How I Passively Invest in Bitcoin + Earn 9.3% Interest
Investing in Crypto Shouldn’t Be Hard
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Buying Crypto can be scary.
Many people are worried about getting scammed or not getting the best deal. Unfortunately, many resolve to using services like Robinhood or Webull to buy their crypto. But you really shouldn’t.
I wrote a whole article about why you shouldn’t here but the TL;DR of that is pretty simple: you don’t have control over your cryptocurrency. And because you don’t have control over your cryptocurrency, you can’t put it to work and get passive income from it.
So where should you get your crypto that’s safe? I’m going to go over my personal setup that I use to buy cryptocurrencies and earn up to 9.3% interest. You don’t even need to buy Bitcoin and hope it goes up! Just collect interest on the US dollar.
Passive is Key
Unfortunately, today’s culture sees investing as a hands-on process that most people don’t have time for. But that couldn’t be farther from the truth.
Investing can be super passive. In fact, that’s what I recommend you do. Constantly buying and selling creates stress. It distracts you from the rest of your life. It works for only some people. But everyone should take advantage of long-term passive gains.
This process is what I use in order to put my money aside and let it work for me. I don’t need to worry about constantly checking in on it. I just forget about it. Then, years later, I can come back and check out the sweet rewards of compound interest and investing.
And here’s the great thing: you don’t even need to risk money into hoping that Bitcoin won’t crash. You can store your money in a stable coin that is always worth $1. Then just earn 9.3% compound interest on that money. This is the exact process I use to store my long-term money. It’s not tied up in CDs or bonds. Just simple interest that I can withdraw at any time. Let’s jump in!
The Exchange
Step one to buying crypto is finding an exchange.
My top recommendation is Gemini. I personally use Gemini for many reasons. First of all, both their phone app and website are very well designed. They also have a great “advanced mode” on the website if you want to be adding limits and stops to your orders. On top of that, they’re a US-based company (started by the Winklevoss twins) and have a good reputation as an exchange.
Many crypto exchanges can be unreliable, hold money from you, have major outages, and tons of other problems. On top of that, many exchanges are bogged down with too many sign-ups and can’t keep up with verification. And that’s not mentioning their non-existent support if something goes wrong.
I found none of these problems with Gemini. No outages. Great support. And no backlog of verifications. The app is super clean and works amazing. Not to mention, they’re adding features to their apps like an earning program and debit cards (the earning program isn’t as good of interest rates as what we’re later talking about though).
My only complaint with Gemini is that the graphs in the app aren’t perfect in the app and I wish they supported Cardano. But that’s just about it.
They’ve become my go-to exchange for converting USD to the Crypto ecosystems. And that’s saying something since I’ve tried many other exchanges. Plus you also get a $10 bonus for signing up and using it.
Another option to use as an exchange is Binance.us (for US citizens) or Binance.com (for non-US citizens). Binance offers a wide range of cryptos that you can invest in.
It’s a great option if you’re looking for an exchange with tons of different options. Binance isn’t perfect, however. They’ve had many problems with keeping up with signups and also outages. However, you should still make an account. It’s always a good idea to be set up with multiple exchanges so that you can have backups ready to go in case of an outage.
Storage and Compound Interest
Ok, so you got your crypto… now what?
Many choose to just store the money in the exchange they bought it with. However, this isn’t a great idea. Instead, I recommend (and personally use) Blockfi to earn interest in my cryptocurrency holdings.
You need to put that money to work. These are the current interest rates Blockfi offers:
That last row for USDT is a stable coin. That means it’s always worth $1. You don’t even need to risk that Bitcoin (or others) will go up in value. You just automatically earn 9.3% interest. That’s insane!
My only big complaint with Blockfi is that the mobile app is a little bit clunky. The UI isn’t as polished as many other apps (like Gemini). But nevertheless, it earns great interest and is an easy way to go put your money to work.
Final Thoughts
I wanted to write this article to simplify the process of getting into cryptocurrencies. Buying and using cryptocurrencies are not supposed to be stressful.
These two services are what I personally use to put my money to work and grow that compound interest. Put some money in and just forget about it for a couple of years. You’ll be amazed at how much will be sitting there when you come back.
Whether or not you choose to store your money in stable coins, bet on the growth of Bitcoin and Etherium, or a combination is up to you. Just keep in mind that we’re super early in the story of Bitcoin and it’s not too late to hop on board.
Before You Go Running to the Comments…
Since this article came out, a lot of people have pointed out their concerns with holding their crypto on a centralized service. I wrote this article addressing this, how to know to trust a company, and alternatives that are decentralized:
If you’re interested in learning about some other crypto exchanges, I wrote an article reviewing a bunch here:
Disclosures:
This article contains affiliate links. The author may receive a small commission when you sign up through their link. Everything I state in this article is my honest opinion, services that I personally use with my own money, and not biased towards any rewards programs. This article was not a paid advertisement by any of the brands referenced.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information may be accurate. Consult a financial professional before making any major financial decisions. All investments are a risk.
Consider following me on Twitter for other crypto stuff: @henrygruett
