Who is suitable for collecting interest with cryptocurrency? What are the precautions for purchasing cryptocurrency interest collection products?

Dec 09,2022
Who is suitable for collecting interest with cryptocurrency? What are the precautions for purchasing cryptocurrency interest collection products?

Cryptocurrency brings global investors wave after wave of opportunities to become rich, but trading cryptocurrency always gives people the impression of speculation and speculation. In fact, in addition to speculation, investors can also obtain interest more stably on the cryptocurrency interest collection platform without frequent operations. The cryptocurrency interest collection products launched by different platforms have their own rules of the game, but on the whole, they are similar to the statutory currency savings plans that we are familiar with. They are set up in time or demand and other savings methods. The most attractive thing is that the annual interest rate of cryptocurrency interest collection products is much higher than that of legal tender, and there are countless savings plans exceeding 5% or even 10%. So, who is suitable for collecting interest with cryptocurrency? What should we pay attention to when purchasing cryptocurrency interest collection products? Next, let's have a look.

Who is suitable for collecting interest with cryptocurrency?

The interest collection commodities of the cryptocurrency platform are generally applicable to multiple currencies, such as ETH, BTC, USDT, Dash, Litecoin, Ripple, etc. In addition to leading currencies, it is also a popular practice to collect interest in a stable currency. The annual interest rate ranges from 2% to 3% to more than 10%. The common uses and countermeasures include:

1. Long term cash and interest collection: history shows that you can get rich by buying the explosive encrypted goods and investing for a long time; If you are confident in the prospect of a currency and are ready to hold it for a long time, you can consider participating in the relevant interest collection plan, collecting interest while waiting for asset appreciation.

2. Short term berthing of funds: Cryptocurrency market often rises and falls sharply. USDT and other stable currency interest collection commodities can be regarded as safe havens for property berthing and market entry opportunities after interest collection.

3. Low risk earning passive income: even if you have no long-term or short-term trading operation strategy in mind, interest collection itself is also the mainstream way of asset appreciation. By stabilizing the interest rate collection, investors do not have to deal with the risk of a sharp decline in cryptocurrencies, but can also obtain more generous interest than most interest collection stocks and fixed deposit commodities.

4. Diversifying investment risks: "Don't put all your eggs in the same basket" is the golden rule of investment, and it also applies naturally to cryptocurrencies. In addition to avoiding allin single cryptocurrency property, it is significant to balance the risk of the entire asset portfolio by depositing multiple assets in stable currency interest bearing commodities.

5. Novice experience market: The risk of speculating in cryptocurrency is very high. Novice may easily run aground and get discouraged. Taking stable currency interest collection as the first stop to enter the market is safe and participatory, so that novices have the opportunity to observe and learn slowly.

What are the precautions for purchasing cryptocurrency interest collection products?

There are many cryptocurrency platforms providing interest collection products in the market, including Celsius Network, BlockFi, Binance, YouHodler, Binance, Matriexport, CoinLoan, etc. The matters that should be paid attention to when entering the market include:

1. Choose a more flexible interest collection plan

In addition to the stable currency, the price of cryptocurrency fluctuates widely and greatly. Unless you are extremely confident about the long-term trend of the currency, you should not choose a long-term interest saving plan on time; The current plan that can be redeemed on the spot is more suitable for dealing with the turbulent currency market. You should also follow your personal investment strategy and use daily or weekly dividend products.

2. Pay attention to the risks and costs of stabilizing currency

The stable currency savings plan with high interest rates sounds like a "must earn", but investors also have to face inflation, capital inflow and outflow, transaction costs and other costs, which can weaken your potential income. After all, Hong Kong investors are likely to have to convert their profits back into Hong Kong dollars to enjoy it. The interest earning may be deducted by seven or eight, and they must have reasonable expectations before investing; If you buy coins in P2P mode, you should carefully review the seller's trading track and make sure that the other party is reliable before you start trading.

3. Check the reliability of the platform

When selecting the cryptocurrency platform interest collection platform, we can consider the size of the platform, the total number of customers, as well as the storage method, asset protection system and compensation of cryptocurrency, whether the platform operation is transparent, whether a third-party audit has been carried out, and whether there have been major accidents in the past. In terms of persuasion, the risk of "accident" is relatively low when selecting larger and popular platforms.

Speaking of this, I believe that you have a certain understanding of who is suitable to use cryptocurrency for interest collection and what matters should be paid attention to when purchasing cryptocurrency interest collection products. In general, Xiaobian also reminds investors that no matter whether they invest in cryptocurrency or not, they must have a comprehensive understanding before entering the market. After all, investment is accompanied by certain risks, so don't follow the trend blindly.