Yesterday my partner came up with an idea to deposit a good some of money in a fixed deposit account on an online banking platform offering a 13% interest rate, they offered to pay the interest upfront but the initial deposite would be locked in till the exact stipulated time. Though this may sound like a good deal I discouraged him from making this investment for the following reasons.
Firstly with the rate at which the traditional currency in my country is steadily loosing value and the proposed profit and initial deposit might just be valueless at the matured time this deal might be of little or no value.
Secondly these platforms in my opinion cannot be trusted as different reasons can lead to their folding up and shutting down. I understand that life's a risk but some risks are not worth taking.
On the other hand I offered a solution. I asked him to invest in Bitcoin, now even though the price of bitcoin is volatile, in my opinion it is still more profitable to invest in Bitcoin especially for long term investment than in any fixed deposit scheme.
If you were in the position to give financial advice to someone looking for a long term financial investment, what would you advice?...
13% annual interest rate is a very suspicious, it's too good to be true. I guess you just saved your friend from a scam. I would say that suggesting him to invest in Bitcoin is a good move, but I think before that, you need to explain to him about Bitcoin and show him some article that relevant for why Bitcoin could be a suitable investment for him, and after that he can move on with his own decision. My concern is that if he just listen to you without fully understanding about Bitcoin investment, when the market crash he will blame you for losing part of his money.