Use your money wisely. Invest or Deposit ?

[Iranus]

Now the bank investment return is around 12% yearly now. $100000 is not a small money, since I don't have the use of it and can not stop my expenses at the time, I will rather invest in the bank expecially during this dip that is market condition. 12% of the savings is a huge amount. I worked for the savings so even though I invest in bank that shouldn't be a problem because my interest is guaranteed and I will be using it to cover up for expenses or increasing my investment. I think buying bitcoin or any other altcoin is not a good idea.

Depositing all your money in the bank is really a waste when you leave your money sleep, and do nothing else, it's like the mindset of an older adult with no will to move forward. Maybe the current interest rates of banks are higher than in previous years, but you forgot to take into account the inflation that we are experiencing, most items increase 20-30%, while the profit you get is only 12%. You may find that your money is not increasing but is losing over time, and if inflation does not stop, your money in the bank will soon go to zero.

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[karabiber]

If $100.000 is just for investment and i don't need that money, i would definitely invest in Bitcoin. Yes fixed interest rate and risk free investment may be attractive for everyone but there is no situation to double their investment. I take the risks that may arise by investing in Bitcoin. But the possibility of my btc investment to grow in a short time excites me more. On the contrary, if my assets decrease, i will not be upset because there will be an amount that I do not need. The idea of ​​fixed income is not for me there are always risks in my investment. But i do not make risky investments with my last balance.

[xSkylarx]

Now the bank investment return is around 12% yearly now. $100000 is not a small money, since I don't have the use of it and can not stop my expenses at the time, I will rather invest in the bank expecially during this dip that is market condition. 12% of the savings is a huge amount. I worked for the savings so even though I invest in bank that shouldn't be a problem because my interest is guaranteed and I will be using it to cover up for expenses or increasing my investment. I think buying bitcoin or any other altcoin is not a good idea.

Depositing all your money in the bank is really a waste when you leave your money sleep, and do nothing else, it's like the mindset of an older adult with no will to move forward. Maybe the current interest rates of banks are higher than in previous years, but you forgot to take into account the inflation that we are experiencing, most items increase 20-30%, while the profit you get is only 12%. You may find that your money is not increasing but is losing over time, and if inflation does not stop, your money in the bank will soon go to zero.

You have a point about inflation. Also, as the years go by, the money you've stored is decreasing its value means that most of the items you'll purchase are more expensive than the previous years. Though you earn profit from the interest rate, it is still insufficient. Most of those investors and business owners prefer to invest their money than sleeping it in the bank as they can gain more profit from it, though here are the cons; since you'll be risking your money, it also has a chance of losing it. But remember, how can you gain a massive profit that can make you rich if you don't take the risk and just store it in the bank?

[qwertyup23]

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 amount of "free money" where I can completely dispose of it without worrying too much, I would definitely diversify my investments and allocate it to different investment mechanisms available.

For example, I would allocate around $5000 worth of BTC and HODL them for long-term; deposit around $30,000 inside the bank for interests; and invest the other in altcoins and other instruments. The key here would be to diversify and allocate them into different baskets in order to at least give some protection and security on its price. If you invest all of your eggs in one basket, then expect it to fail at some point.

[gunhell16]

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 had that much money, honestly, I wouldn't use that amount for just one investment. Because I believe it's still good not to put all your eggs in one basket. And that's an effective way. For example, with that amount I will put 25k$ in Stockmarket, 25k$ in Real estate, and 25k$ I will put in 4 cryptocurrencies such as Bitcoin, Ethereum, Bnb, and Polygon.

This is just an example of mine that if I ever had 100k$ that's what I would do as an investor in this type of business industry.

[Marvell1]

If $100.000 is just for investment and i don't need that money, i would definitely invest in Bitcoin. Yes fixed interest rate and risk free investment may be attractive for everyone but there is no situation to double their investment. I take the risks that may arise by investing in Bitcoin. But the possibility of my btc investment to grow in a short time excites me more. On the contrary, if my assets decrease, i will not be upset because there will be an amount that I do not need. The idea of ​​fixed income is not for me there are always risks in my investment. But i do not make risky investments with my last balance.

It's not a small amount, but if it's free and, in case of loss, it doesn't affect my life or other expenses, then I would also risk investing it all in bitcoin. If unfortunately, bitcoin can't rise again, I will lose nothing but if bitcoin hits 100k or 500k in the future I will become rich, then it's worth the trade-off. But if that's all I have, I will only invest 40% in bitcoin and 30% in other assets, the remaining 30% will be put in the bank.

