Interest on bank vs staking with crypto

Since yield is rather very low on banks > like 0.5% in USA
would you consider staking with crypto? > this is just the same as having an interest savings account on bank.
You can stake with usd too.
The yields for usd is like 5% and for many others like 10%-20%
For AXS for example 150% yield.

Kirjoittanut ITSGG1122, 15.10.2021 at 11:36

it just so happens that I've been doing a lot of research into this in the past week. In my opinion, it is worth treating services like BlockFi or Voyager the same as you would treat your typical savings account.

Recently, I've decided to put all my savings (and day trading capital) into a combination of USDC and GUSD, each earning 7% APR ($35,000.00/year per 500k invested... crazy). In my situation, I have just 25% of my money in the account. But I think it is possible to earn 7% APR on my full net worth by wiring the funds every evening from my brokerage account with Charles Schwab to my BlockFi account, and then wiring from my BlockFi account to my Charles Schwab account every morning (I got banned from TD Ameritrade for no reason), so that way I'm able to accrue interest by simply holding the funds overnight in my BlockFi account, while trading the funds and fully liquidating them during the day. I'm currently in the process of doing this, but clearly I need to make sure I don't get blocked for suspicious activity

There are many risks involved. First of all, I chose to combine my funds in two stablecoins, USDC and GUSD, because they are much more transparent than USDT and are apparently fully backed by $$$. This is how I diversify. As for the stability of the coins themselves, there are two articles here to consult: https://medium.com/coinmonks/how-well-do-the-top-stablecoins-perform-a-quantitative-analysis-c56d022719b and https://www.jbs.cam.ac.uk/wp-content/uploads/2020/08/2020-conference-paper-lyons-viswanath-natraj.pdf. There is a lot of risk and the system could collapse entirely. There will be future regulations and there is a lot of uncertainty

Second of all, it is important to note that you're not actually earning 7% (you would earn 8.25% with smaller amounts of money), but rather a little less than 7% because of some kind of expense ratio I assume. This takes away about 1.5k for every 500k you invest with BlockFi.

Third of all, choosing the right platform. There are several, but the two best ones are BlockFi and Voyager. Voyager gives you higher interest rates but has fewer assets under management. So if the cryptocurrency market were to collapse, Voyager would go down first. BlockFi is much more reliable. These platforms are able to profit by lending to businesses that specialize in crypto. Traditional banks are unwilling to loan money to those businesses, so BlockFi is able to charge them exorbitantly high interest rates with the funds that we deposit. And because there's competition, they kindly give us 7% APR (otherwise, everyone would go to Voyager). Of course, the risk is that if the cryptocurrency market collapsed, those businesses would default, and then there wouldn't be money backing our deposits. Then, we could have a bank run and you could lose literally your entire account that is not FDIC insured. I expect something to this effect might happen before 2024, which is why I will always be fully liquid and be prepared to withdraw my money on even the slightest hint that default is imminent. I will try to track this with more quantitative measures later, but for now here's no reason to worry since bitcoin is literally almost at all time highs right now.

I refuse to put any of my money in cryptocurrencies like Bitcoin or Ethereum. However, if you purchase 10,000 voyager coins, you could earn an additional 1% APR on your stablecoins, which makes Voyager a lucrative option if you are able to tolerate greater risk.

Kirjoittanut Tribune Aquila, 15.10.2021 at 16:39

Kirjoittanut ITSGG1122, 15.10.2021 at 11:36

Anything under 10% is rather very low, still better than nothing. And still way better than what banks give us

Kirjoittanut Tribune Aquila, 15.10.2021 at 16:39

Kirjoittanut ITSGG1122, 15.10.2021 at 11:36

it just so happens that I've been doing a lot of research into this in the past week. In my opinion, it is worth treating services like BlockFi or Voyager the same as you would treat your typical savings account.

Recently, I've decided to put all my savings (and day trading capital) into a combination of USDC and GUSD, each earning 7% APR ($35,000.00/year per 500k invested... crazy). In my situation, I have just 25% of my money in the account. But I think it is possible to earn 7% APR on my full net worth by wiring the funds every evening from my brokerage account with Charles Schwab to my BlockFi account, and then wiring from my BlockFi account to my Charles Schwab account every morning (I got banned from TD Ameritrade for no reason), so that way I'm able to accrue interest by simply holding the funds overnight in my BlockFi account, while trading the funds and fully liquidating them during the day. I'm currently in the process of doing this, but clearly I need to make sure I don't get blocked for suspicious activity

There are many risks involved. First of all, I chose to combine my funds in two stablecoins, USDC and GUSD, because they are much more transparent than USDT and are apparently fully backed by $$$. This is how I diversify. As for the stability of the coins themselves, there are two articles here to consult: https://medium.com/coinmonks/how-well-do-the-top-stablecoins-perform-a-quantitative-analysis-c56d022719b and https://www.jbs.cam.ac.uk/wp-content/uploads/2020/08/2020-conference-paper-lyons-viswanath-natraj.pdf. There is a lot of risk and the system could collapse entirely. There will be future regulations and there is a lot of uncertainty

Second of all, it is important to note that you're not actually earning 7% (you would earn 8.25% with smaller amounts of money), but rather a little less than 7% because of some kind of expense ratio I assume. This takes away about 1.5k for every 500k you invest with BlockFi.

Third of all, choosing the right platform. There are several, but the two best ones are BlockFi and Voyager. Voyager gives you higher interest rates but has fewer assets under management. So if the cryptocurrency market were to collapse, Voyager would go down first. BlockFi is much more reliable. These platforms are able to profit by lending to businesses that specialize in crypto. Traditional banks are unwilling to loan money to those businesses, so BlockFi is able to charge them exorbitantly high interest rates with the funds that we deposit. And because there's competition, they kindly give us 7% APR (otherwise, everyone would go to Voyager). Of course, the risk is that if the cryptocurrency market collapsed, those businesses would default, and then there wouldn't be money backing our deposits. Then, we could have a bank run and you could lose literally your entire account that is not FDIC insured. I expect something to this effect might happen before 2024, which is why I will always be fully liquid and be prepared to withdraw my money on even the slightest hint that default is imminent. I will try to track this with more quantitative measures later, but for now here's no reason to worry since bitcoin is literally almost at all time highs right now.

I refuse to put any of my money in cryptocurrencies like Bitcoin or Ethereum. However, if you purchase 10,000 voyager coins, you could earn an additional 1% APR on your stablecoins, which makes Voyager a lucrative option if you are able to tolerate greater risk.

Voyager just declared bankruptcy and everyone's money is lost. Good thing I only used BlockFi. Sorry if I convinced any of you to invest in Voyager, because now you are bankrupt

Dont believe the nubs, they just want u too buy so they recover some of their loss xd

Kirjoittanut sirivann, 28.07.2022 at 23:28

Dont believe the nubs, they just want u too buy so they recover some of their loss xd

True true