Hi, if you’re reading this, you most likely have a Naira savings account with thousands, if not millions, of Naira sitting in it. Unfortunately for you and me, our hard-earned money saved in Naira savings accounts keeps returning less than 0.5% interest yearly. Sounds sad, right? That’s not all though, there’s also something called inflation eating up savings without you even noticing. Unfortunately for us, we really can’t do much about this, as options out there are limited. This problem is precisely why we’ve built Fluidcoins Earn. 

Earn is an easy way to save in Dollar stablecoins, keeping you far away from the Naira’s devaluation whilst still earning up to 6% in yearly interest. Ok, I know what you’re thinking… aren’t stablecoins cryptocurrencies, well, yes they are. To save you stress, we wrote this short article to help explain exactly why you need them. Apart from this, you may also have questions like… why should you switch from your trusted banking option to Earn as an investor? Why would anyone abandon the hundred-year-old financial system and move to DeFi? Here are the key points regarding Fluidcoins Earn VS Your local bank savings to address this.

Bank interest rates  

The majority of investors would agree that the main function of any savings account would be to serve as a store of value. However, the interest rates on local bank accounts now are so low that earning significant returns on investment would require millions in savings. Given this circumstance, the typical investor is merely parking money rather than accumulating wealth when they employ this service.

For more context, the highest amount of interest paid by a bank account in Nigeria today is about 3.5%. To qualify for this, however, you must have a minimum deposit of 5 million Naira compared to $10 on Fluidcoins Earn.

Inflation also reduces the purchasing power of the money in your savings account. One of the main causes of inflation is bad monetary policy actions, such as large cash injections. This fuels inflationary risks, which means that the value of your Naira savings account is declining more quickly than the bank is providing you interest.

Inflation 

Fluidcoins Earn combats inflation at its root through the use of stablecoins. Stablecoins have proven to be a decent store of value over recent years and are ideal for today’s fast-paced environment and global population. Stablecoin savings also acts as a self-appreciating safe haven compared to Naira savings.

Earn combines the unique characteristics of stablecoins with the earning potential of today’s top DeFi protocols to give investors the best their money can offer. Here is an article that explains more about how Earn works.

Passive income

Finding trustworthy passive income sources is the first step in achieving financial independence. This previously meant investing in rental property, receiving commissions, or collecting residuals. These passive income streams demand expertise or, at the very least, significant funding. 

It’s difficult to see your local bank’s interest payments as a realistic type of passive income. As previously stated, Nigeria’s average bank interest rate for a savings account is less than 0.5%. As a result, large savings are required for the average person to accumulate enough passive interest payments to see relevant income. This will never be a reality for the majority of people.

Earn provides a low-risk passive income stream with interest rates of up to 6% yearly, paid daily. It enables users to secure consistent returns without running the risk of losing their initial investment and makes it an ideal solution for individuals new to DeFi to ensure they turn a profit.

Fees

The local banks in Nigeria are renowned for imposing various fees. There are fees for administration, maintenance, overdrafts, and much more. The investor loses money at the end of the day. These fees are the consequence of a number of reasons, including third-party verification systems and bank overhead.

Fluidcoins Earn users, on the other hand, enjoy minimal fees. There are no withdrawal penalties as well, meaning you can pull out your money at any time. Through DeFi, Earn eliminates the need for numerous middlemen and enables users to safely and efficiently engage with the financial market on a global scale.

Onramp

Fluidcoins Earn enables users to convert their Naira to crypto in minutes. It’s also very cheap, secure, and easy to use. When comparing the DeFi experience before Earn, it’s clear to see why so many users would appreciate it. Previously, accessing a DeFi network required that you already possessed some form of cryptocurrency. This required you to typically register on a centralized exchange and carry out different actions before you could even get on the DeFi platform of your choice. Earn simplifies this entire process as it allows you to go from Naira to stablecoins and then into DeFi in just a few button clicks.

Censorship

Transactions involving foreign currencies are now more restricted than ever thanks to the dollar’s recent weaponization. These days, political issues make it harder for citizens to access global marketplaces. For those defenseless citizens caught up in a governmental tug of war, the price is prosperity. Sadly, your local bank is affected by this also, which is why you cannot spend above $20 a month using your Naira card. 

With Fluidcoins Earn, however, you can access a globally accepted foreign currency called stablecoins. You can also use this currency to make payments above the $20 limit on sites worldwide using apps like Flip. Learn more about how to do that here. 

The unique thing about stablecoins is that, unlike fiat currencies, they are designed to meet the needs of a global economy rather than support a specific government’s desires 

Fluidcoins Earn VS Bank Savings – No competition 

It doesn’t take much to recognize that the current banking system is not set up in our favor. Instead, it slowly drains us of our wealth through decades-old, antiquated processes. However, the introduction of DeFi through Fluidcoins Earn signals a change in how we view finances. 

For savers looking for a genuine return on their investments, Earn offers a strong alternative. Earn is a safe way to generate passive income and is more effective than your local bank. The winner is thus obvious. Fluidcoins Earn outperforms bank savings in every category.