A good way or a very bad practice

[Btcdeybodi]

This is a good way of making money, said the friend that shared this screenshot to me

There is actually no good way of making money here because the 6.5% is just an APY, not that you will receive it monthly. This is just a one month profit which the rewards will be sent in $BTC weekly for a month which is about 4 weeks

You can hand over your Bitcoin into the hands of Coinbase and start making money every month, the percentage is actually attractive isn't it? I see that a lot of people are doing this but here is my own advice about it.

Do not hand over all your coins in the hands of a centralised exchange, it's a very risky practice, if you must do it make sure that you are risking only what you can afford to lose.

If you have $10,000 worth of Bitcoin it's smarter to risk $500 every month for this 6.5% gain.

All what you said here is misleading apart from the texts that i striked through

You are not getting any monthly percentage. If you think it's a good way to make profit then you didn't read to understand the post.

If you hold USDC worth about $10,000, the APY for that one month will be around $54.16666666666667 which can be approximated to $54.17. Now, if you divide the $54.17 for 4 weeks that makes up a month that means you will be getting around $13.54. But since the rewards will be sent in BTC, you will have to convert $13.54 to BTC. Imagine holding $10,000 USDC and receiving $54.17 in one month then imagine how little you will be rewarded if you hold like $1000 USDC.

It's not worth it honestly, instead you just buy bitcoin with that amount and hold it in a self-custody wallet, when the price increases you will have much higher profits than risking your coins in a centralized exchange like Coinbase.

[Obim34]

~snip

No different from what banks do.

Risking that amount for very little gain, meanwhile those who bought Bitcoin at $57K are making profits already from the $77K recent price.

Even for what you can lose, the annual profits aren't worth it, don't centralize (hold) your assets in exchanges.

[coinlary]

Sound like "you don need to buy some bitcoins then start worrying if you will make profit or not . We can fix that for you,  bring those funds and we will help you invest. In return, we will give you some peanuts sats which aren't  still yours unless you withdraw them " seem like a fair deal actually  .

I'm  sure anyone that accepts this offer  won't bother sending those bitcoins, they are definitely just converting and withdrawing the profits in USDC again which is a win-win for them.

OP it's a dumb way to make money but don't,  you will be surprised to see the number of dumb investors who will opt in for it.

[TheUltraElite]

Lets just assume that someone buying bitcoin in order to stake it on coinbase for USDC (dont ask for about choice making, please ) and compare with just buying BTC and holding it yourself.

You buy 500$ worth of coins @70k USD/BTC and hold it in your wallet for 1year, the price has by that time shot up to 100k USD/BTC and now you are looking at a 30$/BTC profit if you sell those coins for USD keeping aside the fees of the exchange.

On the contrary, you submit the same volume of bitcoin at CB, after a year it might have given you 6.5% on that capital that too if you are a capital one member.

To me the first one is better in terms of having control over my own coins and being able to change to another investment as soon as I want.

[Richbased]

Instead of me to risk my money on CEX by holding USDC and get rewards of 6.5% of APY in bitcoins in a month, it rather open a loan business like shasan did and charge 10% on every loan amount monthly. Apart from the profit being too small, why should i hold a stablecoin that doesn't even have any potential value for a month. Well, it's even for eligible customers so it's not for me.

Let's say you hold like $2,000 USDC, you will be rewarded with about $10.8 in BTC for a month. What a bad and ridiculous business considering the risks involved.

[goldkingcoiner]

This is a good way of making money, said the friend that shared this screenshot to me



You can hand over your Bitcoin into the hands of Coinbase and start making money every month, the percentage is actually attractive isn't it? I see that a lot of people are doing this but here is my own advice about it.

Do not hand over all your coins in the hands of a centralised exchange, it's a very risky practice, if you must do it make sure that you are risking only what you can afford to lose.

If you have $10,000 worth of Bitcoin it's smarter to risk $500 every month for this 6.5% gain.

I think it is really stupid.  

Why would I want 6.5% gain? Bitcoin can gain 6.5% in a matter of minutes. Coinbase knows that, which is why they would rather hold your Bitcoin and give you a tiny fraction of the profits that they make off it.

