Earning interest on your crypto

[AicecreaME]

Staking your coins is better than holding it in your bag without getting anything in return, the profits you might get is small but at least you didn't waste your time waiting for the right moment to sell your coin, it's killing two birds in one stone. But do this in a trusted exchanger, I'm not promoting but my friend says binance is his number 1 trusted exchange while hodling a lot of money. Because if you'll just put it in a custodial wallet in a random exchanger or site that offers staking, there's a 10 billion points that you'll never get your money back.

[CarnagexD]

Depending on your crypto, you may or may not need to stake your coin just to earn profits. Let's say you're using bitcoin and is planning to trade it for something esle that can be staked, it would be better to keep it as it is as bitcoin offers better profitability compared to any other coin in the market. In terms of long hodling of course.

[darewaller]

if I may suggest you look at the bsc farming platform.
there you can get greater interest depending on the type of coin and the deal.
for example, CAKE at Pancakeswap offers apr400% if you stake 2 types of coins and increase the liquidity there.

I think this is the site you meant : https://bsc.farm/

I don't know if its legit and what actually it provides because I haven't been into staking or earning interest on my crypto so I was a bit lost on the website.

In fact, I am very attracted to the opportunity to receive dividends from my cryptocurrency assets. But I am alarmed by the issue of security, especially if you need to transfer your funds to some other resource. A calmer and more acceptable option for me is, for example, staking Ethereum in the MEW wallet, where I will not worry about the safety and security of my coins.

Well, whenever and wherever you are staking there will be risk because you are giving control of your coins to someone else. I don't know if MEW provides the ability to stake our coins but if they does that's a great thing because even I trust MEW and I believe they give us our private keys so does it mean we have the control even when staking? That would be really cool.

[Pierre 2]

When I first heard about earning interest on my own crypto to generate passive income, my mind was blown. This way my fantasy ever since I entered crypto, I was good hodler but never good trader. That's why I wanted to buy low and wait, wait, and get nothing except profits if the coin price increases. But interest gave hodlers like me one more reason to keep holding. I regularly check interest rates and its going to be awesome to generate interest over bitcoin, bnb, eth and other stable coins to be ready for bull markets. This is my take on it. I plan to use Binance for it by the way.

[Febo]

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.

How much is it worth to you 5-7% increase in a year when value of coins you have goes up and down 5-7% almost every single day. Nothing!  Better focus in most secure ways to store them And properly hedge.

[orions.belt19]

if I may suggest you look at the bsc farming platform.
there you can get greater interest depending on the type of coin and the deal.
for example, CAKE at Pancakeswap offers apr400% if you stake 2 types of coins and increase the liquidity there.

I think this is the site you meant : https://bsc.farm/

I don't know if its legit and what actually it provides because I haven't been into staking or earning interest on my crypto so I was a bit lost on the website.

This refers to DeFi Yield farming. I would say its legit because it's run by binance. The one from Pancakeswap is on the Binance Smart Chain but since it's on Binance, its centralized so its Centralized-DeFi. The one handled by binance is only Pancakeswap, but the others mentioned like Goose, beefy etc. are not and the problem here is they may be suspect to a rug pull and your money may not be safe to be left behind there. There has been instances in the past where pools were exploited.

Essentially you stake your BNB there and farm food themed tokens like CAKE. Many people are opting to use Pancakeswap instead of Uniswap because of the ridiculous ETH gas fees recently.

[zanezane]

When I first heard about earning interest on my own crypto to generate passive income, my mind was blown. This way my fantasy ever since I entered crypto, I was good hodler but never good trader. That's why I wanted to buy low and wait, wait, and get nothing except profits if the coin price increases. But interest gave hodlers like me one more reason to keep holding. I regularly check interest rates and its going to be awesome to generate interest over bitcoin, bnb, eth and other stable coins to be ready for bull markets. This is my take on it. I plan to use Binance for it by the way.

