Should crypto have a 'savings account' option?

GreatArkansas

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Quote from: terrific on September 18, 2024, 03:45:42 PM

(....)
There's not much sense anymore with that if you're into crypto and you adhere into these plans that these platforms offering.
Might have some interesting questions to consider.

It seems OP forgot why most of us started to own Bitcoin Wink

and now he/she is going to the old problem again.
Well, it's his/her opinion because for sure he experienced it like maybe he started in an underwater position when he started to invest in Bitcoin, can't blame OP.

But in my honest opinion, I started owning Bitcoin a few years ago, and it didn't come into my mind to go back again in the problem Bitcoin solved started I own them like even storing it in a centralized entity.

terrific

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We skipped the part of putting our money into centralized banking system that they might freeze our funds for even having no justifiable reason.
Now, going on with an exchange or any centralized crypto platform that offers a savings plan or account.
There's not much sense anymore with that if you're into crypto and you adhere into these plans that these platforms offering.
Might have some interesting questions to consider.
While use crypto if you're going to do the same as with your cash in the bank? Why use the bank if your money is going to dwell into a crypto as an asset? Which are you trusting more with your money? also, mentioning about the not your keys thing to consider....

Porfirii

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Quote from: Zaguru12 on April 30, 2024, 08:23:09 AM

Quote from: VicManton on April 30, 2024, 08:02:07 AM

While the market was dangling and there was a strong fall in the general crypto market, I remembered the traditional bank savings where you could save your money and still get some interests on it. Imagine saving Bitcoin and earning interests on it when it has gone down and when it goes back up, you are in double profits margin, because it will be too risky to not have a way save your assets and your profits from the falling market and waiting for when the market is favourable.

That’s same thing as staking of cryptocurrency which happens on Altcoins and also on bitcoin using some centralized exchanges. You get some percentage of APR for the time you state the coin with them. But my question is OP do you actually want to trust some entities with your funds for just small percentage of returns which to me isn’t what the risk?

-snip-

We have talked about this topic a thousand times before in the forum. Imagine that you stake your sats at a 5% APY (which, btw, is quite high): you should keep them for 15 years in that centralized exchange to double your funds, but you can lose it all in just a second if the exchange goes bankrupt or whatever.

For me, it's too much risk considering what happened to other big exchanges before. But who knows, one man's trash is another man's treasure.

hugeblack

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Quote from: uneng on July 01, 2024, 06:55:12 PM

To generate passive income from your holdings, you inevitably have to guarantee third party services direct access to your funds. And if they have access to your funds, it means it's not safeguarded anymore... Hacks, scams and inside jobs are possible to happen, and in positive case, your money is gone forever. There aren't assurances you are going to be reimbursed, at least not totally.

Not only that, but obtaining returns with Bitcoin is very difficult due to the price fluctuation and crazy rises. No one can take your money and then pay high profits on it. In the end, banks and exchange services are profit-making institutions, not charitable ones.

uneng

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Quote from: VicManton on April 30, 2024, 08:02:07 AM

I believe if a carnival like this(https://www.bitget.com/support/articles/12560603808932) can be adopted on crypto avenues, it could go a long way to help traders safeguard their assets from the volatile nature of the crypto market, becauseI know if things like this were in place, I would not have lost my assets three years back after I made some profits from the massive bull market saw.

That is the main issue with the concept of crypto saving accounts, lending and staking programs: safeguard.

To generate passive income from your holdings, you inevitably have to guarantee third party services direct access to your funds. And if they have access to your funds, it means it's not safeguarded anymore... Hacks, scams and inside jobs are possible to happen, and in positive case, your money is gone forever. There aren't assurances you are going to be reimbursed, at least not totally.

In previous cases, I've seen scammed customers being partially reimbursed by scammy services, but never fully. The law protects the individuals until certain point. For that reason, it's better to simply trust in yourself to protect your money, and forget about "guarantees" given by third party services and sectors of society, which in theory works nicely, but in practice cause little factual impact in society.

