Anyone who has attempted to save up a substantial amount of funding can attest to the struggle it can be if the only avenue you choose is a traditional savings account. Savings accounts were originally intended to protect people’s wealth and enable businesses to conduct business more freely. Today, there are more ways than traditional checking accounts to save funding, and people are leveraging these techniques to generate lasting wealth. Here are the top 10 ways to improve your savings using crypto.
Free Yourself from the Central Banking
The first way you can improve your savings potential is to free yourself from the central banking system’s grip. The central banking system has proven to be skewed against the average consumer with banks and regulators coming up. It’s common for politicians to take up positions at these institutions after service or vice versa.
This melding of regulators and bankers has left the general public out of the loop in terms of generating lasting wealth. Your bank may seem like it’s designed to help you store and protect your funding but when you step back, it becomes obvious that your bank is a business setup to generate revenue.
Once you realize that the bank isn’t there to provide you services but rather to produce profits from your actions, it opens the door for you to consider more appealing open options. The shift by most people into the mobile banking sector is another factor that has made the population interested in other options.
The move to mobile banking has shifted the market in many ways. Nowadays people are not ok with waiting in long lines or the ridiculous banking hours. They demand instant access to their funding and demand lower fees from their service providers. Mobile banking has paved the way for today’s advanced decentralized banking options.
DeFi is the future of banking and for good reason. They help to eliminate many of the biggest issues that have plagued the market since day one. These protocols don’t have a central group or party controlling or approving transactions and no board of shareholders that needs to be pleased.
The best DeFi banking solutions operate as pure code. They eliminate the use of personnel and replace them with smart contracts. These protocols don’t need breaks and can operate 24/7. They also don’t have emotions, which means they won’t conduct fraud, discriminate against clients, or steal. In these ways, DeFi banks offer the world the chance at a freer economy.
Another way that you can use a blockchain asset to improve your saving strategy is to use inflationary-resistant assets. Fiat currency is great for daily transactions because it’s widely accepted and available. However, from there its advantages are limited. For one, it’s not great for saving at all.
Fiat currency has some inherent traits that work against it in terms of saving value. It has unpredictable issuance and unlimited supply. The basic rules of supply-demand dictate that if the supply of an item increases, the demand will decrease. The same goes for currencies, every time a new fiat currency enters the market it detracts from the existing funding.
The effects of overprinting can’t be ignored. For example, around 30% of all USD in circulation was printed during the COVID-19 pandemic. This overprinting led to inflation in the USD with food and other necessities seeing a spike in value. Interestingly, the cost of food rose by 30% the same time.
When it comes to fighting inflation you need to hit a few core principles. You need to have an asset with predictive issuance. This term refers to a set schedule when new funding enters the market. This is necessary to prevent a single party from controlling the issuance of a currency.
For example, Bitcoin issues a token every ten minutes as a form of reward for miners’ efforts. This ten-minute issuance schedule combines with a limited supply with great effect in terms of eliminating inflationary concerns. When you have an item that is limited in supply, it’s already better suited for storing value than an asset that can be produced at a whim.
Another way that DeFi networks fight inflation is through the use of stable assets. The META 1 Coin leverages a basket of gold-related assets which provides with similar store of value characteristics of gold but the convenience of blockchain assets. For the reasons listed above, Gold has proven to be a strong store of value.
Save on Fees
Your bank is draining your account using a myriad of fees that make no sense. It’s common for banks to charge you for having an account, accessing your funds, and even closing your account. Many funds have no bearing on your bill which is impossible to justify. These fees only exist because the centralized nature of the banking sector makes it possible to skew the market in this way.
For example, look at overdraft fees. Overdraft fees are the fees that a bank charges you if you spend more than what you hold in your account. They are a major concern for people and can result in a person going from only a few dollars negative to a complete crash in their account. Overdraft fees add up quickly because they are compounding. Additionally, the bank understands these efforts are crushing lower-income families.
Overdraft fees are unnecessary when you consider that the bank lends out your crypto and secures millions in profits doing so, but only pays you a tiny fraction of the rewards for using their services. Mobile banking solutions were the first to chip away at the fee structure of centralized banking.
DeFi banks take the concept a step further and use the fees to provide rewards for network nodes who validate transactions and conduct other network tasks. DeFi banking has much lower fees because there is no local branch or shareholders to swipe the profits. In DeFi, the people are the bank which means the rewards are split between users.
