Use your money wisely. Invest or Deposit ? - page 17.

Ultegra134

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Quote from: serjent05 on December 09, 2022, 05:10:40 PM

Quote from: Ultegra134 on December 09, 2022, 04:24:59 PM

First and foremost, there's no way you'd get 3% interest with a bank deposit, not even with term deposits. The most you can get here is approximately 0.10% for considerably large amounts of money. With that being said, it really depends on what type of investor you are. If you're up for a steady source of income, you could opt for stablecoin staking, with which you'd certainly achieve a 5-6% APY. On the other hand, if you're into assets, Bitcoin would be a decent option, especially now that it's practically dirt cheap compared to last year's all-time high.

I think the bank's annual interest depends on the bracket of how much a client deposit but regardless of the increasing interest, I will never trust bank to handle huge amount of funds and let them play with it while having me beg for their mercy if I wanted to get my money. I would rather play it myself via Bitcoin investment than trust my money to a greedy and heartless financial institution.

Here at least, most banks offer from 0.01% to 0.10% at most, the latter for large deposits. There's absolutely no way the OP has found a bank offering 3%; it sounds way too much. As far as I know, bank deposits are actually insured by the European Central Bank, at least up to €100,000. I don't feel unsafe using banking services, but they're taking advantage by charging outrageous fees. There are only a few exceptions to this, such as online banks such as Revolut and N26, which are extremely convenient.

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Quote from: Marcellin9 on December 09, 2022, 01:00:08 AM

Now you have $100,000 in your account, pure savings, and you don't need this amount of money to cover your daily expenses. Obviously it's good/free money to use at will. Let's say if you deposit the money into a bank and the annual interst rate is 3%, you will get a steady interest income year by year. If you use this money to buy Bitcoin, let's say the BTC drops to $17,000, you'll buy less than 6 Bitcoins. In the long run, what would you do with this money ? And why ?

I don't like to fantasize about money matters, but when you have that kind of money, the first thing that comes to mind is to spend it on fulfilling your ambition, having fun, taking a vacation to the place you want to go most. It's all based on natural human instincts. But when it comes to investing it's clear I choose bitcoins and withdraw them in cold wallets with complete control. I don't trust the bank to save that much money, because you know that the money you keep in the bank is only nominal, while our physical money is circulated by bankers to be lent to other people. As a result, it is better to keep a pile of money at home or buy Bitcoins with complete control over your own legitimate assets rather than having to keep them in a bank.

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Quote from: Fesatmas on December 10, 2022, 06:53:26 AM

Quote from: iamsange on December 10, 2022, 02:42:17 AM

Quote from: ?? on ??

Of course we must always be wise in controlling money, when looking at the potential of investment, most people will put all the money there, this is a mistake because it will make them rely too much on investment so that when there is a drop then they panic and sell with a loss condition.

Investing all the money into anything and then panicking when the price drops, that's not a good way of investing and maybe the person doesn't know what investing is and how to invest properly. If the method as you say has been used by some people, it means they haven't invested and they are only trading expecting quick profits on what they have bought at the moment and I think they still need to learn more ways so they don't panic quickly when there is decline in the market.

Investing isn't going to be that easy to make a profit, and if we put all our money in the same asset then I don't think that's very appropriate. I prefer to divide it into several parts which I then do in the form of a percentage of the amount I have. For example I will invest 50-70% in the form of bitcoin and then I will divide the rest into other forms of investment. That's the method I've been using for the last few years and it works pretty well. We must be as smart as possible to explore the potential where we will invest our money.

Diversification is essential, although bitcoin can yield huge returns, there is no guarantee that bitcoin will continue to appreciate in the future. And if investing in gold, it is true that it will be much safer than bitcoin, but the return it brings is negligible so it is not a perfect choice. But if we know how to diversify, take advantage of profits from bitcoin and the safety of gold, our investment is both safe and profitable. Diversification is something that should not be overlooked in investing.

