Cryptocurrencies and inflation

[enrihes]

I have been earning interest on stablecoins for some time, and I would like to change my strategy. Most stablecoins are pegged to the USD, and with the massive money-printing, I see that to the results of compounding I will need to subtract a big amount due to the actual devaluation of the currency. The amount I can be earning is relative if the currency is also changing value. In the end, I no longer see that much added value of having USD-pegged stablecoins instead of USD.

Instead, I would like to use crypto coins (not stablecoins) and earn interest on them, without having to worry about any fiat currency they may be pegged to. I am not really searching for a big growth in the currency itself (a new Bitcoin not really what I am looking for now), but instead something of relatively low volatility, to earn interest and on which I can rely that it's not going to underperform fiat currency as exchange.

However, looking at the crypto market I have not really been able to find a coin like that. Have you got any ideas/suggestions?

[jackg]

Errrr do you understand what you're asking for.

Please don't reply with "yes" but it looks as if you want a coin that doesn't get affected by crypto or fiat currency? Have you entertained the idea of using gold or stocks (you might not be able to hold them yourself though dependent on the exchange/thing you use).

[Jawhead999]

There's no such coin you're looking for

All cryptocurrency always has high volatility unless stable coins (less volatility)

If you think many stable coins are pegged to USD will be undervalued, why not you try DAI? it's pegged by multi collateral crypto assets and has more volatile other than stable coins.

And as for interest, do you mean stable interest just like bank offers? you can lending your funds or invest in casino (beware it's third parties has a control of your funds)

[mk4]

You don't even need to hold a different altcoin. Though I really don't recommend it because I personally don't like having a custodial service holding my coins for me, you can earn interest using bitcoin(BTC) on platforms such as BlockFi and Celsius Network. Proceed with caution and do your research first.

[Obito]

How do you exactly earn interest in them if you are not doing anything about it. Almost every stable coin is tied to USD, what's your point? If you are looking for altcoins, you might need to some research before you do so, a lot of this altcoins are shitcoins in the making and you might be a willing victim. If you want something that earns interest, try your local bank and apply for an Index Fund, or if you hate banks, try investing in stock market and hold it for long term, you can even get some dividends.

[exstasie]

Instead, I would like to use crypto coins (not stablecoins) and earn interest on them, without having to worry about any fiat currency they may be pegged to. I am not really searching for a big growth in the currency itself (a new Bitcoin not really what I am looking for now), but instead something of relatively low volatility, to earn interest and on which I can rely that it's not going to underperform fiat currency as exchange.

However, looking at the crypto market I have not really been able to find a coin like that. Have you got any ideas/suggestions?

You mainly have 2 options, lending or staking.

This is a good site for tracking the interest rates you can earn by lending: https://defirate.com/lend/

Keep in mind the risks. Defi platforms are new and relatively untested, so there could be potential unforeseen losses from bugs, network congestion, liquidation problems, etc. Centralized platforms carry the obvious caveat, "not your keys, not your coins."

Staking refers to proof-of-stake altcoins. You can currently net over 9% APR by staking ETH: https://launchpad.ethereum.org/

[maxreish]

However, looking at the crypto market I have not really been able to find a coin like that. Have you got any ideas/suggestions?
 

 And you can't really find a coin like what you are looking for. You need to change your perspective of views first about crypto coins. While I thought you are looking for an investment platform or perhaps staking coins in some websites which you'll earn interest from investing. But then i think you are looking for a different  approach.
 
 I bet you are also aware of the crypto volatility and yet you are looking for something like stable coins has which is impossible.
 Suggestions?
 Learn TA. It may help you atleast do a good entry for buying crypto coins and hold them for profits.

[glockseason00]

I would look into vaults with Yearn.finance, it can offer you some stability while yielding that dividend you are looking for. Always make sure to conduct due diligence when you are allocating your portfolio into a new asset, yield farming and liquidity mining are the backbone of the Yearn platform but do come with risk. Generally what you are asking for is quite vague as most cryptos that aren't pegged to the US dollar are at risk of high volatility, if you want to hedge against the inflation of the dollar and earn a fair dividend at the same time, lending platforms like Blockfi may be catered to your liking, with an average 8.6% APY interest. The interest Blockfi yields will beat inflation you are trying to hedge against, as for today for a business to remain solvent against inflation they must be earning 8% or more net profit to remain above inflationary loss line.

