A good way or a very bad practice

[Outhue]

I remember how tough it was to be a beginner in this bitcoin space, I was guilty of staking my crypto to make some percentage more every month when I was a newbie, even after reading all the warnings on here I still don't stopped. If you are a beginner and you are still struggling to grow there is no way you won't look out for such option but the question is if this method is a safe one on the long run, to be honest it's not a safe one, any exchange can decide to lock access at any time for one reason or another, you can lost whatever it is that you are staking on the centralised exchange, Bitcoin or stablecoin, it's why I've always say that staking right in your hardware wallet without moving your coins into the hands of any other platforms is still missing in crypto space and it's why I don't feel comfortable doing staking.

[FinneysTrueVision]

6.5% is way too low. There are other exchanges that offer higher returns in btc-denominated, for usdc deposits. So I wouldn't recommend people look too much into this. Coinbase is reputable, however.

Most of those exchanges aren’t available in the United States or the UK. 6.5% APY is better than what you can get on-chain for lending USDC, and the interest on your deposit is paid in Bitcoin and not an altcoin. Although, I wouldn’t use this myself, it is attractive enough for risk averse whales or institutions that want to earn yield without having any smart contract risk. Even at the base rate of 3.5%, that is $17,500 yearly paid in Bitcoin if you deposit the max amount.

[gracreavix]

There are things to this that people will likely ignore. First is the yield is on what coin? I don't see it on the Bitcoin coin. It will be on USDC and secondly how are they able to generate such yield to pay. That's where people will overlook. Someone promises high return, you should ask them where are they risking your funds to get that reward. Ignore this and it's your money that goes down the drain. They might as well file for bankruptcy and that is it.

[cryptoaddictchie]

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

As a risk taker and if I ever had an extra funds like that why not? Coinbase is a legit platform however I dont have one. The 6.5% is literally small and would not have make a huge impact but if you are a conservative user then this is fine profits considering you only gonna do is hold that asset there.

Yes its a private firm and a custodial site, you might wanna think around that too.

[serjent05]

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.

I thought I read about a USDC program that rewards BTC.  I come to think of it, this is not a bad program, those who trust Coinbase are surely in for this treat.

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.

It was only a month-long program, after that, they are free to withdraw their fundings.  As long as there is no underlying threat or problem that will make the exchange shut down, I think it is worth a try.  The good thing is our USDC will yield a reward in Bitcoin.

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

If one fully trusts the exchange and is used to keeping their USDC on this exchang, having a 6.5% worth of Bitcoin as a reward for 10,000 USD is a good deal IMO.

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.

No worries, to err is human. The best thing is that you acknowledged the misunderstanding.

[SquirrelJulietGarden]

I thought I read about a USDC program that rewards BTC.  I come to think of it, this is not a bad program, those who trust Coinbase are surely in for this treat.

It's a good program that is better than interest of saving in bank, and it's good with people who have enough trust on centralized exchanges in general and trust on Coinbase in particular.

It's also good for people who want to keep money in stablecoins for example USDC when they see no opportunity in the market, during a bear market with a lot of risk for example. However, with the other people who see bear market is a very great opportunity and long time for Bitcoin accumulation, they will not see this offer as a good one.

With people who value full control and safety of their funds secured by themselves, they truly dislike this offer.

So like or dislike this offer, it's different with different people by taste of financial management, risk management and their stance on the market status now and in coming months.

[Zaka1221]

I remember how tough it was to be a beginner in this bitcoin space, I was guilty of staking my crypto to make some percentage more every month when I was a newbie, even after reading all the warnings on here I still don't stopped. If you are a beginner and you are still struggling to grow there is no way you won't look out for such option but the question is if this method is a safe one on the long run, to be honest it's not a safe one, any exchange can decide to lock access at any time for one reason or another, you can lost whatever it is that you are staking on the centralised exchange, Bitcoin or stablecoin, it's why I've always say that staking right in your hardware wallet without moving your coins into the hands of any other platforms is still missing in crypto space and it's why I don't feel comfortable doing staking.

Being a newbie in Bitcoin is always challenging, with things that have never been easy to manage because few make mistakes that make them terrible things, and it has never been easy to come back from these early mistakes. You always need to have enough knowledge before doing anything; it is good many have big losses while few take lessons and go ahead with better ways after doing so without any search, keeping their coins always ending in the worst.

Many scammers also have attractive options and they also run away with good amounts of peoples specially from newbies centralized exchanges are also nightmare with KYC rules are making more problems peoples those are able to have hardware wallets are best option but if someone is having problem he always can go ahead with Electrum because its also one of the best and reliable I am also in for from my starting days without having any trouble at any time.

[ColdLava40]

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

Some people might want to take the risk without properly analysing the benefits or risk that's involved in staking money with centralized exchanges.