Imagine hodling the Bitcoin yourself and making way more than 6.5%...

... But then again there are people who cannot be trusted around their own money because they start thinking they are actual traders and grind their BTC down by buying/selling on a loss. Maybe they will actually protect themselves from themselves by giving their money to someone financially smarter?

[Taskford]

This is a good way of making money, said the friend that shared this screenshot to me



You can hand over your Bitcoin into the hands of Coinbase and start making money every month, the percentage is actually attractive isn't it? I see that a lot of people are doing this but here is my own advice about it.

Do not hand over all your coins in the hands of a centralised exchange, it's a very risky practice, if you must do it make sure that you are risking only what you can afford to lose.

If you have $10,000 worth of Bitcoin it's smarter to risk $500 every month for this 6.5% gain.

That yield program they made is totally fine, but your explanation is not accurate and seems misleading. You need to read the exact situation to determine their program or promotion flow.

So basically in that case you are holding USDC and Coinbase gives you a reward. So no Bitcoin handing over on their platform and what you are risking on their custodial platform is your bought USDC.

But even though Coinbase is pretty much popular still its good to consider to use the amount you can afford to lose and avoid riding up the hype. Also if you have BTC holding better hide it in your self custody wallet and just treat participating on yield program like that as optional. Since what matter the most is the long term safety of their funds if they are holding for long time.

[LogitechMouse]

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You can hand over your Bitcoin into the hands of Coinbase and start making money every month, the percentage is actually attractive isn't it? I see that a lot of people are doing this but here is my own advice about it.
---

Aside from the fact that you didn't understand the whole context, there's a lot of missed information with regards to that one.
Based on their tweet: LINK

- Coinbase One members can now earn 6.5% APY rewards for one month on USDC balances (up to $500,000) after depositing an additional $1000 USDC.
- 6.5% APY Offer: Limited-time offer for eligible Coinbase One members; US only.

In short, it isn't for all, but it's only for those ELIGIBLE users. This is the reason why we should make some research first before making a thread and share it here. First, you didn't understand the promotional event that Coinbase One has, and you understood it in an opposite way. Second, there are some requirements to it before you become eligible. Third, it's not for a whole year, but only for a month being given weekly. For me, this is a bit of a misinformation and this is the reason why many don't learn LEGIT knowledge.

Anyway, this is just a promotional event for those users of Coinbase One, and it's for US investors only. I will not say anymore if it's good or bad to store our money in an exchange. We know what to do as intelligent investors.

[Catenaccio]

But even though Coinbase is pretty much popular still its good to consider to use the amount you can afford to lose and avoid riding up the hype. Also if you have BTC holding better hide it in your self custody wallet and just treat participating on yield program like that as optional. Since what matter the most is the long term safety of their funds if they are holding for long time

Coinbase is a very big cryptocurrency and it is an old exchange with very good reputation. Because of Coinbase service quality and reputation, many Bitcoin Spot ETFs in the USA chose Coinbase as their custodians. The decisions of Bitcoin Spot ETFs mean something about Coinbase but it does not guarantee that Coinbase will never collapse.

There is no company is too big to collapse, just matter of time but honestly I don't wish that Coinbase will collapse. Because it will be a very big explosion in cryptocurrency industry and will negatively and severely affect this industry.

https://blockworks.com/analytics/bitcoin-etf/tracker

[Lucius]

~snip~
If you have $10,000 worth of Bitcoin it's smarter to risk $500 every month for this 6.5% gain.

If you have BTC worth $10k in a non-custodial wallet, in just a few days its value has increased by over 20% - which makes this offer you presented quite meaningless. Accordingly, I don't see a logical reason why you would give your coins to some CEX for, say, 6.5% monthly or annually when you can make much more without risk and with complete control.

If we take into account the events of the past, I would conclude that such things are very bad practice.

[Dr.Bitcoin_Strange]

Most of the time, "Cointelegraph" always put up misleading information without even doing a proper verification but I think they do this on purpose for the sake of click bait. They know that most people are looking for possible means to make passive income every month and 6.5% monthly return sounds good, that's why they probably posted such misleading information. They are not the only blog site that does this thing that's why I now try my best to verify any information I get from that website before I believe it's true.

