A flexible cryptocurrency savings account allows you to earn interest on assets deposited in a wallet. In addition, you have the possibility to withdraw them at the most convenient time, making it an attractive type of business.
The advantages of this type of financial product include the possibility of generating interest on your available assets, withdrawing funds when necessary and creating capital in a short time.
However, it has certain risks, such as market volatility, causing the value of the investment to be affected. It is also possible to be a victim of a cyberattack, losing all the assets deposited in your wallet.
Below, learn more details about how a flexible savings account works in the cryptocurrency world.
What is a flexible savings account?
A flexible savings account is one that allows you to generate profits based on the funds you decide to deposit in it, with the possibility of changing them at any time.
In this way, you can manage assets more easily, know the interest rate and track the investment to know its performance.
In general, all flexible savings accounts have common characteristics, some of which are:
- High interest rate: are normally higher than in traditional savings accounts and vary according to the amount of assets deposited.
- Flexibility to withdraw and deposit: it is possible to make deposits or withdrawals of funds without limitations.
- There are no maintenance fees: you won't have to worry about paying a monthly maintenance fee.
Differences from traditional savings accounts
Flexible savings accounts differ from traditional savings accounts because they go beyond a specific product. Generally, they offer higher interest rates than the market and allow you to dispose of the assets immediately.
They also facilitate the conditions for making financial transfers of all kinds, such as attaching cards or receipts.
Another key aspect is that there is no penalty for withdrawing, which means that you should not pay commissions for withdrawing the money deposited. This is not the case with traditional savings accounts, as they usually impose a penalty for early withdrawals.
Nor will you have to meet a minimum account balance to start earning interest, something that usually happens with traditional savings accounts.
What is a cryptocurrency savings account?
Operation and benefits
The cryptocurrency savings account has been created so that you don't have to interact with protocols you don't know, something that can be difficult and confusing.
If you want to earn interest with digital assets, without them being stored there, this financial product is the solution.
As with a conventional savings account, there are companies that will use those assets in your name and will pay you interest based on the activity carried out.
A key advantage of using a cryptocurrency savings account is that interest rates are higher, attracting thousands of investors each year. For example, if you do it in El Dorado, you access an annual percentage rate of return of 3.8% with USDM.
Comparison with traditional bank accounts
- Easy to use: Because cryptocurrency accounts are managed from smart devices, there is no place or time that you cannot log in to carry out your operations. On the other hand, with traditional bank accounts, you'll have to go to one of their offices to make an exchange from one currency to another.
- Cost: It's usually free to sign up to a cryptocurrency savings account and do the things you need. On the contrary, a commission must be paid for this in a traditional account.
- Aperture: the opening process is easier with digital asset savings accounts. Because you only have to send a photo of the user's identity document and address to verify their identity. On the contrary, in a traditional account, the most common thing is to attend a physical office to do the same, which involves more time and expenses on trips.
What is flexible USDT?
Flexible USDT is a digital asset that allows you to make withdrawals or deposits whenever you want, without having to obey a period of time due to blockade.
In other words, anyone can continue to generate interest in their USDT cryptocurrencies and access them if necessary.
Because USDT is a stablecoin pegged to the value of the USD, it is widely known and used by cryptocurrency investors.
It is considered a lower risk option compared to other digital currencies such as Bitcoin or Ethereum, whose value in the market fluctuates constantly and erratically at times.
Thanks to these characteristics, USDT plays a key role in flexible savings, as it is an ideal financial product for generating passive income. Especially if you're one of those people who just prefers to keep their money.
Advantages of saving in USDT versus other cryptocurrencies
USDT is used as a protection tool for users who want to reduce the risk of investing in the cryptocurrency sector. However, its advantages go beyond that:
- Refuge from inflation: in countries where inflation is high, such as Venezuela, USDT is a backup alternative to the local currency, which has lost value.
- International transfers: it is possible to send payments for less expensive and faster alternatives when using USDT, especially due to the number of compatible platforms and low transaction fees.
- Shopping: due to the stability of USDT, it has been adopted by many merchants in the world, facilitating purchases without being exposed to the volatility of other cryptocurrencies.
How to save money in cryptocurrency?
- Research and choose a cryptocurrency: not all digital currencies are the same, so you should research the fundamentals, history and growth hope of the one you are going to work with.
- Use secure platforms: In the crypto world, security is key, so it is necessary to use sites that protect your assets and personal information. In addition, you must verify that they comply with industry regulations and laws.
- Create a cryptocurrency savings account: this option allows you to have access to your cryptocurrencies and generate passive income in a daily and secure way.
- Educate yourself about the crypto world: it is key to understand how cryptocurrencies behave and the risks they entail. In addition, passing this information on to family members will be essential for them to overcome challenges in the sector.
- Track investments: you must adjust your investment strategy to the type of market in which you participate. Because virtual currencies are volatile, it's crucial to make informed decisions to protect long-term revenues.
Key Factors to Consider Before You Get Started
- Do not invest in an unknown cryptocurrency.
- Consult references of other active users on a cryptocurrency platform.
- Have security protocols in place so as not to be vulnerable to hacks.
- Use cold wallets to store assets.
- Be aware of market volatility and make timely decisions.
- Don't make investments with money you can't afford to lose.
- Diversify assets to reduce risk.