[panganib999]

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 think you should diversify. $100000 is a lot of money to be sitting around doing nothing, and it could cover a wider array of assets on your portfolio. That being said, you could invest some of it in real estate if possible, deposit some of it on a percentage that is your discretion to emergency funds, and last but not least some of it in crypto and a safety deposit. To cover everything means to win at everything, at least if one of those fail you still have a couple of assets that you could rely on when push comes to shove. You should never have to choose between saving and investing with that amount of money, and investing it all is a big risk, depositing it all in a bank is a waste of potential profit as well. Aim for the middle ground.

[dunfida]

If $100.000 is just for investment and i don't need that money, i would definitely invest in Bitcoin. Yes fixed interest rate and risk free investment may be attractive for everyone but there is no situation to double their investment. I take the risks that may arise by investing in Bitcoin. But the possibility of my btc investment to grow in a short time excites me more. On the contrary, if my assets decrease, i will not be upset because there will be an amount that I do not need. The idea of ​​fixed income is not for me there are always risks in my investment. But i do not make risky investments with my last balance.

It's not a small amount, but if it's free and, in case of loss, it doesn't affect my life or other expenses, then I would also risk investing it all in bitcoin. If unfortunately, bitcoin can't rise again, I will lose nothing but if bitcoin hits 100k or 500k in the future I will become rich, then it's worth the trade-off. But if that's all I have, I will only invest 40% in bitcoin and 30% in other assets, the remaining 30% will be put in the bank.

Considerable allocation and i would definitely be doing the same if ever i would really be able to have the chance on having that money.It might not be much for other people but for most then it is really still a

good sum which there are lots of things which you could really do with that amount,whether you could live a life where you do buy the things you do want or like or would be focusing out

on making out some investment whether on Bitcoin itself or into other things as well.Its up to your own choice and you are the ones who would make out decisions for your life
not only on other things but also with finances too.

[og kush420]

Considerable allocation and i would definitely be doing the same if ever i would really be able to have the chance on having that money.It might not be much for other people but for most then it is really still a

good sum which there are lots of things which you could really do with that amount,whether you could live a life where you do buy the things you do want or like or would be focusing out

on making out some investment whether on Bitcoin itself or into other things as well.Its up to your own choice and you are the ones who would make out decisions for your life
not only on other things but also with finances too.

sometime - bad time and bad luck finds you in the big crowd - and you keep wondering why it has happened and how it has happened. I invested once and I never did that again - it was a huge lose and it took me months to recover the loss.

[Kasabus]

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 prefer to invest it instead but I won’t go all in investing. Bitcoin can be seen as crypto’s highest potentials but putting all your savings in it might bring a lot of risks. Invest only an amount you can afford to lose. Also, never leave your bank account empty, there should be at least enough funds to cater for your wellness and being as health will always be our top concern than money making.

[KingsDen]

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 ?

What bank is this? Our bank has only a 0.5% interest rate, but let's say it's 3%. Well, $100K is huge, so my plan is not to put all eggs in one basket, 50% of it goes to bitcoin, and the other 50 is on additional investment such as business or time deposit in the bank so that it would be safe. I know most of the answer here goes to bitcoin since we are in the bitcoin community, but bitcoin is risky, so to play safe, do not go all into the bitcoin as this is the most investors say, but if you are risk taker then go ahead invest all.

I understand you that bitcoin is risky and since this is a bitcoin forum, many people will tend to advice him to invest in bitcoin.  I know $100,000 worth much in some people's currency, so my suggestions would be subjective.
If I am op and $100k seems like free money according to him.  I will do this;
1. Buy upto 3 btc and hodl tight;
2. Use 20k and spread on dodge, bnd and eth.
3. Use the remaining get land in a developing area.

That money is too beautiful to sleep in bank and lose it's purchasing power over the years.

[Marcellin9]

We should be able to use the money we have earned for good things, we keep it on deposit or use it for investment so that when we are not working we still have money saved so we don't owe or sell assets.

We ourselves decide which method to use, the OP gave us two choices to use the money we have, but do we need to choose Investment or Deposito?

1. Investment
Often we listen to advice regarding the use of finance, in this case many people offer solutions for investing. Then the question is whether the investment can be profitable?
There are several investment methods that we can use in Cryptocurrency, Bitcoin or Altcoin, as far as I know Bitcoin can maintain value, so that the use of money is much more targeted, although we cannot ignore the fluctuations and risks that will arise, Bitcoin has given a lot of evidence to choose from, so there is no comparison with altcoins.

