A good way or a very bad practice

[Emeraldo]

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

There is no where on this planet you are going to be given 6% interest for your stake whether Bitcoin or altcoins per month.
I think this news is not complete or it must have been manipulated to make people to buy and hold USDC and this is a post to promote USDC from the X user. Not even a bank can pay you a 6% interest for you money that you have with them.

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.

You have to confirm this news so that people will not think that it's a 6% interest per month when it could be an annual interest.
Maybe these people know that the price of Bitcoin is going to pump, so they need more to hold.

[sokani]

Did you read the rules so well? Because that’s not how it is, it is simply a single month promotional campaign after one month the rewards are reported back to the usual reward. And you also need to understand that they made mention of APY which I think the 6.5% will most probably be divided in to 12 months (0.54% monthly).

The usual APY is 3.5% which means regularly you earn just 0.29% monthly by holding usdc. So take for instance the idea of leaving $10k usdc in a centralized exchange only to earn $650 in this monthly promotion and overall $350 in the regular APY, this just accumulates to less than $1k reward in a year.

This is such a huge risk because aside leaving your funds on exchange I would have probably have made profit by simply holding bitcoin in my personal wallet or at worst in bearish market period have my bitcoin in my wallet.

So the risk always outweighs the profit. Personally I don’t like staking on exchanges

The risk is not worth it at all. Instead of buying $10,000 worth of USDC and holding it for a year on Coinbase just to earn such a small amount. It's better to buy $10,000 worth of bitcoin, keep it in a non-custodial wallet, leave it until the next bull cycle, and sell it. It will yield more returns and also eliminate the risk of having it on a centralized exchange.

[Asuspawer09]

This was USDC long term investment and you are going to get a Bitcoin reward, I have some similar platforms, of course, a centralized platform that offers similar a huge percentage for USDC, Bitcoin and sometimes ETH I remember probably the highest was around 8% but usually it was going down depending on the investors or the platform, so most of the time it was just for marketing offering a high interest in the start.

I mean, yield farming was already a thing a long time ago, but for sure the 6.5% was yearly interest.

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.

Link

Found this on the Coinbase X account, so it was 6.5% APY, the percentage was yearly not 6.5% every month.

More than 5% was already a good interest percentage yearly, but it wasn't worth the risk of putting the money in a centralized wallet, in my opinion, but it depends on how much you can handle.

[Myleschetty]

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.

In some way, but if we dig deeper, it sounds like they are using a peanut benefit to divert people's attention from Bitcoin while supporting their cooperative project (USDC), to leverage and strengthen its stability in the stablecoin market using BTC, which is the top priority for all cryptocurrency enthusiasts because they are also minting more USDC, just like the Fed is printing more fiat money.

[Cryptomultiplier]

Did you read the rules so well? Because that’s not how it is, it is simply a single month promotional campaign after one month the rewards are reported back to the usual reward. And you also need to understand that they made mention of APY which I think the 6.5% will most probably be divided in to 12 months (0.54% monthly).

The usual APY is 3.5% which means regularly you earn just 0.29% monthly by holding usdc. So take for instance the idea of leaving $10k usdc in a centralized exchange only to earn $650 in this monthly promotion and overall $350 in the regular APY, this just accumulates to less than $1k reward in a year.

This is such a huge risk because aside leaving your funds on exchange I would have probably have made profit by simply holding bitcoin in my personal wallet or at worst in bearish market period have my bitcoin in my wallet.

So the risk always outweighs the profit. Personally I don’t like staking on exchanges

The risk is not worth it at all. Instead of buying $10,000 worth of USDC and holding it for a year on Coinbase just to earn such a small amount. It's better to buy $10,000 worth of bitcoin, keep it in a non-custodial wallet, leave it until the next bull cycle, and sell it. It will yield more returns and also eliminate the risk of having it on a centralized exchange.

I see reason with your opinion because to leave my coins on a CEX just to earn some percentage annually seems like too much work for so little.
I may have seen some advert of sort on Binance and BYBiT, but I have never really cared to look at it twice because am more focused on doing my trade, accumulating my BTC and finding a way to make better returns instead of this fraction that may not be worth the wait after a year.

CEX are definitely high risk leverage to begin with and it isn't wise to leave majority of your funds there no matter the promises of bonuses or returns for holding. You simply trade your coins for an IOU and anything can happen that makes your coins lost for a long time.

[Chinesebaby]

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?

I thought the money could be withdrawable at anytime? Because it the money will actually be locked for 12 months with a 6.5% annual interest rate, while the prefer crypto is USDT, then for me I think this investment is not actually worth it. Because it is better you just invest the money in Bitcoin itself and hold for the 12 months, and you will definitely get a profit of more than that 6.5% in the next 1year time. And secondly, since we are approaching the Bitcoin bull market, there is a huge potential that if Bitcoin crosses it's previous All Time High of $126k per BTC, then you probably would have made more than 40% profit of your Bitcoin investment. So I will strongly advise people not to invest in this coin market investment, because it is obvious this is a marketing strategy by them to raise funds that will be used in investing in Bitcoin, and after Bitcoin skyrocket, they will say at profit and pay you peanut.

