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In the event crypto craters hard, how likely are Gemini and Abra Earn not to go bankrupt if they're offering 7% returns guaranteed (I assume).
by potatototoo99 4y ago
In the event crypto craters hard, how likely are Gemini and Abra Earn not to go bankrupt if they're offering 7% returns guaranteed (I assume).
- cheriot 4y agoThis. Any time there's a rate of return above short term treasuries the question becomes, "what's the risky asset this is invested in?"
- joemazerino 4y agoCelsius, anyone?
- robcohen 4y agoIt's not a risk-free bet, but considering it's not a signficant amount of my net worth I'm happy to take the chance for a multiple ROI.
- robcohen 4y agoThat's definitely a risk, but typically when crypto craters hard it's actually quite difficult to quickly get money into the markets. Wire transfers and ACH transfers usually take forever or deposits get shut down. It's much better to have stablecoins in that situation. Also I've diversified my risk by selecting two U.S.-based exchanges/banks (Abra was the first and is currently the only exchange to get a Fed account). The likelihood that both stop withdrawals on the same day seems unlikely. Is it as safe as storing gold under my mattress? No, but the markets move incredibly fast. When I see an opportunity I'll need to move quickly, then get my purchases off the exchanges immediately.