2. Deposits
Deposits are more likely to be interpreted as saving money in a bank, deposits generally have a period of time for the owner to be able to withdraw the money, because they are vulnerable to maturity given by the Bank, more simply deposits are products issued by banks, so there are many restrictions that must be met.

In a more general elaboration, deposits can actually shorten the use of the money we have, so that the achievement of profit targets is not comparable to investing in bitcoin, because the profits provided are not large, even though deposits are also investment instruments offered by the Bank.

And don't be tempted by offers to buy things we don't need such as gadgets, electronics, cars and so on.

Humans live full of prestige, so chasing something that is not needed, this way of life is not a good behavior, because it will make people buy things not because they are needed.

The three things you mentioned are other instruments and have different meanings. Sometimes people see these three things as something that is needed, but some others see it as a way of life. The class and degree of a person's life must be different, as well as the needs that must be met, but if life is brought to a simple nature, then the needs will definitely be adjusted and place something wiser.

Thanks for your comment. This is the most well organized and reasonable answer so far. You have made a very good point about inverstment: whether it will be profitable. I think most comments here are too much focused on the high returns rather than high risks. I am open to any investment but without calculating riks, nothing would seem meaningful. Speaking of depoists, they cons are pretty much what you described but have you ever considered the sense of security/steady income is more important than profits in this situation ? In my country, even the local banks are broke, deposits below $80,000 shall be insured and indeemed by the central bank immediately. I guess most people just ignore the psychological benefit in this case.  Material possessions vary from person to person and there is no universal standard. I also agree with placing something wiser cause we don't know what the future holds and we are esay to be slaved by materials if we think other people look up to us just based on what we have. Actually nobody cares.

[Joshapat]

I'm sorry because a few years ago too wasteful and bought a house that apparently had no good prospect for investment, now I plan to sell the house even though I have to lose about 15% and I will use it for more productive things, namely investment land that is in a strategic location.

Besides that I will not be tempted to shop for things that I don't need such as fashion, home accessories and so on.

[Marcellin9]

Now the bank investment return is around 12% yearly now. $100000 is not a small money, since I don't have the use of it and can not stop my expenses at the time, I will rather invest in the bank expecially during this dip that is market condition. 12% of the savings is a huge amount. I worked for the savings so even though I invest in bank that shouldn't be a problem because my interest is guaranteed and I will be using it to cover up for expenses or increasing my investment. I think buying bitcoin or any other altcoin is not a good idea.

Depositing all your money in the bank is really a waste when you leave your money sleep, and do nothing else, it's like the mindset of an older adult with no will to move forward. Maybe the current interest rates of banks are higher than in previous years, but you forgot to take into account the inflation that we are experiencing, most items increase 20-30%, while the profit you get is only 12%. You may find that your money is not increasing but is losing over time, and if inflation does not stop, your money in the bank will soon go to zero.

You have a point about inflation. Also, as the years go by, the money you've stored is decreasing its value means that most of the items you'll purchase are more expensive than the previous years. Though you earn profit from the interest rate, it is still insufficient. Most of those investors and business owners prefer to invest their money than sleeping it in the bank as they can gain more profit from it, though here are the cons; since you'll be risking your money, it also has a chance of losing it. But remember, how can you gain a massive profit that can make you rich if you don't take the risk and just store it in the bank?

Maybe inflation can be beaten. Let's just put the free money $100,000 aside. If you make $30,000 a year after tax and meet all requirements of what I mentioned early, now your annual expenditure is $20,000, so you'll have $10,000 left as pure savings and you'll put the 10 grands into banks again. Please try to see the 10 grands as the $100,000's interests, plus the 3% interest rate annually and the more intersts generated by the interest. As time goes by, let's say, 10 years from now,  what would you finally get ? I certainly agree with your investment advice but speaking of inflation, I guess this is not a big reason whether to choose to deposit or invest.

[Pejoh Asu]

Now the bank investment return is around 12% yearly now. $100000 is not a small money, since I don't have the use of it and can not stop my expenses at the time, I will rather invest in the bank expecially during this dip that is market condition. 12% of the savings is a huge amount. I worked for the savings so even though I invest in bank that shouldn't be a problem because my interest is guaranteed and I will be using it to cover up for expenses or increasing my investment. I think buying bitcoin or any other altcoin is not a good idea.

If we save money in a bank and get 12% interest per year then this depends on our monthly needs, if with $ 500 it can be enough for a month then the best thing is to save money at banks, but I prefer to use business or invest We can get greater if we dare to business or invest.

