Bank interest Vs keeping money in Bitcoin to make more

[Somegory]

Asking for a friend.

Is there any way to make dividends holding Bitcoin?
If someone has $100,000 in the bank or piggyvest in my country they can make up to 18% in a year.

Holding Bitcoin, how can someone make something similar?

This is a question a friend asked me yesterday and I just say that Bitcoin is safer in my hardware wallet and I don't plan on making any interest or anything because if it's possible it will be me handling over my Bitcoin to a thirdpart company.

Or is there any way that this is possible?

[Charles-Tim]

You want to stake bitcoin to earn reward without given your coin to anything centralized? Bitcoin works on PoW which makes it not possible. You will need to hand it over to a centralized platform like an exchange and the reward will not be up to 18% and it can be reduced at anytime.

Another way is the staking of altcoins like wBTC which its price is pegged to bitcoin price.

[Publictalk792]

Yield is place that people get burned, and you are right, it is when they pass on some Bitcoin to other companies. We have seen what has happened to Celsius, BlockFi, Genesis, all with juicy yields, and each one of them has seen fall along with customers money. This risk is very real.
On paper, it is possible to make profits on bitcoin. Staking like options are available on wrapped BTC, some centralized exchanges and lending systems. However, each one of them is linked to other party risk, smart contract risk or both.
Where, however, is 18% from Nigerian bank account risk free? That yield is as result of rising prices and risk on naira. Your friend is not comparing risk vs no risk, but other two types of risk.
Bitcoin dividend is the rising over time. It is not 18% month, it is in the past the growth has been much more than 18% per year. Not direct replacement, different idea.

[Big Dirams]

Asking for a friend.

Is there any way to make dividends holding Bitcoin?
If someone has $100,000 in the bank or piggyvest in my country they can make up to 18% in a year.

Holding Bitcoin, how can someone make something similar?

This is a question a friend asked me yesterday and I just say that Bitcoin is safer in my hardware wallet and I don't plan on making any interest or anything because if it's possible it will be me handling over my Bitcoin to a thirdpart company.

Or is there any way that this is possible?

In scenarios like this you do know your friend to well so you can tell if such person is after income or safety because if he is after interest then bitcoin doesn’t pays dividends like other stocks or even these banks, The best advice I can give your friend is safety is most important.

Bitcoin being a decentralized digital asset gives us the total control of our assets and it doesn’t need any third party to get involved and open us to higher risks. But also our bitcoin storage is also important because storing it in CeFi (centralized exchange) then we are open to high risk because it not our key and it just like we are lending our bitcoin to this company which they might run off like so many other reliable exchanges did. So it a smart idea to store in DeFi exchanges where we hold our key and have the self custody of our bitcoin.

And bitcoin offers higher value and profits when it increase so we stand to have more opportunities with lesser risks. Store in where we have our keys and forget about the little interest that open us to higher risks, let not be a greedy.

[UserU]

Never store BTC with custodial financial institutions because not your keys, not your Bitcoins.

It can be tempting to see some interests especially with a super volatile asset, but all it takes is an exit scam or a hack and those gains are all wiped out. I learned it the hard way.

[Hewlet]

Is there any way to make dividends holding Bitcoin?
If someone has $100,000 in the bank or piggyvest in my country they can make up to 18% in a year.

Holding Bitcoin, how can someone make something similar?

Bitcoin is not like the banks that have a fixed rate that is paid to customers when they fixed their money in the bank for a said period of time. if you are looking at reward for investing in bitcoin, it is very possible to get more than 20% in  year and sometimes, you can even get as much as 50 to 100% which is not guaranteed to start with.

The advantage you have to take out your bitcoin at any point in time in the middle of your investment doesn't exist with banks and a platform like piggyvest. the interest is not too small to be ignored and certainly, a lot of people are making use of it but relative to bitcoin, bitcoin has more advantages than bank investment except you are able to buy some shares.

[aoluain]

TBH IMO 18% interest from savings is phenomenal! I live in one of the wealthiest countries
in Europe and the standard interest rate is around 2%, not even in line with inflation.

To take a dividend from Bitcoin holdings you could follow the 4 year cycle. In simple terms
buy in a bear market, sell in a bull market and buy back the same amount in the following bear
market and whats left is the dividend, its a very protracted approach but at least you get to
control every aspect of the process while in full ownership of the coins

[CryptoYar]

[...]

In terms of real rate of inflation, 2 percent return from normal banking system is read as promise of wealth destruction. Placing it alongside a big return, limited supply is super attractive. However, this playbook is all about the psychology, not the technology, of doing it, over the course of few years. While it can sound logical to purchase on huge price drops or sell on an excessive Wild Trading by retail traders, bigger the extreme, the greater emotional part comes in and messes with best possible moves. It is the people who will be patient to manage their greed in short term peaks that will be the ones that will create huge reward for their generations in end to manage wild price moves.

