Saving on crypto: The analysis you need before deciding

More and more people are viewing cryptocurrencies as an alternative to protect savings against inflation. But the reality is more complex than optimistic headlines. Let’s see what it really entails.

Reasons that make sense to consider

Full control of your assets
Without intermediaries means you are responsible for 100% of your money. There’s no bank to freeze your account or hidden fees. But beware: that also means if you make a mistake, there’s no one to claim against.

Availability 24/7
The crypto marketplace never closes. You can send funds at 3 a.m. on a Sunday without waiting for banks to open. This is especially useful for urgent international movements.

Growth potential
Historically, Bitcoin has gone from cents to tens of thousands of dollars. Ethereum enabled an entire economy of decentralized applications. But this happened in specific cycles; it’s not guaranteed.

Generate yield
Some platforms offer staking or savings accounts that generate interest. The APY can be attractive, but it always involves counterparty risk.

Risks you cannot ignore

Extreme volatility
Bitcoin can drop 20-30% in days. If your strategy is to save long-term, this is noise. But if you need that money in 6 months, you could have a problem.

Custody is your responsibility
Losing your private keys = permanently losing access to your funds. There’s no “I forgot my password” like in a bank. Hacks on centralized platforms are also real risks.

Regulation is still under development
Many countries lack legal clarity. This affects everything from taxes to whether a platform can operate tomorrow. In case of fraud, protection is limited.

Requires active monitoring
You can’t just hold crypto and forget about it for 10 years without paying attention. Hard forks, protocol changes, or even the disappearance of a platform can impact you.

The uncomfortable truth

Saving in crypto is neither better nor worse than other options. It’s different, with a distinct risk-return profile. It works best as part of a diversified portfolio, not as your only savings plan.

If you still have doubts about what to do with your savings, you’re probably not ready for cryptocurrencies yet. Real education isn’t following hype: it’s understanding what you’re buying and why.