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Buy more Eth or hedge with USDC?

  • 31-03-2021 6:59am
    #1
    Registered Users Posts: 2,235 ✭✭✭ massdebater
    Registered User


    I'm holding most of my Eth and a small bit of USDC in a yield.app account rn earning 16% apy and have a bit extra cash that I'm going to add. My plan was to just buy USDC and treat this like a cash account but earning better interest than the bank (only getting 1.5% in my bank savings account rn).

    My question is, am I foolish buying a stablecoin tied to a currency that just got devalued a lot and might go down further in the near term? My alternative would be to buy more ETH which might appreciate better than USDC but is riskier and I already have a decent amount. My only options to buy are Eth, USDC or, USDT. What would you do?


Comments

  • Registered Users Posts: 11,386 ✭✭✭✭ Timmaay
    Registered User


    Surely earning 16% apr keeps you well ahead of any dollar devaluing. If the current bull run ends ETH has the potential to devalued a hell of alot faster than the dollar ever could, it went from 1400$ in Jan 2018 to sub 100$ end of that year. I hope to god we'll never see that sort of drop again, but I could well expect a 50% or more retracement at some random stage.


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