in

For those hodling BTC for the long haul, do you earn interest on your stash?

Why or why not?

I’ve been reading up on some interest accounts out there for BTC and a number of cryptos and the yields are pretty damn good especially when benchmarked against fdic insured fiat.

What’s your guys take? Good idea/bad idea? It’s not insured, I know, but the rates are enticing to say the least.

According to this rundown of the best yields (https://apyguy.com/best-crypto-savings-accounts/) you can get between 5 – 10% with most accounts.

Thoughts?



View Reddit by alta_vista49View Source

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

22 Comments

  1. Yes, with 10-15% of my stack. It’s about spreading risk. Hardware wallets and the responsibility of “being your own bank” carry risks. Lending carries a different risk.

    Don’t mind the parrots, they can’t help it.

  2. Just moved my BTC from Voyager to Celsius for the extra .5% interest. It’s also awarded weekly in Celsius which hopefully that means it will compound. Can also take loans out against it in Celsius which is useful.

  3. Take revolutionary money designed to remove middle men and give it to a middle man? Fuck no.

    Most of these platforms are sketchy and/or have a shitcoin to sell you. Also why would i want to lend money to people who short bitcoin?

  4. I would *never* lend Bitcoin.

    **Risk**.

    The huge **risk of losing your Bitcoin** is not worth the relatively small reward.

    You have to risk losing an asset with a long-term average ROI of about 130% per year to gain a few percent per year. Mathematically, that is foolish.

    Don’t be stupid with money.

    You’ll just be making some “smart” person rich:

    You lend to X. X turns around and lends to Mr. Shorter, for a higher rate. X makes money from your Bitcoins. You take all the risks. X has plenty of his own bitcoins, but, like me, he knows better than to lend them to Mr. Shorter.

    Meanwhile:

    **‘Billions’ lost through hacks of crypto lending platforms**

    New research by blockchain analytics firm Elliptic showed that fraud and theft at decentralized finance platforms have led to $10.5 billion in losses so far this year.

    . . .

    However, the explosive DeFi growth came along with booming crime in the mostly unregulated sector, Elliptic said. Users have suffered over $12 billion in losses through crime at DeFi apps, lending platforms and exchanges since 2020, with the majority of losses coming in 2021 alone.

    Those losses were mainly attributed to bug and code flaws, as well as a hacking technique that involves exploiting loopholes in how the DeFi service operates.

    . . .

    https://www.rt.com/business/540634-crypto-lending-platforms-crime-losses/

  5. Yes and it’s fun as hell. And risky. But I think the risk is worth the reward, and it’s pretty fun.

    I keep about half my stash on Ledn bc they have no shitcoin to buy (like Celsius and [Crypto.com](https://Crypto.com)). I like the income and they show a daily total of the interest you made that month and for all-time. It’s paid in bitcoin, so its just stacking sats every day.

    The other half I stake on Aave (Polygon), then borrow USDC and buy more bitcoin (WBTC) with some of it. Aave only pays about half a percent on staked WBTC. The real power is being able to borrow instantly up to 70% of your staked value. Recognize that borrowing is the same as shorting. I have played with borrowing Matic when it reached $1.90 and converting it into USDC. Then when it sunk to $1.60 I bought it back. That’s 15% in a few days. I’ve done this 3 times now, buying at 1.55, selling at 1.90. Matic mostly stays between 1.20 and 2.20. Fun, but risky.

    You can also borrow USDC, then stake it in one of the many QuickSwap pools. For example, I borrowed USDC, converted it to DAI and USDT, then staked it on QuickSwap pool making 20%. They are both stablecoins, so no worry about losing value. You aren’t making 20% on your bitcoin really because you can only borrow to 70% and you SHOULD only borrow to 50% to be safe. But, if you figure 50% borrowing power, that’s 10% interest on staked WBTC.

    If you want to earn even more, take the dQuick that you earn from staking the stablecoins, and stake it in the dragon’s lair to earn for an additional 30%. It’s a pretty risky move, but it’s all mined dQuick, (not like you bought it), so it’s really only a risk of opportunity.

    [I have a friend that takes this one step further and takes the Quick that he earns in the Dragon’s Lair (Quickswap) and stakes THAT to make ELON on the Dragon Syrup section, which makes another 30% on those earnings. That’s too deep for my tastes, and I can’t even calculate that APR from the original WBTC]

    Now, the whole reason to earn interest is just so you can buy more bitcoin. It’s a risk and I’ve learned you don’t even visit a site unless they’ve been active for at least a year. But Aave, Quickswap, Balancer and Curve don’t seem to be going anywhere, at least for now.

  6. Please read this article before you try those “earn” exchanges…
    https://bravenewcoin.com/insights/36-bitcoin-exchanges-that-are-no-longer-with-us

    And if you get through that long list of failed exchanges, you can find the moral of the story at the end, which reads…

    The lesson here,” says Andreas Antonopoulos, “is that if you don’t control the keys, you don’t control the bitcoin. Possession is nine-tenths of the law, and in bitcoin, possession of the keys is ten-tenths of the law. If you don’t control the keys anymore, it’s not your bitcoin! That lesson will be learned as many times as it needs to.”

  7. No. The moment you give full sovereign control of your finances to someone else is the same moment you re-introduce all the problems of misplaced trust that Bitcoin so handily solved for us.

  8. I like to keep the majority of my stash isolated on a hardware wallet and that doesn’t get touched, except for adding more. I also have a separate amount that I like to play with – lend n spend. If the ‘play money’ disappears, oh well.

    The 5-6% received from e.g. Celsius might seem like an easy way to accumulate more but at those rates, it winds up being very little yield unless you’re staking/lending 100s of $1000s (super risky) in which case value appreciation would far outpace interest yield anyway.

    Think about 6% APY. That’s over a whole year. How easily can these assets do 6% in a single day, pretty regularly right? at least during bull runs lol.

  9. I keep all my bitcoin in cold storage.

    I don’t like losing control of my money, that’s one of the main points I’m holding Bitcoin in the first place.

    Bitcoin will continue to grow in purchasing power over the years and decades, so I’m happy with that.

    My bitcoin will still be there in my wallet a decade from now. Not so sure about any company though.

  10. I have in the past, with BlockFi, with a small portion of my stack. But honestly, I feel safer holding my own keys, and the benefits of just holding bitcoin are good enough for me. The counter-party risk is not worth a few percentage points for me. Maybe it is for others.

  11. Nah too much risk

    Bitcoin might go up 100% a year in cold storage with maybe a 1% chance of total loss

    So why try to earn 105% with online lending and start having the potential for 100% losses

  12. This feels very counterintuitive for Bitcoin and this mindset implies you don’t fully appreciate the thing you are holding. Bitcoin removes ALL the counter party risk for the first time ever in a digital asset. You’re adding it back in for yields that cannot be guaranteed. How do you suspect this 3rd party is multiplying its BTC assets?

What do you think?

Samson Mow explaining El Salvador Bitcoin Bonds

The Banking Industry is taking $12 Billion in Overdraft Fees each Year from poor People: How is Crypto the Problem?

The Banking Industry is taking $12 Billion in Overdraft Fees each Year from poor People: How is Crypto the Problem?