Recent events have caused many Russians to rethink their approach to personal finance. To incentivize saving money inside banks, the Central Bank of Russia raised its key rate, and some deposits have already reached 25% per annum.
But leaving money in the bank is still probably not the most profitable or safest idea. In addition, many banks offering not only deposits, but also investment products, have fallen under restrictions.
Dmitry Machikhin, founder and CEO of BitNalog, the first online service in the CIS for legal work with digital currencies, tells about what cryptocurrencies you can invest in and what you should keep in mind when working with them.
It seems that today it is only possible to invest in gold or currencies of other countries. But there is another solution – cryptocurrencies.
Some will find this approach to investing too risky, but if you look inside cryptocurrencies, there are plenty of opportunities and options to invest and diversify, and protected from sanctions. However, when dealing with this asset class, it is always worth keeping in mind the volatility and high risks.
Technically, cryptocurrencies are a digital asset that has the features of securities, limited resources and currencies. To purchase the asset, any platform, exchanger or exchange is used. Cryptocurrencies are stored on online wallets, on exchanges themselves or on external devices – “cold” wallets.
There are already about 20 thousand cryptocurrencies in the world.
Let’s start with the classics – and it’s not bitcoin. Stablecoins are the best for saving currencies, easy to send from point A to B. In terms of technology, these are all the same cryptocurrencies, but they are equated to a certain exchange rate: in the case of the most popular Stablecoin, to the dollar – USDT.
There are other similar coins: BUSD, USDC, DAI, TUSD. And each of them is considered a kind of cryptodollar.
Do you want to invest in gold in an alternative way, without buying it physically? Stablecoins can help here, too. PAXG coins reflect the real-time value of gold, and the liquidity allows you to both buy and sell any amount. PAXG can be bought for the same USDT on cryptocurrency exchanges.
Bitcoin (BTC) and etherium (ETH) are two classic cryptocurrencies, which together make up 70% of the entire market, or $1.5 trillion. Two years ago bitcoin was worth $3600 and today it is trading at $38k.
For those who don’t have that much money, I have good news: you can buy bitcoin for any amount, as it is divisible down to 0.00000001. This also applies to other cryptocurrencies, including etherium. Bitcoin can be bought for USDT, directly for rubles or currency through existing payment institutions.
There are dozens or even hundreds of cryptocurrencies other than those mentioned. Coins DOT, SOL, AVAX, TERRA are very popular now. International trading analytics indicate that they have significant potential.
A lot of noise was made by a coin, the creation of which is attributed to Nikolay and Pavel Durov. We are talking about the TON project and the cryptocurrency Toncoin. I wrote about it back in October. With the growing number of Telegram users and rumors about the integration of Toncoin and this messenger, this cryptocurrency may show serious development. But you should never forget the risks.
When investing in cryptocurrencies, many people think about regulation. There is a myth about the prohibition of cryptocurrencies in Russia. In reality, this is not the case, and cryptocurrencies are called digital currencies by the logic of the law. A special roadmap has been developed.
Now most government agencies come to the conclusion that transactions with digital currency should be regulated, not prohibited.
Digital currencies can be bought, exchanged and sold, but they cannot be used as means of payment. All profits derived from investments in cryptocurrencies are taxed in the same way as the sale of any other property.
Diversification is very important in global crises caused by the geopolitical situation and other factors. We cannot say with absolute certainty that the best investment now is real estate or gold or cryptocurrencies. However, it is cryptocurrencies that have become an alternative for many citizens.