How I went from earning .01% APY with Chase to 7.4% in Gemini
This week I decided to move some money from my traditional savings account earning .01% APY over to Gemini for a substantial increase to 7.4%. With such a big difference in APY you have to ask yourself, what’s the catch?! The answer is that it does come with increased risk. The deposit is not backed by the FDIC, so there is a very small chance it could be lost forever.
The Gemini exchange offers a wide variety of coins that you can earn record breaking yields with, but keep in mind the coin could crash and earning a 7.4% yield on a coin that has lost 50% of its value is useless. For that reason I chose DAI, which is a crypto-backed stable coin that seeks to maintain a value relative to the US dollar. So, now that the stability issue is resolved what else should you look out for? There will be a Gemini transaction fee for the purchase and you will lose a very small amount of USD during the conversion. For $100 USD I ended up earning interest on $96.38 DAI at the end of the transaction.
Steps:
- Setup a Gemini account if you don’t have one
- Connect your bank account
- Find DAI and enter the amount you wish to buy
- Now go to your portfolio, click DAI, tap the earn interest button followed by the transfer trading balance button. Here you can enter the amount you want to earn interest on (most likely Max).
- Boom! You will now be earning interest on your investment in the next 24 hours.
For me this seems like a no-brainer, but only time will tell if this new investment vehicle will be stable. If you are younger and have a higher risk tolerance start slowy and build your account over time. Happy investing!
Check out these articles for more on wallets:
https://medium.com/new-to-nfts/why-do-i-need-so-many-nft-wallets-dd6088d75135
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