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Passive income in crypto? With very low risk?There are currently many methods to earn up to 10%+ interest on assets in crypto with low risk
Stablecoins are pegged 1to1 to their fiat currency & are thus not volatile in value
Major ones are USDC, USDT, DAI
In this thread I will mention different methods to earn low risk interest on your assets (USD or crypto currencies)
The first options are the ones that require nearly 0 technical skills
Later options will require higher technical skills & also include higher risks (DeFi dApps)
The first options are the ones that require nearly 0 technical skills
Later options will require higher technical skills & also include higher risks (DeFi dApps)
1.
The first options are crypto banks & centralized lending platforms
As they are centralized they offer support services, easy to use interfaces & insurance
Most of them let you earn interest in the same currency, some of them have their own token or you can choose one
The first options are crypto banks & centralized lending platforms
As they are centralized they offer support services, easy to use interfaces & insurance
Most of them let you earn interest in the same currency, some of them have their own token or you can choose one
1.
http://Celsius.Network
APY
USDC & USDT - 10.51%
BTC - 3.51%
ETH - 5.05%
You earn higher rates if you earn interest in their own CEL token
US users can't earn CEL tokens but get 6.2% APY on their BTC instead
They also cover all withdraw fees
http://Celsius.Network
APY
USDC & USDT - 10.51%
BTC - 3.51%
ETH - 5.05%
You earn higher rates if you earn interest in their own CEL token
US users can't earn CEL tokens but get 6.2% APY on their BTC instead
They also cover all withdraw fees
1.
http://BlockFi.com
APY
1 BTC - 6%
1 to 20 BTC - 2%
ETH - 5.25%
USDC - 8.6%
USDT - 9.3%
They offer 1 free crypto & 1 free stablecoin withdraw per month without fees
http://BlockFi.com
APY
1 BTC - 6%
1 to 20 BTC - 2%
ETH - 5.25%
USDC - 8.6%
USDT - 9.3%
They offer 1 free crypto & 1 free stablecoin withdraw per month without fees
1.
http://Nexo.io
They allow you to deposit EUR, GBP & USD as non-stablecoins & earn interst
APY
EUR, GBP & USD - 10%
BTC - 6%
ETH - 6%
USDC, USDT, DAI - 10%
2% more interest on any asset if you choose to earn the interest in their own token
1-5 free withdraws per month
http://Nexo.io
They allow you to deposit EUR, GBP & USD as non-stablecoins & earn interst
APY
EUR, GBP & USD - 10%
BTC - 6%
ETH - 6%
USDC, USDT, DAI - 10%
2% more interest on any asset if you choose to earn the interest in their own token
1-5 free withdraws per month
1.
Celsius Network is currently only available as an app, they are still working on a web version which is low priority for them at the moment
BlockFi & Nexo both have browser interfaces & also app versions for user convenience
Celsius Network is currently only available as an app, they are still working on a web version which is low priority for them at the moment
BlockFi & Nexo both have browser interfaces & also app versions for user convenience
2.
Most crypto exchanges also offer options to earn interest on your assets
However, most of them need you to lock in your assets for a specific time & often only give you good interest on specific crypto currencies
Except for Gemini none of them covers withdraw fees
Most crypto exchanges also offer options to earn interest on your assets
However, most of them need you to lock in your assets for a specific time & often only give you good interest on specific crypto currencies
Except for Gemini none of them covers withdraw fees
2.
One of the currently most known exchanges to people new to crypto is http://Crypto.com
You can earn some interest on USDC held on their exchange
APY
USDC - 1.25%
I'm not really a fan of them since they have the highest transaction & transfer fees out there in the market
One of the currently most known exchanges to people new to crypto is http://Crypto.com
You can earn some interest on USDC held on their exchange
APY
USDC - 1.25%
I'm not really a fan of them since they have the highest transaction & transfer fees out there in the market
2.
http://Binance.com is the biggest crypto exchange out there
Their flexible interest (withdraw anytime) for crypto is negligible except for stablecoins
APY
DAI - 4.5%
USDT - 5.75%
USDC 5.05%
They allow you other options however
Continued...
http://Binance.com is the biggest crypto exchange out there
Their flexible interest (withdraw anytime) for crypto is negligible except for stablecoins
APY
DAI - 4.5%
USDT - 5.75%
USDC 5.05%
They allow you other options however
Continued...
