Hey All,
I am aware that numerous cryptocurrency projects exist in the wild, offering higher Annual Percentage Rates (APR) than traditional banking systems. However, a high APR is not the only factor to consider when investing; there are many other crucial factors such as security, reliability, investment tenure, taxation, liquidity, volatility, risk, and more. I have been pondering where to allocate my funds to generate regular income while maintaining a low-risk tolerance. I am inclined to be risk-averse because I prioritize capital preservation over the potential for above-average returns. I am content with a lower APR if it means consistent payouts rather than risking the principal amount.
Invested in Bank for an APR of 7.1%...
Considering all the factors and my investment plan, I decided to invest in a bank that offers an APR of 7.1%. I chose a monthly payout option to create a consistent income stream for myself. With an investment of nearly $12,000 or approximately Rs. 10 lakhs, I can expect to receive over Rs. 6,000 every month and of all this investment is almost risk FREE.
There is no doubt there are many stable coins that one can invest into and one of my favorite is $HBD which give out 20% APR. But for me its like, I don't want to park all funds in crypto space there should be some sort of diversification. For a risk-averse investor like myself, the goal is to generate regular income while safeguarding my initial investment. This cautious approach stems from the desire to minimize the potential for financial loss. I'm willing to accept a lower APR if it means consistent returns and protection of my principal amount.
In conclusion, while higher APRs in the cryptocurrency space may be enticing, a well-balanced investment strategy considers more than just returns. For those like me, who prioritize capital preservation and a low-risk approach, investments that offer stability and consistency are often the wiser choice. It's essential to weigh all factors, from security to risk tolerance, and choose investments that align with your financial goals. By doing so, you can find a path that not only safeguards your capital but also provides you with a regular income stream, giving you the peace of mind you desire on your financial journey.
I understand that in my case, I opted for a lower APR. However, considering my financial needs and objectives, this investment of $12,000+ led me to choose a fixed deposit scheme from a bank offering decent returns. This serves as a reliable monthly income stream that I can use for various purposes, such as my systematic investment plan in mutual funds or other cryptocurrency coins.... cheers
Have Your Say on Cryptocurrency High APR Vs Banking Low APR...
What will be your preference fixed deposits returns from Banking systems Vs Cryptocurrency projects with high APRs? Let me know your views in the comment box below...
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Best Regards
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PS:- None of the above is a FINANCIAL Advice. Please DYOR; Do your own research. I've an interest in BlockChain & Cryptos and have been investing in many emerging projects..cheers