For those holding BTC for the long haul, do you earn interest on your stash? - page 2.

kryptqnick

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Quote from: 95Bolu on November 29, 2021, 05:20:42 AM

I have been reading up on some interest accounts out there for BTC and Altcoins and the yields are really good especially when benchmarked against fdic insured fiat.

What’s your take on this? Is this a good or bad idea?

Op, consider it carefully before taking part in such things. There's always a risk when you're staking your coins because it means that you're giving some other party the keys. Then comes the concern over it being worth it in terms of profit. How much will this staking give you annually? 5%, maybe 10% if it's a very good deal? Well, Bitcoin can go 10% up or down in a matter of days. So aren't you better off simply hodling your BTC independently because this change is quite insignificant compared to volatility? You can also try to follow cycles with these 10% increases and sell the excess for fiat or a stable coin on an exchange.

AicecreaME

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Quote from: 95Bolu on November 29, 2021, 05:20:42 AM

I have been reading up on some interest accounts out there for BTC and Altcoins and the yields are really good especially when benchmarked against fdic insured fiat.

What’s your take on this? Is this a good or bad idea?

I don't think stashing your bitcoin is a great idea. Putting your coins in a stash means giving up your ownership and custody over it because you permit the exchangers to have the authority over your funds. Hence, when hacking happens, your assets aren't safe. There are numerous incidents of hacking already reported with these exchangers and wallets. I suggest to be wary and always double-check where you are putting your hard-earned money/coins because it's not easy to make money nowadays. Reassess if the risk that comes along with stashing your money is worth it or not. For the interest that they will give you, will it be okay to put your funds just for the sake of having your money grow with them? If yes, then go ahead. After all, there are several exchangers that offer pretty much decent interest over time. If not, then don't do it. It still all depends on you.

aoluain

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As everyone has said sending Bitcoin or altcoin to an address which you can access
but some other party has control of is never a good idea but I am one who is taking that
risk and have been for a number of months now on the BlockFi platform. I have a small
portion of my holding on deposit there earning interest.

The deposit im aware that I dont have control over, meaning if the platform is
hacked, or if they decide to lock me out, there is very little I can do.

So along with the reward there is also risk.

Fundamentals Of

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Yes, they are offering much higher interest compared to related fiat products but the difference is that most of these fiat products are, as you've said, insured. There is low interest but there is also lower risk. Crypto staking products offer higher APY but the risk is also higher.

I don't use it so I wouldn't also recommend it to other people. What I recommend is to choose Bitcoin and perhaps a handful of very solid altcoins and keep them yourself and away from the control of anybody. But should you decide to invest on them, just make a moderate investment, an amount you could easily forget should it end up the way you wouldn't wish to.

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Quote from: 95Bolu on November 29, 2021, 05:20:42 AM

I have been reading up on some interest accounts out there for BTC and Altcoins and the yields are really good especially when benchmarked against fdic insured fiat.

What’s your take on this? Is this a good or bad idea?

If my tokenomics and economy calculation are good then the interest isn't much for those holders who hasn't large Bitcoin in their wallets, also I don't think this is even a thing people are excited about or are interested in, this won't even entice me to keep my cryptos in exchanges even if I were to be a whale holder. But if after your research you think you interested in the interest you would get from holding/staking your Bitcoin or crypto-currency through that means then Good luck.

DooMAD

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Quote from: davis196 on November 30, 2021, 07:06:39 AM

A bank that gives loans is earning interest rates,which is also a profit,which means that the bank is getting paid for taking the risk to lend money.

In days gone by, maybe. In practice, that's not remotely true now. There is no risk to them because governments are happy to steal money from the wider populace to pay for any losses. "Too big to fail" has set a precedent that will likely not be undone in our lifetimes.

I don't think satoshi ever uttered the word "interest" on these boards. And "interest" was only used in the whitepaper in the non-financial context of attention or curiosity. I suspect that was intentional.

davis196

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Capitalism is all about risk.
A company working for profits takes risks.Zero risk usually means zero profit.
A bank that gives loans is earning interest rates,which is also a profit,which means that the bank is getting paid for taking the risk to lend money.Bank loans are covered by assets,like mortgage.
I have nothing against earning interest for your Bitcoins,but only if you give loans that are covered by a big enough collateral.The collateral must be at least 120% of the loan amount.
Sending your Bitcoin to some crypto company,which is promising you X% annual interest is a big NO for me.
Any crypto company can scam you at some point.It doesn't matter how legit the company seems to be.

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Quote from: 95Bolu on November 29, 2021, 05:20:42 AM

I have been reading up on some interest accounts out there for BTC and Altcoins and the yields are really good especially when benchmarked against fdic insured fiat.

What’s your take on this? Is this a good or bad idea?

Likely the risk is there especially now that you leave it on an exchange where you don't have that total control of all your bitcoins and the earn you may get. Not that bad but in the sense of security over it, keeping it for over a year or even lower than that is still risky action on your part.

pooya87

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If you want "interest" then you better work on it yourself instead of taking a big risk by handing your coins to someone else that may or may not be giving it back to you. One way is to start your own business with the funds you have or if you are serious enough you could even partner up with other people to increase the capital. How do you think big businesses started? Just like this. You have to put some effort in and take some small risks.

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Quote from: 95Bolu on November 29, 2021, 05:20:42 AM

I have been reading up on some interest accounts out there for BTC and Altcoins and the yields are really good especially when benchmarked against fdic insured fiat.

