Use your money wisely. Invest or Deposit ?

[Ultegra134]

First and foremost, there's no way you'd get 3% interest with a bank deposit, not even with term deposits. The most you can get here is approximately 0.10% for considerably large amounts of money. With that being said, it really depends on what type of investor you are. If you're up for a steady source of income, you could opt for stablecoin staking, with which you'd certainly achieve a 5-6% APY. On the other hand, if you're into assets, Bitcoin would be a decent option, especially now that it's practically dirt cheap compared to last year's all-time high.

I think the bank's annual interest depends on the bracket of how much a client deposit but regardless of the increasing interest, I will never trust bank to handle huge amount of funds and let them play with it while having me beg for their mercy if I wanted to get my money.  I would rather play it myself via Bitcoin investment than trust my money to a greedy and heartless financial institution.

Here at least, most banks offer from 0.01% to 0.10% at most, the latter for large deposits. There's absolutely no way the OP has found a bank offering 3%; it sounds way too much. As far as I know, bank deposits are actually insured by the European Central Bank, at least up to €100,000. I don't feel unsafe using banking services, but they're taking advantage by charging outrageous fees. There are only a few exceptions to this, such as online banks such as Revolut and N26, which are extremely convenient.

[Poker Player]

Now you have $100,000 in your account, pure savings, and you don't need this amount of money to cover your daily expenses. Obviously it's good/free money to use at will. Let's say if you deposit the money into a bank and the annual interst rate is 3%, you will get a steady interest income year by year. If you use this money to buy Bitcoin, let's say the BTC drops to $17,000, you'll buy less than 6 Bitcoins. In the long run, what would you do with this money ? And why ?

For me, two points are basic:

1) Do you have an emergency fund? If not, out of that $100k set aside an amount between 3 and 6 months of expenses for emergencies.
2) Do you have a positive cash flow from one or more sources of income that allows you to continue saving/investing? If the answer is yes, I would invest all of it once the emergency fund is set aside. Otherwise I would be more conservative.

[Maidak]

Now you have $100,000 in your account, pure savings, and you don't need this amount of money to cover your daily expenses. Obviously it's good/free money to use at will. Let's say if you deposit the money into a bank and the annual interst rate is 3%, you will get a steady interest income year by year. If you use this money to buy Bitcoin, let's say the BTC drops to $17,000, you'll buy less than 6 Bitcoins. In the long run, what would you do with this money ? And why ?

I don't like to fantasize about money matters, but when you have that kind of money, the first thing that comes to mind is to spend it on fulfilling your ambition, having fun, taking a vacation to the place you want to go most. It's all based on natural human instincts. But when it comes to investing it's clear I choose bitcoins and withdraw them in cold wallets with complete control. I don't trust the bank to save that much money, because you know that the money you keep in the bank is only nominal, while our physical money is circulated by bankers to be lent to other people. As a result, it is better to keep a pile of money at home or buy Bitcoins with complete control over your own legitimate assets rather than having to keep them in a bank.

Everything is risky, and there are no absolute guarantees, if you don't trust the bank, it is not safe to keep cash or convert it all to bitcoin. If you keep too much cash in your home, your property is easy to be taken by thieves or you hold it in bitcoin, and there is no guarantee that incidents like a house fire, natural disaster, or you lose your private key...all of these things are likely to happen. The best solution is to divide them into different parts, don't put all your eggs in one basket.

[abel1337]

Now you have $100,000 in your account, pure savings, and you don't need this amount of money to cover your daily expenses. Obviously it's good/free money to use at will. Let's say if you deposit the money into a bank and the annual interst rate is 3%, you will get a steady interest income year by year. If you use this money to buy Bitcoin, let's say the BTC drops to $17,000, you'll buy less than 6 Bitcoins. In the long run, what would you do with this money ? And why ?

For me, two points are basic:

1) Do you have an emergency fund? If not, out of that $100k set aside an amount between 3 and 6 months of expenses for emergencies.
2) Do you have a positive cash flow from one or more sources of income that allows you to continue saving/investing? If the answer is yes, I would invest all of it once the emergency fund is set aside. Otherwise I would be more conservative.

