Before we begin our task of figuring out how to invest wisely, let’s ask yourself: Upon creating a fixed-term deposit at a bank, which of the following intentions do you have?
(1) Maintain your assets: prevent your assets from being stolen or losing value
(2) Make a profit
If reason (1) is all you care about, you can skip this post.
If you care about reason (2) at all, this post will introduce you to a completely new way to invest wisely – with benefits that traditional methods simply cannot compare. This is not just another promotional post; instead, I’d like to present the most basic knowledge about investment and you will decide yourself whether this investment option is viable.
First step to investing wisely: Basic risks in investment
In investment, the basic risks are:
- Systemic risk (market risk): Systematic risk is related to factors affecting the economy, so it has a profound impact on many assets and investments. Inflation is a typical example of systemic risk.
- Non-systematic risks (specific risks): Risks that affect a number of specific investments.
We are often too confident that creating a fixed-term deposit at the bank comes with no risk at all. In reality, nothing is truly risk-free. You still have to bear the risks of market fluctuations, bank bankruptcy, … all while inflation still occurs. As a result, if the amount of deposited assets generates too low a profit, your money will still diminish over time.
On the other hand, any kind of high-interest investment comes with an inevitably higher risk.
Picture this: In order to be profitable, financial institutions or businesses (if you invest in stocks) must conduct business or invest to make a return on the capital that is the amount you invested. Therefore, promises of absurdly high interest rates – 70%, or even 100% – are incredibly difficult to keep.
Maybe the businesses you invested in are having some risky business strategies. Maybe the investments they made themselves are high-risk. Worst case scenario, you may be a victim of a Ponzi scheme – when the money of the new investors are given to the previous ones as interests, and no actual money is being made.
These scenarios are all short-term and are bound to collapse at one point, taking away your hard-earned money.
Second step to investing wisely: Minimize risk by diversifying your methods of investment
As the previous section has pointed out, no single form of investment is 100% risk-free. A wise investor would study the risks of different types of assets and forms of investment, then make decisions basing on his own preferences.
However, in all cases, having multiple non-correlated assets (assets that don’t tend to increase or decrease with the same patterns) is the best way to minimize risks. When one type of asset reduces its value, other assets will increase in value or remain the same to counterbalance.
VNDC Stablecoin is the first digital asset in Vietnam that you can own to diversify your investment portfolio. VNDC Staking is a new form of smart investment utilizing VNDC Stablecoin: you will make a deposit with VNDC as your currency of choice to earn daily compound interest.
VNDC is a Stablecoin and 1 VNDC always equals 1 VND. You can sell your VNDC to withdraw cash at any point by using our mobile application “VNDC Wallet,” or by working with our VNDC Business Partners.
Owners of the deposits will earn an interest rate of 12.79%/year. You will receive your interest daily – the interest amount will automatically be added to your balance at 23:00 everyday. Besides Staking with VNDC Stablecoin, you can also use Staking with your USDT, USDS and CHI (digital gold) with interest rates as follow: USDT: 6%, USDS: 6%, and CHI: 3%.
When combined with other forms of investment and asset hoarding, VNDC can offer the following advantages:
When combined with traditional fixed bank deposits
- High liquidity: Deposit and withdraw your money at any time.
- Receive interest daily at 23:00.
- High interest rates: Currently, VND is having an annual inflation rate of approximately 3%. With an interest rate of 12.79%, customers will receive a real rate of return of 9.79%, provided that the financial situation in Vietnam remain unchanged. In the event of a major financial crisis, this interest rate will also mitigate or neutralize the effect of inflation on your investment.
When combined with high-risk methods of investment
VNDC Staking can act as a safe investment with a stable rate of return. Compared to higher interest rates of some stocks and risky investments, 12.79% is a realistic, sustainable rate that balances the interests of both customers and VNDC.
Other advantages for this form of smart investment:
- Easy to start: Just open your VNDC Wallet account and have a deposit of at least 10,000 VNDC.
- VNDC Wallet provide a free, simple solution for international money transfer.
- You can make payments with your VNDC Wallet.
- You can exchange between the most popular digital currencies to further diversify your range of assets.
As indicated above, no form of investment is 100% risk-free. However, wise investors are ones to research themselves and choose a form of investment that suits them – one with an acceptable level of risk.
Despite being a new form of investment, VNDC Staking shows great promise by balancing the risk-reward ratio for investors. In this technological era, VNDC Staking represents the next trend in investment and deserves every investor’s consideration.