Holding Bitcoin in your investment portfolio has proven to be a very profitable thing since it was born until today. Bitcoin, in fact, is one of the best assets to bet on to receive an economic return. However, whether a person owns it because they want a profit or has a strong belief in the underlying technology, it is often not enough to own it. Being a cryptocurrency, in fact, Bitcoin can easily be rented to increase the amount present in one's wallet. There are countless possibilities to receive an income on them, but not all are the same. In particular, what varies (in addition to the promised interest) is the level of security and transparency of the company offering the service we use.
So here are some useful tips to make Bitcoin (but also other cryptocurrencies) profit safely.
Tip #1
Safety first of all: the diversification of capital across multiple platforms makes it possible to preserve most of it in the event of a platform hacking, rather than losing it totally. Diversification also allows you to take advantage of various earning opportunities offered by the annuity platforms you have chosen.
Have a look here: My Investment Portfolio
Tip #2
Always check everything before entrusting the capital to a platform, such as the withdrawal fees, the number of free withdrawals and even if the declared interest is effective. To do this, you need to consult the website of the service we have chosen and, possibly, also the social profiles. I would be wary of new platforms or platforms with few followers because they may not be "tested".
Tip #3
A "good" APY for Bitcoin is currently on average between 4 and 7%. If a platform offers, for example, 20%, investigate well before moving the capital. Often some new CeFi services promise very high interest to accumulate customers, but as time passes the APY decreases. Other times, however, the interest is not paid directly in Bitcoin but in the form of the platform's native token. Nexo is one of these, but it integrates an exchange service thanks to which the token can be sold on the market to buy Bitcoin.
Tip #4
Don't use a service just because a friend or, worse still, an influencer recommended it. DYOR = do your own researches! Don't trust others, it's about your money.
Tip #5
DeFi is a great tool but it requires flexibility and timeliness. Pools that hold Bitcoin often perform well, but interests change often and quickly. You need to be able to move your capital quickly.
Tip#6
Using Bitcoin as collateral is a great way to accumulate some at times. The Nexo Card, for example, in addition to providing a cashback in Bitcoin, also allows you to open a loan by putting your capital as collateral (and therefore without selling it) for your daily expenses.
Tip #7
On platforms that allow it (such as BlockFi) it may be useful to choose to receive the income in stablecoins during the periods of Bitcoin's uptrend and in the form of Bitcoin itself during the downtrend. This method can be considered a kind of accumulation plan and guarantees profits when Bitcoin rises.
Tip #8
Find out often and in depth on all annuity platforms. You need to know all the opportunities offered by an exchange or a service well, so that you can choose the most profitable one. Some exchanges such as Binance offer high returns for limited periods (example: staking DeFi). Taking advantage of these offers promptly guarantees good earnings.
Tip #9
A strategy to avoid long periods of blockage on platforms such as Nexo can be to divide the capital allocated there into 5 parts. Each week a portion of the capital is frozen for a total of one month. By doing so, once fully operational, 4 locked and one unlocked parts will be available and one more will be unlocked every week. This guarantees a high APY for the blocked percentage and a part of liquidity that is always available.
Tip #10
Always keep in mind that if you don't have the private keys you don't really own the cryptocurrencies. When they are deposited on an annuity platform, you must be sure that this is not a scam. If you do not have this certainty, it is always better to avoid using it and to hold your capital on a non-custodial wallet.
Hoping they will be useful to you ... Bye.
Read Also:
Not yet subscribed to Nexo.io? Use this link to get a $25 bonus in BTC.
If you liked this article, please support me by following me here and on Twitter, leave me a like or use one of my referral links below. 👇
-Thank you-
➡️ Join Celsius Network using my ref & earn $50 in BTC
➡️ Use BlockFi and get up to 4% on Bitcoin. Read here how to do