It's not even worth the money or time because I don't think for example the person whom op said told him it's a way to make profit would even put up to $10k into it and you  already have an insight of what anything less than $10k( let's say he is willing to stake just $1k) he will be receiving just $35 in the regular APY in a whole year. It's not worth the try.

[Sunshine1525]

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

As a risk taker and if I ever had an extra funds like that why not? Coinbase is a legit platform however I dont have one. The 6.5% is literally small and would not have make a huge impact but if you are a conservative user then this is fine profits considering you only gonna do is hold that asset there.

Yes its a private firm and a custodial site, you might wanna think around that too.

Plus the 6.5% gain isn't monthly it's the total returns that would be made from whatever is invested in a full year, is that worth trying for a risk taker? I don't think so, it's better to just buy Bitcoin and hold with that money in your own wallet than allow a third-party platform do the investment for you, Coinbase can be legit but self custody is better.

I don't fully trust exchanges with my money, they're just like banks and not fully safe from restrictions moreover you're investing with a stablecoins and given BTC or shit BTC ($BTC).

[Curious T]

Plus the 6.5% gain isn't monthly it's the total returns that would be made from whatever is invested in a full year, is that worth trying for a risk taker? I don't think so, it's better to just buy Bitcoin and hold with that money in your own wallet than allow a third-party platform do the investment for you, Coinbase can be legit but self custody is better.

I don't fully trust exchanges with my money, they're just like banks and not fully safe from restrictions moreover you're investing with a stablecoins and given BTC or shit BTC ($BTC).

I don't know the full details, but from the screenshot, it looks like the 6.5% is paid monthly. And if it's monthly, then it's not that bad. If you do as the OP said and use 500 dollars, you would get about 32% every month for 12 months. It's not much, but it's better than just letting the 500 dollars sit there and earn nothing. And we know that the higher the amount invested, the higher the return. Buying bitcoin to hold is a much better option, of course, but it doesn't hurt to just keep something else somewhere. Besides. It's a well known and big company.

[Miles2006]

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

Some people might want to take the risk without properly analysing the benefits or risk that's involved in staking money with centralized exchanges.

It's not even worth the money or time because I don't think for example the person whom op said told him it's a way to make profit would even put up to $10k into it and you  already have an insight of what anything less than $10k( let's say he is willing to stake just $1k) he will be receiving just $35 in the regular APY in a whole year. It's not worth the try.

I would love to read about this more, I’m curious if coinbase is getting the audience they wanted or what exactly is coinbase reward for the offer.
Honestly it’s not worth the try, although to an extend this offer can be helpful only when stored in a well private wallet not a centralized exchange. I know most people get comfortable letting a centralized exchange hold their funds, now this is going to be easy for such people most especially earning bitcoin reward in return while those who fear to store their coin using centralize exchange might not value this, personally I have nothing against this offer besides it’s all about profit so I get coinbase knows their target audience.

[Patikno]

I remember how tough it was to be a beginner in this bitcoin space, I was guilty of staking my crypto to make some percentage more every month when I was a newbie, even after reading all the warnings on here I still don't stopped. If you are a beginner and you are still struggling to grow there is no way you won't look out for such option but the question is if this method is a safe one on the long run, to be honest it's not a safe one, any exchange can decide to lock access at any time for one reason or another, you can lost whatever it is that you are staking on the centralised exchange, Bitcoin or stablecoin, it's why I've always say that staking right in your hardware wallet without moving your coins into the hands of any other platforms is still missing in crypto space and it's why I don't feel comfortable doing staking.

Regardless of the specifics, keeping any cryptocurrency with a centralized entity is not a good practice, and that includes holding highly valuable Bitcoin. We have frequently heard about the many issues plaguing centralized exchanges, ranging from hacks, bankruptcies, or account blocking like the situation you mentioned, and more. We can easily find news reports about these incidents on Google.

I don't mean to scare anyone, but I just want you to understand the risks, and consequences involved in depositing your cryptocurrency (including Bitcoin) with centralized entities. Ultimately, the decision is yours, regarding whether or not you are willing to accept those worst-case scenarios.

[Ojima-ojo]

I.like the fact that you first point out the risks that comes with handing up your Bitcoin or other assets to the hand of exchange to generate percentage income from the revenue sharing.


Coinbase is not the first exchange that I have noticed this kind of offer, and is beginning to look as if exchange are starting to make promotional offers that stand to give staking high profits percentage as a periodic campaign, but still the reward is not up to the risks of losing your control in hands of third party exchange.

[macson]

It seems you already know that what you're saying is quite wrong.

Personally, I don't think this promotion is that great, as you still only earn 6.5% APY on the USDC you hold, which is only 0.54% over 12 months. Compared to the inflation rate (in the US), the actual return isn't that attractive.

But for the average person, they might find this an attractive option compared to keeping their money in the bank.