Earning interest on your crypto

[Poker Player]

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?

Just swap all your shitcoins for Bitcoin.

Isn't a 200% percent (average) annual return enough for you?

Bitcoin has been the most profitable investment of the past decade, and it looks like it also going to be the most profitable one of the decade ahead. If it maintains that rate of return, you only have to hold $1,000 in Bitcoin for 6.5 years it to turn into a million. I'm not going to say that it's going to keep that return percentage but just imagine if bitcoin were able to sustain a return of 50-100% per year. Just holding $1,000 is going to make you a lot of money. And if you start with more, you'll make a lot more. So forget about ridiculous interest rates for losing control over your investment and focus on the best asset you can invest in.

[ultrloa]

True Bitcoin Hodler say not your keys, not your coin. is 5% per year worth all these risks?
bitcoin is good investment I can get an increase of 20% to 60% every 6 months why risk lending it to a third party and get 10% interest?
if will give my coins to any third part will give it to one that operate for 10 years.

Maybe OP is familiar with banking % returns that's why he think about those percentage he say is quite good to try since he can even earn more from it for just lending his coin.

But the truth there is we cannot really assure that we can get our capital since 1 year is long for the platform we didn't know to last, so for this it's really better not to try this and just follow what people pointing out since staking your bitcoins in your personal wallet is very much ideal since we can see the real profit if the price rise.

[salty]

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?

Any service or exchange can be in such a situation. One has only to recall the situation with the hacking of Ku Coin ( I also considered this exchange more than reliable). So it is best to keep your assets in your wallet and not give them to external management.

[iamsheikhadil]

True Bitcoin Hodler say not your keys, not your coin. is 5% per year worth all these risks?
bitcoin is good investment I can get an increase of 20% to 60% every 6 months why risk lending it to a third party and get 10% interest?
if will give my coins to any third part will give it to one that operate for 10 years.

You are partially wrong here, the interest is paid in crypto, and hence even if value of Bitcoin increase, the interest will be paid in form of bitcoin as far as I know hence any interest is all added to the net profit adding to the price surge of Bitcoin. But, as you said, it's not worth the risk and I feel like 6-7% is not that good either because if one trades, they can make more money than that in a year.

[uneng]

I think it depends on your currently financial situation. If you are in a confortable position and have another sources of income the risk doesn't worth, but if you need crypto currency income to increase your life quality, 6%-7% yearly besides bitcoin market oscilations will be very helpful. The risk is always there, but you can split your bitcoins among different passive income investments.
Remember the saying: don't put all your eggs in one basket.

When choosing a site to lend your money check:

• Site's reputation and for how long they have been operating;
• Check carefully their terms and conditions before investing.

[kooboat]

It seems most platforms especially the  exchanges  are offering that  special service by paying interest  on crypto  as users lend them out. In order  to be on the safer side, I would always suggest if it is possible  to do that on a decentralized  platform instead  of the centralised  ones. Just do some research  and you would surely  discover  some good platforms out there.

[qwertyup23]

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?

I think the returns that they offer are relatively fair, considering that 5-7% per year is kinda the standard interests in general.

However, I do warn you in engaging into ponzi schemes. Some websites offer ridiculous returns in a shorter amount of time but such platform require you to invest a minimum amount in order to proceed. Last 2019, I personally invested in USI-TECH ponzi scheme where they offered 160% returns in 6 months. For the first 3-4 months, you can actually see your investment increasing in value. But when the mature date is near, their website crashed and I lost all of my bitcoins.

Make sure that when you invest on interest rates, double check the website and its genuineness. Lots of fake and scam websites are plaguing the internet space, taking advantage of this bullish run.

[AniviaBtc]

It takes a lot of courage and you're probably a badass if you loan what you are going to invest in cryptocurrency.

Loaning is not a guaranteed thing in a bitcoin investment especially if you're a newbie and you don't have any idea about how cryptocurrency works in the market.

This strategy is only applicable to those who are skilled and experienced investors because they believe that they can pay it and at the same time have profits with it.

[Majharul Saiif]

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?

For this type of purposes, BlockFi is still good one to choose. There are many platforms where you can get such things but the percentage will vary and I can't mention it right now from my end which specifically. But you already have experience and got 7%. The amount is not so bad. Already you got your answer by someone.

[adaseb]

If you hold any fiat, tether or usdc. You can earn interest on this money by just collecting the premium on the future markets. Currently the ETH or BTC premium for June expiry is 9-10%. So all you need to do is make an account with a reputable futures exchange like Binance. Buy some ETH or BTC with your USD on the spot market. And then at the same time sell that same amount of ETH or BTC on the futures platform.

Wait until expiry and the premium will be gone and you will pocket the difference. This is more safe than doing any of this smart contract stuff on ETH which might have some undiscovered bugs. Just use 2FA and keep as little as you can on the exchange as long as your liquidation price is far away. Currently the rates are crazy. However the normal rate is usually 10% per year for USD funding.

