Crypto deposit in Tether as an alternative to a regular deposit in a bank

Despite the new investment options, the most popular has been and remains a bank deposit.

Most people choose a deposit because of its simplicity and reliability; the conditions are clearly described here and you can immediately calculate how much money you will receive as a result of the investment.

The availability of funds also plays an important role; most deposit agreements can be terminated before the end of the term and quickly get your money back.

After cryptocurrencies appeared, it is quite logical that sooner or later cryptocurrency deposits will have to appear.

And this time has come with the entry into the market of stablecoins, cryptocurrencies pegged to the US dollar exchange rate and possessing almost absolute stability:

As you can see in the graph, the rate of the most popular virtual currency Tether fluctuates between 1.004 – 0.9980 US dollars, that is, almost equal to 1 dollar if tenths of cents are not taken into account.

This is what is used for deposits on most exchanges.

On average, the interest rate on a deposit is 6% per year, which is almost equal to the rates on foreign currency deposits in Russia or Ukraine, but several times less than the rates in Europe or the United States.

That is, at first glance it seems that a deposit in cryptocurrency would be a pretty good investment. Moreover, no one will control your profits and demand you pay taxes.

Disadvantages of cryptocurrency deposits

First of all, these are overhead costs for replenishing cryptocurrency wallets or withdrawing Tether to bank cards.

For example, the best offer for withdrawal to a card involves a commission of 10%:

And replenishing your wallet in Tether costs 12%, so in total you will pay more than 20% for deposits and withdrawals, but you will earn only 6% in a year.

In addition, there are other disadvantages - you need to create a special wallet for transactions, the low reliability of the crypto exchanges on which the deposit is placed.

At the moment, a deposit in cryptocurrency is only suitable for those who constantly use stablecoins for payments and do not plan to transfer into real currencies. Otherwise, overhead costs will exceed deposit charges.