Crypto Passbooks: Attractive Posted Returns, 6% can sometimes go up to more than 10%, but beware! – Save guide

High potential return = proven high risks! When it comes to financial investments, don’t believe in Santa Claus or the world of Care Bears. Whether it is classic financing or not, the same principle.

Cryptobook: risky investment!

Cryptocurrency proposals are piling up. Using the term Livret, like savings plan, can mislead many savers who are accustomed to traditional investments. These crypto books have nothing to do with investments that guarantee the capital and it is not for nothing that it is not a matter of investing capital but cryptocurrencies, which you will have to buy. So the risks are piling up. Indeed, the “interest” paid will obviously be in the same cryptocurrency. Not only is the return not guaranteed, but if your investment is converted to cryptocurrency, the euro equivalent will vary from speculative errors.

Origin of this performance?

The cryptocurrencies that you promise (that is, that you “place” on a crypto book) allow you to participate in staking. This operation is an active participation in the blockchain linked to cryptocurrency. These are not mining activities, but validation (Proof of Stake). Each transaction must be validated by a certain number of blockchain nodes. These validators are drawn “randomly” (computer chance…). Thus, by bringing together different investors, these platforms create additional validation nodes on the blockchain and collect transaction fees. Part of these operating costs are returned to investors and thus form the return on these crypto books. But in order to become a validator on a blockchain, you have to show your credentials and “put into play”, this is the adequate term, a specific amount of cryptocurrency. After all, if a validator does his job poorly, or is not present 24/24 and 7/7, sanctions can be imposed on him, as a result of which part of the promised amount is lost. Cryptobooks are therefore not without risk.

Example ETH on the Ethereum blockchain : To participate in the Ethereum blockchain as a validator and thus be able to collect fees for its validation work, you need to pledge 32 ethers i.e. €1428 x 30 = €46,596! That is why it is possible to come together with multiple investors. The return in this case is of course lower than when the investor operates alone. Validation software is provided free of charge.

Questionable arguments…

Many platforms offer crypto-books, arguing that this allows you to invest in a product that is not correlated with the financial markets. It is now quite clear that the crypto market has a correlation with the financial markets, especially since institutional investors have invested in cryptos.

But for investors who hold crypto…

Undoubtedly a good plan, for investors who already have cryptos, also “place” them to receive returns.

  • Stakeout: Consists of participating in the operation of Proof-of-Stake / Delegated Proof-of-Stake (PoS / DPoS) type blockchains by validating transactions and getting paid in crypto assets for this service.
  • Decentralized Finance: Decentralized applications on blockchain that allow the allocation of crypto-assets to allow the proper functioning of the protocol (exchange, loan, liquidity provision, etc.). Immobilization on this medium rewards investments in crypto assets and allows them to be built up passively.

WARNINGS about BITCOIN, cryptocurrencies, tokens, NFTs and other cryptoassets

Investing in Bitcoin or any other crypto asset (Token NFT, cryptocurrency, etc.) is an investment with a very high risk and no return. This type of investment is reserved for well-informed investors, whose capital can be completely lost without affecting their financial comfort. The speculation in this sector is such that the price swings can be extreme in a very short time. Bitcoin, as well as all cryptoassets, are the target of many investment scams. It is easy to trap investors eager for quick profits, without regard for the safety conditions. Only invest in crypto assets through platforms duly authorized for the French market, otherwise you would not have an acceptable legal recourse in case of fraud. CFD trading is not suitable for all types of investors. Trading with leverage always magnifies gains and losses. Execution of CFD orders through a limited risk account carries a risk of losing the invested capital. An expert account carries a high level of risk and can lead to losses that exceed your invested capital.

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