Make 9% On Your Crypto
Staking and even better ways to earn interest on crypto
There really is no reason to settle for the low interest rates offered on bank savings accounts. The liquidity of a bank account may be important to have some emergency funds tucked away in, however there may be ways of combining liquidity and good returns.
Recently a small investment was made in BlockFi to evaluate their offer of 9% on Gemini USD, a USD-based stable coin. So far, the interest appears to be accruing at the rate promised, but the investment has not been long enough to allow for a withdrawal. That should happen after a month, at which point this article will be updated.
The great thing about earning interest on a stable coin, is the ups and downs of other coins are eliminated. If it works out well, then 9% and liquidity, the ability to trade the base coin, is not too shabby as part of the portfolio.
BlockFI also offers 5% interest on Ethereum. This seems like a similar investment as a dividend paying stock where there is a dividend plus the potential for capital gains and declines. In the crypto world, this is referred to as staking, a way to accrue rewards for holding coin. Coinbase does not offer staking on Ethereum, but it does on Ethereum 2, which currently cannot be traded. Coinbase also offers staking on other coins like 5% on Cosmos.
For crypto, there are various ways of earning rewards, often in the form of fractions of a bitcoin, sometimes with the choice of other coins. Some approaches open the investment to gains/losses on the base investment, others are available on stable coins. Each approach is worth evaluating as part of an investment portfolio.
Disclaimer
Past performance is not indicative of future results. There is no guarantee of any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed on this website. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned on this website may not be suitable for you. This material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned on this website. Before acting on information on this website, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.
