Bank interest Vs keeping money in Bitcoin to make more

[avp2306]

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.

Yeah that's huge and as what I know there's no bank in my country offering such huge return per annum.

But upon research I've seen this one offering that percentage what OP said.

https://fintechnews.co.ke/is-piggyvest-approved-by-cbn-and-safe-for-nigerians-to-save

https://cowrywise.com/security

Even if they are government regulated institution still got doubts if they can sustain that, but I really don't know the real score about their offering and the background of the company offering such return. But yeah better to diversify and don't put everything on it. We have Bitcoin and so far it remain reliable long term investment for us.

[Ambatman]

Bitcoin isn't a share that you would be earning dividends from.
There are ways to earn through Bitcoin but there's always a trade off
Either on custody or complexity with defi (Example like Rootstock).

I don't know how you got that rate but Banks are not that attractive
And most times the interest they lend can't keep up with the rate of inflation.

[Webutxo]

Bitcoin isn't a share that you would be earning dividends from.
There are ways to earn through Bitcoin but there's always a trade off
Either on custody or complexity with defi (Example like Rootstock).

I don't know how you got that rate but Banks are not that attractive
And most times the interest they lend can't keep up with the rate of inflation.

Bitcoin isn't a direct money where you have some financial institutions gives you more Bitcoin for locking your coins since it's proof of work, but some centralized exchanges do auto lock while some defi platform offer indirect staking and offer some percentage and they are very small. Some centralized exchanges have 7 days upto 3 months staking on Bitcoin and they are limited with small rewards, it's not worth it to stake Bitcoin even if you are going to hold it for long.

Assuming Bitcoin is proof of stake now, I would have advice him to stake on the chain but Bitcoin is a proof of work. It depends on miners for security, there is no validators on the network that process transactions. Some Defi that even offer staking will first convert your real Bitcoin into Wbtc on other chains and then you can now stake and when you unstake, your reward and Wbtc will be return which you can convert to real Bitcoin.

[Zaguru12]

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

Non-custodial institutions is actually the one you hold the keys yourself. So I think you mixed up the wordings, what you were trying to advice is actually “never store your coins on custodial institutions”.

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.

Ok let’s say we go with this your advice and but at least one 1.5 bitcoin at the current price $60k which is $90k then the rest to be staked or invested to the piggyvest, for me I will pick the piggyvest because the APY seems realistic to me although the biggest obstacle would be using centralized platform which is definitely similar to also staking alt coins. Another risk would be t devaluation of the currency (inflation), this is also similar in my opinion to Altcoin because it can actually fall to zero too.

Now comparing the APY I don’t think any platform give that amount of APY for alt coin but for piggyvest it depends on the currency that you’re holding.

I don't know how you got that rate but Banks are not that attractive
And most times the interest they lend can't keep up with the rate of inflation.

Piggyvest is actually registered under micro finance bank, the interest rate per annum actually is based on the currency due to devaluation but the rate start from 6% to 18%

[Hatchy]

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?

The best thing to do is be your own custody, be your own bank. Don't let a third party have access to your bitcoin as it goes against everything bitcoin stands for. People do it, some claim it's safe but it's not I promise you. Those are the set of people who ends up learning the hard Way.. holding bitcoin in your own wallet for a long term scale, would make you profits as well.

Yeah that's huge and as what I know there's no bank in my country offering such huge return per annum.
But upon research I've seen this one offering that percentage what OP said.
https://fintechnews.co.ke/is-piggyvest-approved-by-cbn-and-safe-for-nigerians-to-save
https://cowrywise.com/security
Even if they are government regulated institution still got doubts if they can sustain that, but I really don't know the real score about their offering and the background of the company offering such return. But yeah better to diversify and don't put everything on it. We have Bitcoin and so far it remain reliable long term investment for us.

They might not necessarily give you such returns, just a form of promotion for their services. I've used some in the past, but the interest I got in return were not up to what they claimed to offer, that's why I began to avoid using such. Bitcoin is still the best form of investment and a much better one. Just invest your money and wait for the market to return bullish..

[ImGenius]

If someone has $100,000 in the bank or piggyvest in my country they can make up to 18% in a year.

Based on you post history i confirm that you're from Nigeria. So i Googled about Nigeria inflation rate and I find  this-
 
So 18% annual interest is nothing compared to 33% inflation rate. In fiat currency value never goes up when it goes down but bitcoin is completely different we can definitely hold bitcoin while chilling.
Source: here

[Filicius]

If someone has $100,000 in the bank or piggyvest in my country they can make up to 18% in a year.

