Luno Savings wallet

eg2505 said:
dont really understand the point of this
BTC is in of itself a savings account that can appreciate in value.

why would you need a separate savings account?
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Eg, if you aren't actively trading, 1 btc stays 1btc (the value of which goes up/down)
This would make your 1 btc = 1.04 btc after 1 year (the value of which goes up/down)
So, you're increasing your btc pool, not just waiting for the value of it to increase
 
Temujin said:
Eg, if you aren't actively trading, 1 btc stays 1btc (the value of which goes up/down)
This would make your 1 btc = 1.04 btc after 1 year (the value of which goes up/down)
So, you're increasing your btc pool, not just waiting for the value of it to increase
Click to expand...
so compound interest?
like putting money in a savings account?

so you earn more, without mining or buying more BTC?
 
LinuxMan said:
Nexo doesn't sound like a bad option.
Have they got a proven track record?
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All those 4 are pretty decent as far as i know. They have been around a while.
Anthony Pompliano uses BlockFi
I just listed those 4 because they all seem to have pros and cons i just cant work out , yet, which is better
Celcius seems to offer higher interest as also Crypto / Nexo in their own way...
BlockFi:
1608610814657.png
Nexo:
1608611029417.png
1608611102354.png
Celcius:
1608611208140.png




1608611425029.png

Crypto:
1608611573581.png

You kind of need alot of money to test run all these 4 because you never know.
Thing is its hard to make sense o be sure of what they say , sometimes u are surprised and its not what u expected.

I am still unsure myself what is the best of the 4 to use herein terms of earning interest on simple/common assets:

ETH , BTC , not sure what else is considered simple / common.... so many ALT coins that are everybody's top 10-15
 
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NarrowBandFtw said:
Interesting, haven't checked them out before, I see they're teasing a nexo card that could be cool if available to South Africa

The 6% on BTC means they just match BlockFi though, any reason to pick Nexo over BlockFi (or vice versa)?

the way I read it their insurance is $100 mil in total,, not per account i.e. if everything is lost they have $100mil to divide between all their clients ... if the assets under management are more than that there won't be enough to pay you back 100%
nexo.io

Nexo’s Custodial Assets Now Insured for $100M

Nexo leads the industry with insured asset custody, providing users with unparalleled security.
nexo.io nexo.io
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As far as i know Crypto has availability for South Africa.
Would it be useful to have a card though, sounds silly to ask, but just asking.
 
ichocolate said:
As far as i know Crypto has availability for South Africa.
Would it be useful to have a card though, sounds silly to ask, but just asking.
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there's a small reward for using the Crypto.com card, but the main use imo would be for people who have mostly transitioned into a "crypto" world i.e. let's say your income is in BTC and you save the bulk of your money in a savings account with Crypto.com, but you still need to pay expenses in the "traditional" world of course

typically this means you would still need a bank account, sell BTC on an exchange, request a withdrawal from the exchange to your bank account and only then can you spend the money in a shop / restaurant / etc

with the card you can skip the bank account part completely, load it up with USD from Crypto.com (presumably also by selling BTC and "withdrawing" to the card balance) and pay in a shop / restaurant / etc
 
ichocolate said:
i just cant work out , yet, which is better
Click to expand...
that's the problem right there, direct comparison is difficult, watch you for those "*" or "?" symbols next to an interest rate warning you there are T&C's involved, they vary based on if you are willing to stake their custom coin or not, or if you want to earn interest in their custom coin or not, or which token you are investing in the first place

to compare directly you need to know your own scenario first, for me personally the scenario is BTC only, not staking of some weird other token, and no interest in a weird other token, BTC only

using that perspective with your post:
- BlockFi's 6% is only for a balance below 2.5 BTC, if you go over that the rate drops to 3%, no staking or earning in weird tokens so it is a simple 3% or 6% depending on your balance

- Nexo offers 6% on BTC (8% if you earn in Nexo tokens, but that breaks my rule, so 6% it is), the insurance they offer isn't a big benefit imo, BlockFi clients have never lost funds AFAIK, so Nexo and BlockFi are identical with 6% pure BTC yield for 2.5 BTC or less, Nexo wins overall for larger balances

- Celcius the "in-kind" reward rate is the direct comparison one and at 4.51% for BTC it is beaten by Nexo and BlockFi

- Crypto.com you need to lock your BTC in for at least 3 months to get to just 4.5% yield, so also easily beaten by Nexo and BlockFi, even beaten narrowly by Celcius
1608615607219.png

loooooong story short: first decide what you want to be saving in and only then compare, if it is pure BTC without any other tokens / staking / catches involved, BlockFi and Nexo are the clear winners currently

as I mentioned previously in this thread, you also need to consider the blockchain send fees though e.g. if you want to spend a portion of your interest every month it will become expensive with BlockFi / Nexo you will need to send the BTC back to Luno / VALR / whatever exchange you use so that you can turn the BTC into ZAR to spend it

if you just want to leave it alone and have the interest compound over a long time you won't cash out often and the send fees won't matter as much as with regular sends
 
