Stacking cryptocurrencies with Interest

[ChrisPop]

Oh man, theres NO way i would give them my BTC to hold for 4-6%APR, one can make more then that in traditional markets.
Hell my shit-ass BANK offers 2-3%
Ill hodl my own coins, BTC especially with the 1/2ing next year, and BNB is just a great coin
Actually Binance could hodl my bnb, i trust them with that and i dont need my bnb to be liquid, whereas my BTC i do

I agree with you here. I have made my own risk analysis and it is just not worth it. If these platforms would be trustworthy and somehow regulated so my deposit is guaranteed then yes, I would definitely consider stacking some BTC there to grow my bag. We need to keep in mind that BTC is a deflationary currency and getting even 5-10% APR could build up an account nicely over time.

[efxtrader]

Coinmarketcap has recently published a page where they track the interest rates from various cryptocurrencies on different platforms. The highest Bitcoin APR is now 6.20% at BlockFi. Looks like BNB and stable coins have even 10% APRs. I wonder what are these platforms doing with your crypto to offer such high interest rates..

My question to the community is how much you trust these platforms to hold your crypto safe and don't scam away? Is the 4-6% annual interest rate worth the risk for you?

If an exchanger with a good reputation holds cryptocurrency staking, I think this will be good and affect the price in the short term. Investors will think it is better to follow a staking program and earn interest while holding coins for the long term

[GreatArkansas]

(.....)
My question to the community is how much you trust these platforms to hold your crypto safe and don't scam away? Is the 4-6% annual interest rate worth the risk for you?

4%-6% interest is good and not so "promising". So, that's why they have some feature like that. But the only risk here is the VALUE of particular cryptocurrency. Like the BTC value of it, as you can see when the Bitcoin dominance is increasing some altcoins  are dumping.
So, even there are interest, but the value of  it is not so profitable (it price is dumping).

[inthelongrun]

Coinmarketcap has recently published a page where they track the interest rates from various cryptocurrencies on different platforms. The highest Bitcoin APR is now 6.20% at BlockFi. Looks like BNB and stable coins have even 10% APRs. I wonder what are these platforms doing with your crypto to offer such high interest rates..

My question to the community is how much you trust these platforms to hold your crypto safe and don't scam away? Is the 4-6% annual interest rate worth the risk for you?

I know Blockfi but haven't used it. BlockFi offers fiat loans online with crypto currencies BTC, ETH, LTC and Gemini dollar. The collateral value is 50% more than the amount loaned so it is fully secured unless there are heavy dumps on BTC, ETH and LTC. This allows BlockFi capable of paying their depositors with its annual interest rates.

10% annual returns on BNB and some stable coins are still payable. In my country, most investment companies I know paid 8% to 15% annual rate of returns depending of its performance. And I believe that in many highly developed countries investment firms are performing better than mine. It also means that BlockFi and these stable coins can invest the deposits they received on other platforms even outside crypto currency markets they deemed viable.   
 

[Murat]

I think 4-6% annual interest rate is not worthy for the people whereas the conventional banking system offering you to avail more than 10% interest with a high level of security, So why people choose this platform instead of the Bank, I know a lot bank which provides more than 10% interest rate annually, but when you work with Binance or some big exchange then you will get less interest rate, I think every investment contains little bit risk factor but online platform we face a lot of risks but gained is comparatively lower than any other platform, but it also true that if you consider about the cryptocurrency price volatility then the rate of interest is not bad at all.

[magneto]

Coinmarketcap has recently published a page where they track the interest rates from various cryptocurrencies on different platforms. The highest Bitcoin APR is now 6.20% at BlockFi. Looks like BNB and stable coins have even 10% APRs. I wonder what are these platforms doing with your crypto to offer such high interest rates..

My question to the community is how much you trust these platforms to hold your crypto safe and don't scam away? Is the 4-6% annual interest rate worth the risk for you?

Depends on the circumstances.

Products like BlockFi I'd be comfortable with putting a chunk of my coinage in because of the fact that they are quite established, but I do believe that you should always be prepared to hand over KYC documents before actually subscribing to these investments.

BNB and other staking coins are risk-free technically because everything is decentralised - of course, they are prone to adverse movements in token price still.