Based on you post history i confirm that you're from Nigeria. So i Googled about Nigeria inflation rate and I find  this-
 
So 18% annual interest is nothing compared to 33% inflation rate. In fiat currency value never goes up when it goes down but bitcoin is completely different we can definitely hold bitcoin while chilling.
Source: here

Thank you for clarifying this point, because I was reading the thread and like other colleagues above, such a high percentage of interest was finding me incomprehensible. If with inflation within normal they offered 18% interest in my country, why invest in most financial products, which do not guarantee a return even half without taking on large risks? But of course, with what you have explained it has a catch, and it is similar to deposits in my country as well, which do not give even enough interest to compensate for inflation.

[Cryptomultiplier]

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?

The best thing to do is be your own custody, be your own bank. Don't let a third party have access to your bitcoin as it goes against everything bitcoin stands for. People do it, some claim it's safe but it's not I promise you. Those are the set of people who ends up learning the hard Way.. holding bitcoin in your own wallet for a long term scale, would make you profits as well.

Yeah that's huge and as what I know there's no bank in my country offering such huge return per annum.
But upon research I've seen this one offering that percentage what OP said.
https://fintechnews.co.ke/is-piggyvest-approved-by-cbn-and-safe-for-nigerians-to-save
https://cowrywise.com/security
Even if they are government regulated institution still got doubts if they can sustain that, but I really don't know the real score about their offering and the background of the company offering such return. But yeah better to diversify and don't put everything on it. We have Bitcoin and so far it remain reliable long term investment for us.

They might not necessarily give you such returns, just a form of promotion for their services. I've used some in the past, but the interest I got in return were not up to what they claimed to offer, that's why I began to avoid using such. Bitcoin is still the best form of investment and a much better one. Just invest your money and wait for the market to return bullish..

The best part about Bitcoin investment is the thought that it is under your control and not some CEX or investment plan has it. Even though you may not get much returns from holding Bitcoin by DCA for a duration, the potential for Bitcoin to be worth more than your local fiat in coming years is guaranteed.

That's why I really don't advice anyone that thinks chasing a dividend of 4% or 5% or more is a good choice of investment because anything can happen.
The best way still remains to hold your Bitcoin in a cold storage,and let scarcity and volatility do the work for you.

​

[Odusko]

You either lose your control over the Bitcoin you want to invest through third party API which is available on most Centralised exchanges, this is very risky and something I will not advice our friend to do, the most secure way is to buy Bitcoin hold it in they personal wallet, sometimes this method of investment even gives you a higher rior for investment than whatever the bank can offer you.

[Hazink]

As much as I hate saving in local currency and the fiat system, I will consider leaving that money in fiat instead of giving my bitcoin to a centralised service in exchange for some little reward that's double the risk, risk of losing my entire money without the reward and risk of getting locked out.

Because the exchange/custodia service finds something suspicious about my account, buy and hold your bitcoin without any target in mind before the end of the year if the market is more bullish you could make more than that yield, or you can see your capital depreciating in value but your 1btc will still remain 1btc which if you hold longer after that one-year period you can sell for a higher price

[Findingnemo]

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?

If the bank is giving 18% returns then I can't imagine the inflation rate in that country which must be at least double that rate.

And you don't see the whole picture, if the inflation rate is even 20% then you made nothing and worst you just lost 2% in a year but with bitcoin you can make some if you planning on for holding atleast a cycle.

[Hamza2424]

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.

I did not know the OP or his friend are from Nigeria but here in our country the rate is 6% to over 12%, which for the sake of this post I searched because I am not an interest guy. I don't like it because interest is prohibited in our religion. We are not supposed to even take a loan that has interest on it.

We have Islamic banks here, but as far as I have researched I think they are also close to interest. Anyway this is not the topic. The topic is about BTC and bro yep I agree that BTC can't give us that high return even if we stake or lock it on any exchange.

We might not get that high rate anywhere. If any platform claims to give that high rate, then that could be a rug pull scheme.

[Zoomic]

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% is a very high interest return, if this works fine in your country it is a good one for people that doesn't like volatile and high risk investment.

But the advantage of bitcoin is that, on the long run, bitcoin will give more yield but it has a great disavatage too. Money in the bank cannot depreciate from $126k to $60k. It is best to do what what works for us.

Remember than with bitcoin, no freezing of account, no delay of payment or locking the funds and not to touch it till 365 days. In emergency you can sell your bitcoin and survive.

