My favorite centralized exchange announced launching a debit card that ties directly to the USDC in your crypto portfolio. I signed up immediately. I am beyond excited and think this could be a major catalyst in the long term.
My favorite centralized crypto exchange is Voyager (affiliate link). I have been a fan of Voyager since April 2021, and I even hold 43 shares of the company on the stock market (VYGVF on Toronto Stock Exchange).
Interest rates. There are many reasons why I am excited, but the biggest reason is the 9% interest we receive on USDC stable coins. This interest is roughly 900 times more than a standard checking account that serves 0.01%.
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At 9%, this is a massive amount of interest and can lead to some significant life changes that I will get into later. For now, you just have to learn to trust your money in a USDC account.
All US Bank checking accounts have the backing of the US government in the form of FDIC insurance. The FDIC insures up to $250,000 per depositor, per bank. Insurance leads to more trust and safety, but that comes with a price.
As I explained in “Investing for Interest 101,” the greater the safety, the lower the returns. With inflation currently at 6.8%, you are losing a lot of money for the protection of an FDIC checking account.
Becoming comfortable with crypto just takes time and understanding. Once you know why crypto will be the next hot thing in banking, you will feel more secure investing in USDC. I recommend reading “How to DeFi -Beginner” to get started.
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Life changes. The most exciting part of having a 9% yielding checking account is the freedom. You can pay all your expenses from your checking account and still grow your portfolio. Can you imagine the freedom of your account growing on its own? Let’s explore.
Let’s say we decide to move overseas on income from cryptocurrencies. We need $2,000/month in revenue for expenses. We do all our math at a 4% interest rate. At 4%, we would need $600,000 in our crypto checking account.
However, we would be receiving 9% interest on our $600,000. That would provide us $4,500/month in passive income from interest. So by preparing for a 4% yield but receiving a 9% yield every month, you would have a large amount of residual income.
As we know from the power of compounding, that extra income would grow our wealth rather quickly. You would have roughly $2 million in 11 years. This debit card could be a life-changing event across the board for many households.
The assumptions. Now, my plan takes into account a few assumptions on my end. First, you would need to save and invest $600,000. You don’t need to move overseas, but you would need to live off of $2,000 worth of expenses.
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Most importantly, you would need to reinvest the residual interest income. That would be the most challenging part of the scenario for most people. I believe for those serious about living a passive income lifestyle, the laptop life, and a cash flow retirement, this plan is very achievable.
The Voyager Debit Mastercard. My new card has not shipped, but I am excited. Currently, I have $1,208 in USDC coins. This will pay me roughly $9/month. That means I can spend $4/month and continue to grow my account.
Of course, I have no plans to spend that $4, but it sounds cool enough. I will make more effort to put $200+ a month in USDC.
The future. This debit card is one of the first ways crypto can go mainstream. Once people feel comfortable with USDC coins and receive 9% interest, it will spread like wildfire.
Annuities vs. Dividends
Having $10,000 in USDC would pay you $75/month. So you could spend $45-50/month and still grow your account. Once people understand the numbers, I think this will get many new people into crypto and onto the Voyager app.
I am in the position to reap the benefits of the card and the Voyager stock. So, I am excited for this card to become the new hotness. We can all dream, right?
Conclusion. What do you think about the Voyager Debit Mastercard? Are you excited about the 9% interest rate? Do you have any money on the centralized or decentralized exchanges?
There has never been a better time to be an investor. Technology and information have opened the doors for us to take advantage as insiders. I hope you use this knowledge wisely. Enjoy!
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
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