6% per annum isn't something that is unachievable, but should raise alarm bells if it's not put out by a legitimate company with a track record.

[r_delossa]

No, the interest rate is too small, if you consider the volatility of crypto currencies and possibility that we are now having a falling trend, it is not worth it at all. Firstly, if BTC drops, you would lose a lot of money by getting peanuts from the rest of your portfolio.

[plast555]

Staking some coins might seem profitable. But I like to stake my coins in exchange for Divided. There are a few casinos I use for that. At these casinos, you can receive a large amount of divided rewards by stacking the casino's own token. You can easily find the dividend-supported casinos on the internet, but according to my observations, highest dividend ratio belongs to Bethash atm.

[tenakha]

Coinmarketcap has recently published a page where they track the interest rates from various cryptocurrencies on different platforms. The highest Bitcoin APR is now 6.20% at BlockFi. Looks like BNB and stable coins have even 10% APRs. I wonder what are these platforms doing with your crypto to offer such high interest rates..

My question to the community is how much you trust these platforms to hold your crypto safe and don't scam away? Is the 4-6% annual interest rate worth the risk for you?

Actually, I never trusted them, and I do not think I will. Even in the banks, while there is a chance that I can not get money back, sending BTC to someone is too risky. I have not information about this procedure but I suppose there are collateral. Right? I would not recommend it to anyone unless there is a guarantee. That is all I think about: if it was that easy, why would everyone trade? There are even employees that work whole year for 1%.

[enhu]

There are projects that I can trust because its backed by well known individuals in crypto but its just me, since I already got some considerable amount of coins from staking my coins. DPOS coins made me earn good amount and I'm still staking still up to now. There are several projects with almost same way for building their community. Staking makes holders hold the coins they have.

No, the interest rate is too small, if you consider the volatility of crypto currencies and possibility that we are now having a falling trend, it is not worth it at all. Firstly, if BTC drops, you would lose a lot of money by getting peanuts from the rest of your portfolio.

If you are just going to be holding anyway, why not stake them at all. It all up to the holder.

[3DBrushes]

I think 4-6% annual interest rate is not worthy for the people whereas the conventional banking system offering you to avail more than 10% interest with a high level of security, So why people choose this platform instead of the Bank, I know a lot bank which provides more than 10% interest rate annually, but when you work with Binance or some big exchange then you will get less interest rate, I think every investment contains little bit risk factor but online platform we face a lot of risks but gained is comparatively lower than any other platform, but it also true that if you consider about the cryptocurrency price volatility then the rate of interest is not bad at all.

In my country, 4 - 6% interest is offered by a general savings banks account with less minimum balance and with a good security. 7 - 10% can easily be achieved in Bank fixed deposits or debt and liquid mutual funds. 99.99% of the time interest is guaranteed so if crypto investment offers more interest than this then it's a good idea to invest.

[alexsandria]

Coinmarketcap has recently published a page where they track the interest rates from various cryptocurrencies on different platforms. The highest Bitcoin APR is now 6.20% at BlockFi. Looks like BNB and stable coins have even 10% APRs. I wonder what are these platforms doing with your crypto to offer such high interest rates..

My question to the community is how much you trust these platforms to hold your crypto safe and don't scam away? Is the 4-6% annual interest rate worth the risk for you?

4% to 6% of annual interest is quite big for third world country. Usually interest in third world country offers lower than 4% depending on how big the balance of investor is. Non-investor or people who have a bit idea in investing thing would find those worthy specially those people who lives in third world country. On the other hand, persons who made investing as an activity cycle will find out those platforms not worthy at all, what matters to them is the security of the money in the end 'cause investment purposes came from the desire of harvesting the interest after the long run.

In the end, risks attached right behind of every investment but risks with those platforms weighted more than the risk of what the bank has.

[10c]

4-6 percent per year in cryptocurrency is very small amount. I could not call it a risky investment. in this market, you can easily earn 4-6 percent per day and not per year

[Wintersoldier]

I think 4-6% annual interest rate is not worthy for the people whereas the conventional banking system offering you to avail more than 10% interest with a high level of security, So why people choose this platform instead of the Bank, I know a lot bank which provides more than 10% interest rate annually, but when you work with Binance or some big exchange then you will get less interest rate, I think every investment contains little bit risk factor but online platform we face a lot of risks but gained is comparatively lower than any other platform, but it also true that if you consider about the cryptocurrency price volatility then the rate of interest is not bad at all.