That's a way apply financial literacy. Emergency funds and stable cash flow is one of the important things we need to have if we want to invest. I learned this thing the hard way knowing that I lost all of my asset because of wrong financial decisions and having no back up funds at all like emergency funds and savings. I became confident because on how easy I generate profit that time. This all happened to me after the arrival of bear market on 2018 when I lost most of my investment due to improper management of my finance. This bear market, I know I'm fully equipped with the nesessary funds such as emergency funds, savings and investment funds that I can use anytime. I also did get stable job so yeah, I'm positive that I can survive the bear market and still have the investment fund to be ready for the next bull market.

For the topic, treating banks as an investment in a bank is just a waste of time. We can be strategic on our investment and depositing it in a bank with that kind of interest rate is such a waste given that the inflation has gone high, The profit you are earning is just a small bonus to your losses due to inflation. Inflation Differs per country of course.

[Semar Mesem]

Life is always unpredictable, sometimes the wheel of life spins so that we have to always be vigilant, don't be too easy to waste money or put money on things that are not productive, when there is a lot of money most people will act extravagantly like buying vehicles, apartments and so on, when it's hard then if you are going to sell these assets it will be difficult and the value will drop significantly.

[ilovealtcoins]

Now you have $100,000 in your account, pure savings, and you don't need this amount of money to cover your daily expenses. Obviously it's good/free money to use at will. Let's say if you deposit the money into a bank and the annual interst rate is 3%, you will get a steady interest income year by year. If you use this money to buy Bitcoin, let's say the BTC drops to $17,000, you'll buy less than 6 Bitcoins. In the long run, what would you do with this money ? And why ?

If I have that $100k and it has nothing to do with other expenses and if losing them doesn't bother me, I'll invest it all in bitcoin without thinking too much. If it's free money, I'll take the risk of losing it all or I'll get $1 million or $10 million, it's worth the risk. But if it was a savings, I would never fully invest in bitcoin, I would be in business.

[AicecreaME]

Now you have $100,000 in your account, pure savings, and you don't need this amount of money to cover your daily expenses. Obviously it's good/free money to use at will. Let's say if you deposit the money into a bank and the annual interst rate is 3%, you will get a steady interest income year by year. If you use this money to buy Bitcoin, let's say the BTC drops to $17,000, you'll buy less than 6 Bitcoins. In the long run, what would you do with this money ? And why ?

I'd say I'll use the $60,000 on Bitcoin and the rest are for emergency fund, just in case some emergency happens so I wouldn't sell my Bitcoin. It's important to have another choices, not just one, because if you only have one, you'll be force to do whatever it takes to solve a certain problem that might not against your will, and disappointment, regrets will come after, and you don't want to happen as much as possible.

[TheGreatPython]

it's really better to just invest your money in crypto or bitcoin, not in banks wherein the returns are very small annual.

While in bitcoin, we might see another all time high in 2024 and so if you invested it today, it might return a good amount and you will be glad that you made the right decision. But just invest money that you can afford to lose so that you won't be bother and not panic when the price goes down. Just suckered it in and forget about your investment in the next 2 years.

Usually small returns do also have a small risk but then I realized that banks are centralized and there are so many horrible stories about banks. Customer's funds gets locked up, frozen and worse lost because the banks got bankrupt. This will be avoided if we have a full control of our funds. Cryptos such as bitcoin can offer it.

Cryptos might have a high risk because they are very unstable but good cryptos can be able to recover as long as we hold on. There are still alternatives other than crypto investing that has a lesser risk. They can be gold investments and real estate. I am not really sure about stocks and other's so I won't suggest them for now.

[isaac_clarke22]

~

Uh, do the 50/50. Interest ain't bad, but crypto investment ain't bad obviously especially that you mentioned Bitcoin. I do not mind if I am not able to buy 6 Bitcoins anyway. It is all about having something to invest at in the meantime.
I would probably forget that investment in a year or so, but hey it is a large sum amount of money so I'll probably be able to sell it once Bitcoin took off after this bearish trend.
I know you mentioned that I won't use it for daily expenses, but still it would be nice to have both investment anyway.

[serjent05]

Diversification is essential, although bitcoin can yield huge returns, there is no guarantee that bitcoin will continue to appreciate in the future. And if investing in gold, it is true that it will be much safer than bitcoin, but the return it brings is negligible so it is not a perfect choice. But if we know how to diversify, take advantage of profits from bitcoin and the safety of gold, our investment is both safe and profitable. Diversification is something that should not be overlooked in investing.

