Protect your crypto assets with ArbiSmart
SPONSORED POST*
The crisis in the banking industry, currently making headlines, has so far led to the collapse of three US crypto-friendly banks Silvergate, Signature and Silicon Valley Bank (SVB). The contagion has also looked like it could spread to Europe with recent concerns over Credit Suisse. As a result, crypto owners are looking for a safer home for their digital capital, and by far the most stable and profitable option is an interest-bearing wallet.
Interest-bearing wallets give you the opportunity to store your money safely, while earning a passive profit on your savings. They offer a consistent return, regardless of which way the market moves, so even if prices suddenly fall, you’ll continue to receive the same rate of interest for the duration of your savings plan contract.
How interest-bearing wallets work
An interest-bearing wallet works in the same way that a bank will use your capital to make investments and in return pay you interest. By locking your funds in a wallet savings account that is closed for a specific period of time, you allow your cryptocurrency to be put to work for a specific purpose, such as day trading, lending or arbitrage trading, and you will be financially rewarded for using your capital.
As with a bank account, the process is simple. You open a savings account and deposit funds, on which you will earn a passive profit. The amount you earn will vary depending on the wallet you choose and will be calculated based on the type of savings plan, how long the balance is locked and the size of your deposit.
The benefits
Wallet savings plans offer a number of advantages, chief among them being their characteristic low risk and high returns. An important factor to consider, especially in today’s economic climate, is that with an interest-generating wallet you are secured against inflation and protected against stock market crashes. They also generate passive profits, so you don’t have to manage your capital and keep an eye on the highly volatile crypto markets around the clock to ensure you don’t miss out on lucrative opportunities. A wallet savings plan ensures that you can focus on other things while your capital earns a steady rate of interest that can easily exceed 100% a year, while on average a bank will offer less than 1% annual interest.
Making the right choices
In a number of ways, the digital currency arena involves higher risk than other forms of investment, due to under-regulation, exceptionally high market volatility and the anonymity that has allowed bad actors to thrive in the crypto space. The security of the wallet you choose will depend on the regulatory status, experience, risk management protocols, choice of investment strategies, best practices and other security policies implemented by your chosen wallet.
While a decentralized wallet gives you greater control over your funds, the advantage of a centralized wallet that is the depository of your capital is that it is governed by some form of regulation. Your choice will depend on your personal requirements.
Other factors to consider include the types of savings plans on offer, as well as the supported currencies, and you need to think about which one best suits your needs. Is there a wide range of cryptocurrencies supported and do they support FIAT as well?
Like a bank savings plan, a short-term wallet savings contract, where your funds are locked in for only a short time frame, will give you a lower interest rate than a long-term plan where your funds won’t be available for years, as opposed to months. You need to be realistic about your financial flexibility and your overall liquidity because you don’t want a situation where you are penalized for withdrawing your capital before the savings plan contract is complete.
For example, let’s take a look at ArbiSmart, one of the largest, most established wallets on the market. Established in early 2019, EU authorized and registered wallet supports 30 different FIAT and cryptocurrencies from BTC, ETH, APE and SHIB, to EUR, USD and GBP. There are savings plans to suit everyone, with short-term contracts as short as 1 or 3 months and long-term contracts as long as 3 or 5 years. Wallet holders can earn up to 147% a year and interest is paid out daily. The exact amount you will earn can be calculated before you make a deposit, depending on the currency of your savings balance, the amount deposited, the length of your savings plan contract and your account level.
By using a digital wallet, you can ride out the banking crisis with peace of mind. Make a profit on Bitcoin and Euro, put your money to work to receive unmatched interest, with close to zero market risk.
Do you want to ride out the banking crisis safely and profitably? Open a wallet savings plan today!
*This article was paid for. Cryptonomist did not write the article or test the platform.