In my country, 4 - 6% interest is offered by a general savings banks account with less minimum balance and with a good security. 7 - 10% can easily be achieved in Bank fixed deposits or debt and liquid mutual funds. 99.99% of the time interest is guaranteed so if crypto investment offers more interest than this then it's a good idea to invest.

People nowadays are just saving in bank for some reason, and that is not because they would like to have income for saving their money as we all know the interest we are earning is very minimal, we are just saving it for security reason. For crypto, it is okay to stake but be mindful that cryptocurrencies price is very volatile, so make sure that you are ready for it.

Why can't we spend and invest on the stable coins? Whenever we gained profit, they always withdraw it again and again. But in a sense that they should also consider the safety of their money in their good hands. Furthermore, the percentage of investment/s guranteed return isn't really be calculated with the use of cryptocurrency. In this case, they can use a laptop that will be able to run their wallet even without using a Trezzor wallet and ledger nano. Another way is to buy a vault wherein you can still secure your transaction and balances.

[TrevorS]

It can be assumed that the coin exchanges pay interest rates due to the retained value from the hold. After all, the more coins are in the hold, the less likely the price will fall, or rather, the decline will be less significant depending on the number of coins circulating in the market.
Also, while the coins are in the hold of the exchange, they are used to provide liquidity and to issue loans. As a result, the circulation of money continues and at the right time you receive your dividends.

[apoorvlathey]

There are a lot of decentralized lending projects and emerging DeFi services emerging. But keeping my coins onto some third party always seems risky to me. Might be the whole be your bank case with bitcoin and other cryptocurrencies that I prefer to just keep my coins with myself.

You can read my thread which deals with a similar topic: Earning interest on coins through DeFi. Is it Safe/Legit?

[Upgate]

Every investment is risky especially online investments are regarded as highly risky investments, i think solid exchanges and wallets that are providing this service are good to go but to be honest 4 to 6% for a year is just not attractive in crypto world where you can do it in a short term trade.

You can do it in a short term and also lose it in a short term however you made it know that online investment is risky and cryptocurrency is an online investment.
However I have safety assured when I invest in bitcoin, this not to say altcoins are not say but you have to watch it

[SistaFista]

Coinmarketcap has recently published a page where they track the interest rates from various cryptocurrencies on different platforms. The highest Bitcoin APR is now 6.20% at BlockFi. Looks like BNB and stable coins have even 10% APRs. I wonder what are these platforms doing with your crypto to offer such high interest rates..

My question to the community is how much you trust these platforms to hold your crypto safe and don't scam away? Is the 4-6% annual interest rate worth the risk for you?

Not really high for me, 4-6% per year is a low return rate which is good because it is usually legit.
If you compare with fiat, you can deposit your money into time deposit and get return up to 7-8% annually.
We should be careful if there are some investment that offers a high rate return, it might be scam.

[BChydro]

Coinmarketcap has recently published a page where they track the interest rates from various cryptocurrencies on different platforms. The highest Bitcoin APR is now 6.20% at BlockFi. Looks like BNB and stable coins have even 10% APRs. I wonder what are these platforms doing with your crypto to offer such high interest rates..

They might be using the coins for daily use rather than touching their cold wallets to send out the coins and Binance does lend out coins but i am not sure about blockFI as i never used them.

My question to the community is how much you trust these platforms to hold your crypto safe and don't scam away? Is the 4-6% annual interest rate worth the risk for you?

I will never risk my coins in any of these platforms even if they give a higher rate of interest as i know and have seen and experienced exchanges being hacked and investors loosing money in the past and i do not want to risk that. My coins are only safe when i hold them as anything can happen in a market and there is no insurance to these exchanges to risk the coins like that.

[BigBoy89]

When people trade on margin, they need to borrow 'the difference'. From there, you have a Lending secondary market and profit.

While I can't fully trust BlockFi, I'm lending all my coins on Binance when I'm not using them. There is no point to miss any 'free' coins.