Earning interest on your crypto

[Inkdatar]

When you let your coins in a lending platform that will gives you interest there is always risks. Though you receive profit we can't say how long this platform will run. Let us always think the safety of our asset as what others been saying not your keys not your coins. We have an option to hold our crypto or to take the opportunity on trading as there is the high chance to earn more.

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[oHnK]

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.

Investing in Bitcoin alone is very risky, especially if you have to lend it only for interest.  How much interest is offered for sure will not be better than the profit made from investing in Bitcoin.  From March 2020 to the present, bitcoin prices have even touched approximately 500% in just 11 months.  Who is able to provide interest more than the gain from investment.  If anything, it's probably just a scam.

[Pascal43]

I had some in Blockfi, every time they wanted a copy of my passport and a facescan,i thought to my self what if they want something else the next time, something i cannot provide?

This thought alone was enough the get my crypto and stop with Blockfi all together, i feel more at peace now.

Not your keys not your crypto.

[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.

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!

Thinking this way everything in life is gambling. Investments like this aren't supposed to return large profit sums on short run, like any other passive income investment, after all it's not a ponzi scheme. If the investor isn't able to take the risks on short-medium run this kind of deal isn't for him. However on long run the chances are at bitcoin side, that is what I believe.
Furthermore I like the idea of earning interest on crypto currency because even in a crashed and bearish market scenario you can cashout some profit without sacrificing your initial investments.

[darewaller]

When you let your coins in a lending platform that will gives you interest there is always risks. Though you receive profit we can't say how long this platform will run. Let us always think the safety of our asset as what others been saying not your keys not your coins. We have an option to hold our crypto or to take the opportunity on trading as there is the high chance to earn more.

This is one reason why I never stake my coins because unless I have the private keys of my coins, I am not the owner of the coins and nothing I can do in case the platform runs away. In greed of chasing some extra coins, I don't want to lose the initial capital.

I would rather lend Bitcoins or altcoins to online people whom I know and earn interest in that manner. There are still some honest borrowers in the market who would take your coins by providing some kind of collateral or guarantee and then slowly repay the loan with interest. Overall, I don't like the idea of staking coins because it makes the rich even richer which ultimately means the coin is going to die soon.

[FanEagle]

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.

The risk at decentralized places are two fold, one of them is hacking because we all know decentralized projects could be hacked, they do not have one organization at the head making it centralized and you can't get scammed because "d" in defi means there is no person that could scam you but that hacking problem is still valid so you should always be careful about that. And the other part is, you do get paid a lot but in tokens, so this means if the token worths 1 dollars and you get paid 100 of them daily that way you could make 100 dollars, but if token suddenly drops to 1 cent that means you are making 1 dollar per day, and all of your money will go down as well.

It all depends on some super rich folks to sell all their coins, dropping the price significantly and hurting everyone along the way as well. I personally think they are 100% worth a try if you can spare a small amount.

[jostorres]

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

I agree with you and most of the PoS coins will lose their value gradually which means the interest or staking coins you earned goes towards the recovery of the loss you had because of the value drop of those coins.

If the ROI is too high then there must be continuous development in the project to ensure there are more and more investors and also ensure that the investors don't dump their coins they earn from staking. I prefer PoS coins over PoW coins because they save power but then you are right that staking coins are hard to survive in the long run because of the continuous interest investors earn and the dump that follows it.

[Bitcoinsummoner]

Hello, I still do not understand the mechanism by which bitcoin or ethereum, or any other virtual currency, increases or decreases the price / value.I kept ethereum for 2 years and not much happened

You hold ethereum for 2 years and not much happened? What was the price at the time of purchase the ethereum and what is the price of the ethereum now? Make a comparison of that and think your self what has happened!!

[agustina2]

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?

If the 3rd party company is a regulated and well-established company, the chance of being insured is possible. I don't know about BlockFi but seems they are a strong and reputable company.

But everything can change overnight, as to my own decision, I won't try their service but instead, I will choose crypto-exchange with interest features. Same risk but the exchange can stand strong more.

[Bitcoinsummoner]

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.

I am lending it to blockchain.com and it is giving me good interest. I think to lend is good on the site as we hold bitcoin on that site too. In this case we can  earn additional money by lending to the site with same risk. If I lose the fund for lending then still I can lose my fund without lending.

[AmoreJaz]

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?

If the 3rd party company is a regulated and well-established company, the chance of being insured is possible. I don't know about BlockFi but seems they are a strong and reputable company.

But everything can change overnight, as to my own decision, I won't try their service but instead, I will choose crypto-exchange with interest features. Same risk but the exchange can stand strong more.

in these times, even if the company is strong and established, few months from now and the possibility that they may not be up and running is always there. we cant tell their survival here in crypto. though BlockFi has been here since 2017 and they are pretty much doing great. but if you remember their security was breached last year - https://blockfi.com/wp-content/uploads/2020/05/Incident-Report-05-14-20.pdf

now, if you are ready to take risk for all possible situations, you can do so. but will trust my funds more in an insured platform like binance, they have lending also on their platform.

