What’s your experience with using crypto as a savings account?

I’m looking to buy a truck either this year or next year since I need one for one of my hobbies. Obviously, the banks suck ass and I’m losing money just letting it sit there. So I’ve been thinking about putting the money I save up into stable coins but haven’t dipped my toes in yet. I know there are obvious risks in doing this but I think it’s more risky keeping it in a savings account that earns 0.005% at best.

So lemme hear your pros and cons of doing so. Experiences in this stable coin vs that stable coin. Maybe something other than stablecoins. I’m all ears.

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34 thoughts on “What’s your experience with using crypto as a savings account?”

  1. My savings account is for emergency funds. Everyone should always have an emergency fund in case of the unexpected.

    Cryptocurrency is our risky investments fund. We know the upside and we’re aware of the extreme low. So anything placed in digital assets will stay untouched for a very long time – minimum another 5 years. If it’s all wiped out, it’ll be sad but would never harm our family.

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  2. Put it in USDC on Crypto.com and you earn 10%. That’ll keep the money relatively safe, I wouldn’t put any money in anything but a stable coin if you’re planning to use it in the next 1-2 years.

    Gemini is considered to be a safe exchange, but you only get 8% on their stable coin.

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  3. The only crypto I use as a “savings” account are stablecoins that earn a bit of interest that I trust. Even then, I have a ~3 month emergency fund in a regular HYS at a bank, and now contribute to building up a GUSD fund that earns 8.05% since Gemini is regularly audited and seems like the safest bet. I’m hoping to pull this out later to either buy a new car or put down a house payment, but you also have the benefit of trading for other crytpo if there’s a dip you want to buy. USDC should also be safe, just stay away from Tether.

    All other crytpo should def not be used as a savings because it’s an investment, if you’re backed into a corner and have to sell at the bottom then you’re only hurting yourself

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  4. My suggestion would be to not keep fiat in crypto that you’ll potentially need for up to 4 years

    A crash has historically taken up to 4 years to recover from

    If you have fiat you can tie up in crypto for 4+ years then historically you should be ok

    But nothing is certain

    DYOR

    🙂

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  5. The issue for me is the taxing of crypto “swapping”. Since crypto swapping is a taxable event, using crypto as a savings account can be an organizable nightmare when it’s time to file taxes. If I lived in a location with clear guidance and friendly swapping rules, I’d probably have a portion of my savings in stablecoins that I’d use occasionally.

    That being said always have an emergency fund in your local currency. If you have to pay for an unforeseen expense quickly, then it’s much easier to have that cash in a shitty savings account instead of selling crypto, transferring fiat to an account, then finally being able to pay your expense (this process takes longer due to processing crap).

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  6. It’s more of a 401k than a savings account. I don’t treat crypto as liquid funds. Bank savings is my emergency fund (currently not contributing enough), career 401k for basic retirement, and crypto as a Hail Mary 401k. As far as performance comparison, the crypto account is out performing anything else I have.

    Part of it is mental. Thinking of my crypto as a long term investment means the dips don’t bother me one bit. Being able to move funds around to take advantage of good apr’s without a penalty is amazing.

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  7. I have an emergency fund to survive 8-10 months without income. The other amount is in crypto and stocks. Having an emergency fund should be a must before investing in crypto but it depends the risk you want to take.

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  8. I’ve been earning a nice passive income from lending stables – Celsius, Hodlnaut, Midas.investments, Stablegains 8.5-19% APY. I spread it across several platforms to mitigate risk. Use USDC. Stay away from USDT. Let me know if you have any questions

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  9. I only leave enough cash in my checking account to pay my monthly bills. All my remaining savings sits in USDC collecting 9% interest with no lockup period. (Of course I also leave an allotment for gambling money)

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  10. Depending on how much money you have now and your risk appetite.

    Buy $4,000 of CRO, lock it for 6 months, get the Jade/Indigo card for 3% cash back plus additional if using Spotify etc.

    Remainder of money buy USDC in small tranches over the next few weeks months. Lock them in 3 months earn each, so they come free again at different times. Each of these earn 12% each.

    Buy more USDC for emergencies and lock in flexible so you have this at 8% earn but you can recover at anytime of your choosing to supplement where you might need quick access.

    Your original $4,000 is at risk to the market and CRO fluctuations, everything else is relatively safe and it’s a cash builder. Additionally, you’ll receive CRO every time you use your CDC card, accumulate and change to USDC as you implement your tranches for the various 3 month earn programs you’ve implemented.

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