Traditional retail banking, where loans are often issued on a speculative basis, based on borrower reputation, thereby not guaranteeing that the loan will be repaid. Not that Nexo is a 100% guarantee, but it just seems like more of a guarantee.
Whereas with Nexo you can earn 5% with a deposit as low as $100.
Absolutely criminal.
trad fin offers collateralized loans, they're pretty standard
By the way, have you ever done any investor accreditation exams, like the series 65 in the US? I'm thinking about it, but I don't know what kind of fees are involved.
that's a good return no question
nah I'm just a nerd, I dont need accreditation this is my hobby
Yeah its really the basis of my passive income strategy. to invest in things which can appreciate, and then earn interest on them, around 6% in total, compounded irregularly. Then I'd just sporadically sell the assets earned as interest.
interesting to think tho about their risk profile. theyve got a bunch of crypto coming in. what's going out? fiat? stable coins?
you could just put your money in an index fund
Same, but I'm seeing that certain crypto platforms (likeCelsius) are reserving certain features exclusively for accredited investors. The qualifications are absurd, from my cursory understanding. You basically just need to be rich enough and you qualify by default, or else you have to pass an exam, which seems more fair, depending on whatever fees are involved.
There are some for crypto (ETFs, and actual tokens like DeFi Pulse), but I haven't explored those yet.
not in crypto, just in the stock market
Yeah if I'm not mistaken, Celsius has a "earn in CEL" option, like Nexo has for non-US residents, whereby you can earn interest on your deposit, in the form of the platforms own token. But to do this, you need to be an accredited investor. And one way to be an accredited investor, I believe, is to simply already be rich enough. Again, absolutely criminal
Yeah as I understand, that would be a good long-term strategy. Ongoing exposure to the growth of the market, without trying to keep outperforming it via trading.