What’s your take on this? Is this a good or bad idea?

for me storing BTC has two views on the benefits that are obtained by a person who keeps it and both have their own advantages. The first is storing in your own wallet, you get a profit when the market price rises and can be sold at any time, while the second saves it to the party when you get a fee or interest from the income saved by the owner of the BTC asset. So both have their advantages and disadvantages.

yazher

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I think it's better to keep your BTC in your own wallet rather than putting it on some exchange that will offer a small number of fees that won't really matter to you. This time, the pros cannot overtake the cons. Imagine you are after the small percentage fees but ended your BTC stuck on their exchange? This has happened before and it would not be impossible to happen again. I experience such a thing when I cannot withdraw my crypto assets on Okex when their withdrawal function was not working for a month.

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Quote from: Hamphser on November 29, 2021, 05:58:23 PM

Quote from: 95Bolu on November 29, 2021, 05:20:42 AM

I have been reading up on some interest accounts out there for BTC and Altcoins and the yields are really good especially when benchmarked against fdic insured fiat.

What’s your take on this? Is this a good or bad idea?

Not really worth for the risk imho and where you do able to see or check out those good interest rates with those platforms which give out interest in fiat?

Staking does only have max of 2-5% APY which i dont consider to be a good idea or could really equal to the risk you've been putting because
we know that centralized platforms does have the tendency or risk on running away with those funds.

There are other platforms these days that offer much higher compare to centralized exchanges offering, most of them are in the different chains, like Ethereum network, Solana Network, etc.
Bridges and they will become like wrapped Bitcoin on the respective chain then you can use it to farm, like yield farming or just a normal stake/deposit.

But then again, it's still not 100% safe since most of these are smart contracts, there could be a bug on code or can be hacked.

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Quote from: 95Bolu on November 29, 2021, 05:20:42 AM

I have been reading up on some interest accounts out there for BTC and Altcoins and the yields are really good especially when benchmarked against fdic insured fiat.

What’s your take on this? Is this a good or bad idea?

Not really worth for the risk imho and where you do able to see or check out those good interest rates with those platforms which give out interest in fiat?

Staking does only have max of 2-5% APY which i dont consider to be a good idea or could really equal to the risk you've been putting because
we know that centralized platforms does have the tendency or risk on running away with those funds.

So i dont see for it to be worth or considerable but still its your choice to make though.

DooMAD

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I'd only be repeating what I said here a few months back. Interest doesn't come from nowhere. Make sure you understand what you're getting into. Be careful:

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To generate interest requires either a debt-based currency, a legitimate business model to fund it (in which case there's almost certainly a centralised element), or it's simply just a ponzi scheme.

nelson4lov

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Firstly, there aren't much opportunities for Bitcoin out there. The ones available are just not worth it since you've to give up custody of your coins which isn't advisable. The rewards doesn't justify the rewards. Another point to note is that there aren't many opportunities like DeFi for Bitcoin and shady people can just make one with the primary aim of milking peopl their bitcoin all in the name of earning APY/APY rates. NOT WORTH IT.

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Quote from: 95Bolu on November 29, 2021, 05:20:42 AM

I have been reading up on some interest accounts out there for BTC and Altcoins and the yields are really good especially when benchmarked against fdic insured fiat.

What’s your take on this? Is this a good or bad idea?

First, don't mix Bitcoin and altcoins together. They might both be cryptocurrencies, but there's a key difference that Bitcoin is the most reliable project in this field, while altcoins are mostly just investment scams veiled as the next big thing.

Second, Bitcoin already gives you absurdly high returns of investment, so it's simply not worth the risk of losing all your coins to scammers/hackers to get some extra %. Practice shows that when there are centralized custodians that hold Bitcoin, exit scams and hacks are rampant.

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Quote from: 95Bolu on November 29, 2021, 05:20:42 AM

I have been reading up on some interest accounts out there for BTC and Altcoins and the yields are really good especially when benchmarked against fdic insured fiat.

What’s your take on this? Is this a good or bad idea?

To earn while holding is a pretty good idea but to let somehow do it, instead of yours, like staking is totally risky. But many had done this and become their habit now, perhaps, it was not a problem for as long as it was staked on the trusted exchanges. I actually made this thing, with 2-3% APY is good enough but if you know how the other way that could increase your profit, that was a great idea ever.
I don't stop those people are currently staking but have to be sure that you don't have to complain about whatever happens like hacking is prone to most exchanges.

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Quote from: 95Bolu on November 29, 2021, 05:20:42 AM

I have been reading up on some interest accounts out there for BTC and Altcoins and the yields are really good especially when benchmarked against fdic insured fiat.
What’s your take on this? Is this a good or bad idea?

Loaning your BTC to someone else is risky.

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Quote from: 95Bolu on November 29, 2021, 05:20:42 AM

I have been reading up on some interest accounts out there for BTC and Altcoins and the yields are really good especially when benchmarked against fdic insured fiat.

What’s your take on this? Is this a good or bad idea?

If holding, then i will just decide to hold. My side earning maybe trade with money that i use to trade and not hold. Staking bitcoin or maybe save it and expect for a yield i never think about that because not want to put my money into other people or company because risk that can be come is also bigger.

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Is it about risking? for me not for Bitcoin owned, but for altcoins I definitely do. Whatever Bitcoin is owned now will be very risky if I do not choose and sort out where to bet it. Even those offers came from the leading exchanges. Bitcoin is still Bitcoin and I will not let it move or be deposited on another party. I prefer to hold it without mixing it with altcoins that can be bet anywhere.

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