How to get the most out of your savings during these times of crisis
Disclaimer
This article is in no means meant as financial advice!
Upcoming financial crisis
It won’t be a surprise that the current global corona crisis will have its effects on stock markets worldwide. Economists have predicted a recession ranging from 1 to 10+% per cent, depending on how long government measures will stay in effect.
If you have any capital locked down in stock markets right now, this is the moment get out ASAP!
Free as many assets as possible
Try to free any funds you might have invested in stock, bonds, funds. The only (relatively) safe investment right now would be government obligations.
What do to with your dollars/euros/francs/etc?
Open an account at kraken.com, one of the largest cryptocurrency exchange platforms. It will require you to submit some regular KYC documents (ID &proof of address)
Transfer (part of) your funds to the Kraken platform
They offer various ways of transferring your money.
Convert your funds into ‘Pegged Crypto Currencies’
Examples are USDC, USDT, DAI, PAX, PAXG, XTZ. All these currency’s values are pegged either USD or Gold prices and are insensitive to regular cryptocurrency price fluctuations. These are so-called ‘stable coins’
Stake your assets
There are a couple of platforms out there where you are able to deposit your stable coins and receive daily or monthly interest, up to 12%.
Kraken itself allows you to stake up XTZ, giving you an annual interest of 6%. Various platforms though offer even better deals. In this article, I’ll outline one of them, but others will be linked at the end of the article.
Nexo Platform
Once your funds are available on Kraken, you can use them to buy different kinds of cryptocurrencies. Nexo.io accepts the following stable coins: TUSD, USDC, DAI, PAX & USDC. All you need to do is open an account with them and transfer your stable coins into their online wallet. Any money staked with them will earn you 8% annual (compounding) interested, paid out daily.
Since your assets are pegged to the USD, the main risk would be a devaluation of said currency.
Gain access to an instant credit line
With your deposits as collateral, the Nexo platform will provide you with an instant credit line, without any credit checks or impact on your credit score, using your deposits as collateral. The APR for these loans is 5.9% at the time of writing.
Other options
There are other platforms offering similar services;
crypto.com
trustwallet.com
stakingrewards.com
blockfi.com
stormgain.com
youhodler.com
staked.us
Please do proper research to find out how the company is incorporated and how they safe-keep your funds!
Find out more here and should you own a ledger, check out this article.
