Saving in cryptocurrencies - is it profitable and how to do it?

Deposits at traditional banks currently bear an average interest rate of 0,1% per annum. Yes, it is not a mistake, for keeping our money there and financing high-interest loans for other people and companies, we get so much from the bank that we lose, because annual inflation takes more. No wonder more and more people are interested in depositing money in cryptocurrencies. It turns out that it is not difficult at all, and you can earn much more.

The coronavirus pandemic has caused banks around the world to race to cut interest rates. It was supposed to stimulate investments by making it easier to obtain loans for the development of enterprises, financing production and maintaining employment. But savers also backfired. Cheaper loans are one side of the coin, but lower interest rates are another. 

In most banks, the interest rate on deposits is almost imperceptible today. The average, calculated by financial experts, is ... 0,1% on an annual basis. The problem is that inflation reaches a few percent, so you don't have to be an outstanding mathematician to say that by putting money in a bank account, their purchasing power drops regularly. 

If not a bank, then what?

So what are the alternatives? People looking for safe havens for their savings have always chosen banks. But now these harbors are accompanied by a constant outflow. So you can try to hedge with bonds, but here too the profitability has dropped significantly. Or accept the loss of some security and invest a little more aggressively.

It has been possible to invest money in cryptocurrencies for some time. And it's not about earning on the increase in their rate, but on interest on cryptocurrency deposits. The so-called staking cryptocurrencies is much more profitable than storing money in fiat currencies in traditional banks. 

How to save in cryptocurrencies

Buying Bitcoin and other cryptocurrencies (e.g. in Bitcoin Evolution) allows you to earn quite a solid interest. There are dedicated platforms based on the blockchain network, but most cryptocurrency exchanges already have staking offers. They need collateral for the offer of leveraged trade, so they willingly pay interest to those who want to entrust them with their funds for a specific period of time.

So we can choose a fixed or variable interest rate. Depending on the demand and supply, it changes quite often, so we have to determine what suits us better - a fixed percentage of a certain amount for a specific period or a chance for higher / lower earnings and a more flexible approach. The interest rate also differs depending on what cryptocurrency we stack. Here, too, the relationship is simple: the greater the demand for it, the more we can earn. 

Okay, but how many specifically? It is impossible to answer this question directly, because there are currently offers of 18% per year (changed every month) and 0,8%. However, it is worth remembering that the price of cryptocurrencies changes dynamically and even the lowest interest rate can pay off very much, because after the end of the investment period, we can have assets worth much more.

Airdrops offered by cryptocurrency exchanges are an additional bonus. These are specific rewards for investing cryptocurrencies. We get debuting units or less popular cryptocurrencies for free. We can immediately exchange them for the most popular cryptocurrencies, or wait for their development and sell them when we deem it appropriate. Just like those who got 2011 BTC for free in 5, worth today ... 500. zlotys.