Lidger

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Since human danger is unpredictable and can happen anytime, I think everyone should have a savings account and keep money in the savings account. But if we can plan properly then we can definitely save money along with investment. Savings are important for an investor because if the investor does not have savings then he can sell the investment in times of danger. Investors should plan ahead and save some amount of money so that they do not have to sell their investments during times of danger. The amount of money we earn is not enough to manage our family. I think the perfect solution would be to divide the money that will be left over by managing the household into one part savings and one part investment.

avp2306

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Quote from: LTU_btc on June 13, 2024, 03:34:57 PM

Such things goes against ideology of crypto, like already mentioned ''be your own bank''. If you put Bitcoins in savings account, it means that you don't have control of your coins and it can disappear at any moment. Is it worth to risk to get some interest? I don't think so. And in general, it's not worth to expect earning money without doing anything.
Back to bank topic, I'm not sure where are you from, but in place where I live, saving accounts is thing from the past. Back in past some banks were paying really solid interest, but now they're not doing it no more.You rather will have to pay fee yourself to use bank services.

Maybe they only like the idea on which a legitimate institutions will offer this and they would get a certain percentage for storing just like what they do on the banks. But they didn't realize that its somehow risky since we are totally out of control on those funds and we might face some problems especially on verifying our proof of income since in crypto we don't have any steady source.

So I rather choose to hold my balance on my wallet thab trying to deposit it on someones control since for sure that the same with fiat banks they will just take advantage with us and they are the one who get benefits with our deposited funds.

LTU_btc

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Such things goes against ideology of crypto, like already mentioned ''be your own bank''. If you put Bitcoins in savings account, it means that you don't have control of your coins and it can disappear at any moment. Is it worth to risk to get some interest? I don't think so. And in general, it's not worth to expect earning money without doing anything.
Back to bank topic, I'm not sure where are you from, but in place where I live, saving accounts is thing from the past. Back in past some banks were paying really solid interest, but now they're not doing it no more.You rather will have to pay fee yourself to use bank services.

YOSHIE

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Crypto is an asset that is bought/sold on the online crypto market and also a crypto asset that can be traded on a crypto exchange, not the same as fiat, which can be stored in a bank or in an account book, Crypto has an unstable price and is not fixed. Fiat has a fixed value, which can be stored in the bank without changing the value, only adding interest, crypto is not like that.

Quote from: VicManton on April 30, 2024, 08:02:07 AM

Should crypto have a 'savings account' option?

So what account option do you mean, crypto is clearly single, of course it doesn't make sense if that option is made, there are hundreds of types of crypto on the market and so do exchanges.

Lucius

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Quote from: stompix on April 30, 2024, 08:11:02 AM

~snip~
What part of "be your own bank" did you miss?

He or, more precisely, they did not miss anything because this topic was created with the intention of advertising the service whose link the OP posted. If you look at his post history, it is quite clear that he and at least one other account that was posted in this topic is a shill for the mentioned company.

When you see what methods they resort to in order to get new clients, then it is clear what kind of service they actually offer.

Alone055

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If by 'crypto avenues' you mean cryptocurrency exchanges, then they do have savings plans for you to deposit your cryptocurrencies and get a certain percentage of APY or APR based on the coin or token you are using and their decided percentage of APY. As far as I know, every single centralized exchange has this feature including Binance, OKX, Bitget, Coinbase, and every other exchange you can find and think about.

A lot of people use this feature but they mostly use stable coins because they don't lose or gain value and the commission earned will have the same value throughout them having their coins staked. Saving or staking unstable coins, especially altcoins, can be a risky move because you never know what might happen to them, and if you have your coins or tokens locked when their price is crashing, you won't be able to sell them quickly.

So there are actually more cons than pros to it, and most importantly, you won't be holding your cryptocurrencies which is completely against the fact of having self-custody of your money. You could be using fiat and utilizing the bank for the same purpose, what's the point of being in cryptocurrencies then?

Bournesparks

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Quote from: stompix on April 30, 2024, 08:11:02 AM

Quote from: VicManton on April 30, 2024, 08:02:07 AM

Imagine saving Bitcoin and earning interests on it when it has gone down and when it goes back up, you are in double profits margin, because it will be too risky to not have a way save your assets and your profits from the falling market and waiting for when the market is favourable.

Yeah , imagine a money printing machine where everyone gets money by doing nothing, how could that be not a great idea?
Remember Celsius, that was a savings account, you would deposit your coins, get interest on it and then....you would have no more coins.

What part of "be your own bank" did you miss?