Coinbase doesn't have any 6.5% monthly reward for customers who chose to hold their USDC on the exchange but rather what they have is a 3.5% annual percentage yield, meaning that if you staked you USDC or any of the eligible coins on that exchange, your reward is just 3.5% in a whole 12 months. The other option which I saw in their information is the lending of your coin through Morpho and not holding it on the exchange, the reward is 10.3% annual return and not monthly. So, cointelegraph is actually giving a false information.

Staking or holding your coins on a centralized exchange for the purpose of expecting peanuts as a reward per year is something I can not advise anyone to do, I can't even do it myself.

[Sim_card]

Based on their tweet: LINK

- Coinbase One members can now earn 6.5% APY rewards for one month on USDC balances (up to $500,000) after depositing an additional $1000 USDC.
- 6.5% APY Offer: Limited-time offer for eligible Coinbase One members; US only.

In short, it isn't for all, but it's only for those ELIGIBLE users.

O boy! This means Coinbase want people to keep huge amount of money in their exchange because it's clear that the promotion is only for those who has up to $500,000 and above and they have to make another deposit of $1k. I wonder why people are keeping this huge amount of money in an exchange. The promo isn't for majority but only few customers which I believe Coinbase is doing this to make them continue keeping huge funds like that in the exchange.

[Clearnet]

You can hand over your Bitcoin into the hands of Coinbase and start making money every month, the percentage is actually attractive isn't it? I see that a lot of people are doing this but here is my own advice about it.

Lol, read again, it's on USDC, which is a stable coin. So you are getting a 6.5% APR annually for holding your fiat currency. You should dig well before starting a discussion. Personally, if they would give me 6.5% for holding BTC, it would be a very promising deal for me. Cause since my btc we're sitting idle I would have still get some interest. Most lending platforms will give you a maximum APR of 0.9% to 1% on BTC. Bitcoin is an asset that can surge in price, so it's a win-win situation if you're getting more BTC by holding BTC.

For me it's just extra money. But no platform gives that much; they will only give you APR on fiat currency, which is a waste. I can get 9% interest easily on my Bank.

but this campaign will run for one month. They are advertising

I remember joining a campaign on MEXC that offered 100% APR for a limited time, available only to new users. I think these are all part of their marketing campaign and it's nothing new. To survive on the market, these exchangers regularly do this.

Not your keys not your coins

I like your name, username lol. It's more like your username is telling all the story we should have free from this shit fiat currency scam.
As for the Not your keys, not your coins , I think the same applies to banks.

If a bank declares them bankrupt, hardly anyone gets a full refund or a very long recovery process.

If you hold USDC worth about $10,000, the APY for that one month will be around $54.16666666666667 which can be approximated to $54.17. Now, if you divide the $54.17 for 4 weeks that makes up a month that means you will be getting around $13.54. But since the rewards will be sent in BTC, you will have to convert $13.54 to BTC. Imagine holding $10,000 USDC and receiving $54.17 in one month then imagine how little you will be rewarded if you hold like $1000 USDC.

Your calculation is certainly correct,  but there is a catch. You will find a lot of people who would prefer holding fiat currency rather than holding BTC. Which tells us that over 6% people only use BTC worldwide.

But since you are getting the interest on BTC, it's an uprising asset, so your 13$ can be converted into 26$ in ATH, so you are basically getting 2x APR, which is rare. You won't get anything like this on your traditional banking.

[Uhwuchukwu53]

Taking risk in another dimension, one should be careful in pursuing to earn or make profit in Bitcoin by handing any platform your labour asset where it may seem to be no longer self custodian any thing can help where story that touches can emanate, and if such mistakenly happened the fractional profit can't be matched with the main asset to he lost, using some exchange which encountered challenge and those that left their asset in their custody till date have not recovered them, this market of crypto everyone is looking means to gather and meet it target, anything can be used to draw attention, there is what I see as hit and run just like what most people uses as technique while operating ponzy scheme.