[darewaller]

I would say it wouldn't be easy to earn high amount of interest on the crypto itself, you are not going to earn a ton from it, but it is definitely profitable to take a look at staking.

For example Ethereum, the second biggest currency in the crypto world is going towards 2.0 which would allow people to do proof of staking, the minimum amount will be 32 ETH so it will be a bit of a challenge but overtime you are going to be capable of actually combing forces with others thanks to other companies allowing that, like maybe binance already did it I don't know but they probably will, you deposit it there, others deposit there too and it creates a proof of stake pool. That way you could earn about 5% in ethereum, and ethereum price could go up or down and you will profit accordingly. You won't be getting interest rate in form of fiat, but you will be getting it in form of crypto this way.

[Reid]

So it's like you are looking for a lazier way to do things instead of the lazy method of interest back then? 
That will be difficult to find.
It's like you don't want to risk something at all while others are going for high risk, high reward just so they can feel the profit.
Well, good luck finding that. I doubt there will be one.

[JooBra]

Maybe look at stacking on some coins. Cardano maybe could be a good option. It gives annually 5% at stacking. Now the price of Cardano will it go up or down is other thing. It's same with other coins. You can't know where the price will go.

[OcTradism]

I have been earning interest on stablecoins for some time, and I would like to change my strategy. Most stablecoins are pegged to the USD, and with the massive money-printing, I see that to the results of compounding I will need to subtract a big amount due to the actual devaluation of the currency. The amount I can be earning is relative if the currency is also changing value. In the end, I no longer see that much added value of having USD-pegged stablecoins instead of USD.

Earning interests with stable coins, what did you say? Did you sign contracts with exchange with your stable coin and earned interest?

Stable coins claim that they are pegged with fiat. 1 USDT has a value at exactly 1 $ dollar and is pegged by 1 $ dollar in banks, vaults. It is what stable coin companies claim that their works are trusted. You as user of stable coins don't know who their words are. Personally, with many news I read, stable coins are similar to fiat currency and if fiat is printed from the air, stable coin is minted from the air. The diffference is print and mint. Print requires factories but mint requires a computer. Stable coin companies have easier works than governments so do you think governments will let stable coin companies a heaven to run their easy works for too long?

However, looking at the crypto market I have not really been able to find a coin like that. Have you got any ideas/suggestions?

Bitcoin is your friend.
Altcoins are your friend in bull market only.

[CryptopreneurBrainboss]

However, looking at the crypto market I have not really been able to find a coin like that. Have you got any ideas/suggestions?

That's because there's nothing like that in the space. If the stablecoin are giving you want you want why leave them. You can avoid the worries you speak off by taking your profits off the stablecoin and hold them in bitcoin which also has potential for growth. Alternatively your can lock your bitcoin and earn interest annually on them via trusted exchanges like Binance.

Do understand though that the moment you give the control of the your coin to a centralized system like Binance you don't owe those coins anymore (for the period they have control over that coin) and stand the chance of losing those coins so unless you'll comfortable losing them don't engage yourself in this practice.

If you don't find what you seek for then just settle down and invest in bitcoin, in the long run you won't regret that decision and don't have to do much except keeping your investment secured to profit from the currency.

[tvplus006]

However, looking at the crypto market I have not really been able to find a coin like that. Have you got any ideas/suggestions?

...Do understand though that the moment you give the control of the your coin to a centralized system like Binance you don't owe those coins anymore (for the period they have control over that coin) and stand the chance of losing those coins so unless you'll comfortable losing them don't engage yourself in this practice...

In this case, you can use decentralized exchanges such as Uniswap. On such exchanges, you can earn much more profit than in traditional banks by providing Liquidity. In order to reduce the risk of reducing the value of the coin, you can choose a pair that contains stablecoins, for example USDT-DAI.

[huff87]

Cryptocurrency is an alternative method of inflation protection which should not be overlooked. While the comparison between gold and crypto has some nuances – the broader theme of Bitcoin as a protective hedge against inflation has broken through – especially after the BTC halving we saw in early May.

[TheUltraElite]

I have been earning interest on stablecoins for some time, and I would like to change my strategy. Most stablecoins are pegged to the USD, and with the massive money-printing, I see that to the results of compounding I will need to subtract a big amount due to the actual devaluation of the currency. The amount I can be earning is relative if the currency is also changing value. In the end, I no longer see that much added value of having USD-pegged stablecoins instead of USD.

