There is power in multiplication, one should work smartly, earn once and multiply the same to earn more. Often people ask me how one can earn more crypto?
Do you know the answer? Feel free to comment..
In my opinion, there are only a few ways to do it, either work in the industry or be an investor.
Being an investor is quick and easy, it gives you income even when you are asleep.
In this post I want to compare a few options that give the option to earn BTC:
Best Option: Stacks’ Stacking
Proof of Transfer protocol allows stacking of STX tokens (in the user’s own wallet) and earn BTC as a reward. Isn’t this cool?
Stacking is locking your STX temporarily to support the network’s security and consensus. As a reward, you’ll earn the Bitcoin that miners transfer as part of Proof of Transfer. You don’t have to run a node or validate transactions to stack — all you need to do is lock your STX in your wallet temporarily. To participate, you need to meet the minimum amount of STX for a full reward slot or pool together with others.
Minimum requirement: 0 STX
APY: ~20-30%
https://www.stacks.co/stacking
Stacking Stacks v/s lending to BlockFi/Compound Finance/Nexo/Celsius Network
These platforms are similar to traditional borrowing & lending platforms, which derive profitability by borrowing for less rate and lending for high.
So as a user when you lend or keep your tokens with them they give you a minimum APY and lend that token further to earn their profits.
But then who are the people who take those tokens from these platforms? These are generally traders who make margin calls and bet on the borrowed money. Many of these platforms are centralized, increasing your risk even more. In stacking its completely decentralized and stackers earn BTC as a reward for participation in protocol consensus (Proof-of-Transfer).
These give a very low APY ~5-10%, this is more like lending in a custodial way.
Please note: With all these platforms you have to keep BTC in their platform wallet but in stacking you have complete ownership as you can stack using delegation from your own wallet.
Advantages of STX stacking v/s other BTC yield options:
- Higher APY
- Stacking using delegation, STX tokens remain in your wallet
- Transparent statistics dashboard: https://stacking.club/
- Multiple Options: Custodian & Non-Custodian (https://hiro.so/wallet)
- Multiple Options with Zero Fees
- Minimum Requirement: 0 STX
- Stacking enables Defi on BTC, which is the blockchain standard protocol