[target]

There is always something to lose when investing, lending your coins for interest will always be risky and the ones who put their feet to risk are always the ones going to take profit when things are going good but they are also the ones losing more when things got ugly. The only safer option if you want to make money without taking a high risk is POS.

[ChrisPop]

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.

In the lending world, these companies earn even more than 20%/year if they are funding for example personal loans. I don't know how much interest they charge to institutional borrowers though. So think logically - when you're making 20% and your cost of capital is 6% you still make 14% APY. So I'd say this a pretty sustainable business model.

IMO, DeFi at this moment is more risky than CeFi simply because we don't have certified authorities that can offer insurance on audits performed on smart contracts. You don't know for sure if the smart contract is flawed or not.

I'm currently studying Sovryn - a layer 2 DeFi platform built on Bitcoin tech.

[lixer]

What are your experiences so far with loaning your crypto?

Haven't been too involved into taking and giving loans because I never needed loans while never lent to anyone because I hardly trust anyone in this crypto industry to be honest and because of the anonymous nature of Bitcoins.

What place do you loan to, or recommend loaning your crypto to?

If you are interested in giving loans and earning passive income then the best place I know is a section of this forum - Lending Section.

But, before you give out loans make sure you take enough collateral from them and verify that the collateral is worth giving the loans and you might see some threads there to get an idea how lending works and what are the usual interest borrowers pay.

[jrrsparkles]

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?

Lending cryptos is more riskier than lending your fiat money because there will be no compensation from the company if they got hacked or goes bankrupt before you take out your money. If you want to make money from lending cryptos then you can become a p2p lender which gives high interest rate in very small time frame but you need to collect the valid collateral from the one who is getting money from you to make sure no loss on your side if he ran away.

[Webetcoins]

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.

I am lending it to blockchain.com and it is giving me good interest. I think to lend is good on the site as we hold bitcoin on that site too. In this case we can  earn additional money by lending to the site with same risk. If I lose the fund for lending then still I can lose my fund without lending.

I wasn't aware that blockchain.com wallet has started offering staking services or paying interest on our coins. I completely agree with you that if you keeping your money in an online wallet which already offers interest or staking then it is worth getting the most out of it because if they are going to run away you would already lose all you have there so why not earn extra in case they don't and if one wallet I trust online its going to be blockchain.com (which earlier was blockchain.info)

Personally I am not into staking or earning interest on my coins because its just too risky to hand over your coins to someone you don't know and the nature of crypto doesn't help either because the one who has the key is the owner the moment you send it.

[Dragonfund]

Hello, I still do not understand the mechanism by which bitcoin or ethereum, or any other virtual currency, increases or decreases the price / value.I kept ethereum for 2 years and not much happened

I still don't understand what you mean by not increasing. Did you kept them on a staking platform or exchange or probably in an exchange.
I don't think it's possible for Ethereum you have kept for 2 years without having increase in value.
It's either the wallet you kept the token has been outdated, needed update or you aren't holding real Ether. The last 2 years should have double your money if you have bought when market was still low.

[teosanru]

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 these days crypto lending is becoming a pretty popular option especially with new investors. I feel that 5-7% per year isn't that bad but obviously. But this idea works only on centralised platforms like Binance or other exchanges because they can control the funds of other person or the borrower. This makes lending on such platforms safer.

There is always something to lose when investing, lending your coins for interest will always be risky and the ones who put their feet to risk are always the ones going to take profit when things are going good but they are also the ones losing more when things got ugly. The only safer option if you want to make money without taking a high risk is POS.

I don't think POS is possible with Bitcoin Ethereum and some top currencies rest all are pretty volatile so even if you are gaining coins you might not end up gaining anything in dollars.

[Kakmakr]

Hey... it is a risk/reward scenario for you.... Take a small amount of money and dump it in there and see what it does. I did this with Freebitco.in at 4% interest and it has been safe for more than a year. (This site is not regulated and even a higher risk than regulated Exchanges and their partners) 

Just do not go all in with high risk investment options like this, because you might lose the shirt on your back. All our portfolios should have some high risk investments.... so just go for it. 

[target]

There is always something to lose when investing, lending your coins for interest will always be risky and the ones who put their feet to risk are always the ones going to take profit when things are going good but they are also the ones losing more when things got ugly. The only safer option if you want to make money without taking a high risk is POS.

I don't think POS is possible with Bitcoin Ethereum and some top currencies rest all are pretty volatile so even if you are gaining coins you might not end up gaining anything in dollars.

Yeah its always been the dollar that matters when it comes to profit. That when BTC hit ATH and will try to dump all they have because they think bull market is about to end.  If you have 1BTC before this bull run and then end up having 1BTC still after the dumps, there is no difference as you didn't get richer.

OP didn't say its just BTC, he meant crypto, which means it could be ETH or just about any token that's POS. Having 50K of ADA and then stake it in a wallet and after a week of epoch he gets about 51K of ADA then he is 1000 ADA more richer than before.