Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: philipma1957 on June 01, 2024, 11:37:08 PM
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My paypal is paying 4.5% on cash. FULLY FDIC INSURED.
My coinbase is paying 5% on USDC not insured.
I am able to move funds from coin base to PayPal instantly. .
I wonder that the risk for 5% vs 4.5% is not worth it.
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The 0.5% would be significant if we're talking about at least six digits. Anyway, I voted hedging for both because I think each have their advantages. I would want the fund security from Paypal in case something happens and also the flexibility provided by Coinbase.
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My paypal is paying 4.5% on cash. FULLY FDIC INSURED.
My coinbase is paying 5% on USDC not insured.
I am able to move funds from coin base to PayPal instantly. .
I wonder that the risk for 5% vs 4.5% is not worth it.
I have been in the crypto market for many years and for me, Circle is the most reputable stablecoin issuer on the market and USDC is the best stablecoin in terms of legality. That also means I will choose USDC with higher APR, I don't refuse any interest rate!
Paypal is a big company in the financial market but PYUSD is not really attractive to me, I am not even convinced by FDIC. Maybe I am not in the US and I can only easily access USDC.
Actually, most of my stablecoins are in USDT which is the stablecoin with the largest marketcap ^^
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I don't want to choose both of them because both of their offices are very far from my house, Coinbase and Paypal I don't know where their head office is. I mean, if I invest Fiat on their platform then I better invest in a local bank with an advantage of around 3% in one year and if I have problems then I just come to the bank office.
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Both are big company, where i expect neither wouldn't go bankrupt suddenly. I'm not familiar with FDIC insurance, but both company have history of freezing user account/funds with no/vague explanation[1-2]. So if you don't mind managing so many internet account, use both.
[1] https://www.engadget.com/paypal-lawsuit-freezing-customer-accounts-funds-073128563.html (https://www.engadget.com/paypal-lawsuit-freezing-customer-accounts-funds-073128563.html)
[2] https://decrypt.co/73113/coinbase-users-file-class-action-over-locked-accounts (https://decrypt.co/73113/coinbase-users-file-class-action-over-locked-accounts)
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I can't choose both because I don't have an account from Paypal or USDC so I also don't have experience investing in both platforms. I see the comparison is only 0.5% but if it's a large scale, for example with a capital of 1 million USD, the comparison will definitely be felt. In terms of calculations, I will choose a large value, namely USDC and ignore Paypal because I only think rationally.
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I can't choose both because I don't have an account from Paypal or USDC so I also don't have experience investing in both platforms. I see the comparison is only 0.5% but if it's a large scale, for example with a capital of 1 million USD, the comparison will definitely be felt. In terms of calculations, I will choose a large value, namely USDC and ignore Paypal because I only think rationally.
I don't even use PayPal or Coinbase. I base my decisions solely on a crypto investor's perspective.
USDC is intrinsically part of the crypto market, unlike USD on PayPal, and their PYUSD isn't widely recognized. So, when considering an investment closely tied to crypto and readily usable for purchasing more tokens, USDC is always the superior choice. I could opt for local fiat savings with a 6-8% interest rate, but I prefer stablecoins on CEXs because the potential returns from a timely investment decision far surpass bank APYs.
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My paypal is paying 4.5% on cash. FULLY FDIC INSURED.
My coinbase is paying 5% on USDC not insured.
I am able to move funds from coin base to PayPal instantly. .
I wonder that the risk for 5% vs 4.5% is not worth it.
Going by what they both offers concerning the rate, i think its something that has to do with the amount of money involved here, which am very sure the the asset in consideration is very much, but when compared to what they both have to offered, one may be tempted and go for one against the other, even the same thing is occurring on me right know in deciding for which to go for if i were in the same position to make a decision.
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I can't choose both because I don't have an account from Paypal or USDC so I also don't have experience investing in both platforms. I see the comparison is only 0.5% but if it's a large scale, for example with a capital of 1 million USD, the comparison will definitely be felt. In terms of calculations, I will choose a large value, namely USDC and ignore Paypal because I only think rationally.
I don't even use PayPal or Coinbase. I base my decisions solely on a crypto investor's perspective.
USDC is intrinsically part of the crypto market, unlike USD on PayPal, and their PYUSD isn't widely recognized. So, when considering an investment closely tied to crypto and readily usable for purchasing more tokens, USDC is always the superior choice. I could opt for local fiat savings with a 6-8% interest rate, but I prefer stablecoins on CEXs because the potential returns from a timely investment decision far surpass bank APYs.
Yep, and you have more freedom than on banks investments, though it's a CEX we are talking about ;D
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I wonder that the risk for 5% vs 4.5% is not worth it.
well you have to consider that usdc is not completely decentralized and while i do think it is generally safer than most platforms there is still some risks involved and you might not be able to get back your funds in case it gets lost
personally i will choose for the higher interest rate but that is because i am prepared to account for any consequences in the future and so do you if you were to choose 5%
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In any decision we are making, all we are going to first consider is the one with the highest prospect for making profits, we are not going to choose what will be paying us lesser when we are having another option for the one that can do better, this is what most people consider in terms of their investment decision, because they understand what they stand to miss out as well as to benefit from any of their choices made.
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In any decision we are making, all we are going to first consider is the one with the highest prospect for making profits, we are not going to choose what will be paying us lesser when we are having another option for the one that can do better, this is what most people consider in terms of their investment decision, because they understand what they stand to miss out as well as to benefit from any of their choices made.
I think users will only care about this issue during a crypto winter. Currently, we're entering an uptrend, and the price increase of many other tokens can offset the APY difference between PYUSD and USDC :)
Professional investors tend to choose a familiar, popular, and easily tradable asset. I believe USDC outperforms PYUSD by far based on these criteria, especially since USDC is available on many chains and CEXs.
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The 0.5% would be significant if we're talking about at least six digits. Anyway, I voted hedging for both because I think each have their advantages. I would want the fund security from Paypal in case something happens and also the flexibility provided by Coinbase.
I actually agree with you, the bigger the amount the bigger the interest. For me actually the idea here is about convenience and preference. If you can easily spend from the coinbase with reasonable fees then there is no problem having it in USDC. On the other hand if the Figures are big you can use USDC.
I'm actually not that familiar with USDC as I have rearly used it to transact though I'm aware it's part of the list of stable coins I'm more familiar with USDT and I use it more frequently because most payment portals have it in their list of accepted payment methods although most use that of the TRC20 network.
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None of these companies are going to go down since they both are adopting crypto which I guess they're fine when crypto explodes.
However the geopolitics are becoming hostile if you follow the BRICS just recently have a meeting in Kazan which could accelerate the dedollarization. You only hope you have more time to convert to BTC before the president suddenly jump right how Nixon did it. Protect to convertibility of the USD while PayPal and Coinbase can be dictated to suspend all accounts for the meantime.
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0.5% difference doesn't really worth the risk, I would go for the safest mode, the consideration comes only if the returns are convincing enough to take the risk, let's say if it's 7.5 to 8% then it can be considered using other variables like how much the investment is going to be, and how long it is going to be but for the given amount of interest I would prefer the safest any day.