Good for you that you are earning interest with your bitcoin and other coins, I plan to do the same thing but with gambling websites but I am still saving enough money so I can get good returns. To OP, I would suggest doing what @Pierre 2 does with what he/she is hodling because loaning it will not be  good for you because you might end up meeting a person that will default your loan and you won't get any profit, loaning in crypto online is the riskiest job to take because it relies on trust which is not good for you.

[doomloop]

Lending is always not risky if the site is trustworthy. It is not the fact how the valuation is. Because at the same time they are borrower and lender in maximum case. For example: blockchain.com is a lender and borrower. When anyone take loan from them the lender should have to provide collateral.

The problem remains the same though, if you are not controlling the private keys, you are not the rightful owner of the coins. I trust every site and I don't trust any of them depending on the situation. I always check my transaction stats like confirmation,etc on blockchain so ion that sense I trust them but that doesn't enable to me invest my coins under them for interest.

Every individual have their own preference though so I understand as @target said POS is a better option, I don't even agree with that because most of the POS coins lose their worth by the time dividends arrive.

Staking your coins is better than holding it in your bag without getting anything in return, the profits you might get is small but at least you didn't waste your time waiting for the right moment to sell your coin, it's killing two birds in one stone.

Yes, if you hold a coin which can be staked you should do it, but there is a problem of locked funds which means you cannot move your funds in case the market is dropping you are just helpless.

[redsun114]

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?

Yes, there are lots of wallets that are doing that these days, almost all the wallets I am using are doing it and it’s not every cryptocurrency can make you the same interest, it varies for each cryptocurrencies and the most of them I have seen are giving around 4% interest for Bitcoin.

Blockchain wallet does that and for Bitcoin they are giving 4.4%, and the highest they give is when you hold stablecoins like Tether and USD Digital, those stablecoins are 12% annually. But the reason they are giving more for stablecoins is because of their stability, BTC, ETH and other non-stable coins can’t fetch you that much from them, since they already knows that these ones are volatile and can increase or decrease drastically.

[Bitcoinsummoner]

Also, does 3 to 4% APY sounds interesting? no its not.

I think it might be helpful for those who invest in crypto for a long time. In this case those investors will not get any interest if they do not lend it. And the purpose of this investment is not interest. Purpose of this investment is increasing the rate of these investment (crypto). So, if the site is legit then it is not a fact what is the interest percent is.

[tygeade]

I dont consider any platform to be trustworthy no matter how many years that they had been existing because they can really ran off those funds anytime.
I dont really have any much confidence with that but there are platforms out there that do give out such interest opportunity to those who do tend to lend.

Also, does 3 to 4% APY sounds interesting? no its not.

Why wouldn't you trust a place that has been around for years, I am not talking about for a specific one, not blockchain.com not any other place, I do not care about the name, think of a made up one that doesn't exist right now, we start a new business next month, we are in 10% APY business, even 100% APY business, and we start to give people that thanks to our business model (whatever that is) and for 10 years we manage to do it without a problem, we keep doing that for as long as possible and people are very happy with us.

Would you still not trust it? It has been doing that 100% yearly return per year for 10 years now and not a single person accused them of scamming, and everybody would vouch for it, I am sure you would at least consider it? Of course this is just an example and there hasn't been any 10 year company in crypto but I just wanted to show I think it is about specifically one company and not all companies in general.

[Argoo]

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.

How much is it worth to you 5-7% increase in a year when value of coins you have goes up and down 5-7% almost every single day. Nothing!  Better focus in most secure ways to store them And properly hedge.

It should be borne in mind that if we transfer our cryptocurrency to some company and something happens to it or to our cryptocurrency, we will simply lose it. There will be little or no chance of a refund to us, save for the goodwill of this company. Indeed, a few percent of the annual profit is too little for a cryptocurrency, when such a profit can sometimes be earned in it in one day. Even a very rare occasional trade in it will bring much more profit. I'm not risking that way yet.