Pros And Cons Of Using Rewards Apps For Saving

[moonchild]

Like in everything in life, there are upsides and downsides, in this article we will be looking at reward apps holistically and try to understand the pros and cons, let's go.

PROS

1- Convenience: Reward apps can be accessed from a smartphone or other device, making it easy to track and manage your investments and savings.

2- Gamification: Many reward apps use gamification techniques to make saving and investing more enjoyable and engaging.

3- Automatic savings: Some reward apps allow you to set up automatic savings or investment contributions, which can help you build up your savings or investment portfolio over time.


CONS

1- Limited investment options: Reward apps may have limited investment options compared to traditional brokerage firms or financial advisors.

2- Potential for high fees: Some reward apps charge fees for their services, which can eat into your investment returns or savings.

3- No personalized advice: Reward apps typically do not offer personalized investment advice or recommendations, which can make it difficult for inexperienced investors to make informed decisions.

4- Security risks: As with any online financial service, there is a risk of fraud or identity theft when using reward apps. It is important to choose a reputable app and to take steps to protect your personal and financial information.

 

[Etini]

I don't like the idea of using them reward apps as a saving medium. That's because they are very volatile and can go solvent at any time. And when it happens like that, you are in a position where you lose all your savings. I have experienced it before. I lost all my money in one of those apps.

All what I do is work on those apps, get my rewards and transfer it to my local bank account. I can open a local savings account with some fintech apps that are trustworthy and keep my savingsif I want to keep my savings online.

Or better still, I hold the funds on a crypto exchange like Binance and have rest of mind. After all, most of those apps pay through crypto. So when I receive the payment through crypto, I just leave it there. It is more stable than the reward apps.