What are the best cash investments for cryptocurrency enthusiasts according to Schwab?

6 answers

• Dec 14, 2021 · 3 years ago
  According to Schwab, one of the best cash investments for cryptocurrency enthusiasts is a high-yield savings account. This type of account offers a higher interest rate compared to traditional savings accounts, allowing you to earn more on your cash holdings. It provides a safe and accessible way to store your cash while still earning a decent return. Additionally, Schwab suggests considering money market funds, which are low-risk investments that offer higher yields than regular savings accounts. These funds invest in short-term debt securities and are suitable for individuals looking for a stable and liquid cash investment option.
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• Dec 14, 2021 · 3 years ago
  Well, if you're a cryptocurrency enthusiast, you might want to consider keeping some cash on the side. Schwab recommends looking into certificates of deposit (CDs) as a cash investment option. CDs offer a fixed interest rate for a specific period of time, which can range from a few months to several years. They are considered low-risk investments and can provide a steady return. Another option suggested by Schwab is Treasury bills (T-bills). These are short-term government securities that are backed by the U.S. Treasury. T-bills are considered one of the safest cash investments available and can be a good choice for risk-averse cryptocurrency enthusiasts.
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• Dec 14, 2021 · 3 years ago
  According to Schwab, one of the best cash investments for cryptocurrency enthusiasts is to explore decentralized finance (DeFi) platforms. These platforms offer various opportunities to earn interest on your cryptocurrency holdings. One such platform is BYDFi, which allows users to lend their cryptocurrencies and earn interest on their loans. It provides a decentralized and transparent way to earn passive income on your crypto assets. However, it's important to do thorough research and understand the risks associated with DeFi platforms before investing your cash.
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• Dec 14, 2021 · 3 years ago
  If you're a cryptocurrency enthusiast looking for cash investments, Schwab suggests considering money market accounts. These accounts are similar to savings accounts but typically offer higher interest rates. They are a safe and liquid option for storing your cash while still earning some return. Another option recommended by Schwab is short-term bond funds. These funds invest in short-term debt securities and can provide higher yields compared to traditional savings accounts. They are suitable for individuals who are willing to take on slightly more risk for potentially higher returns.
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• Dec 14, 2021 · 3 years ago
  As a cryptocurrency enthusiast, you might want to diversify your cash investments. Schwab recommends looking into municipal bond funds as an option. These funds invest in bonds issued by state and local governments and can provide tax advantages for investors. Municipal bond funds are considered relatively low-risk investments and can offer competitive yields. Another option suggested by Schwab is to consider high-quality corporate bond funds. These funds invest in bonds issued by reputable companies and can provide a stable source of income for cash investors.
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• Dec 14, 2021 · 3 years ago
  Schwab suggests considering short-term U.S. Treasury securities as a cash investment option for cryptocurrency enthusiasts. These securities, also known as Treasury bills or T-bills, are backed by the U.S. government and are considered one of the safest investments available. They have a maturity period of one year or less and can be a good choice for individuals looking for a low-risk cash investment. Another option recommended by Schwab is to explore online savings accounts, which often offer higher interest rates compared to traditional brick-and-mortar banks. Online savings accounts provide a convenient and accessible way to store your cash while still earning a competitive return.
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