You are correct here. What I can suggest, sell the stablecoins to get USD when you get a chance. In other words, dont use stablecoins just because they give interest on what you store. When you sell bitcoins, convert to USD/fiat while the bitcoin price is higher and hold that USD/fiat till bitcoin drops and use that to buy back BTC. That is the cycle you must follow, not the intermediary of using a Stablecoin.

Point is that the stable coins had been started to sneakily taking people's money into lending pools and all with no guarantee on the safety and legal concerns. You are defenitely at risk when using them, Tether itself has a lot of controversies - only time will tell how much is legal and correct in their reserve.

Instead, I would like to use crypto coins (not stablecoins) and earn interest on them, without having to worry about any fiat currency they may be pegged to. I am not really searching for a big growth in the currency itself (a new Bitcoin not really what I am looking for now), but instead something of relatively low volatility, to earn interest and on which I can rely that it's not going to underperform fiat currency as exchange.

There is no such cryptocurrency that mines away money while you sleep. Be careful of scams that promise you the same.

Only methods of growing your money while giving it a low risk of loss, is to deposit the coins on some legit business that is allowing passive income for its investors. Be careful of HYIPs/MLM schemes - those are scam.

Probably the only legit one is investing in a casino bankroll, IMO. But that too the ROI is small and that you have to hand over the money to another company. Currently I dont know which casino is allowing this, previously I have used cryptogames but they have removed this now.

[Tigboom]

it seems you want a stablecoin investement that wont be affected by the dollar flunctuations while you still earn your usual interest. well id ont there is an exact alternative that matches it, i would suggest you device another options and trade or stake or farm to earn even more rewards.

[bitgolden]

Instead, I would like to use crypto coins (not stablecoins) and earn interest on them, without having to worry about any fiat currency they may be pegged to. I am not really searching for a big growth in the currency itself (a new Bitcoin not really what I am looking for now), but instead something of relatively low volatility, to earn interest and on which I can rely that it's not going to underperform fiat currency as exchange.

There is no such cryptocurrency that mines away money while you sleep. Be careful of scams that promise you the same.

Only methods of growing your money while giving it a low risk of loss, is to deposit the coins on some legit business that is allowing passive income for its investors. Be careful of HYIPs/MLM schemes - those are scam.

Probably the only legit one is investing in a casino bankroll, IMO. But that too the ROI is small and that you have to hand over the money to another company. Currently I dont know which casino is allowing this, previously I have used cryptogames but they have removed this now.

There is definitely something that is basically what he was talking about with proof of stake coins. Now the most famous and expected version will be Ethereum 2.0 which will be proof of staking. In there you will 32 ETH into staking, and you will get 5-6% or so return from the staking and that is what he was talking about I suppose. Is it interest? Yes, is it low volatility?

Well, crypto is rarely low volatility and ethereum moves like crazy, but it is still decent, it is basically all he asked for. Sure there is nothing in the world based on a company that I would trust, no company would be good about how "we put money in, it gives us 10% back yearly" type of deal, it is not possible and that is why I think it is quite obvious you assumed something like that, but when it is ingrained in the system like proof of staking that is something definitely possible.

[TheUltraElite]

Well, crypto is rarely low volatility and ethereum moves like crazy, but it is still decent, it is basically all he asked for. Sure there is nothing in the world based on a company that I would trust, no company would be good about how "we put money in, it gives us 10% back yearly" type of deal, it is not possible and that is why I think it is quite obvious you assumed something like that, but when it is ingrained in the system like proof of staking that is something definitely possible.

You got a good point there, ETH 2.0 is going to be launched as far as I have heard, not yet confirmed as to when in 2021 or 2022.

As per the article on Cointelegraph (not that I am a fan of these sites but just for the sake of reference) - https://cointelegraph.com/news/when-will-ethereum-2-0-fully-launch-roadmap-promises-speed-but-history-says-otherwise

the launch might take a couple more years from now.

Now this is not the first time I have heard ETH move from POW>POS method and this has been criticized a lot. I have been hearing this from 2018 IIRC, on many internet chats and trollboxes.

I would defenitely like to see if what the OP says becomes reality with ETH 2.0 but I am skeptical because of past experience and observations on such schemes.

[passwordnow]

You have many options. The first that I'm about to suggest is from Ledger.
https://www.ledger.com/staking

Next is from Abra. In Abra, it's not just the stable coins that you can earn but they also offer bitcoin, ethereum and other crypto. They are the same like crypto.com and nexo that has identical offer.
https://www.abra.com/earn-interest-on-crypto/