[suzanne5223]

Many people may not know that Coinbase and the USDC team (Circle) co-created USDC in 2018. They share revenue and maintain a close strategic partnership as we spek, so what they're trying to do here is another marketing strategy.
They know no shitcoin can beat Bitcoin, and since they never seie from minting new USDC of which they minted approximately 1 billion USDC on the Solana chain in the past 24 hours. They know the only way to make USDC price stays stable, and its market cap holds steady or grows is to give people/whales an intresting for holding USDC on Coinbase which is more like an ETF standard.

[Sammye3]

This is a good way of making money, said the friend that shared this screenshot to me



You can hand over your Bitcoin into the hands of Coinbase and start making money every month, the percentage is actually attractive isn't it? I see that a lot of people are doing this but here is my own advice about it.

Do not hand over all your coins in the hands of a centralised exchange, it's a very risky practice, if you must do it make sure that you are risking only what you can afford to lose.

If you have $10,000 worth of Bitcoin it's smarter to risk $500 every month for this 6.5% gain.

What benefits would the coinbase get in return? It's now a part of me to analyze a situation from both angles before deciding to invest or put my money into anything. Coinbase is not a new exchange but should not be trusted completely because of these unverified news, we saw what happened with Bitmart and how the sudden incident has affected a lot of their users.

There is still a greater risk holding an asset with Centralized exchange over Decentralized exchange, it's best to work on securing your assets first before looking out for enticing profit gains that could influence your holding habits.

[Marykeller]

All these centralized exchanges know how to get to customers; they are business-minded. They promise enticing offers, believing that you and many others will focus on the profits to gain and ignore the risk of centralized exchanges holding your assets would cause if the unthinkable happens.

The way we are reading meaning into this and getting the right information about what we stand to gain at one-month intervals if we do this, many people won't understand it that way; they will just rush and do this because of the promised 6.5% offering in a month

[Faisal2202]

Do not hand over all your coins in the hands of a centralised exchange, it's a very risky practice, if you must do it make sure that you are risking only what you can afford to lose.

If you have $10,000 worth of Bitcoin it's smarter to risk $500 every month for this 6.5% gain.

Thanks for editing the topic, but instead of just editing in the end, edit that line as well brother, that would be better because some of us are too quick and got no time to read the line in the end and they will be telling you the same thing the first person mentioned so better to edit that as well.

Now coming back to your topic, I think it is really a good way to make money and to be honest 6.5% is a good percentage for a month, if I can hold $10k a month in an exchange for a month I will be making good profit, and getting BTC, but I prefer to hold BTC instead of USDC, if it would be the other way around then I might have thought about it, but I don't prefer to involve in activities like this due to interest related factors so I stay away.

[Nathrixxx]

This is a good way of making money, said the friend that shared this screenshot to me



You can hand over your Bitcoin into the hands of Coinbase and start making money every month, the percentage is actually attractive isn't it? I see that a lot of people are doing this but here is my own advice about it.

There are many centralized platform that operates on fix deposit, which is something lucrative to me if you can afford to hold your coins on stable asset and try to earn a particular percentage by fixing it on the platform, but some people will definitely not buy into the idea of fixing their money on a platform because they believe that it will be used for trading or other profitable investment and earn them more than they are giving investors as profits.

[Comeacross]

If you have $10,000 worth of Bitcoin it's smarter to risk $500 every month for this 6.5% gain.

But does that make any sense?

If you deposit your $500 in coinbase. And expect it to pay 6.5% annual interest. Then in 1 year, your profit will be only $32!

But your complete seed money will be locked in coinbase custodial risk!

If coinbase somehow goes bankrupt or they freeze your fund then what will happen?

Your entire $500 will be lost in greed of getting $32 in 1 year.

It doesn't make sense at all 

It's a bad investment to risk $500 for $32 profit. In actual sense, you're not just risking your capital for the profit. You're risking your capital to lose it.

If anything happens to Coinbase within the period, you lose your $500 and not the $32. So the risk is not mathematically worth it.

Exchanges are looking for a smarter way to make more money because they know people are greedy nowadays to risk big amounts to make a meager profit. Kucoin sent me notification this morning that I can mine bitcoin on their platform using USDT. You may think this offers are risk free but they're not.