[Die_empty]

TBH IMO 18% interest from savings is phenomenal! I live in one of the wealthiest countries
in Europe and the standard interest rate is around 2%, not even in line with inflation.

To take a dividend from Bitcoin holdings you could follow the 4 year cycle. In simple terms
buy in a bear market, sell in a bull market and buy back the same amount in the following bear
market and whats left is the dividend, its a very protracted approach but at least you get to
control every aspect of the process while in full ownership of the coins

I doubt if it is an interest in savings because, based on research, Nigerian banks offer 0.50% to 9.00% per annum. Maybe he is talking about fixed deposit interest, which ranges from 3.00% and 15.00% p.a.

Anyone who wants to get dividends from Bitcoin should be ready for the risk of keeping their Bitcoin in centralised platforms. Their coins would be lent out to borrowers or institutional traders. I don't know how safe such services have become, but past events show that some of them didn't end well.

I suggest that OP friends focus on holding Bitcoin throughout a circle or more. He might even make more profit than the suggestion of transferring his Bitcoin to a third party.

[maydna]

I have an idea to answer.

Assuming someone have $100,000 in the bank, get out the money and buying Bitcoin equal to $90,000 and $10,000 altcoin. You can buy altcoins that you can staking the coins to get the interest in your private wallet or using Ledger.

But don't take your Bitcoin along your altcoin and just sit down in the wallet waiting for the next ATH. You can staking that coins in exchanges but you know the risks.

[Darker45]

Before, staking involved sending your coins to custodial services. Today, there's staking using time-locks and others. So, you're still holding the private keys to your coins while they're locked. I was once interested to learn more and even try with a small amount but decided not to proceed after learning about the risks. And the reward which are simply tokens, at least in the case of Core and Babylon, was to me not worth it.

Anyway, if it's true, although it sounds next to impossible, up to 18% in a year by just keeping fiat in the bank is definitely more profitable. I hope, wherever you are, that your inflation isn't above 18%.

[tbct_mt2]

Asking for a friend.

Is there any way to make dividends holding Bitcoin?
If someone has $100,000 in the bank or piggyvest in my country they can make up to 18% in a year.

Holding Bitcoin, how can someone make something similar?

This is a question a friend asked me yesterday and I just say that Bitcoin is safer in my hardware wallet and I don't plan on making any interest or anything because if it's possible it will be me handling over my Bitcoin to a thirdpart company.

Or is there any way that this is possible?

Bitcoin is better than fiat currencies.
Bitcoin blockchain is better than bank system and bank accounts as well as money stored in bank accounts.

It's the most important thing, because if there is risk of losing your money, you should not chase it for interest and as said, fiat currencies, bank systems and bank accounts are unsafe to store your money.

Bitcoin has another advantage, that is nobody, no entity can freeze your Bitcoin wallets and seize your bitcoins in your non custodial wallets.
Another thing that is clear and famous, Bitcoin is deflationary and has increase of purchasing power with time that is opposite with purchasing power of fiat currencies.

[sergiorus]

Asking for a friend.

Is there any way to make dividends holding Bitcoin?
If someone has $100,000 in the bank or piggyvest in my country they can make up to 18% in a year.

Holding Bitcoin, how can someone make something similar?

This is a question a friend asked me yesterday and I just say that Bitcoin is safer in my hardware wallet and I don't plan on making any interest or anything because if it's possible it will be me handling over my Bitcoin to a thirdpart company.

Or is there any way that this is possible?

You can generate some yield on BTC via centralised exchanges (i.e. Bybit Easy Earn) or by using WBTC (Wrapped BTC) in DeFi services.

As long as those 18% beat the currency devaluation against USD, your friend is better off with that.

Unless they specifically bet on Bitcoin's upside and can stomach some crazy volatility and temporary (possibly huge) losses.

[AprilioMP]

18% means $18,000 in one year in bank interest based on $100,000.
In Bitcoin, if we're talking about profits like that, it could be double the profit earned from bank interest over that time. Then, what you have to consider is the price you bought it at and the price you sold it at. I'm referring to this profit, considering that no one can predict the market price for Bitcoin.

Storing on a hard drive also isn't guaranteed if the process isn't done correctly.
The long term will always be more profitable than short-term profits.

[Synchronice]

Asking for a friend.

Is there any way to make dividends holding Bitcoin?
If someone has $100,000 in the bank or piggyvest in my country they can make up to 18% in a year.

Holding Bitcoin, how can someone make something similar?

This is a question a friend asked me yesterday and I just say that Bitcoin is safer in my hardware wallet and I don't plan on making any interest or anything because if it's possible it will be me handling over my Bitcoin to a thirdpart company.