2.
Binance continued:
You can lock in your stablecoins for 7, 14, 30 or 90 days
Withdrawing early is possible but you will lose your accrued interest
The maximum 90 day locking period APY
USDT - 7%
BUSD - 7% (their own stablecoin)
USDC - 6%
I will mention other options later
Binance continued:
You can lock in your stablecoins for 7, 14, 30 or 90 days
Withdrawing early is possible but you will lose your accrued interest
The maximum 90 day locking period APY
USDT - 7%
BUSD - 7% (their own stablecoin)
USDC - 6%
I will mention other options later
2.
http://Crypto.com (They also have a free prepaid credit card you can top up with crypto)
They allow you flexible, 1 or 3 month locked interest
Flexible APY
USDC, USDT, DAI - 6%
BTC - 1.5%
ETH - 2.5%
3 month APY
USDC, USDT, DAY - 10%
BTC - 4.5%
ETH - 4.5%
Continued...
http://Crypto.com (They also have a free prepaid credit card you can top up with crypto)
They allow you flexible, 1 or 3 month locked interest
Flexible APY
USDC, USDT, DAI - 6%
BTC - 1.5%
ETH - 2.5%
3 month APY
USDC, USDT, DAY - 10%
BTC - 4.5%
ETH - 4.5%
Continued...
2.
Crypto . com sadly doesn't allow every country to participate in their "crypto earn" program to earn interest
I myself, as someone from Switzerland, am not able to earn any interest on their platform, except for staking their own native currency CRO - which has "value risk"
Crypto . com sadly doesn't allow every country to participate in their "crypto earn" program to earn interest
I myself, as someone from Switzerland, am not able to earn any interest on their platform, except for staking their own native currency CRO - which has "value risk"
2.
http://Gemini.com
They seem to be the only exchange that doesn't charge you any transfer or withdrawal fees
However, they don't seem to pay you interest on USDC or USDT
APY
DAI - 7.4%
BTC - 2.05%
ETH - 3.05%
http://Gemini.com
They seem to be the only exchange that doesn't charge you any transfer or withdrawal fees
However, they don't seem to pay you interest on USDC or USDT
APY
DAI - 7.4%
BTC - 2.05%
ETH - 3.05%
2.
http://Kraken.com
They also offer you interest on non-crypto fiat deposits
APY
EURO - 1.5%
USD - 2%
BTC - 0.25%
ETH - they only show ETH2 interest on their website which I don't cover in this thread (higher risk / long lock-in period of possibly months/years)
http://Kraken.com
They also offer you interest on non-crypto fiat deposits
APY
EURO - 1.5%
USD - 2%
BTC - 0.25%
ETH - they only show ETH2 interest on their website which I don't cover in this thread (higher risk / long lock-in period of possibly months/years)
3.
Staking interest on crypto (Proof of Stake) through centralized platforms
Instead of miners, the validating of transactions is done by "stakers" ($ instead of energy)
Most exchanges listed here offer you the option to stake certain crypto currencies through their exchange
Staking interest on crypto (Proof of Stake) through centralized platforms
Instead of miners, the validating of transactions is done by "stakers" ($ instead of energy)
Most exchanges listed here offer you the option to stake certain crypto currencies through their exchange
3.
Either the crypto currency itself has a specific lock up period where you have to wait for a while after withdrawing for you to actually receive your crypto back
Or the exchange wants you to lock in your asset for a specific period
Either the crypto currency itself has a specific lock up period where you have to wait for a while after withdrawing for you to actually receive your crypto back
Or the exchange wants you to lock in your asset for a specific period
3.
Some of the big currencies to earn interest on Kraken are:
Polkadot (DOT) - 12%
Kusama (KSM) - 12%
Cosmos (ATOM) - 7%
Some of the big currencies to earn interest on Kraken are:
Polkadot (DOT) - 12%
Kusama (KSM) - 12%
Cosmos (ATOM) - 7%
3.