[MarjorieZimmermanGinger]

I prefer to invest it instead but I won’t go all in investing. Bitcoin can be seen as crypto’s highest potentials but putting all your savings in it might bring a lot of risks.

Creating two anchors might be better, by investing 70% in bitcoins and keeping the rest for unexpected fulfillment. Because if we deposit all the money we have, then the use of money will not be at the stage of maintaining value in the long term, therefore investing in Bitcoin is considered the most appropriate step for now.

Invest only an amount you can afford to lose. Also, never leave your bank account empty, there should be at least enough funds to cater for your wellness and being as health will always be our top concern than money making.

What must be understood is that every investment has a certain level of risk, but as long as we are targeting the investment period and knowing when is the right time to enter the market, this risk can be minimized as small as possible. 30% of the money we have can be used for health, education and other unexpected financial needs, because if there is no money saved, it will actually have an impact when these conditions occur suddenly. This is the reason I say that an investment can be made in two anchors, 70% in the investment and 30% in health, education and other contingencies that will be needed at any given moment.

[bakasabo]

I would say that both, investment and deposit have a level of risk. Despite those levels are different, the fact that there are chances of loosing money in both cases pushes me to look more on investment. Another factor - at our banks, deposit percents are so low and are taxed, that simply lending money in the end gives similar profit. That is why investment is my option. I'd better spend time on research, risk and get a higher amount of profit, then get several percents of deposit body in half a year.

[cheezcarls]

I say we diversify. Not going all-in on either saving it a bank, Bitcoin, property, etc. It’s all about balance and risk management.

Yes I know that it’s really tempting to invest a lot of money on Bitcoin and other kinds of investments. The risks are high, but same as the rewards if it goes “to the moon” unlike in banks where we can only get a few percentage per annum.

Indeed we should use our money wisely and never go all-in.

[lizarder]

Thanks for your comment. This is the most well organized and reasonable answer so far. You have made a very good point about inverstment: whether it will be profitable. I think most comments here are too much focused on the high returns rather than high risks. I am open to any investment but without calculating riks, nothing would seem meaningful.

When we deal with investments, the step that needs to be considered is risk, even though all existing forms of investment have different levels of risk, while the return is the result of the investment we make, if we have set measurable standards and qualifications. Investments will proceed according to the steps and strategies set, if you understand the efficiency level of utilization. Mistakes in investing will also be fatal, if the risk is not minimized with the appropriate level of accuracy.

Speaking of depoists, they cons are pretty much what you described but have you ever considered the sense of security/steady income is more important than profits in this situation ? In my country, even the local banks are broke, deposits below $80,000 shall be insured and indeemed by the central bank immediately. I guess most people just ignore the psychological benefit in this case.  Material possessions vary from person to person and there is no universal standard.

You know better the standard of using money, psychologically we have learned two things in placing the money we have?

1. Investments
Qualifications for investment also can't be ignored in the long term and short term, when considering the fixed income and overall profit in the investment journey, if you can take two parts at the same time it is even more profitable, you can use fixed income for short-term investment, meaning when you get profit, then you can withdraw some and try to add another half in investment, if you do this repeatedly, then you will also get stable income.

2. Deposits
A model like this will not be able to maintain the value of the currency, the profit you get is also a little according to the standard set by the bank, assume you save $ 80,000, then how much profit will the bank give you, then try to calculate the investment in Bitcoin with the same capital. When you have done these two standards, the answers to the choices you take will be easy to determine.

If the consideration of insurance guarantees, the correlation of bitcoin investment will never be relevant and in line with our understanding, it also returns to people's readiness to take steps to start investing and in my opinion, almost many investment models do not have insurance guarantees.

I also agree with placing something wiser cause we don't know what the future holds and we are esay to be slaved by materials if we think other people look up to us just based on what we have. Actually nobody cares.

We are valued not based on how much money we have, when someone has found a way of peace, then something valuable is no longer a problem, but in essence humans need money but not how much they have, because if we talk about this problem , then it will lead to a sensitive and relative meaning. That's why money must be used wisely and on target.

[stadus]

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 ?

First off, I don't really recommend to let your money sit in the bank doing nothing except for just wait for that 3% interest per year. Yes, I know that the money is growing but I consider it as a stagnant money or dead money just waiting for us to withdraw. Money is not designed for that either, it's designed to circulate. So, how do we circulate that same money while getting an advantage/profit from it? Through investing. May it real estate, stocks, bonds or cryptocurrency, as long as it's circulating and provide us passive income even while we're sleeping.