[Franklyn-wood]

Did you read the rules so well? Because that’s not how it is, it is simply a single month promotional campaign after one month the rewards are reported back to the usual reward. And you also need to understand that they made mention of APY which I think the 6.5% will most probably be divided in to 12 months (0.54% monthly).

The usual APY is 3.5% which means regularly you earn just 0.29% monthly by holding usdc. So take for instance the idea of leaving $10k usdc in a centralized exchange only to earn $650 in this monthly promotion and overall $350 in the regular APY, this just accumulates to less than $1k reward in a year.

This is such a huge risk because aside leaving your funds on exchange I would have probably have made profit by simply holding bitcoin in my personal wallet or at worst in bearish market period have my bitcoin in my wallet.

So the risk always outweighs the profit. Personally I don’t like staking on exchanges

The risk is not worth it at all. Instead of buying $10,000 worth of USDC and holding it for a year on Coinbase just to earn such a small amount. It's better to buy $10,000 worth of bitcoin, keep it in a non-custodial wallet, leave it until the next bull cycle, and sell it. It will yield more returns and also eliminate the risk of having it on a centralized exchange.

I see reason with your opinion because to leave my coins on a CEX just to earn some percentage annually seems like too much work for so little.
I may have seen some advert of sort on Binance and BYBiT, but I have never really cared to look at it twice because am more focused on doing my trade, accumulating my BTC and finding a way to make better returns instead of this fraction that may not be worth the wait after a year.

CEX are definitely high risk leverage to begin with and it isn't wise to leave majority of your funds there no matter the promises of bonuses or returns for holding. You simply trade your coins for an IOU and anything can happen that makes your coins lost for a long time.

Well I believe everything explained here I self explanatory. How does it sound that one buys $10,000 worth of USDC to earn such little token and the end of the year. The risk involved is greater that the benefits proposed to receive after a year.  It's saver to buy BTC worth the same amount and save for a bull circle than waiting for an interest that is less than the starting capital in the investment.
It looks great in the eye but the danger involved is much and may not be easy to bear at the end of the day.

[PrivacyG]

It is always hold Dollars to earn fractions of Bitcoin, or hold Dollars to earn some Shit Coin.  And when it is not and it sounds too good to be true, it is a scam or very high risk.  At that point simply hold Bitcoin and keep purchasing fractions your self.  It feels like a greedy plan to already have Bitcoin which exceeds the Coinbase return any way and STILL want an extra 6.5 percent.

[Hamza2424]

So let's say I deposit $10k in USDC and stake them for BTC rewards and the way they made it sound like already too good to be true because 6.5% is not monthly, you only get that rate for one month if you deposit $1k or more and it is only for one month.

After that the rate is back to normal and the monthly rate is around 0.5% so for $10k I will be making $50 a month. So bro no thanks, I am good with my $10k in BTC then $10k in USDC by the way I don't have $10k in BTC I am just assuming.

But the math is always important before saying this is a good way of making money. At the end of the year my $10k would make me only $650 but if I keep them in BTC I can make a lot more, even this recent 10% pump would have made me more than $650.

[Cryptoprincess101]

I'm sorry for all the mixed up, it was actually USDC to Bitcoin reward, I was in haste to drop the topic because something very bad came up at home and it has successfully disrupted my mind, it affected me so much that I couldn't even think straight or read right.

That's okay but learn to be in your right frame of mind when creating a topic because we have many newbies in this forum, it's not good for them to come across a misleading thread considering how naive they can be. Imagine if people didn't read correctly and saw the errors you made, they might just think that all what you said is right not knowing that they are misleading.

Anyways, I join others who are saying that this kind of offer is not worth it. The percentage is too low and it's not even as if it's a reward that can be given monthly till 12 months, if it were to be monthly rewards it could have been considerable.

[IjawMan]

Imao this remains a very bad practice, regardless of the potential returns on the Bitcoins we Deposit. After all, just storing bitcoins already allows us to profit from their price increase. I hope people aren't tempted by the prospect of making money this way it's much better to go for healthy ways of earning than risking your assets on a third party.

Staking money on an exchange profits the exchange x times more than it does for the customer. Within the period of staking while you wait your money is used on projects that will bring them bulk returns before the given timeframe when customer is to earn peanut for reward.

Apart from it been unsafe to leave my BTC on exchange or with any third party, staking it for a specific promised percentage makes me feel cheated, when I can make double or more of that profit with my Bitcoin stored in my  self-custody wallet.

[terrific]

Let's stick to the greatest reminder of all time, "not your keys, not your coins".
But but but cold card.......
Come on, it's still different when you allow them to handle your own coin and give the custody for it.
No matter how attractive they give you with that APY, seriously, that's measly compared to what you can potentially earn by holding it on your own.
No interest but the safety that you don't have to stress out is there.

[Taskford]

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

Correct about that their reputation is quiet good and they made lots of achievements so far, especially that they are been widely used not only in US but also globally.