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NarrowBandFtw said:
that's the problem right there, direct comparison is difficult, watch you for those "*" or "?" symbols next to an interest rate warning you there are T&C's involved, they vary based on if you are willing to stake their custom coin or not, or if you want to earn interest in their custom coin or not, or which token you are investing in the first place

to compare directly you need to know your own scenario first, for me personally the scenario is BTC only, not staking of some weird other token, and no interest in a weird other token, BTC only

using that perspective with your post:
- BlockFi's 6% is only for a balance below 2.5 BTC, if you go over that the rate drops to 3%, no staking or earning in weird tokens so it is a simple 3% or 6% depending on your balance

- Nexo offers 6% on BTC (8% if you earn in Nexo tokens, but that breaks my rule, so 6% it is), the insurance they offer isn't a big benefit imo, BlockFi clients have never lost funds AFAIK, so Nexo and BlockFi are identical with 6% pure BTC yield for 2.5 BTC or less, Nexo wins overall for larger balances

- Celcius the "in-kind" reward rate is the direct comparison one and at 4.51% for BTC it is beaten by Nexo and BlockFi

- Crypto.com you need to lock your BTC in for at least 3 months to get to just 4.5% yield, so also easily beaten by Nexo and BlockFi, even beaten narrowly by Celcius
View attachment 980368

loooooong story short: first decide what you want to be saving in and only then compare, if it is pure BTC without any other tokens / staking / catches involved, BlockFi and Nexo are the clear winners currently

as I mentioned previously in this thread, you also need to consider the blockchain send fees though e.g. if you want to spend a portion of your interest every month it will become expensive with BlockFi / Nexo you will need to send the BTC back to Luno / VALR / whatever exchange you use so that you can turn the BTC into ZAR to spend it

if you just want to leave it alone and have the interest compound over a long time you won't cash out often and the send fees won't matter as much as with regular sends
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Thanks a million for your break down.
There are too many good places now and trying to compete with each other more and more.
I see BlockFi give a good new sign up bonus , i also notice a new player being mentioned more called Swissborg , but like u said i need to work out what Coin i want i hold.
For me it is really just BTC only/and maybe ETH, also considering USDT or USDC....not 100% sure what is the best stable coin to hold as long as it hedges against the Rand
 
Which place would you guys recommend to buy altcoins?
 
I am disappointed that when u take on a interest savings wallet with Luno that they do not guarantee the safety of your funds - in the terms and agreement.
I have opted to not go ahead - What's the point.
 
Weird necro, but Ill keep it on topic.

If you have Exodus wallet you can stake ONT and get ONG as interest. Its about 14.8% p/a. I have some staked.

You dont need a private exchange for this, y ou can stake it out in your private wallet, so you dont have to worry about exchange controls.

You can also stake ADA with Exodus, and thats at just over 4% p/a. I also have some of that staked.
 
This is very interesting, so let's say I have 0.1 BTC that I bought in 2018, would I be able to move this to the savings wallet, get interest and still eventually cash out as CGT, would the monthly interest still count as income tax if it's accrued in BTC? Would I have to declare it yearly as income tax or only once everything is cashed out as capital gains.
 
trolol said:
This is very interesting, so let's say I have 0.1 BTC that I bought in 2018, would I be able to move this to the savings wallet, get interest and still eventually cash out as CGT, would the monthly interest still count as income tax if it's accrued in BTC? Would I have to declare it yearly as income tax or only once everything is cashed out as capital gains.
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disclaimer: I'm not a tax expert, I've only listened to some tax experts speak on the topic

- moving the 0.1 BTC into a savings wallet could help prove the case that you bought that 0.1 BTC for capital gain and not trading
- the interest earned however is definitely income tax, whether you sell it or not, valued at the time you received the interest (i.e. you can keep the BTC, but you calculate the interest income in ZAR and pay tax on that)
- some day when you sell that 0.1 BTC that is CGT yes
 
trolol said:
This is very interesting, so let's say I have 0.1 BTC that I bought in 2018, would I be able to move this to the savings wallet, get interest and still eventually cash out as CGT, would the monthly interest still count as income tax if it's accrued in BTC? Would I have to declare it yearly as income tax or only once everything is cashed out as capital gains.
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Original btc can be argued as cgt.

Interest earned would be income tax during the period earned. The amount would then form your base cost for cgt if sold in the future.

For example

You earned 1 btc interest this year at 100k

You pay tax in the full 100k

If you sold it 3 years down the line for example at 1m

Its 1m less 100k so 900k you pay cgt on.
 
Of course the interest could be offset against the R60,000 tax free exclusion as well.
 
Thanks guys. Since I've been holding for a few years, would SARS insist on knowing the origin of the funds? I'm just asking because at this stage I've swapped in and out of so many **** coins over the years I'm actually at a net loss and have lost track of things long ago.

I've been keeping funds in a cold wallet and want to transfer to Luno for the interest but wondering if they will insist on seeing proof of origin - which I don't have due to playing around on various exchanged and swap wallets, etc. over the years.

Also when declaring the interest, would I have to declare the full value of my holdings? I saw there is a new section for crypto on the e-filing form. What would be the implication of declaring the fund I move to Luno?

Thanks.
 
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