Earning interest on your crypto

[mcun2000]

So, I have small amount of cryptocurrency I bought and mined over the years and will HODL, but I am seeing news articles and advertisements about earning interest on my coins. And the returns are not bad--5 to 7% per year.

It seems BlockFi is the front runner. They seem to have partnerships with the major US crypto exchanges, e.g. Gemini and Coinbase (I am in the USA). I am also googling and trying to educate myself.

But, I have serious concerns about learning my crypto to 3rd parties. What happens if the institution that I loan to, for example BlockFi, goes brankrupt? I assume I will lose my crypto. Would it be safer to loan to an exchange and I don't run that risk?

What are your experiences so far with loaning your crypto?
What place do you loan to, or recommend loaning your crypto to?

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[jackg]

This is all going to depend on the crypto you're trying to lend/what you're holding.

There are sites like defipulse aimed at offering a comparison between decentralised options and exchanges are also a good route to go down.

I think btc can normally make 1-2% a year so if you're making more than that where you suggested then as long as they're legit they'll be a good choice. I think most of this stuff is quite risky though still so I'd try not to risk it all if I were you.

[carlfebz2]

I think most of this stuff is quite risky though still so I'd try not to risk it all if I were you.

I would rather take this option than to risk out my coins and letting those platforms hold into it.When it comes to risk then theres no doubt to that.

It is much worth if you do just simply hold off your coins into your own wallet and earn percentage which is way more that these platforms/services can offer.

Not only you do only hold up your own coins but also you can earn more than on what you are aiming.You can really sleep well at night without having those kind of
worry and thinking about being scammed or some sort of hacks.

[Dragonfund]

You never specify the type of you one over the years and the ones you bought but I would want you to be careful with depositing your funds into a custodian wallet. While locking your coins comes with terms and conditions, hope read that before you proceed and again, the status of market may change, locking this fund some times cannot be undone until a specific period is reach though some allow you to move your funds anytime you feel like.
I don't know the type of coin you are holding, I would have suggest you get Atomic wallet and stake your coins and move them any time you fit. It's a non custodian wallet, meaning you own your private key and phase phrase or mnemonic seed.
Stay guided my friend.

[mcun2000]

I currently hold these coins--BTC, ETH, LTC, XMR, and ZEC.

I tend to agree with what most of you guys are saying. There is a real risk of losing my coins if I lend it out.

[SquallLeonhart]

There are other platforms that you can make use of apart from Blockfi, though Blockfi is still a good one if you’re going to be doing that, 7% annually isn’t a bad one, because some of them that I know wouldn’t pay you that much. Take for example Luno, they are paying 4% per annum, which isn’t that much like that of BlokcFi, then there is also Blockchain wallet which is also doing the same thing, and there is Crypto.com, can’t remember their percentage per annum. But you can still go for that BlockFi, it’s popular and has been around for sometime.

[Coyster]

I tend to agree with what most of you guys are saying. There is a real risk of losing my coins if I lend it out.

Bitcoin for example has appreciated significantly since last year till now, if one was to have loaned out their Bitcoin at the start of last year, it's not possible the interest on loaning it will be close to the ROI they'll earn if they had held it. The risk is also definitely not worth it, just as storing coins in an exchange wallet is risky, so is loaning your crypto out.

If you're an investor, it's in your best interest to select coins that can appreciate in price overtime, you naturally make profit from such coins as time goes on and they appreciate, I'd most likely even think that if you want to consider loaning out any of your crypto, it should be shitcoins that you're really not sure of for the long term, and then again, such services wouldn't accept such cryptocurrencies.

[The Sceptical Chymist]

I don't know, OP.  Look at what the crypto market is doing right now and ask yourself if a 5-7% profit on top of all the capital gains you probably made is worth the risk of lending out your coins.  Me, I probably would not take the chance and I'd just hold onto what I have for the long term.  Anytime you're not in control of your coins, you're probably going to be anxious--and for good reason, because the entire crypto space is rife with scammers, and even reputable exchanges have been known to go bust overnight and without warning.

