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.

[retreat]

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

Your friend seems to have never studied finance and just blindly believes whatever he sees on social media. Because if he were able to look into it more deeply, he'd realize that it's simply foolish to believe marketing gimmicks like this and isn't really worth it to participate if you only receive such a small amount of money each month.

Meanwhile, CoinBase could make so much money if more people held USDC on their platform, read this:

The economics are asymmetric by design. Coinbase earns 100% of the interest generated on USDC held directly on its platform, and 50% of interest income on USDC held anywhere else in the world, which means Circle pays its distributors on balances it never touches.
https://stablecoininsider.org/circle-coinbase-usdc-agreement-renewal-2029/

Also, to get this promo, you need to be a CoinBase One user. That means CoinBase can earn a subscription fee. Just think about it: is it the users who benefit, or CoinBase?

[TedMosby]

Wait, it's a bit different. BTC as the reward from users' USDC holdings. I think Coinbase is trying to take advantage of the growth of stablecoins itself while also trying to get exposure from BTC hodlers. Has anyone here tried it? Is there any investment limit?

I did try flexible earn features for stablecoins on some exchanges. They usually come with limits. The more you invest, the less you earn based on the lower APR you'll get.

On Bybit, the APR is 3.91% for ≤ 200 USDC investment, 0.91% for > 200 USDC. 6.61% APR through their Mantle Vault (Onchain).
On Bitget, the APR is 6.66% for 0 to 300 USDC investment, 1.60% for 300 to 1,000,000 USDC investment.
On Binance, the APR is 7.31% for ≤ 200 USDC investment, 2.31% for > 200 USDC.

Let's calculate that Coinbase offer.
6.5% : 12 = 0.54% for a month.

Let's say during this period BTC price stays at $79,000.
So, when the BTC price rises to $126,000 (ATH), that 0.54% reward will be worth 0.86% of your initial investment.

It's almost 1% a month. If that has no max cap, I think even institutions would find it interesting. CMIIW.

[tabas]

Meanwhile, CoinBase could make so much money if more people held USDC on their platform, read this:

The economics are asymmetric by design. Coinbase earns 100% of the interest generated on USDC held directly on its platform, and 50% of interest income on USDC held anywhere else in the world, which means Circle pays its distributors on balances it never touches.
https://stablecoininsider.org/circle-coinbase-usdc-agreement-renewal-2029/

AFAIK, Coinbase has a share to Circle - the creator of USDC so it makes sense that they have this flexible earn in feature so that there will be more demand to it. And that's it makes sense that they want to bump up such features to make people add to the demand.

Also, to get this promo, you need to be a CoinBase One user. That means CoinBase can earn a subscription fee. Just think about it: is it the users who benefit, or CoinBase?

And it's a per month basis, so if they have millions of users subscribed to it. They earn commission from USDC and then from the membership. They are genius.

[Hazink]

Some people just keep money in fiat banks and inflation eats them up. So earning $2.7 per month with $500 is better than earning nothing. There are some banks that offers better deals in my country.  I wouldn't risk my money in centralized platform for such a poor interest. Banks are insured by deposit insurance corporation which means you can get you money bank even if the banks goes bankrupt. Some of these exchanges are not even registered in my country making it risky. Not your keys not your coins

And no matter the APR which is being offered by the exchange, I don't think I can ever take the risk of leaving my money locked for a specific period. Banks are not all that good either, but at least the FDIC got customers back. Even in countries where the exchange is licensed there is no guarantee you can get your money back if anything happens to the exchange especially when they file for bankruptcy, some people take a lot of risk because of little reward that could be earned through holding.

[Cookdata]

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.

Do you know that as small as that interest rate look too little for lock, there are some morons investors that will lock up their funds just so they can get that interest rate. God forbid, if Coinbase is hack or bankrupted, then Haleluya!

When you think there are least things you can't try, you get surprised by some people running after those lock up programs by the exchanges. Even as long term holders of altcoins, they don't lockup their funds for a year because they know that the market is unpredictable.

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.

If anyone can afford $10k as a capital for any lock program in any exchange can make at least $1k in 6 months, why now risk locking $10k for $650, even if Coinbase is offering $1k in a year, the duration of lock is not worth it. Who knows the companies they might secretly lend that money with high  interest rate for a year and get double of what they offer the public.
I will gladly accept loss of 6.5% in Bitcoin for a year with investment of $10k than for me to lock a stable coin for a penny.

[Silverstonez]

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.

You are saying the opposite of what was Tweeted, but the third person who comment has already made everything clear for better understanding, so there is nothing left to add. Responding to the bold part, what is the point of risking $500 of your monthly Bitcoin accumulation just to receive a shitcoin as reward? In my opinion, I would advise people to stop chasing free Bitcoins and stay consistence in accumulating Bitcoin on a weekly or monthly basis till they reach their accumulating target and then hold it for the long term.