Bitcoin Forum

Pretty cool deal Huobi has for BTC you just use Huobi Savings and get 4% on you BTC!

I wanted to share this to make sure if you holding it in a wallet - get some easy returns.

https://www.huobi.com/en-us/savings/ (https://www.huobi.com/en-us/savings/)

This is nothing new. A lot of other website provide early APY for holding coins there. Few other site gives higher interest than 4%. Most well known wallet blockchain have this feature too. You can check the details here Blockchain Interest Account (https://support.blockchain.com/hc/en-us/categories/360003244552-Interest-Account). And the faucet/gambling website freebitco.in giving 4.08% yearly interest since 2017.

Nothing new but still cool that you can lock and redeem ANYTIME so its like a checking account

Not your keys Not your Bitcoin.



There's no reason why they couldn't loan out and lose everything and credit you 4% and then when you try to get back your funds it all goes bust.

It's just a financial incentive for you to not hold your own money. It's one of the most common ways people have lost their money in this space.

You want control of your Bitcoin keys at all times. While it's being held by a third party you have nothing but promises.

Most DeFi lending platforms are doing the same thing. You'll need to use WBTC or other pegged token though. Or if you want a non-custodial solution then Atomic Loans is one of the alternative. I don't really see 4% APY is really a good deal to risk your coins tbh.

Sounds great and all, but don't forget that your leaving your bitcoin to a custodial service. Meaning:

1. They could lose your funds through a hack.
2. They could lose your funds through fraud.
3. They could simply not give you back your funds due to something like a government intervention.
4. They could decide to not give you back your funds just because x, y, z.

Juuust a heads up; though of course the decision is on you on what you want to do with your bitcoin.

hey "bitcoinguy", why would you bother using bitcoin then if you don't even want to own bitcoin?
bitcoin is not just a milking cow that gives you fiat profit. it is designed to give you financial sovereignty which can only happen when you own bitcoin (meaning you control your bitcoins not some third party on your behalf while you only have an account).

you see there is nothing "cool" about some centralized service trying to become a "bitcoin bank". we already had fiat banks and we already experienced their corruption and how they are ruining the economy. we chose bitcoin to get rid of them not to re-introduce them again into bitcoin!

Though it is a good deal. I have some funds on Huobi. I can try it for sure!!!its good to have some extra earnings.

4% APY is not worth to take the risk. The risk it mean you could lose all your coins on Huobi.

You only earn 4% : 12 : 30 = 0,0111 % each day, it's better if you gain profit by holding in your non-custodial wallet and sell until the good time come. You'll gain profit and your coins also safe.

This is the same as the other popular exchanges offer. Crypto.com, Binance, Kraken and other exchanges that offer the same investment type. But like what the others concern, it's about the probability of your fund to be held safely.

Yes, the interest rates being offered are promising and good honestly. But do you think that you can avail to lose it if something happened that you have never expected? Much better to hold your bitcoins safely and you will have no worries to have issues withdrawing back and forth your funds freely.

Huobi, the same exchange which uses clients funds to invest in high risk products for their own profit, passing all of the risk and none of the profit on to their customers? Huobi, the same exchange which were found to be running a fractional reserve system? Huobi, the same exchange which did all this without telling their users and then lied about it?

They want you to store your funds with them for the exact same reason a bank does - so they can invest and lend your funds out to make themselves profit. The difference here being that your funds aren't insured like they would be in a fiat bank. If Huobi make a bad investment decision, or a borrower doesn't pay up, then say goodbye to your coins.

A 4% return isn't bad, but I prefer to take risks. Investing in other projects with higher potential, the risk is that I will lose money but the rewards are worth it.
Putting your bitcoins on exchanges can be risky if they happen to happen like MTGOX or BTC-E then you will lose all your assets.

Can you provide me with more details about it

• https://huobiglobal.zendesk.com/hc/en-us/articles/900002202643-Huobi-Savings-User-Guide
• https://huobiglobal.zendesk.com/hc/en-us/articles/900002211286-Huobi-Savings-FAQ

Proceed with caution. Just remember that exchanges get hacked all. the. time. https://cryptosec.info/exchange-hacks/

the real question that nobody seems to be asking probably because they are too busy thinking about the profit is that what kind of guarantee will this exchange give the investor in return?
the answer is absolutely nothing except empty promises. if tomorrow they get hacked, the investor loses its money. if they go wrong in their high risk investments and lose a ton of money and declare bankruptcy the investor again loses money. if some day the US government thinks they are shady and shuts them down, again the investor loses their money.

good luck with your 0.01% monthly profit with such a gigantic risk!

Huobi if I remember correctly was used by some scammers to actually as people to send btc into fake huobi wallets and such.

https://tokenpost.com/Chinese-authorities-uncover-a-cryptocurrency-scam-involving-fake-Huobi-tokens-5622#:~:text=The%20police%20also%20arrested%2010,involving%20smart%20contracts%E2%80%9D%20in%20China.&text=Victims%20were%20instructed%20by%20the,to%20a%20fake%20Huobi%20wallet. (https://tokenpost.com/Chinese-authorities-uncover-a-cryptocurrency-scam-involving-fake-Huobi-tokens-5622#:~:text=The%20police%20also%20arrested%2010,involving%20smart%20contracts%E2%80%9D%20in%20China.&text=Victims%20were%20instructed%20by%20the,to%20a%20fake%20Huobi%20wallet.)

