In this article I am going to show how we can generate a 10% annual return on our stablecoins like USDT, USDC, Dai, and many others. In addition to an annual return in Ethereum, Bitcoin and others.
In the world of cryptocurrencies there is a money market that is used by certain decentralized protocols such as Aave or Compound. In these markets, money is lent in some cryptocurrency and this is blocked in a smart contract so that other users can leverage.
The one who lends the money receives an annual interest and the one who borrows it pays an annual interest. The first manages to have his money safe plus some interest, the second manages to leverage himself at a good price.
The fact is that it is one of the most popular ways to earn money without risking too much, and this time I am going to try BlockFi. This is an application that acts as an intermediary in the money market. BlockFi is centralized, like so many others, such as SwissBorg.
The advantages of being centralized is, on the one hand, that it is not exposed to computer failures in such a great way and, on the other hand, the low commissions of operating. The disadvantage of being centralized we already know what they are: we have to trust a third party, in this case BlockFi, in addition to the fact that it is supported by regulations and KYC (verify your identity).
Why does BlockFi seem like an interesting app?
Well, because it is one of the "lending" apps that usually generates the most interest. Around 9.5% per year for stablecoins and around 5% for some big ones like Bitcoin and Ethereum.
On the other hand, it seems quite safe and one of its investors is Coinbase itself, probably the company in the cryptocurrency sector that has most strictly complied with legality and security. And the first to go public.
When the market is so bad, with the biggest bubble in history in stocks, cryptocurrencies and public debt. While we break inflation records, and at the same time that the debt of certain countries reaches levels that are difficult to pay. It is very difficult to protect investments. Because we cannot calmly take refuge in highly overvalued stocks, nor can we withdraw into fiat money because we suffer from inflation, and cryptos, no matter how much they weigh some, are still a high-risk industry, or at least that is how it is considered by the market. so when the stock market bubble bursts, so will the cryptos.
With this I do not mean that you cannot invest in the stock market or in cryptocurrencies right now, but if you do, you should at least be aware that it is the largest bubble in history and take the appropriate precautions.
For all these reasons I consider having fiat with interest a good option at the moment, at least part of the money, there are other investments that may be worthwhile such as raw materials, gold, perhaps Bitcoin in case it surprises us... just my humble opinion. Everyone who does their own research always before investing please.
How does BlockFi work?
Signing up is very simple. We just need an email, username, password and phone. Then they will ask us to verify the account for which we have to provide the ID and photos. If everything goes well, they will approve the account on the same day.
The interface is very simple and easy to use and the functionalities are scarce, since BlockFi is not a platform for trading, but rather an app where you can earn interest. I say this so that no one expects cryptocurrency trading fees to be 0.1-0.4% like it is on the best exchanges in the world like Binance or Kucoin. The fees on BlockFi are more similar to Coinbase than to a professional exchange.
It has few currencies: Bitcoin, Ethereum, Litecoin, Uniswap, BAT, LINK and PAXG. PAXG is an ethereum token issued by the same company that issues PAX, one of the largest dollar-pegged stablecoins in the world. PAXG also called Pax Gold, is pegged to the price of gold.
So we can have something that can be considered equivalent to a gold custodian or an ETF, plus interest.
As for stablecoins, the range is wide: GUSD, USDC, PAXOS, DAI, USDT and BUSD.
To earn interest we do not have to do anything, simply once we deposit our money it begins to generate interest. Of course, look at the interest that each cryptocurrency has, since they vary from one to another except the stable ones that always have the same interest.
Also mention that they have a Visa debit card with which we will receive cashback on our purchases, but unfortunately it is only available in the USA at the moment.
Get $10 on BlockFi
To get the $10 promotion you must meet the following requirements: you must register from a guest link. You have to deposit cryptocurrencies worth $100 or more into your account. Ready.