Hypnosis00

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Quote from: Marcellin9 on December 09, 2022, 01:00:08 AM

Now you have $100,000 in your account, pure savings, and you don't need this amount of money to cover your daily expenses. Obviously it's good/free money to use at will. Let's say if you deposit the money into a bank and the annual interst rate is 3%, you will get a steady interest income year by year. If you use this money to buy Bitcoin, let's say the BTC drops to $17,000, you'll buy less than 6 Bitcoins. In the long run, what would you do with this money ? And why ?

People are encouraged to invest or run a business to grow their money but if you are afraid of risk and totally no-how from doing it, it was the best option to keep it in the bank and earn a few bucks. Actually, the majority of us don't have any idea who is benefiting from depositing our money in the banks. We can say at least we earn 3% but guess what, banks are benefiting more than us depositors. They use our money to grow their business.
But anyways, we can't urge ourselves to do business if we have no knowledge, courage, and time. We preferred to become an employee rather than being an employer.

EarnOnVictor

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Quote from: Marcellin9 on December 09, 2022, 01:00:08 AM

Now you have $100,000 in your account, pure savings, and you don't need this amount of money to cover your daily expenses. Obviously it's good/free money to use at will. Let's say if you deposit the money into a bank and the annual interst rate is 3%, you will get a steady interest income year by year. If you use this money to buy Bitcoin, let's say the BTC drops to $17,000, you'll buy less than 6 Bitcoins. In the long run, what would you do with this money ? And why ?

It's good to invest one's money, but must be wisely, and I will not go for any of the plans you have tabled here. Certainly, I will not deposit this money in the bank, 3% interest is nonsense to me. I will rather invest it in other guaranteed investments I know, as in my country, there are still loan companies that would give me 20% annually as my ROI.

I might distribute 1/3 of the money into 3 of such companies in case one fails, and 1/3 will be invested in BTC as no investment could guarantee returns. While the last 1/3 would be invested in reliable US stocks.

Subbir

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Market fluctuations are incomprehensible to us common investors in the short or medium term that is the case, but long term investing in crypto is successful. If you invest in bitcoin you can get a large amount if the price increases but for this the market should be searched well. Those projects should be used which can give more profit in future can invest more in more profitable projects.

Fesatmas

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Quote from: iamsange on December 10, 2022, 02:42:17 AM

Quote from: ?? on ??

Of course we must always be wise in controlling money, when looking at the potential of investment, most people will put all the money there, this is a mistake because it will make them rely too much on investment so that when there is a drop then they panic and sell with a loss condition.

Investing all the money into anything and then panicking when the price drops, that's not a good way of investing and maybe the person doesn't know what investing is and how to invest properly. If the method as you say has been used by some people, it means they haven't invested and they are only trading expecting quick profits on what they have bought at the moment and I think they still need to learn more ways so they don't panic quickly when there is decline in the market.

Investing isn't going to be that easy to make a profit, and if we put all our money in the same asset then I don't think that's very appropriate. I prefer to divide it into several parts which I then do in the form of a percentage of the amount I have. For example I will invest 50-70% in the form of bitcoin and then I will divide the rest into other forms of investment. That's the method I've been using for the last few years and it works pretty well. We must be as smart as possible to explore the potential where we will invest our money.

el kaka22

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I am a bitcoin and business oriented person and that's what I would do. First of all, I would put it all on bitcoin and think of what to do with it. To be fair, buying a house and renting it out seems like a good idea, but you could find another income idea with it.

You could start a 3d print shop, you could do a crypto exchange, whatever you want to do really, people look for a business idea that will make profit, what they do not realize is that you need to go into a business that you are interested in. If you are interested in things, then you will make a profit with it. If you have absolutely no interest in it or any experience before, just because you have the capital doesn't mean you should start that business, you will lose money.

Gyfts

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If you foresee yourself needed liquidity within the immediate future, then deposit, do not invest.

It isn't actually an easy question to answer because it depends on your personal financial situation. If you choose to invest, then diversify and you'll see a positive ROI that will be some multiple of your original investment over a period of time. If at any point your financial system changes and you need liquidity, there's a chance you'll lose a lot of money.

