8% Per Annum on USD in Binance.com - Worth it?

jumperabv3

tonycottee said:

I reckon that by the time you 'feel' there is something up with the market, it will be too late. The average person on the street is always the last to know. Unless you have contacts?

Decentralized Crypto is about transparency as much as possible - Binance is centralized but its coin is a reflection of Binance itself.
You can set up an alert if the coin drops 30% or more in value in 1 day you would get an email/SMS and then you would know something is up... does it mean Binance would still be okay to make withdrawals at that given time hypothetically? Maybe yes, maybe no ... nonetheless I personally prefer them over other names such as Nexo and BlockFi because they have more transparency and they already faced huge attacks in the past and dealt with them successfully.

Another interesting competitor is Crypto.com - they also issued their own coin, it's valued only $0.16 but it could have huge potential as well if more people and investors would adopt it - would they? not sure, the market entry barriers could be sometimes quite high.

Voyager2002 said:

Of course the other big risk is the volatility of Bitcoin versus the pound sterling.

If you are a USD investor then you have no volatility against the USD because Tether (USDT) or Binance USD (BUSD) is pegged to the dollar.

John_

Are you going to actually put a proper amount of money in then, or just continue to pretend to be asking questions while promoting this?

ricky_v

jumperabv3 said:

I am following the faucets that I mentioned in this forum before, and one of them posted on their website this recommendation today:

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccesstable

In short National Savings and Investments is a state owned bank backed by HM treasury. They are not the first ones to offer interest rates on savings, other banks, mostly privately owned or PLCs with FSCS protection does the same, and there are other big players who do that, but NS&I is much more solid in comparison to others because it is backed by HM treasury.

Anyway, long story short - you can lend to the UK government of the GBP currency and invest it in NS&I for 1.16% return per annum, rate is variable,  but it's likely to stay at that rate. That's the gist of it.
You basically lend your money to the NS&I who lends your money as a loan to HM treasury who needs extra cash to pay for roads, schools, NHS, guns for the military, furloughed employees, subsidised meals out (Monday to Wednesday only), likely to further the UK economy (see Keynesian economics), etc. The loan is secured against the UK tax payer so there is no way for the borrower to cheat the system and run away with the loan because if he/she does he/she would loose the next general election as the UK economy really goes down the swanny.

Honestly, it sounds quite simple and it seems to be a trend in the sensible, boring saving world for investors to get sensible, secure yields on their savings. My question is if you would invest in something like this? What's your opinion about this?

A more sensible, less scammy version

jumperabv3

John_ said:

Are you going to actually put a proper amount of money in then, or just continue to pretend to be asking questions while promoting this?

Yes, I've started it today - here's a screenshot from my account.

Is there any Cash ISA that would allow you to deposit £7,500 and in return would pay you $193 (£147) in interest after 90 days?