Hello there world of Bitcoin & cryptocurrency enthusiasts!
Gaining interest on Cryptocurrency has never been better.
The doors are wide open for anyone to achieve financial goals of being smart with their investments.
Making money while we sleep is the ultimate goal more achievable now then ever.
However!
There is a question that often bogs down our mind when thinking about the best options.
My aim today is to answer this simple yet confusing question!
Is it better to gain interest on Bitcoin, regular Cash Fiat, or some other cryptocurrency?
There are 2 quick answers to that if you're short on reading time today.
Answer 1.
You should be gaining interesting on all of those things.
Answer 2.
Technically it is better to gain interest on currency worth less than $1 USD.
Confused yet?
So was I!
Math is hard and number crunching can get confusing if you're not certain where to look.
Now that you know where to look be sure to bookmark this for future reference.
Why is it better to gain interest on cryptocurrency worth less than $1?
With percentages in play here it can make things really confusing.
I will provide examples further down to help you ponder this here.
Now of course the best options for you vary person-to-person.
If you're new, feeling uncertain, or just like to keep things safe and simple then gaining interest on regular cash Fiat is probably the best option for you.
In fact, you really don't even need to read any further if you think that describes you!
Gaining interest on cash is the best decision anyone could ever make in their lifetime.
It is honestly the 2nd best option an investor could make to save money.
Gaining interest is only the 2nd best option though because there is less risk.
With percentages the Dollar amount you are accustomed to using is unfixed!
This is important to understand because that means you are still gaining the same amount of interest no matter what you choose to hold.
So if you thought holding Bitcoin for passive interest is better than regular Cash Fiat like USD you are only slightly mistaken!
Still confused?
Again, so was I!
What is the 1st best option then?
Reflecting back to Answer 2 the best option is truly to pick something that is worth less than $1 USD.
That might sound contradicting to what was just explained though.
If the currency doesn't matter then why would you choose anything worth less than a dollar to gain interest on?
To answer that question things have to get interesting!
Before I provide a few examples to help explain, let's do a thought experiment first!
Pretend Fiat and USD doesn't exist and imagine you have only 3 options to choose from.
Each option is just a random number that gains 5% interest annually.
Option 1 = 1
Option 2 = 1,000
Option 3 = 0.5
Which option is the best option to gain 5% interest on every day?
If you chose Option 2 then you chose correctly!
The next best choice would be Option 1 and the worst choice would be Option 3, right?
Still confused or do you see where we are going with this now?
Don't worry!
There is a method to my madness here and you should be able to tell in just a few moments.
With Option 1 at 5% interest annually it works out to 0.05 gained.
With Option 2 at 5% interest annually it works out to 50 gained.
With Option 3 at 5% interest annually it works out to 0.025 gained.
Over the course of 1 year Option 2 clearly gives you the most back for your time!
This is why long-term investors and traders love Bitcoin and Cryptocurrency.
Sure you could gain interest for holding 1 Bitcoin but you would never gain as much interest as if you had 1,000 Bitcoin.
Obviously!
Not very many people out there anymore are able to buy 1,000 Bitcoin but you do have $1,000 dollars right?
Why not gain 5% on your $1000 rather than 5% on 1 Bitcoin?
Of course you should really be doing both but hopefully you are starting to see the point here!
Rather than getting a fraction of a Bitcoin annually, you could be getting $50 in cash guaranteed.
Or even better!
Take that money and purchase something worth less than a dollar to increase your gains.
If instead you took the $1,000 cash & purchased something worth less than $1 you instantly increase the number your interest is getting applied to!
So if we go back to our examples and look at Option 3 we can understand better now.
Option 3 was 0.5 gaining 5% interest annually.
The option has now opened up for you to take your $1,000 and purchase one of the options you were given.
Now if we purchase Option 3 with our $1,000 assuming 0.50 means 50 cents.
We end up receiving 2,000 Option 3's at $0.50 per option.
Basically we just doubled the amount of interest we are going to end up with now at the end of the year compared to Option 1.
Still confused?
I know there is a lot to read but I am confident you will get it if you have not already!
I have worked out the new numbers for you below using our same example to help better understand.
Using $1,000 you have the choice to purchase the following that will gain 5% interest annually:
Option 1 = $1
Option 2 = $1,000
Option 3 = $0.50
The best choice is Option 3 if you are looking for the best gain.
If you purchase Option 1 you will receive 1,000 and gain 50 annually
If you Purchase Option 2 you will receive 1 and gain 0.05 annually
If you purchase Option 3 you will receive 2,000 and gain 100 annually
Now I am not going to reveal to readers what cryptocurrency I do this with.
However!
I highly encourage you to at least think about it if you're still uncertain.
The best of the best learn the best ways to move their money where it matters most.
They will accumulate Bitcoin when it is low and dump it into their favorite smaller cryptocurrencies when it is high.
It's all a numbers game people!
Hopefully this will help you as much as it has helped me and thank you again for reading!
Thank you for reading!
https://www.trevorbalthrop.com
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