Where to park cash cheaply

[void]

Let say one is planning an investment for 1M EUR. Where to store allocated funds for a few months?
Personal bank accounts not acceptable.
A few EMI accounts available but the individual doesn't trust them for keeping there more than 50k.
How to spread the risk and where to keep it? Crypto is a cheap and flexible way but too volatile for that purpose. Buying and then selling physical gold (in person or using services like BullionStar) is rather expensive because of the "spread". Maybe some trusted service can let you keep decent amount of money in the balance...
Please share your experience.

 

[speedster]

Isn't this what banks do? Otherwise if he wants to steer away from banks stablecoins might be an option

 

[nomad999]

yep crypto is perfect for that, use a stablecoins USDT or USDC to negate the volatility and it will cost you nothing, you can even get crazy interests above 8% with some of them.

 

[void]

you can even get crazy interests above 8% with some of them.

can you be more specific please?

 

[Clip]

can you be more specific please?

For example Nexo (I'm not affiliate)
Earn 8% Interest on Your Assets with 100% Asset-Backed Guarantee

and many others

 

[nomad999]

Crypto Lending | BTC Interest | Celsius Network - Unbank Yourself seems to give out the most. They distribute interests weekly and you can withdraw at any time.
You would need to pass kyc though as they are all regulated financial institutions.
i don't think there is a DAO yet for this purpose but its just a matter of time

 

[Clip]

i don't think there is a DAO yet for this purpose but its just a matter of time

That would be interesting, I've been researching into it to create one, but to be sure seems I need to hire expensive lawyers

 

[Martin Everson]

Oh boy crypto and high junk interest rates.....what could possibly go wrong .

Personal bank accounts not acceptable.

What is wrong with personal bank accounts if you spread it around or use a bank which has extra deposit protection above 100k? You can even use services that spread it around for you.

Otherwise do what everybody else does with large capital in EURs to park and buy a 3-9 month German government bond. You will lose a little to the spread/negative yield but for 100% security it is a price worth paying.

 

[void]

Otherwise do what everybody else does with large capital in EURs to park and buy a 3-9 month German government bond. You will lose a little to the spread/negative yield but for 100% security it is a price worth paying.

as you already noticed I'm not exactly someone with high trust in anything connected with states and government - on the contrary actually
however as a short term utility it doesn't sound bad - never heard about anyone using this instrument, wonder if one can do it fully online and if they care about the source of funds (not a problem in this case though)
thanks anyway

 

[buenosdias]

If you don’t trust governments and states, try corporate bonds of private companies.

 

[extremedox101]

For example Nexo (I'm not affiliate)
Earn 8% Interest on Your Assets with 100% Asset-Backed Guarantee

and many others

don't invest in Nexo if euros
https://www.trustpilot.com/review/nexo.io?languages=en&stars=1

 

[JohnLocke]

Some people say don't even Gold will be secure if a new financial crisis will break out.

 

[Clip]

Some people say don't even Gold will be secure if a new financial crisis will break out.

Agree, you can't drink or eat gold

 

[Sols]

Agree, you can't drink or eat gold

Some people sure have tried to though...

https://en.wikipedia.org/wiki/Goldschläger
https://www.bonappetit.com/drinks/cocktails/article/edible-gold

 

[iloveyouguys]

For example Nexo (I'm not affiliate)
Earn 8% Interest on Your Assets with 100% Asset-Backed Guarantee

and many others

Crypto Lending | BTC Interest | Celsius Network - Unbank Yourself seems to give out the most. They distribute interests weekly and you can withdraw at any time.
You would need to pass kyc though as they are all regulated financial institutions.
i don't think there is a DAO yet for this purpose but its just a matter of time

What's the risk? ELI5

 

[nomad999]

Well the risk is as usual, you are giving your money to someone and eventually they could run away with it or go bankrupt and lose it all

For example regarding Nexo mentioned above, here is some not so energizing news from today
https://www.financemagnates.com/forex/regulation/germanys-bafin-alerts-residents-to-nexo-group/
I am far from being an expert but from my understanding they make money by some clever lending schemes using the money peoples or institutions deposits and they distribute part of the interest/profit. a bit like a bank but without the protection from the states.

Despite all the risk, I also like this one
https://blockfi.com/It is closely related to the Gemini crypto exchange which is a renown and regulated institution in the US. Also both stable coin GUSD and USDC for which they offer >8% APR are regulated in the US and audited regularly, unlike USDT for instance which they don't deal with.

All of this is the premise of the whole crypto / DEFI movement that is bound to become enormous in the coming years (or totally collapse ahah).

Like it or not, all of this is something to keep a close eye into imho.

 

[iloveyouguys]

How do these platforms ENFORCE their rules, when you don't pay back the loan? They're just on the internet and usually in another country.

 

[nomad999]

they liquidate your collateral, you don't just get money out of nowhere like a bank
that's how they make money, by liquidating stupid or desperate people or money launderer lol.

 

[Martin Everson]

Despite all the risk, I also like this one
https://blockfi.com/ It is closely related to the Gemini crypto exchange which is a renown and regulated institution in the US. Also both stable coin GUSD and USDC for which they offer >8% APR are regulated in the US and audited regularly, unlike USDT for instance which they don't deal with.

50% LTV on BTC for a USD loan? What happens if Bitcoin is banned then in US..lol? Seems a rather short sighted business model.

 

[anotherone]

For 1 million dollars, I would not trust crypto.
You buy several ferraris. The price of supercars is pretty stable. I know people who do it in Belgium. It works. You buy a super car in Belgium, one in germany, one in the netherlands. one in luxembourg.

You can buy coal (commodities)
Coal | 2008-2020 Data | 2021-2022 Forecast | Price | Quote | Chart | Historical | News

You can buy soybeans, but you need to know when it is harvested all over the world. Look at the weather forecast.
https://tradingeconomics.com/commodity/soybeans