Are you dizzy from the corrections we see in the crypto markets? If you can’t handle the fluctuations, or need to calm down, you can always put your money somewhere else – somewhere that the risk is lower and much lower.
There is no doubt, the exchanges all over the world are a bit uneasy these days. To no one’s surprise the crypto markets have been crushing down lately and many risk-averse people laughing heavily when they see the crypto market plunges (let’s see who laugh the highest in the end). I always ask risk-averse people why they keep their money in the bank, and I always get the same answer; because it’s safe! Safe? They are suggesting that loosing money every year is safe… hmm, something is totally wrong with most of the peoples economic thinking and behavior. Worth mention is that this is often people that are 50+ of age and have always been comfortable with the banking system.
However, they should use their brain when they see their interest on the banking account is hovering around 0.2%. If we also take tax and inflation into account, the numbers on your savings account are somewhat depressing. Almost -2% ROI.
Let me give you an example; I have saved money “safely” in my bank and my reward on my “savings account” is set to 0.2 percent yearly. But how much do I really earn, yearly? Please note that the example below is taken from the average savings account in Norway in 2022.
As one can see in the above table my savings loses its value with 1.84% on a yearly basis. I get less for my money in 2022 than I did in 2021 and this despite the bank giving me some interests.
Therefore, I write this article; I get emotionally moved by what most of the citizens in a country are being exposed to…
Here are some alternatives to you that want higher return but want to avoid crypto, stocks and equity funds or something else.
Switch bank or switch to Hive savings
Outside Hive you could switch bank to get better interest. Hopefully you know the banks are competing for your money so that they get more money to lend out to others. Based on the latter understanding the banks are more than willing enough to give you higher interests on your savings than your existing bank does. Or you could just put most of your holdings into Hive savings which give you, in time of writing 12% APR (Annual Percentage Rate). No legit bank out there could give you those returns; they would have been wiped out before the year 2022 was ending. Your choice.
Pay down your debt
Did you know that by paying down your debt it is the best risk-free return that is? In time of writing, especially in Norway, it gives me 2.2% risk-free return and even more for car loan and consumer credit. Respectively, 2%, 5% and 23% risk free return (Interests in Norway). There is no point of saving on bank accounts or money market funds if you still are having huge loans. Then I would say that you are better of paying down your debts.
Start with the loans that is the most expensive like consumer credit and car loans. Then after that you can pay more down on your house mortgage and the loan you did take on yourself when you decided to go study. Save your student loan for last, usually it is the loan with the lowest interest.
Bonds
Buy into a fund that invests in bonds. When the economy is slow, interest rates usually fall like they do now. Then the value of bonds that have a fixed high interest rate, rises. The interest that follows bonds is not high, but I feel certain when I say that they will give you (on average) 1-2% more return than you get on your savings account. Then bonds should be more appealing to people, but many of us see the time it takes to acquire the bond, the risk it has and that this is something different as great barriers to entry, hence you keep your savings in the banks unfortunately.
Refurbish
If you are going to sell your home soon, it may be worthwhile to spend a few “monitas” on renovations. A great tip is to talk to a real estate agent about which measures that are important to do something with. If this raises the standard and increases the price of the home, you will not have to pay tax on this gain. In addition, such housing investments result in lower wealth taxes.
Hedge fund
There are a lot of hedge fund out there so I would not recommend any specifics here but if you do some research on this area you will find that there are hedge funds with low risks and hedge funds with high risk - it’s a matter on what you are comfortable with. Just to give you an introduction an equity fund is usually a fund that invests in different stocks, while a hedge fund is investing in different assets like stocks, options, currency, commodities, and the like. Nevertheless, many hedge funds have lower risk than equity funds. Some of the hedge funds might earn you money even if the markets are plunging. The disadvantage however is that you can’t expect better return than equity funds when the markets are going up. You would also not buy a single hedge fund and that’s it. It should work as a supplement to an already existing portfolio. This is because you want to lower your risks. Remember, this article is meant for readers that are getting “dizzy” from the crypto fluctuations and want to diversify or put some money into low-risk alternatives instead, hence lowering the dizziness.
Property fund
If you are not into buying physical real estate for renting or this might just be too expensive and takes to long to acquire you could always by parts of a property fund. Then you own real estate but only in a paper version! Regardless, the return can be lucrative as more managers buy commercial and residential property for the money, and loan finance your deposit (leverage).
Summary
I think the above sums up what you can do if you are getting dizzy from all the fluctuations in the crypto markets. I do not say you should take all your money of crypto, but if you are worried about your money then move some of it where the fluctuations are not that great. If Hive drops now, I will personally transfer more Hive into Hive savings. Please read 
Cheers
-Olebulls