Bank interest Vs keeping money in Bitcoin to make more

[ArabBTC]

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.

So true, anyone that collects money from you and promises a fixed return is either using your money to trade somewhere or making a huge investment somewhere that is yielding returns for him or is possibly a scammer who wants to first lure you into believing that you can always get a particular profit margin, one has to be very skeptical with any investment plan he makes, to me with the current happenings i feel that before you should invest that huge investment in bitcoin you should be really stable financially knowing fully well that bitcoin is volatile, you shouldn’t be expecting a quick profit margin because bitcoin doesn’t work that way so you won’t be disappointed, bitcoin investment is better on long term basis, it shouldn’t be for the purposes of quick profit, Bitcoin should be treated always as an asset, if you need a quick money scheme then you can make bank deposits but mind you even the bank deposits has its own risk that could come due to currency devaluation.

[BTC_pokaop]

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?

Investing in Bitcoin is definitely a better plan than keeping money in the bank. If you keep money in the bank then inflation will reduce the value of your money, although you can get 12-18% profit but if you invest in Bitcoin you can make more profit than that. Now you have to understand that investing in Bitcoin and keeping money in the bank are not the same, you can withdraw profit within a year by keeping money in the bank but to invest in Bitcoin you have to invest in the long term and take risks. So if your friend decides to invest in the long term by taking risks then you can advise your friend to invest in Bitcoin.

[CryptopreneurBrainboss]

Or is there any way that this is possible?

With Bitcoin you're your own bank, when you hodl your money in Bitcoin you don't get dividends because your Bitcoin isn't being loaned out to people as they do in banks with fiat currencies so there are different ways in which you can make dividends on your Bitcoin but that way results to you handing over your Bitcoin to third parties and with this decision you are no longer in control of your Bitcoin and anything can happen to it without you being compensated.

When you invest in Bitcoin you don't need dividends instead you make profit from capital gains on your investment as the Bitcoin you hodl grows over time and also you can make profit through forex when you try to trade the dollars you made in Bitcoin into your local currency.

This alone should be enough profit instead of depending on dividends where the risk is higher as you give away control over your Bitcoin to others. It isn't just worth it but if you want to really gain dividends then you can invest with fiat currency while you still have other investments in Bitcoin.

[As-Soon-As]

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?

Investing in Bitcoin is definitely a better plan than keeping money in the bank. If you keep money in the bank then inflation will reduce the value of your money, although you can get 12-18% profit but if you invest in Bitcoin you can make more profit than that. Now you have to understand that investing in Bitcoin and keeping money in the bank are not the same, you can withdraw profit within a year by keeping money in the bank but to invest in Bitcoin you have to invest in the long term and take risks. So if your friend decides to invest in the long term by taking risks then you can advise your friend to invest in Bitcoin.

Investing in Bitcoin is the safest, because if you invest in Bitcoin, you will have limited money. But whenever you deposit money or Bitcoin in a bank, it will be controlled by a third party, so it is not reasonable to keep it in the bank. In the current position, Bitcoin investment is the safest and most secure if you deposit Bitcoin in a hardware wallet.
The possibility of achieving more benefits is highest if you keep it for a long time, so Bitcoin investment is suitable in any way. Some people are deprived of Bitcoin investment only due to the lack of risk taking.

[YellowSwap]

The likes of Celsius and BlocFi I guess? That's not a safe way of making money, before you even see 50% of your balance there is a high chance that the project or platform will collapse or stop working.

It's always better to hold Bitcoin and if you feel like missing out on some interest then find some money and start staking Ethereum aside, the advantage of PoS coins is you can stake them in some crypto wallets without moving the coins out.

Ethereum also supports staking officially, but you will need 25 ETH or something, I'm not very sure about the number of Ethereum you will need to start staking. DYOR

[goldkingcoiner]

In my country the bank interest is pathetic. 2-5% at most.

I really do not see the profit. Inflation will kill the value just as quickly. And even if you make a tiny margin or profit, you are still entrusting a third party who is not only willing but prepared to freeze your accounts and money for arbitrary reasons.

Bitcoin is obviously the smarter and much more profitable choice.

Anything else is deluding yourself.

[HelliumZ]

If you hold your Bitcoin in a secure wallet and if it is a fully decentralized wallet then you will not get any interest and there is no way to stake there. If you want to get interest like in a bank then you will definitely have to stake your Bitcoin in a central exchange and that can be risky for you because central exchanges can be at risk at any time. But if you want to hold it in your wallet without taking any risk then you will not get any benefit but it is definitely safe for you.