But no big company is immune for failures, because we have seen so many platforms like big exchange in history collapsed. So those negative things what other people thinking is truly possible and for sure it will bring huge effect to whole crypto industry.

Coinbase is good wallet, but people should remember that self custody is way much better than trusting their funds to a third party custodians or exchanges.

[m2017]

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.

And how does this differ from keeping money in a bank deposit? In reality, it doesn't. Although there is one nuance: a bank account is at least insured.

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 are bracing yourself for the worst-case scenario from the start, then just go ahead and hand that money over to coinbase and consider it gone for good.

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

A 6.5% profit? Inflation will exceed this return by 2 to 3 times.

update

I'm sorry for all the mixed up, it was actually USDC to Bitcoin reward, I was in haste to drop the topic because something very bad came up at home and it has successfully disrupted my mind, it affected me so much that I couldn't even think straight or read right.

Even if the rewards were paid out in bitcoins (and 6.5% is peanuts), it still wouldn't be worth it, because the deposit principal is held in USDC. It would be a different story if holding bitcoin earned interest in bitcoin (no exchange service will take this step, as it is unprofitable.). But even then, one would have to think twice, since you would still have to hand over control of your assets (temporarily) to someone else (someone who might turn out to be untrustworthy).

[Peanutswar]

Basically you are doing staking with the USDC and they are using the rewards as BTC and personally if you dont have things to do with your USDC you can stake it here and make profit yield but there is a cons of course, first is you will let your fund deposited and sleep into their wallet of course its not your money any more only staked you are willing to risk, now is sometimes there is a lock in period with these stakes and you cant deal anything once you agreed there is a period of time so better seek that you can able to withdraw anytime you wanted. Also for me id rather not sacrifice a large money just to get a partial. Were in crypto which is more volatile than like old ways of banks.

[PERtua]

The Bitcoin to USDC correction, in fact, makes the situation quite different. It may seem tempting to get a 6.5% annual percentage yield, but only up to a month. But to me, the primary question is not whether there is a good percentage there, but whether there is enough return to keep holding on to funds on the centralized exchange. USDC also eliminates direct exposure to the price of BTC, but not the custodial or platform risk. I can see how it could be a good use for a short-term promotion for a short period of time perhaps if they had limited money to spend that they weren't using elsewhere. But investing a significant share of your portfolio for a short period based on a temporary promotion is hard to justify, however. The risk/reward ratio is more important than the percentage, especially if the reward is not that significant.

[jcojci]

I have seen that in local exchanges and also other foreign exchanges so that could gives profit for those who have free funds. But they don't have risking too much, they don't control the funds and let the exchanges do that.

Staking is another way to earn profit but you should not risk funds if you are worry. If you have $10,000 worth of Bitcoin, don't use much monthly although the interest is good.

Binance, Bitget, KuCoin, and other exchanges used this scheme attracting more people to use the service.

[shinratensei_]

Quite good rewards in my opinion, despite your misconception about it earlier, 6.5% is way higher than 3.72% US treasury bill rates, on the other hand USDC reserve is consisted of T-bill, most of it.
The only disadvantage is counter party risk and non self custody.

On top of that you're getting BTC reward at really good price since we are in bearish, though would be way better if that rate was for BTC staking . However, if I were to stake in their exchange, I'd consider the bitcoin reward as a plus because you can secure capital gain in the future if you let it be.

Even if the rewards were paid out in bitcoins (and 6.5% is peanuts), it still wouldn't be worth it, because the deposit principal is held in USDC. It would be a different story if holding bitcoin earned interest in bitcoin (no exchange service will take this step, as it is unprofitable.). But even then, one would have to think twice, since you would still have to hand over control of your assets (temporarily) to someone else (someone who might turn out to be untrustworthy).

6.5% is moderate to high interest in my book for simply staking. Decentralized lending platform offers roughly at this rate but with the risk of bad debt, since reward is in BTC, when bullrun comes, the reward could easily 3x of current reward.

The real deal breaker is our money being in the custody of other.

[laspol65]

It is much wiser to keep your Bitcoins with you than to rent them to others, like I do in my personal wallet. And the maximum you can earn from this is maybe 300 plus dollars a month, so keeping that much money on an exchange is very risky. So why would you put your money at risk, I don't like this situation at all.
It is very risky and there is a high chance of losing your capital along with money, so if you hold Bitcoin in a personal wallet you may be able to earn more than this.

[Bitcoin_people]

If you hand over your money to a centralized exchange, it can certainly be risky and there is a possibility of losing money. However, many people only give their money to exchanges for their profit rate, although they believe it. However, we know that Coinbase is a reliable exchange, many people keep their money here for profit and withdraw a percentage according to their money. However, when you hand over money to an exchange, you must create a budget so that if you lose it in the future, it will not affect you much. If you keep a normal amount of money in the exchange, it will not affect you financially, although we have to accept that it is risky. There are many people who stack on exchanges, especially those exchanges that give a high percentage rate, which is more risky. However, I believe that if you keep money there on the exchanges that are in the top rankings, I think it is somewhat reliable, but you should never invest all your money in one place.