Binance gives you around 60 different currencies you can earn interest on in "locked staking"
The locking period ranges from 30 to 90 days (currently they have a 15 day APY promo)
APY 90 days
SOL - 22.13%
ADA - 9.32%
DOT - 18.47%
ATOM - 15.79%
Binance gives you around 60 different currencies you can earn interest on in "locked staking"
The locking period ranges from 30 to 90 days (currently they have a 15 day APY promo)
APY 90 days
SOL - 22.13%
ADA - 9.32%
DOT - 18.47%
ATOM - 15.79%
4.
!!!Higher risk & more complicated stuff starts here!!!
Liquidity pools on centralized exchanges
Binance also allows you to earn interest by depositing 2 currencies into different liquidity pools
!!!Higher risk & more complicated stuff starts here!!!
Liquidity pools on centralized exchanges
Binance also allows you to earn interest by depositing 2 currencies into different liquidity pools
4.
Be aware of impermanent loss:
You deposit 2 currencies 50-50, you get at least your $ amount back on withdraw but might end up 20-80
Impermanent loss means that as one asset rises people buy it from one pool and sell into the other pool
(look it up before you use it!)
Be aware of impermanent loss:
You deposit 2 currencies 50-50, you get at least your $ amount back on withdraw but might end up 20-80
Impermanent loss means that as one asset rises people buy it from one pool and sell into the other pool
(look it up before you use it!)
4.
Impermanent loss:
In the end you might have more of the less valuable currency - you made no $ loss but might have lost the profit you would've got if you just held onto them
Binance calls these liquidity pools "liquid swaps"
Impermanent loss:
In the end you might have more of the less valuable currency - you made no $ loss but might have lost the profit you would've got if you just held onto them
Binance calls these liquidity pools "liquid swaps"
4.
Some ways to avoid impermanent loss is to search for "in kind" pools - pools that use the same base currency but in different forms
Examples are
USDT/DAI
USDT/USDC
USDT/BUSD
BTC/WBTC
BTC/renBTC
As they run on DeFi the rates are volatile & easily range from 1% to 25% daily
Some ways to avoid impermanent loss is to search for "in kind" pools - pools that use the same base currency but in different forms
Examples are
USDT/DAI
USDT/USDC
USDT/BUSD
BTC/WBTC
BTC/renBTC
As they run on DeFi the rates are volatile & easily range from 1% to 25% daily
5.
For DeFi:
!!!You should use a hardware wallet!!!
Link it to Metamask or your Brave browser wallet & use Brave to interact with dApps
As I've reached the maximum allowed length I will start a new thread with DeFi options
Please leave a
/ 
/ comment if you liked it
For DeFi:
!!!You should use a hardware wallet!!!
Link it to Metamask or your Brave browser wallet & use Brave to interact with dApps
As I've reached the maximum allowed length I will start a new thread with DeFi options
Please leave a
/ / comment if you liked it
Puh, that took me a while
I hope it can help some people to make low risk investments
I'll @ some people here for clout ( ͥ° ÍÊ ÍĄÂ°)
@cz_binance
@danheld
@Mashinsky
@APompliano
@Nicholas_Merten
@KoroushAK
@TheCryptoZombie
@KevinSvenson_
@TheCryptoLark
@Bitboy_Crypto
I hope it can help some people to make low risk investments
I'll @ some people here for clout ( ͥ° ÍÊ ÍĄÂ°)
@cz_binance
@danheld
@Mashinsky
@APompliano
@Nicholas_Merten
@KoroushAK
@TheCryptoZombie
@KevinSvenson_
@TheCryptoLark
@Bitboy_Crypto
EDIT:
Of course the exchange that everyone knows should be http://coinbase.com , not http://crypto.com , when mentioned first in this thread!
Coinbase is the most institutionalized one with the highest regulation - but also the highest fees
I NEED AN EDIT BUTTON!
Of course the exchange that everyone knows should be http://coinbase.com , not http://crypto.com , when mentioned first in this thread!
Coinbase is the most institutionalized one with the highest regulation - but also the highest fees
I NEED AN EDIT BUTTON!