Some folks might recommend going the DeFi route, but I don't know much about that and I'm not sure how safe it is.  I hear stories of people making incredible profits on Youtube videos, but you never know what to believe.  Good luck, though.  I'd just hold if I were you.

[shield132]

Don't get wrong with me but I think that earning interest on your crypto is the worst decision right now. Why not to dedicate some time to crypto world and be always up to date about what happens in cryptocurrencies? It's not that hard to predict when price rises or falls. Maybe you can't trade daily and I don't even recommend, that really has a bad effect on your nerves but what about to trade sometimes? To catch only good moments? There are some moments every year that gives you the opportunity to get a good profit.

Btw if your bitcoins worth 47 000 USD today and you earn 8% on your crypto deposit and after one year you have 1.08 btc but the price is 30 000 USD, then you would be better to sell at 47 000 and buy at 30 000, then maybe hold.

Those who don't risk, don't get the reward and those who risk, sometimes get the reward

[canovan25]

So, I have small amount of cryptocurrency I bought and mined over the years and will HODL, but I am seeing news articles and advertisements about earning interest on my coins. And the returns are not bad--5 to 7% per year.

It seems BlockFi is the front runner. They seem to have partnerships with the major US crypto exchanges, e.g. Gemini and Coinbase (I am in the USA). I am also googling and trying to educate myself.

But, I have serious concerns about learning my crypto to 3rd parties. What happens if the institution that I loan to, for example BlockFi, goes brankrupt? I assume I will lose my crypto. Would it be safer to loan to an exchange and I don't run that risk?

What are your experiences so far with loaning your crypto?
What place do you loan to, or recommend loaning your crypto to?

It's simple. In bankruptcy, there is a loss of coins. And then we start thinking, are we ready to get 5% per annum, knowing that at some point we could lose everything? That was the first one.
The second. There are more than just lending services. There are also so-called liquid pools. Their essence is very simple - you provide liquidity to a decentralized exchange, it shares the commission with you. You can google uniswap, curve or aave. For some coins they give up to 100% p.a. Then, you can look about such things as arbitrage, if you know how to programing (On the Internet they will steal your coins for sure). Or market-making. There are different strategies for limit volume, you can look and ask. I categorically do not recommend day trading. It is almost guaranteed to lead you to losses.

Don't get wrong with me but I think that earning interest on your crypto is the worst decision right now. Why not to dedicate some time to crypto world and be always up to date about what happens in cryptocurrencies? It's not that hard to predict when price rises or falls. Maybe you can't trade daily and I don't even recommend, that really has a bad effect on your nerves but what about to trade sometimes? To catch only good moments? There are some moments every year that gives you the opportunity to get a good profit.

Btw if your bitcoins worth 47 000 USD today and you earn 8% on your crypto deposit and after one year you have 1.08 btc but the price is 30 000 USD, then you would be better to sell at 47 000 and buy at 30 000, then maybe hold.

Those who don't risk, don't get the reward and those who risk, sometimes get the reward

Sold at 47, and bitcoin go up to 120. It's a great deal, isn't it?

[jerry0]

Is blockfi the highest rate for coins like usdc etc?  Do they require verification?

[jossiel]

I have no experience in lending my crypto in exchanges as I understand the risk that it bears and I'm not willing to take it. The 5%-7& that you're likely to earn from them, I don't think that's worth the risk to allow them hold your crypto.

If that's the percentage that you're happy to earn, by just holding it you can even earn more than that and you're happily holding your funds without taking any risk and you're worry-free.

[vintages]

I currently hold these coins--BTC, ETH, LTC, XMR, and ZEC.

I tend to agree with what most of you guys are saying. There is a real risk of losing my coins if I lend it out.

Glad you have made up your mind in holding. Just to add, in case the urge of finding ways to earn from your cryptocurrencies comes back (it happens lol) to avoid regrets, loan out the altcoins but NEVER you touch your Bitcoin. Now, to acquire one Bitcoin has proven difficult, hodl onto it. If possible use the little gain your get from loaning your altcoins to purchase more Bitcoin.