So you are saying to invest anywhere but not in banks. Aside from gold, we can also look at stocks and see which one is profitable in the long run.  Precious metal investment is good but their value inflation is too slow.   Why not study the cryptocurrency market and get well-versed in it.  Use the money to invest in the short term, medium-term, and long-term.  That way we have a variation of investment and possibly will give us a better return than investing in gold.

[Frankolala]

For how long do you want to keep this money before using it depends too,I will not advise you to keep dine in any bank because they will use your money for business and give you peanut in return,this shows that you are helping them get rich,while you the owner of the resources is limited to your money. You have to tell them for how long will the fixed deposit be,this means that you will not have access to you funds till the period elapse.

Buying Bitcoin is the best option, you can invest 55% of into bitcoin, then set up a business with 40% and just keep 5% in the bank for emergency but not fixed deposit. Buying of altcoin is a risk since many of them don't survive the cryptospace for long before crashing.

[usekevin]

It’s essential one to inverse your own money.When you had money for the longer period,their is no use of just holding in your bank wallet.So you can use the things to double or triple the money only by the trading.It can be the crypto trading or Stock market.But you should analysis the market.Only analysis will help to earn. Some good money as compared to the luck based trading.

[Vaskiy]

Diversification is essential, although bitcoin can yield huge returns, there is no guarantee that bitcoin will continue to appreciate in the future. And if investing in gold, it is true that it will be much safer than bitcoin, but the return it brings is negligible so it is not a perfect choice. But if we know how to diversify, take advantage of profits from bitcoin and the safety of gold, our investment is both safe and profitable. Diversification is something that should not be overlooked in investing.

So you are saying to invest anywhere but not in banks. Aside from gold, we can also look at stocks and see which one is profitable in the long run.  Precious metal investment is good but their value inflation is too slow.   Why not study the cryptocurrency market and get well-versed in it.  Use the money to invest in the short term, medium-term, and long-term.  That way we have a variation of investment and possibly will give us a better return than investing in gold.

Aside from Bank we've got good number of investment opportunities. It is our responsibility to learn about the opportunity, analyse it and proceed further. With cryptocurrency we have the higher risk and to the level of risk we've got the chance of making profit. For now it is time to increase the holding amidst the market situation, so that in the long run the same will give back good return.

[DanWalker]

it's really better to just invest your money in crypto or bitcoin, not in banks wherein the returns are very small annual.

While in bitcoin, we might see another all time high in 2024 and so if you invested it today, it might return a good amount and you will be glad that you made the right decision. But just invest money that you can afford to lose so that you won't be bother and not panic when the price goes down. Just suckered it in and forget about your investment in the next 2 years.

Usually small returns do also have a small risk but then I realized that banks are centralized and there are so many horrible stories about banks. Customer's funds gets locked up, frozen and worse lost because the banks got bankrupt. This will be avoided if we have a full control of our funds. Cryptos such as bitcoin can offer it.

Cryptos might have a high risk because they are very unstable but good cryptos can be able to recover as long as we hold on. There are still alternatives other than crypto investing that has a lesser risk. They can be gold investments and real estate. I am not really sure about stocks and other's so I won't suggest them for now.

Banking has its flaws and bitcoin has its flaws, nothing is perfect, mate. As you say bank can go bankrupt or our money is frozen, then with bitcoin, our assets can be hacked or lost in case bitcoin never rises again...all are risky, and nothing is 100% safe.
In this case, I will invest half in bitcoin, and the other half I will deposit some in the bank and do business or invest in other areas. Diversification is the best way to reduce risk for us.

[peter0425]

Diversification is essential, although bitcoin can yield huge returns, there is no guarantee that bitcoin will continue to appreciate in the future. And if investing in gold, it is true that it will be much safer than bitcoin, but the return it brings is negligible so it is not a perfect choice. But if we know how to diversify, take advantage of profits from bitcoin and the safety of gold, our investment is both safe and profitable. Diversification is something that should not be overlooked in investing.

So you are saying to invest anywhere but not in banks. Aside from gold, we can also look at stocks and see which one is profitable in the long run.  Precious metal investment is good but their value inflation is too slow.   Why not study the cryptocurrency market and get well-versed in it.  Use the money to invest in the short term, medium-term, and long-term.  That way we have a variation of investment and possibly will give us a better return than investing in gold.

Aside from Bank we've got good number of investment opportunities. It is our responsibility to learn about the opportunity, analyse it and proceed further. With cryptocurrency we have the higher risk and to the level of risk we've got the chance of making profit. For now it is time to increase the holding amidst the market situation, so that in the long run the same will give back good return.