[jerry0]

If you hold any fiat, tether or usdc. You can earn interest on this money by just collecting the premium on the future markets. Currently the ETH or BTC premium for June expiry is 9-10%. So all you need to do is make an account with a reputable futures exchange like Binance. Buy some ETH or BTC with your USD on the spot market. And then at the same time sell that same amount of ETH or BTC on the futures platform.

Wait until expiry and the premium will be gone and you will pocket the difference. This is more safe than doing any of this smart contract stuff on ETH which might have some undiscovered bugs. Just use 2FA and keep as little as you can on the exchange as long as your liquidation price is far away. Currently the rates are crazy. However the normal rate is usually 10% per year for USD funding.

Do you know any other legit site besides binance to do this?  So people mentioned blockfi but even though im overseas and outside the US, im a resident of a US state where i can't use blockfi.

[stompix]

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. 

Exactly! If after a 5x increase in fiat terms in a few months you're still willing to risk your stash for 7% then this is not about investments is about greed.

I know I'm biased about those platforms as I really don't see their utility once the bull market is over as it makes no sense for someone looking for a loan to bring 200% the collateral in a stable market and it's pure suicide to do it in a bear market when a crash like the one in March will liquidate your assets and you end up with nothing but even with all the biased is it worth to go against all the principles of BTC for an interest rate up to 7% or even 11% a year?
From my point of view, it would make sense only if you've bought your first coins at >$30k and you're totally bearish on what coming up next.

I think it depends on your currently financial situation. If you are in a confortable position and have another sources of income the risk doesn't worth, but if you need crypto currency income to increase your life quality, 6%-7% yearly besides bitcoin market oscilations will be very helpful.

LTFTFY
..then you should change your life plan as once you're talking about not putting all our eggs in one basket but at the same time depending on something that might crash tomorrow to 10% of the value? That's no plan that's gambling!

[magneto]

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 could look at BlockFi, Celsius, or even some of the products that Binance offers.

But none of them are going to be truly risk free assets. But that's the tradeoff that you're signing up to - you are essentially taking on a risk that whatever ventures that your funds are used to undertake and/or the platform itself will fail, in which case you may only partially recoup your principal amount.

If you are truly concerned about third party risk, lend out your coins against collateral on bitcointalk or other true p2p sites. Then you hold the collateral yourself (if your rep is good enough, ofc).

[nancy]

7-9% arp is not bad but is it worth it? You should store your money outside your wallet for this

[shoreno]

thats the risk of loaning even if you say that the platform where your planning to lend is acredited by another reputable company because bankruptcy is still possible to happen to everyone else . lending your funds to an exchange is the same because tou wont still have a full control over your funds , remember not your keys not your coins .

so if i were you i will hodl my coins alone infact you are still/already earning an interest with that . sometimes we need to be contented if we wanted to be sure that no bad things will happen to us  .

[bitbollo]

lending crypto currency is always a risk even with a trusted site but is a nice opportunity.
personally I get some interest from staking polkatos and cosmos with kraken, but I am using a low amount of crypt and probably I will close after a while (1 year or max 2).
anyone has experience with other exchanges or product for staking like binance?

[arwin100]

thats the risk of loaning even if you say that the platform where your planning to lend is acredited by another reputable company because bankruptcy is still possible to happen to everyone else . lending your funds to an exchange is the same because tou wont still have a full control over your funds , remember not your keys not your coins .

so if i were you i will hodl my coins alone infact you are still/already earning an interest with that . sometimes we need to be contented if we wanted to be sure that no bad things will happen to us  .

This is right that's why I'm not taking those platform who ask about something like this since we don't know if we can recover back our funds in the long run since anything is possible especially when you lend out your money when the price of bitcoin is so cheap and over the time it pumps hard reached another all time high for sure the situation will be questionable since the platform might lost for that instance. That's why the same as you I always prefer to hold rather than doing this option.

[velive08]

I have never lent crypto to date. I cultivate my crypto to make a large amount of profit. so don't be fooled by lending and borrowing crypto, because in my country this is very strange and it doesn't make sense. crypto is only good to manage and make a profit,

[SaShiRaJaVu]

Just swap all your shitcoins for Bitcoin.

Bitcoin has been the most profitable investment of the past decade, and it looks like it also going to be the most profitable one of the decade ahead. If it maintains that rate of return, you only have to hold $1,000 in Bitcoin for 6.5 years it to turn into a million.

Till now bitcoin turned many into millionaires who had the patient to hold for a long time but with the price rallying a lot you cannot expect the same kind of profit like the earlier investors used to get. There are other coins in the market that rallied along with bitcoin especially coins with lower valuation and if you are holding those you could make a huge profit as well and some of these coins gave bigger returns than bitcoin.

Personally i do not trust holding the coins in exchanges let alone lend them.

[Novatech8]

Between pow and pos coins I will still choose pow unless the POS coin is a big altcoin like neo, you want to know why? Most new Pos coins are just luring people with ROI percentage, before a annual passes the coin will have lost its value.


If you want to stake coins for good ROI make sure the ROI isn't too high, if it's too high the project is probably a complete scam