The Best Way To Compound Your Capital With USDC

Financely
2 min readJun 12, 2022

You’re an investor who wants to accumulate crypto without losing your capital…You’ve got 100,000,000 US$ you want to put into crypto. How do you do it?

The solution is to first convert your US$ into USDC, a stablecoin.

Stablecoins are a type of cryptocurrency that’s backed by real-world assets, such as gold or fiat currencies. As an investor, you can now either stake your stablecoins on chain or simply keep your balance with a custodian such as Nexo.

Keeping a stablecoin balance on Nexo allows investors to earn interest on their holdings without having to worry about market volatility or losing their principal investment.

How much interest? 12% per annum.

An Investor places 100,000,000 USDC and earns ±12,000,000 USDC per annum or ±1,000,000 USDC per month. The 100,000,000 USDC remains equivalent to 100,000,000 US$ during the term. No volatility here.

The Investor can reinvest ±1,000,000 USDC monthly into let’s say a single crypto asset like bitcoin.

Assuming the investor purchases ±12,000,000 USDC worth of bitcoin per annum within 3 years if bitcoin price doesn’t fluctuate then they will have earned 36% ROI on their original investment!

This is without taking into account possible future increases in the price of bitcoin, and the fact that this strategy includes dollar cost averaging, by far the best buying strategy for volatile assets.

If you assume bitcoin doubles in price again within 3 years, your investment will have made 72% ROI within 3 years, whilst preserving the initial capital.

There are few asset classes that offer this much opportunity for passive growth and preservation of capital.

A conversion into stablecoins is not necessary, Nexo offers EURx, GBPx, USDx with a guaranteed 1-to-1 conversion rate.

Investors earn up to 12% annual interest on your EURx, GBPx, USDx which is secured at all times by asset-backed portfolios of overcollateralized loans.

Upon a withdrawal request, the equivalent of EURx, GBPx, USDx is automatically exchanged at the guaranteed 1-to-1 conversion rate and Nexo sends the funds back to the investor.

The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

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