Put Your Savings to Work for You
One of the core principles of achieving financial freedom is to leverage passive income. Passive income used to be only available to those who could secure residuals and royalties, or had the capabilities to operate managed businesses and real estate. Passive income is any type of funding you receive for past efforts that continues after you completed the task.
Passive income is one of the cores of financial freedom because it’s how you free your time up. Compared to receiving a paycheck where you can’t take a day off, passive income is a better option. Notably, it’s normal for most people to operate using both earned and passive income while they build up their reserves.
In the current fiat, savings account sector, it’s normal to pay out as low as 0.03% on savings. This rate is not going to generate wealth for anyone unless you hold $20M in your account. Since the average person has less than $500 in savings, the entire concept is part of the bigger scheme to keep people from achieving their freedom.
DeFi networks provide several ways for you to put your savings to work for you. The best options will offer you rewards for your efforts but limit any chance of losing your original asset. This structure will also include compounding rewards which can help to improve ROIs.
DeFi networks have a lot of features that fit this criterion. For example, high-yield savings accounts operate just like your traditional banks but pay out much higher rewards. They can afford these payouts because of the lower overhead and reduction in personnel. The META VAULT high-yield savings account pays out 10% which is ideal for many reasons.
For one, you need to remember that the crypto space is mostly unregulated which means you need to exercise caution to stay protected. A 10% APY is reasonable but when you start to see networks offer a 100% and sometimes much higher reward, it’s an obvious sign they seek to feed on people who want a quick route to getting wealthy.
Those individuals will always fall for schemes like this because they haven’t yet reached the point where it makes sense to take a sensible approach to generating wealth. The professional servers are going to leverage their savings to generate rewards using all low-risk methods possible.
Integrate Safehaven tokens
Another major way to improve your result is to integrate safehaven tokens. These tokens are designed specifically for saving. These protections reduce volatility and improve long term store of value characteristics.
The safehaven token concept is still new to the market but here are some pioneers making a difference. The META 1 Coin is a popular safehaven token that continues to garner attention. This token uses a basket for gold-related assets and a combination of smart contract protections to help it remain stable even in the most volatile areas.
The Token features an asset protection model. This structure prevents people from conducting pump-and-dump schemes because it prevents trades under asset value. This protection is vital because it’s common for stablecoins to fall below a set value even if the reserves are healthy.
Additionally, the token introduces anti-corruption protections. The main concern for developers was to figure out a way to ensure the network couldn’t be usurped by corporations trading firms, or governments. To accomplish this task, the developers choose to prevent this user from entering the market.
Save on International Payments
Those who have to conduct international payments will find that blockchain assets are the ideal solution to the problem. They provide permissionless cross-border payments that are reliable and secure. The peer-to-peer nature of blockchains makes it ideal for sending value internationally.
The process is more efficient and faster than using fiat currency. It also costs much less because there are far fewer people involved. A normal fiat currency results in more than 30 different groups involved in the actions. Each stop adds to the cost of conducting the transactions. Consequently, it’s common to lose 10% of fees when sending money internationally.
Use DEXs to Create Arbitrage Opportunities
Another great way to improve your savings is to learn to trade blockchain assets. In the past large CEXs (centralized exchanges) were the only option that most people considered. However, today, DeFi exchanges are a better solution. They offer lower fees and more privacy and openness. A DeFi exchange doesn’t have a centralized group.
These networks offer non-custodial trading options. This designation means that you don’t have to trust your asset to third parties. In the past, leaving your crypto on an exchange added to your risk exposure. Today, DEXs let you trade directly from your account which eliminates delays and other losses from hacks.
Spend Your Crypto Rewards
Another way to prevent spending your savings is to spend your passive crypto rewards. Networks like the META VAULT offer you crypto debit cards which make it easy to spend your crypto like fiat currency. These tools convert your crypto into fiat when you swipe. The process is fast and effective.
Crypto debit cards have changed the market forever. They enable people to seamlessly integrate crypto into their daily lives and for this reason, they are growing in popularity. The META VAULT offers a crypto MASTERCARD options that enables you to spend your rewards globally in a seamless manner.
Build Savings and Win
Don’t watch your savings dwindle in your fiat savings account. You can control your financial destiny and make maneuvers to prevent inflation from stripping you of your future. Stick to reputable platforms and you’re going to see excellent results while standing up for your financial freedom.