In the past I only focus in gambling and Online investments , but when Im done in  gambling now I focus in real business though I market online yet the items is physical and foods so the chance of gaining is there though smaller income than investing in crypto but sometimes took years before you taste the fruit of your investments.

[wxa7115]

Now you have $100,000 in your account, pure savings, and you don't need this amount of money to cover your daily expenses. Obviously it's good/free money to use at will. Let's say if you deposit the money into a bank and the annual interst rate is 3%, you will get a steady interest income year by year. If you use this money to buy Bitcoin, let's say the BTC drops to $17,000, you'll buy less than 6 Bitcoins. In the long run, what would you do with this money ? And why ?

There is probably no bank where I live which will give you an annual interest rate of 3% per year, and I doubt this is some sort of exception as banks have reduced significantly the annual interest rate they are willing to pay to their customers.

So this is a very easy decision to me, especially now that the price of bitcoin is very low, in that scenario I will invest my money in bitcoin as just a few years down the line your investment will be worth much more than those 100k of seed capital.

[Swordsoffreedom]

Now you have $100,000 in your account, pure savings, and you don't need this amount of money to cover your daily expenses. Obviously it's good/free money to use at will. Let's say if you deposit the money into a bank and the annual interst rate is 3%, you will get a steady interest income year by year. If you use this money to buy Bitcoin, let's say the BTC drops to $17,000, you'll buy less than 6 Bitcoins. In the long run, what would you do with this money ? And why ?

There is probably no bank where I live which will give you an annual interest rate of 3% per year, and I doubt this is some sort of exception as banks have reduced significantly the annual interest rate they are willing to pay to their customers.

So this is a very easy decision to me, especially now that the price of bitcoin is very low, in that scenario I will invest my money in bitcoin as just a few years down the line your investment will be worth much more than those 100k of seed capital.

3%/year is considered a low-interest rate compared to the area I live in, if you deposit by year, as I know it is 5%, the more you deposit and the longer term, the higher the interest rate. Especially with the current inflation situation, lending interest rates increase, but deposit rates also increase because banks need to mobilize more capital. It is possible that because of each region and the degree of influence of inflation, interest rates are markedly different.
I don't have a savings account, I only have some in the bank account, but my parents have been saving in the bank for two years so I'm pretty sure 3% is too low for us.

[bestcoins1]

Life is always unpredictable, sometimes the wheel of life spins so that we have to always be vigilant, don't be too easy to waste money or put money on things that are not productive, when there is a lot of money most people will act extravagantly like buying vehicles, apartments and so on, when it's hard then if you are going to sell these assets it will be difficult and the value will drop significantly.

And sometimes the thoughts you put out here are also less logical and tend to have very short meanings. People who, when they have money to buy vehicles, houses, apartments and others, are very wise people because they have had a hard time making money, which they then try to enjoy by buying important things that they need or don't have.

For example in private vehicles and private apartments. Those are two common examples that are always very close to human life as well as to all people. Private vehicles are needed when someone wants to travel to work or to a vacation spot, while a house or apartment is needed for a place to live in this world so that comfort in life will continue to exist.

Well, if someone is able to find money to buy vehicles and apartments, how can he not find money to eat everyday or for his daily living expenses?
This is an important thing for you to actually digest so that your own thoughts will also be opened more broadly.

[Outhue]

Not everybody can control themselves if they have up to 100,000$, the mind will easily forget about investing and they will start thinking about vacations and buying cars..

If I somehow made that much money I won't invest all on crypto, I will order for a hardware wallet and I will make sure that most part goes to bitcoin and use 20,000$ to gamble on top altcoins like Matic, Ethereum and few others.

As for banks there is no point keeping money there, I will keep some for survival and needs but there is no way to make money keeping money in a bank. How about buying 32 pieces of Ethereum and stake?

[stadus]

Not everybody can control themselves if they have up to 100,000$, the mind will easily forget about investing and they will start thinking about vacations and buying cars..

It was because they only just think of today and enjoy their life without thinking of the future. It is a very common mindset for many people, they'll just think about investing when they don't have money anymore.

Well, for those who are thinking about a better future and aim for financial freedom will surely think about investing, and spending on the things that will give us profit. I think it was necessary for us to learn about financial education because it was to find out that it was one reason why many people still broke even they have earning huge money from working.