[Floxynice]

You're willing to hand over your Bitcoin to a third-party company? That is a very wrong decision to make. Bitcoin has already offered the freedom to hold your money yourself without having to go through verifications or restrictions before you can access it. Teach your friend the right thing and never give him the impression that dealing with third parties is okay, even though such an arrangement may seem very convenient.

An 18% annual interest rate on your fiat savings with the bank is attractive, that is, if the bank is actually willing to offer it. That is not the situation with bank savings in my country. Bitcoin, on the other hand, is actually capable of giving way more than 18% during that same period, but you both should not fail to understand that Bitcoin is volatile, and there is a chance of either a reduction or an increase in the value of your Bitcoin holdings during that one-year period.

You can choose to invest for a longer or shorter period, depending on when you reach your target price, then you sell.

[Renampun]

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.

18% per year is quite high interest just for savings, because in my country it is only around 0.35% - 1.50%, and banks don't want to offer more than that.

but if it's about Bitcoin, I think that if you want to get such a "dividend" maybe you can hold your Bitcoin for a longer period of time, for example 2 cycles or more.. you can hold it until you can actually get a good return from the increase in the value of the Bitcoin you hold. or you could just put it on a centralized exchange, like staking or being a borrower, with that you can get additional returns from the assets you put on the exchange.. but this is quite a risky method because you entrust your assets to an exchange where you are not in full control of the assets, so if there is a problem with the exchange then you will likely lose your assets.

[avp2306]

Yeah that's huge and as what I know there's no bank in my country offering such huge return per annum.
But upon research I've seen this one offering that percentage what OP said.
https://fintechnews.co.ke/is-piggyvest-approved-by-cbn-and-safe-for-nigerians-to-save
https://cowrywise.com/security
Even if they are government regulated institution still got doubts if they can sustain that, but I really don't know the real score about their offering and the background of the company offering such return. But yeah better to diversify and don't put everything on it. We have Bitcoin and so far it remain reliable long term investment for us.

They might not necessarily give you such returns, just a form of promotion for their services. I've used some in the past, but the interest I got in return were not up to what they claimed to offer, that's why I began to avoid using such. Bitcoin is still the best form of investment and a much better one. Just invest your money and wait for the market to return bullish..

Base on what you have said it seems that they are just using that percentage for advertisement to attract people, but in reality what really happen is they are giving more lower percentage than what they promise to give to their investors.

And for me this is totally disappointing, since it seems that they are trying to fool people with those offerings. This is why same as you Bitcoin for me is really the best choice here, because there's no need for us to hope for something unrealistic and what we need is to have patience and understanding on how it moves.

[Outhue]

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?

OP this was literally me some years back, I wished to earn some percentage on my Bitcoin and then I found BlockFI, to cut the story short it ended in tears, there were many platforms like BlockFI that promised good yield on your Bitcoin and today they are nowhere to be found, Bitcoin is not a Proof of Stake coin, if it was it would have been a different experience.

My advice is to forget annual returns as a Bitcoin holder because it will expose you to greater risks, and yes you are right about sending your Bitcoin to thirdparty to make some percentage back, this is not safe at all because one day something bad can happen to that platform and you will never be able to withdraw your Bitcoin back, nowhere is safe for your Bitcoin than your own Bitcoin wallet.

[UserU]

Non-custodial institutions is actually the one you hold the keys yourself. So I think you mixed up the wordings, what you were trying to advice is actually “never store your coins on custodial institutions”.

Thanks for correcting, I meant to mention custodial. 😅

Have edited my post.

[Somegory]

Never store BTC with non-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.

Don't worry about it.
I am not planning to do such because I know the risks involved.

I only bring this topic on here to hear more opinions from people.
Bitcoin is safer in a open source hardware wallet than in the hands of any centralised banks or platforms.

Even if that day where banks start offering extra income on Bitcoin balance comes I won't be patronising that idea too because they are all birds of the same feather, I am not tempted to invest Bitcoin in anything for annual income.

I have invited my friend over so I will be handing my phone over to him so that he can read your opinion and others opinions as well to understand that I am not kidding when I said that Bitcoin is safer in a privately own wallet than anywhere else.

[AprilioMP]

[edited out]

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.

My calculations are in dollars because the currency symbol is the dollar. Any fiat currency in any country also loses 18% of its value over the course of a year. If calculated on an equal basis, the expected return is still lower than that percentage.
With Bitcoin, 1 BTC = 1 BTC. In the past, it took a lot of BTC to buy a pizza; now, 1 BTC can buy a move-in-ready house where I live.