In the world of finance, every investors looks for better income which must be safe and balance. It depends on the investor which type of income he wants, some prefer passive income while others want for active income. Passive income investors are the one who are non risky while active investors take calculated risks for better return.
But in the end, the main thing which matter is that how much you earn every month. Will the passive income helps you to meet your expected return or investors who look for higher return, will they meet their expectations?
There are many types of active and passive income but the main point is how much percent you can earn monthly. Thats what really matters. When a normal investor invests, what is his expectation and can he meet it? Before understanding this its important to know how much minimum APR income exists right now in the safest investments.
If we talk about worldwide, then banks are counted as the safest investments. Your amount is never at risk but you still get passive income. The income you get from banks depends on the country. In the US and European countries APR is very low, maybe between 3% to 5%.
What's The APR In Third-World Countries?
But if I talk about third-world countries, the APR there is much higher. For example in my country, right now, the APR is 11%. You just need to invest in a bank and you will keep getting income. But since our bank APR is high our inflation is also higher compared to those countries where APR is low.
In countries where APR is high, people should expect returns according to that. If I want to invest, I will first consider the bank APR. If I can earn more than the bank that investment is better for me. Otherwise such an investment has no benefit and investing in banks is better where there is no risk and the profit is the same.
In countries where APR is low they should plan their investment and returns according to that. For example in Europe its around 2–3%. So, if investors get a better return than that its good for them. But in my country when the bank gives 11% APR then an investor should aim to earn more than that for better results.
If I talk about the Hive ecosystem, #HBD is best for me because it gives 15% APR which is higher than normal banks. But still thats not enough.. If my APR return becomes 24% that would be much better for me because of inflation and other issues that will be controlled.
Swap.hive:colony Offers Around 24% APR
In Hive tokens there are some that can give me 24% or even higher returns. For example, if I invest in #Colony and #Hive in a liquidity pool, their return can be 24% or more. But here comes the question that my capital amount will be at risk because the token price might drop and my capital could depreciate.
On the other hand, the benefit is that if the token prices pump then I will get capital appreciation too. You will keep getting passive income. With taking risk you can also get capital gain. So, in my opinion the best investment is the one where there is a chance of capital growth and also a good expected return at the same time.
I hope you guys will like this post and is interesting as well. If you find it informative then dont forget to give me a support. Share you reviews in the comment section below. Those who will interact will get my 100% upvotes. My staking is increasing. Thank you all for your time reading the content.
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I live in a third world or developing country too, 🇱🇦Laos🇱🇦, and their interest rates are also very good. I forgot that I had $100 in a bank account for many years and when I came back there was over $250 in the account which was surprising. I agree with you. The interest rate on HBD is very good. When I get money again, I'll be putting it in HBD. Even having a small amount like $100 helped me earn enough interest to help pay the fees needed to play in Wild in Splinterlands and buy cheap cards every once in a while.
Mobile banking in our country is bringing in much juicy ROIs. Range of 15 to 20% annually although many don't still really trust them as they are assumed new waves. Long Standing ones are still paying that 3-5% range which always requires huge capital. And yes, HBD is a good opportunity too. Even holding reputable platform tokens like you've mentioned are advantageous, atleast, when price drops you can settle for dividends. A good writeup friend.