Bank interest Vs keeping money in Bitcoin to make more

[yhiaali3]

You don't need to put Bitcoin in a bank or on a central platform to get returns; you simply keep it in your decentralized wallet and wait until Bitcoin rises to the peak or price that gives you profits that satisfy you, and then you sell. This is better than returns.

You will get almost the same profits and possibly more if you wait for the price to rise well. This is much better than putting your money in a bank or on a central platform and risking it being frozen or lost entirely.

[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.

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.

Yeah, that’s why I become curious on what’s the setup especially on the withholding tax since in my country bank interest is only very low even time deposit that can only go high up to 6% with 20% withholding tax to the profit.

I will definitely consider investing my life savings in there if that’s truly 18% because it’s already enough for me to cover my yearly daily expenses for food with that profit yield in my savings.

[JiiBs]

You don't need to put Bitcoin in a bank or on a central platform to get returns; you simply keep it in your decentralized wallet and wait until Bitcoin rises to the peak or price that gives you profits that satisfy you, and then you sell. This is better than returns.

You will get almost the same profits and possibly more if you wait for the price to rise well. This is much better than putting your money in a bank or on a central platform and risking it being frozen or lost entirely.

This is definitely one of the outdated means of keeping money with hopes of making returns from it. Most wealthy people today don’t leave their money out their in the banks, not because it wouldn’t yield any profit but because the profits as interest that would be earned for a considerable length of time would be insignificant to compared to the money that was saved. So, they invest it and get returns.

That’s what Bitcoin actually offers. Bitcoin isn’t just a currency but, a commodity for investment which means, owning Bitcoin alone means you’ve invested in an asset and depending on when you choose to cash in on this investment, you could be highly profitable or experience loss.

[Peanutswar]

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 people have their different ways of income like what youve said is you prefer hodling this into your hardware wallet such as waiting for the value of the bitcoin goes up, and on the other side earning extra while hodling which is commonly using with the staking, but this time you are required to deposit your funds into their platform and make an earning such as yields or earning with the staking of amount with interest, also some of the trend right now is beside of having an interest earning is some of them distributed a token as part of the participation which you can flip over next once its listed in the market. Of course still there is a risk that might run your money so this is part of having a risk management.

[jcojci]

My bank don't giving me that much interest so I don't want to saves money in the bank. I prefer to save it in Bitcoin which I can see the value growing yearly. Maybe I need to wait for some years to take much profit but I don't mind that and will waiting for the big profits. I don't know the situation on your country but we don't get 18% in a year, the number less than 10% in a year.

But if your friend hodl Bitcoin for 5-10 years, maybe his $100,000 can turns into $130,000 or even higher depend on the current Bitcoin price at that time. But he must hodl his Bitcoin by himself and not let other parties handling over his Bitcoin.

[Rustam Meraj]

So people have their different ways of income like what youve said is you prefer hodling this into your hardware wallet such as waiting for the value of the bitcoin goes up, and on the other side earning extra while hodling which is commonly using with the staking, but this time you are required to deposit your funds into their platform and make an earning such as yields or earning with the staking of amount with interest, also some of the trend right now is beside of having an interest earning is some of them distributed a token as part of the participation which you can flip over next once its listed in the market. Of course still there is a risk that might run your money so this is part of having a risk management.

If you are willing to give up your absolute crypto control to be a part of some minor payout or promotional token air drop, you are not practicing whole rules of self custody. Keeping your money on third party platform may offer passive income but adds same middleman risk you would be exposed to if you did not use hardware wallet to store your money in first place. With all due respect, I believe even best of interests and most of gambling token distribution can not rescue from real danger of sudden platform going broke or smart contract hack. One of first principles of good risk management is that if you give private keys to someone else, you are no longer owner. Best way to pass generational wealth on is to use network shortage factor, which is long term play, inside offline device.

[salad daging]

18% interest per year is a lot for your bank to offer, in my country banks don't offer high interest rates below 7% on average that I know of and 7% is the highest.

I have never staked in bitcoin for a long time, it's better to keep mandari than having to hand over to a centralized platform which is quite vulnerable, but why does your friend think like BTC keeping money in the bank?

There are several platforms that offer APY for bitcoin staking with the highest platform being Lune Crypto Exchang at 21.5%.
This is actually quite risky, but you can see in this article. https://www.coininterestrate.com/best-bitcoin-interest-rate-apy/

[UserU]

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.

