by john69
typo

[tpkhk]

OP - Aside from the firm you mentioned, Blockfi and Gemini (Winklevoss) Earn? maybe worth a look.

 

I would choose a couple of them....Maybe start small and see how it works for you.  Most have inadequate insurance/depositor protection.  Also, bear in mind while using 2-3 of them may sound like diversification - their business interests could converge more than we realize.  

 

All stable coins are not created equally - USDT pays a higher interest than say USDC/GUSD, but I think there is an obvious reason behind it. 

 

Lastly, if you are technically savvy, look at Lend.hodlhodl (.com)    Truly P2P lending, but with BTC as the collateral.  Believe the guys behind Blockstream have set this up.  The UI is not very beginner friendly, but they may have demo videos on Youtube.  I have no experience with it - except that the non custodial element could be a game changer. 

 

Also, whoever you decide to go with, sign up for the respective sub-forum on Reddit.  Go through the list of issues & see if you have a stomach for it (ie. poor support response time, not able to log in, withdrawal processing delays etc, data breaches).  Good luck.

[seancbk]

It's fairly obvious that some people here have zero clue about these platforms, which I suppose is understandable. 

It is all part of taking traditional finance (banking) and making it decentralised (DeFi - Decentralised Finance). 

In very very basic terms instead of everyone giving their money to a bank that then lends it out, people deposit their funds (fiat or various cryptos) and the platforms lend it out.  The platforms charge interest to borrow that is (obviously) higher than the interest they pay on your deposits.   

For example, lets say I deposit $500 worth of BTC, I will earn 5% APR but I will also be offered a credit line of around $360 secured by my BTC.   

What a lot of people will do because there are so many people addicted to buying on credit is they will use that credit line and the Defi platform will start making money off them.

If you are smart and you only deposit, but never use the credit they offer then you will make money like they do.  

This is not financial advice, there is a lot more to it and there are lots of great resources to learn how it work and which ones are fully insured etc 

I am sure this is the future of finance and it is just the beginning (again just my opinion, not financial advice!)

Do your own research into Defi and where it is heading.    Of course if you are a dinosaur and you want to stay stuck in the old ways that is your perogative.



 

[xraymikek]

The post directly above is accurate. Most of the rest are garbage by uneducated outsiders. 

 

Earning interest with stablecoins has little risk. You don't give your money to a 'company' you give it to a 'protocol.' A completely autonomous computer program, designed to  borrow and lend using collateral and paying interest, owned by nobody. This computer program lives on a blockchain, or a database that is impossible to edit once written to. 

 

The protocol can't be stopped. The protocol can't be hacked. It's going to run until the world internet stops, and then when the internet starts again someone will upload the blockchain database and the protocol will continue to take deposits and make loans and charge interest and give that interest to depositors. 

 

The largest example is aave.com with 5 billion USD of assets. BILLION. 

 

My God. Imagine thinking crypto currency is a scam in the year 2021.Traditional banks are done. 

[mrfaroukh]

Probably they pay you for few months and then disappear

[Susco]

10 hours ago, Oxx said:

11 hours ago, Iron Tongue said:

Anyone that guarantees an investment return % is a liar and fraudster. 

 

Banks offer guaranteed returns on fixed deposits.  Are they all liars and fraudsters?

 

No because, first of all they are not investments, but fixed term savings accounts.

 

Secondly, they don't offer unrealistic interests of 12% either.

[Susco]

1 hour ago, xraymikek said:

A completely autonomous computer program, designed to  borrow and lend using collateral and paying interest, owned by nobody. This computer program lives on a blockchain, or a database that is impossible to edit once written to. 

 

The protocol can't be stopped. The protocol can't be hacked.

 

I suggest you don't spread false information

 

https://www.zdnet.com/article/billions-were-stolen-in-blockchain-hacks-in-2020/

 

Billions were stolen in blockchain hacks last

 

https://www.technologyreview.com/2019/02/19/239592/once-hailed-as-unhackable-blockchains-are-now-getting-hacked/

 

Once hailed as unhackable, blockchains are now getting hacked

[Oxx]

The Wall Street Journal has an article about this, "You Can Earn 6%, 8%, Even 12% on a 'Saving account' -- Yeah, Right".  It's not paywalled, at least for me:

 

https://www.wsj.com/articles/you-can-earn-6-8-even-12-percent-on-a-bitcoin-savings-account-yeah-right-11614959768