[xSkylarx]

I currently hold these coins--BTC, ETH, LTC, XMR, and ZEC.

I tend to agree with what most of you guys are saying. There is a real risk of losing my coins if I lend it out.

Check crypto.com to see if you have the minimum amount required for their staking. https://help.crypto.com/en/articles/2996965-crypto-earn-how-does-it-work

It's a good platform to stake your coins and they even offer a cool visa card if you stake a minimum amount of CRO tokens on their platform. I'm planning soon to stake my coins there so it can be a passive income to me, their CRO tokens grew alot recently.

[Xinarae*]

Gaining interest in crypto is about investing in currencies it is possible to make a profit by making long term investments in currencies like bitcoin and Ethereum in crypto it is also in a much better position to hold other altcoins. To make money on crypto, you need to analyze the market and choose the right currency i think it is much safer to put a loan at risk if you put it on hold. There will be no fear of losing even if you have to wait for a long term investment, it is possible to earn double profit if the price goes up.

[iamsheikhadil]

I would say it will be very risky to lend crypto to anyone, be it a company or any person because, as you said, they can run away any time or might get bankrupt. I'm not saying that they are fraud, but 5-7% interest on "crypto" is really high because not only you will make more money because of the price value that might go down for crypto against fiat, but on top of that you will get interest in form of crypto. However, I would better use it in rather trading and if am not free, I'll rather just hold and wait for price rise of the coin with peace of mind. Or investment in some good startups or crypto projects would be nicer too.

[LogitechMouse]

Gaining interest on sites like BlockFi and other sites like Celsius and Crypto.com would be good rather than just putting it on a hardware wallet and let them sit there.
On the other hand, the greatest risk of this is that you will let the company hold your coins in exchange for the interest that they will gave which is kinda risky if you will ask me. They are holding your money instead of you holding your money because there are no keys with this sites.

I'm not saying that these sites are bad and TBH they are quite good in their own ways. My advice is that just don't put all of your coins there so that if the worst thing comes, you will not lose all of them.
On my part, I tried Crypto.com and I'm gaining interest there with my ETH. I didn't put all of my money there just in case. Kinda risky in my part but I'm ready for it .

[Gyfts]

I've put some crypto into casino bankrolls before but it tends to be a bit risky. The house edge will earn you profit long term but if some whale comes along and demolishes the the house in a gambling session, you're losing money. If the casino goes defunct, you're out everything. It's too risky. Maybe one day when major banks accept crypto the might let you incur interest, but that won't be for a while.

[Samayuki]

So, I have small amount of cryptocurrency I bought and mined over the years and will HODL, but I am seeing news articles and advertisements about earning interest on my coins. And the returns are not bad--5 to 7% per year.

It seems BlockFi is the front runner. They seem to have partnerships with the major US crypto exchanges, e.g. Gemini and Coinbase (I am in the USA). I am also googling and trying to educate myself.

But, I have serious concerns about learning my crypto to 3rd parties. What happens if the institution that I loan to, for example BlockFi, goes brankrupt? I assume I will lose my crypto. Would it be safer to loan to an exchange and I don't run that risk?

What are your experiences so far with loaning your crypto?
What place do you loan to, or recommend loaning your crypto to?

You have two options here, it's either you lend out your crypto or stake them for annual returns, the safest place to do this is binance exchange since the exchange have collateral funds in case anything goes wrong, also we have trust wallet and atomic wallet that allow staking in the wallet, there is no way to lose funds on this wallets, all you have to do is keep your recovery seeds somewhere safe

[Leviathan.007]

Be very careful when you are dealing with any project offering you interest on your crypto assets because these websites usually offer huge amount of profits to get people attention and then, they runaway after they got enough money from victims. In my own idea, even 2-3 percent profit per year can be dangerous. However, I would suggest you to think about some POS coins and tokens such as Tron instead of taking high risk and putting your investments in danger.