There was an entire fake huobi wallet created by those people , therefore I think whosever is interested in the same should actually first see what they are getting into , since if it happened once , it can very easily happen twice.
This happened in 2020 itself.

_*_

Plus there are other ways too by which you can earn some interest but at the same time you can just hold and encash when the price is high, this way the control is with you and not the wallet company or someone else.

It's easier and safer.

_*_

You can't be a real bitcoiner and give up control over your coins to a "bitcoin bank" - if you're doing that, you're simply an investor who wants to make money no matter what. And in the long run this might be damaging to Bitcoin's ecosystem - if everyone will be using these custodial services, then we'll just come full circle instead of actually disrupting the banks and having a decentralized system. So, if you're a fan of "blockchain technology" and "decentralization", don't contribute to the growth of centralize services.

Why would you keep Bitcoin on centralized exchange for questionable 4% apy returns?
You risk losing it all in case of some hack and you must reveal your identity with sending them kyc identification documents.
Not to mention they can be raided by police anytime like in case with Bithumb and others.

Huobi, the same exchange that for 7 years by now has been faking numbers and volume,  Huobi the same exchange caught lying about the number of coins it holds in cold storage, the same exchange that was caught lying about their so-called customer protection fund that was basically empty.

Any site caught with a plan like this would be instantly labelled as a Ponzi in the scam board.

https://i.imgur.com/mOkx1xI.png

And as always, what happens in the scenario of all the people in the world deposit their coins on Huobi, all the 18.5 mil coins, how are they going to pay the interest?

I'm not saying they're legit, but the screenshot does show a cap of 1.8 million USDT and 120 BTC. That number is fairly reasonable especially since the plan is only for a week. It's also for new users only, which seems like a decent promotional incentive to get users to deposit and hopefully trade after.

If they do get such a large number of Bitcoin, they'd lower interest/cancel the program in it's entirety.

Well, I was not accusing them outright of being a Ponzi, actually, I'm quite sure that the first batch of clients in the 7 days plan will get their earnings, it's just that such percentage in interest normally would trigger a red flag from the community, if a new exchange would try this method to attract new users it will get way more attention than it wanted and not the kind it was looking for. For the rest, I doubt that 4% is going to be viable for a prolonged period, it has already dropped to 3.5%.

That said, it's weird for an exchange that claims daily volume trading in billions to look for funds to borrow from customers at these rates. Promotion, yeah maybe, a publicity stunt, you might be right and everything is actually harmless but afters years of unfortunate events in the crypto environment I'm looking with suspicion on everything, especially when it comes to a way of earning money doing nothing.

I agree, and the most likely outcome here is that you deposit your coins and get paid the interest as advertised. But there is a not insignificant possibility that Huobi make a few bad investment decisions and your coins are lost. Not worth the risk.

It's the same as banks. Whatever they are offering their customers, they know they can make more than that using customer's money and pocket the difference as profit. With banks it is expected - it is no secret they run a fractional reserve system and the money you deposit is either loaned by the bank to other customers or invested in various assets or vehicles. With crypto exchanges it is different - people (naively) expect that when they deposit bitcoin to an exchange, and exchange simply "looks after it" for them. As I said above, Huobi have already been caught investing customers' deposits in high risk investment programs. If you deposit your coins for this 4% ROI, then your coins will be invested similarly, and therefore you might not get them back.

it's pure gimmick IMO. they're just riding the defi train---everybody wants to get paid interest on their crypto now. it's just a marketing ploy to ride that wave and snag some new customers. coinbase is doing customer loans now too for the same reason. it's mainly to get customers to lock up their funds at the exchange, which probably makes them much easier to retain as trading customers.

huobi also provides centralized margin lending---charging 0.0980% daily interest rates to traders at this moment. compounded daily, this is more than 10x the effective annual rate they are paying out to lenders with this "savings" account. if they are using this mechanism to provide liquidity for margin funding, then it makes sense. binance does the same thing and just stops making new offers to borrow when there is too much lending liquidity.

It's nothing new since the same return of 4% is also offered by freebitco.in
They are able to guarantee these returns with mining and betting activities. and they are free to change this return at any time.
however not owning the private keys is always a potential risk that is better to be avoided...

thats preety cool actually..
since huobi never hacked...
instead of trading , if you guys hodl guy, i suggest this is one of the option for getting sats

That's a fairly meaningless metric to go on. Every exchange that has been hacked (the majority of them) was "never hacked" at some point. You have absolutely no idea how good or otherwise Huobi's security systems and procedures are, so you are taking it on blind trust that they won't be hacked in the future.

Regardless, even if you decide you trust that their servers won't be hacked, you still have to worry about the security of your own account (phishing, hacks, malware, etc.), how your funds are going to be used (loans, trading, investments, etc.), if they will be safe while being used for those purposes (bad investments, bad trades, borrowers defaulting on payments, etc.), and all the other things which could happen to Huobi while your funds are on their exchange (scamming, shutting down, regulations, fines or penalties, excessive KYC, etc.).

It is a lot of risk to take for a small return.

Majority do have this kind of fixed mindset that's why they do end up on trusting much into the platform that they've been using until when the hack happens then that the time they would talk
to themselves that they musnt have done it.

We would never know on when a hack do happen on a certain exchange no matter how flawless it is on the past years that had been operating but doesn't guarantee that it would be completely safe
from attacks.

4% or even 10% on annual basis wont really be worth for the risk.