The Capital
Published in

The Capital

A Better Way To Hodl!


HODL is a term derived from a misspelling of “hold” that refers to buy-and-hold strategies in the context of bitcoin and other cryptocurrencies. (investopedia)

But when you HODL, you’re betting on the appreciation of your coin over time to make a profit.

However, it’s not increasing your total amount of coins. You could trade and buy more coins with your profit but trading is not without risks.

Are there safer ways to increase your total amount of coins while you HODL? The answer is yes. Here are 5 ways to do so.

Cryptocurrency Index

This one is not entirely without risk as it relies on the index outperforming bitcoin. Usually, indices outperform the individual coins by spreading the risk and rebalancing thus giving you a better return than pure Hodling.

Bitwise has created its a cryptocurrency index: bit10. More info on the index and its performance below:

Abra is a crypto wallet app with support for this bit10 index.

Note: Abra is a mobile app only & Abra requires you to provide your phone number and receive an SMS verification before being able to download the app.

Abra also allows you to invest in certain stocks with your crypto, offering another way to earn from investing in stocks. This is especially interesting when the crypto market is bearish.

If you rather create your own index and do your own rebalancing you could have a look at Shrimpy to manage your portfolio.

Peer-To-Peer Lending

There are some companies that enable you to invest in either small businesses or by acting as an intermediary between lenders and borrowers.

Bitbond (Germany) is such a company. However currently registrations for investors are closed. They gather all loans/investments and give a fixed interest similar to how a bank operates. They also have a banking license if I’m not mistaken.

CoinLoan is another company (Estonia) that operates slightly different, it requires borrowers to offer collateral in the form of cryptocurrency in return for FIAT loans. Offers of 10% interest/year or more are not unusual. is similar to CoinLoan. (There’s no physical address listed and its parent company seems to operate from Malta). They have good reviews and have a license but given the option, I prefer to do business with a more transparent company. Nexo coin is also listed on Huobi.

You can find more companies like these doing a little Googling but be careful and only deal with legitimate companies that have a license, do your due diligence.

Margin Funding

Margin funding is a special form of peer to peer lending that deserves its own category. You lend your cryptocurrency to margin traders. Margin traders use these funds to trade with leverage. To get this leverage they need to borrow money. The funds are secured by automatic liquidation at certain levels. This ensures that you always get your money back.

Exchanges that offer Margin Funding:

Poloniex, Bitfinex, Bitmex, Kucoin…etc

Binance offers it separately from its Margin trading platform

Arbitrage Investment

Pionex CoinGain Investment Plan is based on a high-frequency arbitrage algorithm, including but not limited to cash and carry arbitrage. Arbitrage is a form of automated trading that takes advantage of differences in prices across different exchanges (or within the same exchanges on different coin-pairs combinations). This is a very low-risk strategy that does not depend on the market being bullish or bearish to make a profit.

This doesn’t return a fixed interest or dividend but based on previous results a 20% annualized return is possible.

Staking Coins

Proof of stake (aka POS) cryptocurrencies have technical benefits over proof of work cryptocurrencies and provide additional benefits & dividends to its HODLers.

If all of that sounds like Chinese to you don’t worry all you need to know is you can earn by just holding POS cryptocurrencies in a wallet that supports staking.

Some POS coins require you to have a master node. I will not go into detail here how you can get a decent annual return by running a master node as it would be too complex for non-techies and it usually requires a large investment.

Let’s stick to those coins that give a nice return for HODLing. Most of these coins even give you a dividend when they’re kept on exchanges such as Binance and Kucoin.


NEO, formerly known as Antshares, is the first Chinese open-source blockchain project. NEO serves as a smart assets platform. Smart assets are the combination of smart contracts of blockchain technology and digital assets. NEO allows for smarter registration, issuance, and circulation of digital assets.

GAS is a cryptocurrency which is distributed by holding NEO in your wallet.
GAS is used to fuel transactions on the NEO blockchain.
With each NEO Block generated, GAS will be distributed to all NEO holders.

Follow the link below to calculate the return.


PIVX is the abbreviation for Private Instant Verified Transaction. It is a POS cryptocurrency that focuses on privacy and security.

PIVX is POS currency that allows its users to stake coins on the blockchain.

Follow the link below to calculate the return.


The above references is an opinion and is for information purposes only. It is not intended to be investment advice and may contain affiliate links. Seek a duly licensed professional for investment advice.




A publishing platform for professionals in business, finance, and tech

Recommended from Medium

Weekly Crypto Overview — Khilone #20

Top 6 Blockchain Development Companies in 2022

Defi Kingdoms Newsletter #10

The History of Mining & its Influence on Bitcoin’s Price

Poop Swap — the most useless shitcoin on Binance Smart Chain!

METACHI got a joint investment from PING99, TMTPOST, and ChainDD, and signed contracts with several…

ADALend: Now Available on Top Four DEXs

Why you should care about Drivechain

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store


Happily hopping up and down on the cryptocurrency markets

More from Medium

Understanding Bitcoin from a different perspective #5

STOP The Contract From Selling.

How to read a Whitepaper?

Three ways HODLers can profit during bull and bear markets