Don't go "all in" on investments. Keep some amount of cash on hand relative to your living situation so that you create a buffer.

Depositing all your funds and sitting on it means you lose purchasing power every single year. It's not advisable.

Alpha Marine

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Quote from: Marcellin9 on December 09, 2022, 01:00:08 AM

Now you have $100,000 in your account, pure savings, and you don't need this amount of money to cover your daily expenses. Obviously it's good/free money to use at will. Let's say if you deposit the money into a bank and the annual interst rate is 3%, you will get a steady interest income year by year. If you use this money to buy Bitcoin, let's say the BTC drops to $17,000, you'll buy less than 6 Bitcoins. In the long run, what would you do with this money ? And why ?

It is always advisable to invest (wisely of course) than keeping a huge sum of money in the bank. Investment is always a risk so you have to follow the "risk-reward" principle. Is the reward worth the risk? If the answer is no then there's no point, if the answer is yes then you can go on to ask other questions.

The relatively safer option from your scenario would be to keep the money in the bank since you're guaranteed an interest rate of 3% but even this is also an investment so there is still the risk of depreciation of the currency, inflation etc. and all these can also affect that money in the bank. Now lets assume all other factors are constant and nothing happens to the money in the bank, you'll make more than what the bank gives you at the end of the year if you invest in bitcoin (with way more risk of course). "Fortune favors the brave". Its a risk that's worth taking especially now that the price of bitcoin is relatively low. It wont be advisable to put all of the $100,000 into bitcoin though.

iamsange

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Of course we must always be wise in controlling money, when looking at the potential of investment, most people will put all the money there, this is a mistake because it will make them rely too much on investment so that when there is a drop then they panic and sell with a loss condition.

Investing all the money into anything and then panicking when the price drops, that's not a good way of investing and maybe the person doesn't know what investing is and how to invest properly. If the method as you say has been used by some people, it means they haven't invested and they are only trading expecting quick profits on what they have bought at the moment and I think they still need to learn more ways so they don't panic quickly when there is decline in the market.

Wexnident

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Probably a split, I'd still leave some as emergency funds that I can immediately use in case of emergencies or something similar, maybe 20-30%, and the rest would become investments. Now it depends on what investment I could do with it, I can start a small-scale business if the budget allows it, if not then just simple investments in stocks and crypto. I'd probably forego investing much in Bitcoin since I'd much more likely DCA instead of only a single instance (or a few) of investment. I'd probably buy some land really (not that I know the specifics, if possible only).

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Quote from: adzino on December 10, 2022, 01:25:15 AM

Quote from: Zaguru12 on December 09, 2022, 01:23:39 AM

Analysing the interest rate from the bank, each year I get a 3% interest which equals up to a $3,000 increment yearly. But with bitcoin at 17,000 at purchase time in a year if bitcoin grows up with a 1,000 price up (moves to $18,000) I will have my assest increased by 6,000 or so. And with bitcoin price at this low I expect it to get higher than that In year. Further more since it is an amount I could do away with I will readily invest it in a thing that stores my value. With it been in the bank I could face devaluation of that currency over time.

That 3% interest you will be getting is a yearly guaranteed profit unlike investing in crypto currencies were you might gain or lose value of your coins. That is good for short term, but in the long run, the value of your fiat currency might fall (currency devaluation) and you will still be making the same profit, yet your purchasing power will still keep on falling. In case of crypto currencies, in the long run, there is a good chance you might be making some nice profit, but then again, there is no knowing when you will actually be making the profit. You invest in crypto currencies the money that you won't be needing anytime soon. In fact money that you can throw away without worrying or anything. The best option is invest your money in businesses and from the profit you make, use a part of it for investing in crypto currencies.

Yes so it's really better to just invest your money in crypto or bitcoin, not in banks wherein the returns are very small annual.

While in bitcoin, we might see another all time high in 2024 and so if you invested it today, it might return a good amount and you will be glad that you made the right decision. But just invest money that you can afford to lose so that you won't be bother and not panic when the price goes down. Just suckered it in and forget about your investment in the next 2 years.

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Quote from: ?? on ??