Or is there any way that this is possible?

18% interest rate on the US dollar? Really? Are you sure? There is no way a bank offers you 18% on US dollar deposit. I think that you might be living in a country where local currency has high inflation rate and banks are offering 18% interest rate on your local currency, not on US dollar. I've seen high interest rates on stablecoins but they aren't as high as 18%, they are around 10%.

You can earn money by holding Bitcoin but you have to keep in mind that you'll be holding them on 3rd party service, which actually means that you don't have control over your Bitcoins and you depend on 3rd party. I personally wouldn't do this.

[Tythox.com]

Asking for a friend.

Is there any way to make dividends holding Bitcoin?
If someone has $100,000 in the bank or piggyvest in my country they can make up to 18% in a year.

Holding Bitcoin, how can someone make something similar?

This is a question a friend asked me yesterday and I just say that Bitcoin is safer in my hardware wallet and I don't plan on making any interest or anything because if it's possible it will be me handling over my Bitcoin to a thirdpart company.

Or is there any way that this is possible?

Bitcoin itself does not pay dividend or interest. If someone promise you fixed return just for holding BTC, then most likely you are not only “holding” anymore, you are giving your coins to a third party or taking another risk somewhere.

That 18% from bank also need to be looked at very well. If it is in local currency, maybe the real profit is not really 18% after inflation and currency devaluation. Sometimes high interest rate is only high because the currency itself is losing value fast. So comparing it directly with Bitcoin can be misleading.

With Bitcoin, the “profit” is usually from price appreciation over time, not from yield. You hold because you expect BTC to preserve or increase purchasing power in the long run. But there is no guaranteed yearly income like bank interest.

Yes, there are platforms that offer BTC yield, wrapped BTC, lending, staking-like products, etc. But all of them add extra risk: custodial risk, smart contract risk, platform risk, liquidation risk or even scam risk. After what happened with Celsius, BlockFi and others, I think people should be very careful chasing yield with Bitcoin.

For me, if the BTC is in your hardware wallet, you are already getting the biggest benefit: control. Trying to earn extra interest may look attractive, but losing self-custody just to chase some percentage can be more expensive than the reward itself.

So the real choice is not “bank interest vs Bitcoin dividend”. It is more like fixed fiat yield with inflation risk vs Bitcoin self-custody with volatility risk. Different risks, different purpose.

[sergiorus]

18% means $18,000 in one year in bank interest based on $100,000.
In Bitcoin, if we're talking about profits like that, it could be double the profit earned from bank interest over that time. Then, what you have to consider is the price you bought it at and the price you sold it at. I'm referring to this profit, considering that no one can predict the market price for Bitcoin.

Storing on a hard drive also isn't guaranteed if the process isn't done correctly.
The long term will always be more profitable than short-term profits.

Obviously that 18% APY is not on United States Dollars.
It's definitely not on any strong currency either. Probably Turkish Lira or Argentinian Peso.
So you would have to account the currency's value loss against USD. No guarantees that they would even end up in profit but it's possible.

[TheUltraElite]

Actually bank interest system does not work in bitcoin because no centralized body holds your bitcoin.

You can tackle this in two methods,

1. Do not put all your savings into bitcoin, keep fiat and that too some in banks in order to hold at FD. Whether this is profitable again the future inflation is doubtful but it is possible.
2. Stake your bitcoin on a site that gives dividends. Keep in mind that this carries the inherent risk of the site where you are sending your coins to turn into exit scam or get hacked, either of which cases leaves your coins in limbo.

[promise444c5]

AFAIK most have to be done conveniently using CEX if that’s what you want.. but there’re some third party services aswell maybe if you reasearch them you will find it but I can’t give you names .

Not worth it to me .. just hold the BTC and wait till you can start making from it , much better than allowing a third party to borrow it while giving you some extra. But if you still want it then use a reputable exchange and only use portion out of the fund to risk it.

[Cointxz]

Asking for a friend.

Is there any way to make dividends holding Bitcoin?
If someone has $100,000 in the bank or piggyvest in my country they can make up to 18% in a year.

Holding Bitcoin, how can someone make something similar?

18% a year? That’s already huge considering it’s a guaranteed profit. I will put my life savings in there if that’s available option in my country. Can you clarify how much is the tax for the profit?

You don’t need to go all in either on bank or Bitcoin. You can always split your money based on your risk appetite. Bitcoin promises more profit in the long run but the critical factor is when you will need to use your money.

I will split it on Bank and Bitcoin to benefit for a guaranteed profit and potential high profit. FYI, you can’t get that guaranteed passive income on Bitcoin since your profitability depends on the price valuation in the future.