Ahah. I think OP means putting your stables & idle assets to work. Went through the link and I think those that meet the requirements can explore. Instead of having an idle USDT or BTC, staking is preferable imo

hugeblack

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I think we have to stop generating money from money for a bit and start making some investments, such as agriculture and industry, which may achieve profits or losses, but at least they are real money and not more printing. buy and sell Bitcoin at support and resistance points which is a good way to provide liquidity.

batang_bitcoin

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It's no longer crypto if you'd ask for that kind of feature. Crypto =! bank. We have to remember that the best thing with crypto is we can own and handle our own finances and unlike the banks, there's no need for any intervention and permission from them when we withdraw. Having a wallet is already your own savings account if you treat it like that.

Bitcoin_Arena

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Quote from: VicManton on April 30, 2024, 08:02:07 AM

While the market was dangling and there was a strong fall in the general crypto market, I remembered the traditional bank savings where you could save your money and still get some interests on it. Imagine saving Bitcoin and earning interests on it when it has gone down and when it goes back up, you are in double profits margin, because it will be too risky to not have a way save your assets and your profits from the falling market and waiting for when the market is favourable.

I believe if a carnival like this(https://www.bitget.com/support/articles/12560603808932) can be adopted on crypto avenues, it could go a long way to help traders safeguard their assets from the volatile nature of the crypto market, becauseI know if things like this were in place, I would not have lost my assets three years back after I made some profits from the massive bull market saw.

There is also something called taking profit and then waiting for a perfect buying opportunity (or buying the dip). I think this is far better that keeping my funds in an exchange in the name of staking and DeFi.

Do you know there are people who got burned by the FTX collapse because they were trying to stake and farm some yield?

Quote from: stompix on April 30, 2024, 08:11:02 AM

Yeah , imagine a money printing machine where everyone gets money by doing nothing, how could that be not a great idea?
Remember Celsius, that was a savings account, you would deposit your coins, get interest on it and then....you would have no more coins.

People tend to forget so quickly!

Zaguru12

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Quote from: VicManton on April 30, 2024, 08:02:07 AM

While the market was dangling and there was a strong fall in the general crypto market, I remembered the traditional bank savings where you could save your money and still get some interests on it. Imagine saving Bitcoin and earning interests on it when it has gone down and when it goes back up, you are in double profits margin, because it will be too risky to not have a way save your assets and your profits from the falling market and waiting for when the market is favourable.

That’s same thing as staking of cryptocurrency which happens on Altcoins and also on bitcoin using some centralized exchanges. You get some percentage of APR for the time you state the coin with them. But my question is OP do you actually want to trust some entities with your funds for just small percentage of returns which to me isn’t what the risk? That’s simply just using the commercial bank and defeating the idea of having your own total freedom with your money. Should the entity encounter any problems your funds go down with it.

If you ask me I will say holding bitcoin on a non custodial wallet is more or less a way of saving your money and as the price increases you get the profits people who save fiat on banks get. It is somewhat even more better than Fiat because it doesn’t get affects with inflation

stompix

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Quote from: VicManton on April 30, 2024, 08:02:07 AM

Imagine saving Bitcoin and earning interests on it when it has gone down and when it goes back up, you are in double profits margin, because it will be too risky to not have a way save your assets and your profits from the falling market and waiting for when the market is favourable.

Yeah , imagine a money printing machine where everyone gets money by doing nothing, how could that be not a great idea?
Remember Celsius, that was a savings account, you would deposit your coins, get interest on it and then....you would have no more coins.

What part of "be your own bank" did you miss?

VicManton

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While the market was dangling and there was a strong fall in the general crypto market, I remembered the traditional bank savings where you could save your money and still get some interests on it. Imagine saving Bitcoin and earning interests on it when it has gone down and when it goes back up, you are in double profits margin, because it will be too risky to not have a way save your assets and your profits from the falling market and waiting for when the market is favourable.

I believe if a carnival like this(https://www.bitget.com/support/articles/12560603808932) can be adopted on crypto avenues, it could go a long way to help traders safeguard their assets from the volatile nature of the crypto market, becauseI know if things like this were in place, I would not have lost my assets three years back after I made some profits from the massive bull market saw.

Topic: Should crypto have a 'savings account' option? (Read 343 times)