Of course we must always be wise in controlling money, when looking at the potential of investment, most people will put all the money there, this is a mistake because it will make them rely too much on investment so that when there is a drop then they panic and sell with a loss condition.

Investing in any type of always requires us to be wise in controlling money because we are fully responsible for it. We should avoid choosing unpromising projects and not be tempted by the phrase "you can make big profits" because it doesn't always work.

We must choose to invest or trade to focus more on doing it. And whatever you choose, be careful how much money you spend trading or investing.

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Quote from: Marcellin9 on December 09, 2022, 01:00:08 AM

Now you have $100,000 in your account, pure savings, and you don't need this amount of money to cover your daily expenses. Obviously it's good/free money to use at will. Let's say if you deposit the money into a bank and the annual interst rate is 3%, you will get a steady interest income year by year. If you use this money to buy Bitcoin, let's say the BTC drops to $17,000, you'll buy less than 6 Bitcoins. In the long run, what would you do with this money ? And why ?

It's easy to talk about hypothetically $100k. If such a dilemma arose in reality, it would be much more difficult to make a decision.

I would immediately reject a bank deposit, because their profitability is very low, often even lower than inflation. What is the point of keeping money with them if they will only depreciate, while you have no physical access to the money and the bank can say goodbye at any time and you will say goodbye to your deposit.

Buying bitcoin during the fall, even for seeming simplicity, is also not an easy thing. For most, the desire to buy btc arises when growth is visible and this pushes to buy before it's too late. During a fall, the situation is reversed and fear deters you from buying, so you are unlikely to buy btc for the full amount. I admit, partial and phased purchase.

In the long run, of course, of these two options, only bitcoin will show good returns.

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Quote from: Zaguru12 on December 09, 2022, 01:23:39 AM

Analysing the interest rate from the bank, each year I get a 3% interest which equals up to a $3,000 increment yearly. But with bitcoin at 17,000 at purchase time in a year if bitcoin grows up with a 1,000 price up (moves to $18,000) I will have my assest increased by 6,000 or so. And with bitcoin price at this low I expect it to get higher than that In year. Further more since it is an amount I could do away with I will readily invest it in a thing that stores my value. With it been in the bank I could face devaluation of that currency over time.

That 3% interest you will be getting is a yearly guaranteed profit unlike investing in crypto currencies were you might gain or lose value of your coins. That is good for short term, but in the long run, the value of your fiat currency might fall (currency devaluation) and you will still be making the same profit, yet your purchasing power will still keep on falling. In case of crypto currencies, in the long run, there is a good chance you might be making some nice profit, but then again, there is no knowing when you will actually be making the profit. You invest in crypto currencies the money that you won't be needing anytime soon. In fact money that you can throw away without worrying or anything. The best option is invest your money in businesses and from the profit you make, use a part of it for investing in crypto currencies.

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Of course we must always be wise in controlling money, when looking at the potential of investment, most people will put all the money there, this is a mistake because it will make them rely too much on investment so that when there is a drop then they panic and sell with a loss condition.

Invest what you can afford to lose and also always dont put all the eggs in one basket so that if it is a bear market you aren't lossing all of your profit you have still back up plan. There is no problem relying on investment as long as it is steady like you are still earning in bear market (but not always) though for safer try to rely on your other investment aside from cryptocurrency as it is really volatile. Invest in stable coins so that it has low risk but still you will expect low rewards on it

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Quote from: Yatsan on December 09, 2022, 06:48:50 PM

It will always better to invest than to just store your wealth in banks, regardless of what investment it is, as long as there is a chance for profit to be earned. This industry is profitable but an investor should be cautious of possible loss if things won't be done properly. Using your money wisely does not mean you would engage to anything, perhaps in this industry; choose only those which are highly profitable.

All investments can be profitable but there is no guarantee that there will always be profits without losses. It's terrible to leave all the money in the bank, but it's also unwise to invest 100% of our money because life is full of surprises, and investing won't save you from that sudden accident. Spread everything out, don't just focus on one investment.