No worries, that's some good info your friend will know afterward.

Same here, I don't fancy banking (pun intended) on banks dealing with crypto assets anytime soon, let alone giving interests on them. After all, there have been cases of them outright blocking purchases or loans to fund them.

[m2017]

Asking for a friend.

Every uncomfortable question is, of course, a question from a friend.

Is there any way to make dividends holding Bitcoin?

Bitcoin is an investment that generates income through its own appreciation. Don't be greedy. Because even this is already a good profit.

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

Is it worth risking 100% (of the deposit) for the sake of these 18%, because lose control over your assets, because you transfer them to 3rd parties.

Holding Bitcoin, how can someone make something similar?

Holding \ staking on 3rd-party wallets. Are you really ready to take this step?

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.

Well, there you go, you know the answer yourself.

Or is there any way that this is possible?

Strategy might offer something similar, since owning their shares is like owning bitcoin and also receiving dividends. But with bitcoin's price falling, it will be interesting to see how they handle dividend payments.

[Zlantann]

You don't need to put Bitcoin in a bank or on a central platform to get returns; you simply keep it in your decentralized wallet and wait until Bitcoin rises to the peak or price that gives you profits that satisfy you, and then you sell. This is better than returns.

You will get almost the same profits and possibly more if you wait for the price to rise well. This is much better than putting your money in a bank or on a central platform and risking it being frozen or lost entirely.

Maybe Op's friend doesn't want to wait for that long before he starts getting returns from Bitcoin. He is in a hurry to start getting interest from his Bitcoin hodling. Maybe the OP should refer him to the story of centralized crypto companies like FTX, BlockFi, Celsius Network and Voyager Digital and Three Arrows Capital. So that he would know that his Bitcoin is not safe in centralized platforms. It would be better to keep assets in a safe wallet and patiently wait.

[passwordnow]

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 said it correctly to your friend that amount in Bitcoin is better kept on a hardware wallet. Because he might see some exchanges offering that in "staking interest" but that's not actually a stake but likely a deposit interest and the exchange will lend it to their users or any other means of it. But, he's losing the control to that money and that's so high to put into interest rate offers because he's also losing his custody to his funds. If ever your friend is insisting and keep on looking for those offers, he's on his own and you're already given a good tip of just keeping it in a hardware wallet.

[ZAINmalik75]

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.

I wouldn't recommend staking itself, but when it comes to using altcoins like wBTC which are claimed to be pegged with Bitcoin, I would say one should never do that, especially if the amount is significant. A person should basically make someone asking such questions understand that when we deposit fiat into a bank, the bank basically uses our money to make more money through loans and investments they make, and then they share some profits with us on a yearly basis, but the value of our funds will always stay the same, in fact, our money will lose purchasing power over time.

However, when it comes to Bitcoin, it has the possibility of going higher in price over time, which means that if you save $100k in Bitcoin and keep holding it for a year, it might become $120k after that, so you still get 20% without any interest or staking or anything, but one should also understand that it could also temporarily lose value, so they should be ready for that too. I would rather just keep holding my bitcoins instead of staking them and take such a high risk.

[yhiaali3]

You don't need to put Bitcoin in a bank or on a central platform to get returns; you simply keep it in your decentralized wallet and wait until Bitcoin rises to the peak or price that gives you profits that satisfy you, and then you sell. This is better than returns.

You will get almost the same profits and possibly more if you wait for the price to rise well. This is much better than putting your money in a bank or on a central platform and risking it being frozen or lost entirely.

Maybe Op's friend doesn't want to wait for that long before he starts getting returns from Bitcoin. He is in a hurry to start getting interest from his Bitcoin hodling. Maybe the OP should refer him to the story of centralized crypto companies like FTX, BlockFi, Celsius Network and Voyager Digital and Three Arrows Capital. So that he would know that his Bitcoin is not safe in centralized platforms. It would be better to keep assets in a safe wallet and patiently wait.

Yes, you are right.
Unfortunately, most people do not realize this and prefer low returns over high risks because they do not realize the great risk they are putting themselves in. Then, when disaster strikes, such as the incidents you referred to, like FTX, BlockFi, Celsius Network, and many others, they regret it and start shouting and demanding their money back, which they themselves put into these centralized services.