[davis196]

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?

So your friend wants to "eat the cake and have it"? There's no way this can happen in the real world. Nobody can pay you interest or dividends for your BTC, while your BTC remains in your cold wallet. Capitalism doesn't work that way. It would be great, if it worked that way, but it doesn't
People can make up to 18% per year just by holding money in a bank account in your country? What is the inflation rate in your country? 18% annual yield after inflation seems pretty unrealistic to me. Why is your friend interested in buying and holding BTC? He can just keep his money in a bank account, if the interest rates in your country are so lucrative. I can make 2.2% per year from holding money in a bank account where I live, while the inflation rate in my country is close to 7%.

[tbct_mt2]

So your friend wants to "eat the cake and have it"? There's no way this can happen in the real world. Nobody can pay you interest or dividends for your BTC, while your BTC remains in your cold wallet. Capitalism doesn't work that way. It would be great, if it worked that way, but it doesn't
People can make up to 18% per year just by holding money in a bank account in your country? What is the inflation rate in your country? 18% annual yield after inflation seems pretty unrealistic to me. Why is your friend interested in buying and holding BTC? He can just keep his money in a bank account, if the interest rates in your country are so lucrative. I can make 2.2% per year from holding money in a bank account where I live, while the inflation rate in my country is close to 7%.

Bitcoin is Proof of Work, not Proof of Stake, so work here means mining to get bitcoin. If you want profit, buy bitcoin, hold it for growth of Bitcoin price over years. Bitcoin has very good ROIs over past years so it's more than enough so there is no need, in my opinion, to take more risk and chase something like interest/ dividend/ stake rewards.

Because it only leads to Ponzi scams or Wrapped Bitcoin tokens which are deployed on altcoin blockchains and can be staked. However, the risk is Wrapped Bitcoin tokens are not bitcoins, they're only tokens and can lose their pegs to Bitcoin value anytime.

[YOSHIE]

Or is there any way that this is possible?

If you have capital of $100k if you only rely on interest from the bank for 4 years, with an interest distribution of 18% you can only earn $72k in 4 years.

If you buy Bitcoin now, invest for 4 years, let's say the next halving, with capital of $ 100k you will have at least 2 BTC, If you buy at $59 and wait for the Bitcoin price to rise to the $150k level, you will have made a profit from selling your Bitcoin of $91k because you have 2 Bitcoins, of course you will have pocketed a profit of $182k, especially if the Bitcoin price rises to the $200k level.

In essence, both types of investment have risks, what you do is what is best for yourself.

[retreat]

Is there any way to make dividends holding Bitcoin?

Bitcoin is not a product where you can earn dividends by holding it. Bitcoin is a digital asset, and the return you receive comes from long-term price appreciation, which can vary, since no one can guarantee Bitcoin’s price in the future.

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

High interest rates do not necessarily mean a benefit for users, because your country may have higher inflation, so the bank offers high interest rates to customers who deposit their money there as compensation for that. So, in real terms, the value of the money deposited in that bank is actually eroded over time.

Holding Bitcoin, how can someone make something similar?

It's certainly possible. By investing in Bitcoin and then holding onto it until you can actually make a profit on your investment. So in this case, your patience in holding is key, because you might not see a profit until after one cycle, or even longer. This means it's a long-term investment until you can realize a profit.

[WatChe]

Investing in Bitcoin is definitely a better plan than keeping money in the bank. If you keep money in the bank then inflation will reduce the value of your money, although you can get 12-18% profit but if you invest in Bitcoin you can make more profit than that. Now you have to understand that investing in Bitcoin and keeping money in the bank are not the same, you can withdraw profit within a year by keeping money in the bank but to invest in Bitcoin you have to invest in the long term and take risks. So if your friend decides to invest in the long term by taking risks then you can advise your friend to invest in Bitcoin.

If you deposit money in bank then they gave you fixed return that is guaranteed after a specific period of time like monthly or yearly. Although it looks very tempting that your money is safe and you are getting fixed return regardless of economic situation of the country but in reality the return given by  banks is proportional to inflation rate. That means your money is losing value over a period of time.

Now if you invest same amount of money in Bitcoin for longer duration like 5 years or more then return given by Bitcoin easily surpasses the inflation rate. I have specified 5 years duration but you can double invested money in less then 5 years depending on volatility of Bitcoin.

[Rikafip]

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

Jesus Christ, 18%? How big inflation is in your country when banks are giving so much interest? Here in Europe you are lucky if you get ~1%.

