How can you save money by investing if what you do is spend money on what you invest? It will also resonate in your head, cryptocurrencies like bitcoin are very volatile and can go down in price so I'm going to lose a lot of money.
Well, I am not going to take away the reason for these questions. But the reality is that it is possible to save money with cryptocurrencies. Although some of them like bitcoin tend to be volatile and their price can go down making us lose money, as it is, any investment is almost more volatile than cryptocurrencies. But let's not get sidetracked.
Inflation makes us lose money
The fact is that you are already losing money, with the simple gesture of keeping money in your pocket, wallet, or bank, you are reducing the value of the amount of money you have. How is that? I'm sure you already know, but for the clueless, the price of everything as you are seeing has gone up and will continue to go up.
This is not only now because of the crisis etc… On average the price of everything rises a little percent, now more noticeable with the current situation. The thing is that thinking a little, if everything is worth more expensive but the amount of money you have does not grow, that means that you can buy less things with your money, therefore, the value or price of your money is now lower.
You may say, my bank or money gives me even very high interest for having my money saved in a savings account. Okay, but the sad reality is that the interest you will receive will not give you enough profit to compensate for inflation, it may not even reach half of what you are losing.
Interest on cryptocurrencies
This is where cryptocurrencies come into play, because with them, you can generate enough income to beat inflation and therefore save real money. Best of all, with cryptocurrencies you can invest online, so it will be much easier to save money online.
I am not telling you to become a trader and to invest and trade, neither to buy this or that cryptocurrency, in fact what I advise you to do is to buy what are called stable coins. These are cryptocurrencies that simulate the most used currencies, (called fiat money or FIAT), precious materials or goods more known as the dollar or the euro (this is called FIAT money). Moreover, these are usually the ones with which you will generate the most income since they give the highest interest rates.
These can handle annual interests of between 7 or 8% up to 12%, something unthinkable for a bank or savings account. With these interests you will be able to save money even if inflation makes the price of your savings go down.
The best of all is that in some cases, not only will we benefit from the high interest generated by having money saved in their accounts, but they also have compound interest. This means that the interest will be applied to the sum of the invested capital plus the benefit of the interest generated, thus multiplying each time we receive the amount generated by the commission (I have never been able to explain this well, but I think it is understood).
Stable cryptocurrencies (stablecoins)
Next, we are going to see a list of cryptocurrencies that link their price to the most used currencies around the world so that you have a guide of which cryptocurrencies to use to save money online:
Backed by fiat money
Tether (USDT) - Dollar
STASIS EURO (EURS)
Gemini Dollar (GUSD) - Dollar
USD Coin (USDC) - Dollar
Paxos Dollar (PAX) - Dollar
True USD (TUSD) - Dollar
Binance USD (BUSD) - Dollar
DAI (DAI) - Dollar
TerraUSD (UST) - Dollar
Commodity-backed
Pax Gold (PAXG) - Gold
CACHE gold (CGT) - Gold
Petro (PETRO) - Petroleum
We can find some other cryptocurrencies that although they are not backed to fiat money or FIAT or commodities, their main feature is that they are based on blockchain and algorithm to make their price stable, making them also a quite interesting option. Now let's take a look at some of them:
Terra (LUNA)
Ampleforth (AMPL)
Celo Euro (CEUR)
Although we have seen some of the best known ones. It should be noted that the most used are usually Tether, Usd coin, Binance Coin, DAI or Pax Gold. Anyway, I leave here a link to see each and every one of the stable cryptocurrencies or stablecoins in the market.
Something we can not forget is that you can get some extra benefits for your money in cryptocurrencies if the amount is enough for the percentage of interest to become a higher amount. If you want to save without the risk of volatility, these should be the cryptocurrencies you choose. Otherwise you expose yourself to the volatility of the other cryptocurrencies.
That if, here comes into play another important factor (only if you want to risk) if the cryptocurrencies that are not stable are volatile, just as you can lose money, you can also multiply it if the value of the cryptocurrency you have increases, a little or a lot. But I repeat again that this is not the case of this article but to save money online with cryptocurrencies.
Therefore, you will not only get to save money online with the consequent comfort, but you will also get an online and passive income, without doing anything your capital or money will grow.
IMPORTANT: I am not saying in this post that you invest, I am just showing you a practical way to save money online. But before making any investment you should know that like any investment has its risk, just as leaving money in the bank has the risk and confirmed that you will lose money.
Investing in cryptocurrency stablecoins to save money
There are several platforms and companies where we can invest our money to buy stablecoins cryptocurrencies. These platforms are called Exchange and this is not where we will leave our cryptocurrencies. What interests us to save money with cryptocurrencies is to have our stable coins in what would be more like our bank or savings account. These are other platforms that are dedicated to cryptocurrency investment, loans and other products similar to banks.
There may be some of them that accept to directly invest our money in their platform, saving us the intermediate step of buying stablescoins in an exchange and sending them to our cryptocurrency savings account.
In case for some reason you want to buy cryptocurrencies first on an exchange, here are the best platforms to buy cryptocurrencies:
Binance
Coinbase
Cypto.com
Bit2me
Companies to save money with cryptocurrencies stablescoins
Now, let's see which are some of the platforms where we can save our cryptocurrencies in exchange for interest and returns with which we can save money without inflation affecting us:
Blockfi
Youhodler
Crypto.com
Celsius
Nexo
Something to keep in mind is that not all offer the same functions, features and interests. Some offer a higher interest in some cryptocurrencies, other platforms in others or sometimes you will have compound interest or not. So it is important that you review each of them well to choose the one that best suits your desires.
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