[Orpichukwu]

No worries, that's some good info your friend will know afterward.

Same here, I don't fancy banking (pun intended) on banks dealing with crypto assets anytime soon, let alone giving interests on them. After all, there have been cases of them outright blocking purchases or loans to fund them.

Banking and crypto’s assets should not even work hand in hand. Imagine taking away your money from the bank and using it to buy crypto for the purpose of having full control over it but still taking it back to the bank just to make a profit on top of that, your same crypto, which is like giving out your money for them to use it and do business the same way they do with your fiat.

[AmoreJaz]

You don't need to put Bitcoin in a bank or on a central platform to get returns; you simply keep it in your decentralized wallet and wait until Bitcoin rises to the peak or price that gives you profits that satisfy you, and then you sell. This is better than returns.

You will get almost the same profits and possibly more if you wait for the price to rise well. This is much better than putting your money in a bank or on a central platform and risking it being frozen or lost entirely.

Maybe Op's friend doesn't want to wait for that long before he starts getting returns from Bitcoin. He is in a hurry to start getting interest from his Bitcoin hodling. Maybe the OP should refer him to the story of centralized crypto companies like FTX, BlockFi, Celsius Network and Voyager Digital and Three Arrows Capital. So that he would know that his Bitcoin is not safe in centralized platforms. It would be better to keep assets in a safe wallet and patiently wait.

Or he can explore the fixed or flexible savings feature of exchanges like binance. But they need to be careful in trusting exchanges as they can  easily get a hold of your funds becausd they have full control of it. If you want, you cam always do the buy and sell in the trading market and geg some profits. However, doing so is not a guarantee that you will always have the profit from your trading because it still depends on your strategies.

[Dunamisx]

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?

Only a third party services that provides for all these, but I can let you be assured that this is something you can make more of it and even better if you are making bitcoin investment all by yourself, what you will be offered by a third party service will not be enough as if you get it all by yourself.

[MarryWithBTC]

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?

Only a third party services that provides for all these, but I can let you be assured that this is something you can make more of it and even better if you are making bitcoin investment all by yourself, what you will be offered by a third party service will not be enough as if you get it all by yourself.

You might not make that in a year if you do not know how to time the market. Use this year as an example, from January till now, bitcoin should be on a negative side and might not give up to 18% till the year runs off. But if you go long run, bitcoin will beat.

[Fivestar4everMVP]

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?

I honestly don't think there is a way you can earn interest in bitcoin without handing over your bitcoin to a third party company, and the reason is because bitcoin is or does not operate on a proof of stake (POS) mechanism where it can be possible to stake it in a decentralized manner with validators and earn interest from the money that the validators make from securing the blockchain network and confirming transactions and collecting the fees.

So what happens with staking bitcoin is that you give third party the right to loan those bitcoin out for much higher interest and from that, they pay you interest as well, and if you want to do this, there are actually several trusted platforms for it, the only thing you should pray for is that let there not be a hack.

And come to think of it, fiat is a third party currency even when held in a bank and staked on piggyvest as you said, piggyvest is also a third party company they is even different from the bank, so if one can take such risk with fiat, what stops them from doing same with bitcoin?

[a-blockchain]

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.

This is exactly the right framing. The 18% bank interest in Nigeria is not risk-free it is compensation for naira devaluation risk. The naira has lost significant value against the dollar over recent years, so that 18% in many cases barely keeps pace with real inflation.
Bitcoin offers a completely different value proposition. It is not about earning yield, it is about preserving purchasing power in a currency that cannot be inflated by any government or central bank.
The comparison should be: 18% naira interest vs Bitcoin appreciation over the same period. Historically Bitcoin has outperformed even high-yield local currency savings in countries with weak currencies like Nigeria, Turkey and Argentina not every year, but over 4 year cycles consistently.
The real question for your friend is: does he want guaranteed naira yield that may or may not beat real inflation, or does he want Bitcoin exposure with volatility but long term purchasing power protection?

[Agbamoni]

if it is not investment the answer is bank interest under mutual funds. I have a separate wallet for bitcoin and a separate wallet for normal savings and other investor. Basically if it is not a direct savings with the bank or a mutual funds account I can't keep my money in the bank for long.