Holding Bitcoin, how can someone make something similar?

That would mean that you would have to give custody of your bitcoins to someone else, and you know how they say, not your keys, not your bitcoins. So yeah, that wouldn't be a smart thing to do.

[Nahl]

In my country if people want to make money from dividends shares they have to buy banks stocks or coal companies stocks because, the companies like this which usually supported by the goverment let their stocks buy by the public and usually they will give dividend shares to the holders for at least 2 times in a year.

But as far i know profit shares won't be more than 10% from stocks initial price so, if you were looking for 18% dividend or more i am sure it will be difficult and if we talking about bitcoin i think when you hold it especially into the cold wallet people won't gets profit shares because we all know bitcoin weren't designed for that

If want to gets profit from bitcoin i think the common method which people have already about that, just buy bitcoin if possible at low prices and hold it for certain time until the price high which automatically people will gets decent profit but just remember that, it won't be instantly even it took years to hold

[justdimin]

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.

There are places that does lock it and give you interest for that period, but I never really believed a place could make money with my bitcoin, so that is why I never invested that way. In normal places, when you give your money to a bank, and they invest, they can make money with your money, they can give loans, and put it on bonds or stocks or whatever, and basically they give you 3% and they make 5% and the difference is their profit.

But when we are talking about bitcoin, they can't give 1 bitcoin and get 1.05 bitcoin, there aren't that many options for that, and all the ones that exists, have high risk. Which is why I never try to make dividends from my bitcoin, I just hold it as it is since it already goes up in value if you wait long enough.

[Muba20]

If someone tries to make profit by depositing Bitcoin like a bank, it will not be like that, but it is possible to get some rewards through Bitcoin in the same way. For example, the amount of assets can be increased by staking on many exchange platforms. Such facilities are often seen for altcoins. Moreover, another way can be through lending. But if we review the objectives of Bitcoin, then we will give more priority to its decentralized system. As a result, an investor will be able to increase his assets several times in the long run, which will be more than keeping it on any other platform. On the other hand, it is the safest way to keep yourself decentralized, which will give you complete financial freedom and security.

Moreover, the conventional banking system is approved by the government, but since Bitcoin is still unapproved in most countries, it will not give anyone an option to keep it in the bank if they want. If governments accept Bitcoin, then we can do that. In my opinion, it is never safe to keep your assets on a centralized platform.

[lionheart78]

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?

As far as I know, staking offered by exchanges is one that is something similar to the service offered by the bank.  but you need to let go of your holdings and trust the platform to hold it for you.

Bitcoin unlike proof of stake coins don't have a dividend mechanism where it gives you extra BTC just for holding.  The profit from holding BTC is from the increase in Bitcoin value and not earning extra BTC.

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?

No, it is not possible to experience the interest that the bank offers by simply holding your BTC.  As I stated, you cannot earn extra BTC just by holding. If you want to get more, either trade or invest more and buy BTC. 

[Nwada001]

If you hold your Bitcoin in a secure wallet and if it is a fully decentralized wallet then you will not get any interest and there is no way to stake there. If you want to get interest like in a bank then you will definitely have to stake your Bitcoin in a central exchange and that can be risky for you because central exchanges can be at risk at any time. But if you want to hold it in your wallet without taking any risk then you will not get any benefit but it is definitely safe for you.

One side of people are not looking at this staking and interest added to your money back from the bank, comparing it with Bitcoin, is that there is a high chance that the money in your bank account and the profit that it will generate for you might have the same economic value at the end of the day, if not lower. What that money can buy for you before you stake it might not be what it will get for you when you take out your profit and the money; it’s a different case when you hold Bitcoin and wait for profit. I don’t even buy the idea of using a centralized platform to stake it; hold it in your self-custodian wallet and allow demand to do the profit generation for you.

[Cleanslate_]

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?

Remember that Bitcoin is also risky I hope you told him about that, do you know if he will be able to invest in a long term or gets panic because of the marked price crashing and then sells of his investment out of market pressure and be at a huge loss and starts blaming you for not putting him through properly, since bitcoin will only be profitable when invested for a long term regularly, persistently and consistently without selling part of it or anytime you are in need financially untill you reach your over accumulation stage of 4 years -10 years or more.

[TastyChillySauce00]

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.

18% seems ridiculously huge for an investment to a bank, the normal range for a bank deposit should be way lower than that. Is that even real and a low risk investment?
A lot of people take a risk, staking their crypto in lending platform for a mere 10-12% of APR. I honestly doubt that rate.