We don’t typically accept financial advice from trusted people, much less strangers on the Wild Wild West. But I came across a thread on r/cryptocurrency the other day that kinda put my mind at ease in regards to the credibility and sustainability of crypto firms.
This user confessed to being new at crypto and asked users which of these three firms was the most trustworthy: Robinhood, Coinbase and Gemini. Given that crypto firms like Celsius, Voyager and Vauld were falling like dominoes, I was intrigued by what other investors had to say.
Gemini is my preferred platform for off-ramp purposes, so I was heartened to learn that it was generally perceived positively. Founded in 2014, it is headquartered in New York and
regulated by the New York State Department of Financial Services (NYDFS). New York is well-known for imposing strict financial regulations, so not only did Gemini not circumvent these regulations, but it also played a part in facilitating the formulation of these regulations. Its “Revolution Needs Rules” campaign in 2019 created quite the stir.
But the impetus behind this article is the GUSD. Perhaps it’s not so good to place trust in any stablecoins in this bear market. Still, my portfolio is small and since Gemini has terminated its free withdrawals, I need to grow my pot of money first before I can make transferring to cold storage worthwhile. So, GUSD is audited every month by an accounting firm called BPM, whose job is to ensure the parity between the amount of USD in reserve and the amount of GUSD in circulation.
What’s particularly mouthwatering is its interest rate. It yields 6.9% per year and is compounded daily. A user shared that he had $52k worth of GUSD and was earning $9 daily. Another advantage is that you can withdraw GUSD for free. It is supported by 25 exchanges, although honestly I don’t think any one of them has ventured into my home country. (https://www.gemini.com/blog/gemini-dollar-gusd-is-now-supported-by-25-exchanges) Huobi is even banned in Singapore. Another user said that you could swap GUSD for USDC or DAI on a DEX, so that’s something worth looking into, I guess.
Anyway, my idea is to swap my Dogecoin and LTC and BAT and Zcash for GUSD and then convert GUSD to BTC when the time comes. I will need to spend some money on fees, but since I got these cryptocurrencies for free/minimal effort in the first place, I should bite the bullet and allow GUSD’s 6.9% to grow this portfolio. What do you think?