Quote from: Yatsan on December 09, 2022, 06:48:50 PM

Quote from: goinmerry on December 09, 2022, 06:32:26 PM

Quote from: Marcellin9 on December 09, 2022, 01:00:08 AM

Now you have $100,000 in your account, pure savings, and you don't need this amount of money to cover your daily expenses. Obviously it's good/free money to use at will. Let's say if you deposit the money into a bank and the annual interst rate is 3%, you will get a steady interest income year by year. If you use this money to buy Bitcoin, let's say the BTC drops to $17,000, you'll buy less than 6 Bitcoins. In the long run, what would you do with this money ? And why ?

My priority is always, Business.

I don't like to depend on Bitcoin's moon price in the future and only rely on that. Part of that $100,000 can be doubled while waiting for Bitcoin's moon price. Maybe 50% will go to pure business while the other will be used on purchasing bitcoin regardless of what's the price I think that would be a better entry.

Since you mentioned that this $100,000 has nothing to do to cover my daily expenses, there's not much pressure for me to always keep my business in profit. In that way, I can strategize what's the best thing to do in my business without pressure.

Business is a good thing if you would be doing the right choice of business ofcourse. Likewise with real estate investment. Usual misconception is investing all your money to crypto industry but that's not advisable. It will always be better to diversify investment into different fields to generate different profit chances and opportunities.

I also agree with this view, traditional trading and portfolio diversification. I would say it's stupid to invest it all in bitcoin or crypto, it's too risky. Crypto has too much risk, we should only partially invest in it.

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Quote from: Marcellin9 on December 09, 2022, 01:00:08 AM

Now you have $100,000 in your account, pure savings, and you don't need this amount of money to cover your daily expenses. Obviously it's good/free money to use at will. Let's say if you deposit the money into a bank and the annual interst rate is 3%, you will get a steady interest income year by year. If you use this money to buy Bitcoin, let's say the BTC drops to $17,000, you'll buy less than 6 Bitcoins. In the long run, what would you do with this money ? And why ?

I would say I will let the money sleep in the bank for a meantime while I'm trying to learn more knowledge about crypto. It will be to bad for you to invest immediately because you think its the ideal price to buy since it dump already since there are possibilities that it will dump for more and you get panic to sell your holdings to save your ass for possible massive losses.

Also try to understand that don't put all your investment on bitcoin only try also the traditional business which suggested by others so that you will have more income stream that can help you out for long term.

Yatsan

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It will always better to invest than to just store your wealth in banks, regardless of what investment it is, as long as there is a chance for profit to be earned. This industry is profitable but an investor should be cautious of possible loss if things won't be done properly. Using your money wisely does not mean you would engage to anything, perhaps in this industry; choose only those which are highly profitable.

Quote from: goinmerry on December 09, 2022, 06:32:26 PM

Quote from: Marcellin9 on December 09, 2022, 01:00:08 AM

Now you have $100,000 in your account, pure savings, and you don't need this amount of money to cover your daily expenses. Obviously it's good/free money to use at will. Let's say if you deposit the money into a bank and the annual interst rate is 3%, you will get a steady interest income year by year. If you use this money to buy Bitcoin, let's say the BTC drops to $17,000, you'll buy less than 6 Bitcoins. In the long run, what would you do with this money ? And why ?

My priority is always, Business.

I don't like to depend on Bitcoin's moon price in the future and only rely on that. Part of that $100,000 can be doubled while waiting for Bitcoin's moon price. Maybe 50% will go to pure business while the other will be used on purchasing bitcoin regardless of what's the price I think that would be a better entry.

Since you mentioned that this $100,000 has nothing to do to cover my daily expenses, there's not much pressure for me to always keep my business in profit. In that way, I can strategize what's the best thing to do in my business without pressure.

Business is a good thing if you would be doing the right choice of business ofcourse. Likewise with real estate investment. Usual misconception is investing all your money to crypto industry but that's not advisable. It will always be better to diversify investment into different fields to generate different profit chances and opportunities.

Topic: Use your money wisely. Invest or Deposit ? - page 17. (Read 4691 times)