If I hypothetically came across like 5 to 10 million dollars, and turned it into a stablecoin like USDC would it be wise to just leave it all staked for 10%?
Or do most exchanges not let you stake that much money in the first place? Sorry if I sound stupid, I’m just a bit new to all this stuff on crypto! I also don’t have that much to invest, but I always wondered what’s stopping millionaires from just leaving millions of dollars and getting a massive return on it by staking into a stablecoin.
It’s always sat in the back of my mind as to how come I don’t hear more about this. It just seems like a reasonable way to consistently gain a lot of money without really losing anything, unless somehow USDC and crypto overall just disappears the next day.
Edit: Genuinely not a whale, it was something my friends and I were talking about for fun. It just made me wonder why more well off people just don’t stake into stablecoins, since they said they wanted to stake it into other coins that isn’t a stablecoin to stake for a higher APY.
Just don’t risk it with tether
Darwin award level investing in that case.
Yes. Usdt is surprisingly still here but will make a big boom
If you have 5 to 10 million dollars, I’d imagine there are many other fiat-based investment options that would earn you a good returns without dealing w crypto’s uncertainty/volatility but would still earn you similar % ROI over time… e.g., a professionally-managed, diversified investment portfolio, real estate, mutual funds, complicated investment options that exist for millionaires that I dont know about…. stuff like that.
$5 million in USDC staked at 10% would earn you $500’000 a year without paying anyone to manage and invest your money, and that would be the first year. If you lived on $100’000 a year then the next year of staking would be $5.4 million USDC
Yeah but then you’re a class traitor
There’s a lot of folks that don’t trust the financial sector any more and don’t want anything to do with equities markets. I think saying “trust in traditional securities” kind of completely undermines one of the main purposes of cryptocurrency: free, fair, trust-less, secure, fast exchange of digital currency for goods/services in our everyday lives.
Taking that $5-$10 million dollars and parking it in fiat-based investment options.
I’m not a financial advisor, but I’d say buying and holding something like BTC is generally a better option long-term than fiat-based investments.
My current plan is to do exactly what OP was thinking about. I’m going to use L2, DeFi, side chains, and other features of the Ethereum network to store my fiat-equivalent coins and use it as a bank account that earns real interest. When I want to buy something, I’ll either send a transaction over directly to a businesses wallet, or I’ll withdraw a set amount (either per purchase if I can find a cheap and fast off-ramp or per month for all my expenses).
Granted, a majority of my wealth is still in my home and in equities, but I’m slowly moving stuff over as I build out my crypto ecosystem. I’m also only in the low millions right now total net worth, but the plan doesn’t change when I hit $5-$10m.
Agree here, would diversify across a number of crypto pools, but only ones with DeFi insurance available. Apollo, Anchor/UST, probably heavy in ETH, maybe 10% in some yolo type FTM or Luna ecosystem plays.
Would also be looking into syndicated real estate deals, consistent returns from knowledgeable players plus you don’t have to deal with being a landlord. As the cash stash grows so too does your access to insider deals.
If it were enough I would also look into moving to a more favorable tax locale.
All investments have some sort of risk attached to them, not just crypto.
10% per year is a HUGE ROI, especially for doing absolutely nothing.
There is no volatility with Stablecoins
What OP described is a very valid thing to do, in fact one of the Shark Tank guys (forgot his name) is doing the exact same thing, alongside his other crypto investments.
Now, the biggest concern about why what OP describes can be tricky (not now, but in the future) is regulations. EU has been moving forward with a bill to start regulating those services like Celsius, Nexo, etc. It is all good for now and it will not happen tomorrow, however EU at least is going in that direction.
Just don’t risk it with tether
Darwin award level investing in that case.
Yes. Usdt is surprisingly still here but will make a big boom
If you have 5 to 10 million dollars, I’d imagine there are many other fiat-based investment options that would earn you a good returns without dealing w crypto’s uncertainty/volatility but would still earn you similar % ROI over time… e.g., a professionally-managed, diversified investment portfolio, real estate, mutual funds, complicated investment options that exist for millionaires that I dont know about…. stuff like that.
$5 million in USDC staked at 10% would earn you $500’000 a year without paying anyone to manage and invest your money, and that would be the first year. If you lived on $100’000 a year then the next year of staking would be $5.4 million USDC
Yeah but then you’re a class traitor
There’s a lot of folks that don’t trust the financial sector any more and don’t want anything to do with equities markets. I think saying “trust in traditional securities” kind of completely undermines one of the main purposes of cryptocurrency: free, fair, trust-less, secure, fast exchange of digital currency for goods/services in our everyday lives.
Taking that $5-$10 million dollars and parking it in fiat-based investment options.
I’m not a financial advisor, but I’d say buying and holding something like BTC is generally a better option long-term than fiat-based investments.
My current plan is to do exactly what OP was thinking about. I’m going to use L2, DeFi, side chains, and other features of the Ethereum network to store my fiat-equivalent coins and use it as a bank account that earns real interest. When I want to buy something, I’ll either send a transaction over directly to a businesses wallet, or I’ll withdraw a set amount (either per purchase if I can find a cheap and fast off-ramp or per month for all my expenses).
Granted, a majority of my wealth is still in my home and in equities, but I’m slowly moving stuff over as I build out my crypto ecosystem. I’m also only in the low millions right now total net worth, but the plan doesn’t change when I hit $5-$10m.
Agree here, would diversify across a number of crypto pools, but only ones with DeFi insurance available. Apollo, Anchor/UST, probably heavy in ETH, maybe 10% in some yolo type FTM or Luna ecosystem plays.
Would also be looking into syndicated real estate deals, consistent returns from knowledgeable players plus you don’t have to deal with being a landlord. As the cash stash grows so too does your access to insider deals.
If it were enough I would also look into moving to a more favorable tax locale.
All investments have some sort of risk attached to them, not just crypto.
10% per year is a HUGE ROI, especially for doing absolutely nothing.
There is no volatility with Stablecoins
What OP described is a very valid thing to do, in fact one of the Shark Tank guys (forgot his name) is doing the exact same thing, alongside his other crypto investments.
Now, the biggest concern about why what OP describes can be tricky (not now, but in the future) is regulations. EU has been moving forward with a bill to start regulating those services like Celsius, Nexo, etc. It is all good for now and it will not happen tomorrow, however EU at least is going in that direction.