- Know the regulations on the taxation and use of cryptocurrencies in each country.
- Watch for fraud attempts to identify them in time.
Is it worth investing in cryptocurrency?
Pros and Cons of Investing in Crypto Assets
Pros:
- Possibility to access big profits: it is possible to obtain high returns thanks to the sudden fluctuations experienced by cryptocurrencies.
- Blockchain security protocols: because all cryptocurrency transactions are recorded on the blockchain and it operates in a decentralized way on several computers, it is not possible to access all the complete information, keeping yourself safe.
- Ease of access: In cryptocurrency accounts, only a smart device with an internet connection is required to know their status.
Cons:
- You have to study: research is required to understand how cryptocurrencies work, something that takes time, especially if investment risks are to be mitigated.
- They represent volatile investments: in the case of wanting stable returns, this is not the best option, its value usually increases or decreases disproportionately and in a short time.
- There are many security risks: If the user reveals the key to their savings account and performance in cryptocurrency, their assets may be vulnerable to hackers to the point of losing them.
Profitability and risk analysis
Bitcoin is the most profitable cryptocurrency with the best financial trajectory in the market, given its level of capitalization and availability. For its part, Ethereum is the second best placed, which means that they are better for you to make an investment.
However, in the case of cryptocurrency savings, USDT is pegged to the price of the United States dollar. This makes it less volatile than the previous two options, ideal for you to use in a flexible savings account or performance.
With regard to risks, all digital assets are exposed to loss if the server where they are hosted is hacked or you reveal the password to access your wallet.
Their prices are not stable, so you have to keep an eye on the market to make decisions at the right time.
In addition, in the case of fraudulent trading, it is difficult for you to track stolen cryptocurrencies, increasing the risk of transactions.
How does El Dorado's flexible savings work?
In the case of El Dorado, there is a financial product called El Dorado Gana. It allows you to generate income on the USDT you have in your account, keeping it available for use at all times.
In addition, with the alliance acquired with Sage, your assets will be protected with the highest security standards. Therefore, no one else will have access to your cryptocurrencies deposited in El Dorado.
The only difference with other alternatives is that it will be necessary to transfer a certain amount of your cryptocurrencies (starting from 20 USDT) to a safe where daily interest will be generated.
Comparison with other options on the market
El Dorado is a secure app because it allows users in Latin America to protect themselves against the inflation of their local currencies.
On this platform, it is possible to access a large number of certified buyers and sellers who guarantee that operations are executed reliably and securely.
In addition, it implements protection protocols, both for balance and personal information.
With its recent addition of El Dorado Gana, something that other options don't offer, you can generate interest with your saved cryptocurrencies, having an additional source of income.
How to withdraw crypto to a bank account?
Aside from Binance, the best way to acquire fiat money from cryptocurrency is to work with El Dorado. Because it allows you to sell securely with payment methods adapted to each country in Latin America:
- Create an account on the platform: access the main website from a smartphone or tablet.
- Verify the account: comply with the KYC verification process, it won't take more than 3 minutes.
- Create a wallet: is the address where cryptoassets are stored.
- Depositing the USDT to the El Dorado wallet: make a deposit in USDT to your account in El Dorado, this can be done with USD from Zinli, PayPal, Wally, Binance Pay (USDT), Banesco Panama, Wise and other recognized entities, it is also possible to receive them from a shipment between accounts direct in El Dorado.
- Access the P2P market: you must search for the available users who want to buy your USDT, then you will have to choose the local currency of your choice, the payment method and the amount. Finally, release the USDT to the counterparty.
Recommendations for avoiding high fees
- Choose platforms with low fees.
- Use services that provide discounts if you trade regularly.
- Make trades at times when volatility is lower.
- Use payment methods with low fees.
- Use native app tokens to lower fees.
Final Tips and Best Practices
How to maximize the benefits of flexible savings?
Automatic savings are used to debit an amount of your cryptocurrency to your flexible savings account performance. It's a feature that some platforms offer and that allows you to generate more income as you have more funds.
In addition, it's crucial to eliminate non-essential expenses, as practicing smart consumption will help you deposit more assets into your flexible savings account.
If necessary, use financial management apps to help you control expenses and income.
Common Mistakes and How to Avoid Them
- Not knowing the cryptocurrency you are going to invest in: you have to understand the team behind the digital currency, its price history and technical analysis before investing.
- Investing too much: you only have to use money that is not essential for daily needs, you must also be conservative and diversify your portfolio to mitigate risks.
- Failure to preserve asset security: use secure or offline wallets, apply two-step verification and don't share your keys.
- Don't pay attention to fees and commissions: compare rates before investing in a cryptocurrency, so you avoid costs for transfers or unnecessary operations.
Cryptocurrencies involve a risk of high volatility, so it's key to use stablecoins such as USDT. This is a currency that you can deposit in your flexible savings account and protect yourself from inflation, while generating income.
In the case of El Dorado, it's a platform with which you can manage your savings account with flexible performance thanks to El Dorado Gana. To do this, you'll start with 20 USDT and allow you to withdraw your funds when you need them.
So, if you are looking for a wallet where you can save money, you haven't planned to use it for a long time and you like cryptocurrencies, flexible savings are right for you. All you have to do is know the virtual currency in which you are going to choose and have a spending plan.
