Some time ago I wrote an article regarding the various possibilities for making the best possible income from your cryptocurrencies. It was the bull-run period, when many platforms offered absurd and sometimes even unsustainable returns. Now many of these companies are gone, some have declared bankruptcy and others have imploded under the weight of debt and poor credit management. In this regard, it is good to remember that the risk of renting funds lies in the fact that, when we deposit them on a centralized or decentralized platform, they are in fact no longer ours.
Not your kees, not your coins.
Let's take a centralized exchange (Cex) as an example: when we want to use one of its financial products to obtain a certain interest, we are obliged to deposit funds with it. Depositing the latter on a Cex transfers ownership from us (formerly holders of the private keys) to the annuity platform in question.
But why do I have to rent my cryptocurrencies? In reality it is not a duty but it must be an appropriately evaluated choice. Holding an asset is already a form of investment, but making it profitable would mean maximizing profits, while at the same time exposing ourselves to risk. If in our assessment the risk is low or the profit received compensates for it, then we can proceed to rent our funds.
Having clarified this, we can proceed to see what the best income possibilities are at the moment on cryptocurrencies.
CEX
Binance: among the centralized exchanges, Binance remains the one that, at the time of writing, offers a combination of ease of use, high returns and security in terms of longevity. Longevity is not an absolute index of safety but, sometimes, one can jump to the conclusion that if a platform has been operating in the sector for many years it is a little safer than a new one. Binance, however, offers a 13% APY on some stablecoins and periodically good returns on Bitcoin and Ethereum.
Nexo: Nexo was born as an income platform but was later added an exchange and a debit/credit card with a fairly interesting cashback. The income it offers on stablecoins reaches 16%, a very respectable figure given the period. Furthermore, it allows you to use a portion of your funds as collateral for the credit card it offers, while simultaneously accruing interest. I will definitely write an updated article about this platform in the future.
DE-FI
As regards Decentralized Finance, many protocols have been created that offer absolutely interesting returns. Be careful though, not all of them have good reliability. Below I will name just a few of the older ones.
Beefy-Finance (Multichain): this is a site where you can rent your cryptocurrencies on multiple protocols. Beefy is in fact an aggregator that shows what the market offers at the moment and allows you to interact through its site. It is always good to check both the liquidity of the pools (as it is sometimes low) and where the pool you intend to use comes from.
Pancake-swap/Venus (BSC): Last but not least, Pancakeswap is a Dex originally born on Binance Smart Chain and then became multichain. It offers the possibility of providing liquidity to some pools and then farming the Lp-Tokens obtained to maximize revenues. Venus, on the other hand, allows you to borrow or provide liquidity in single asset mode, returning annualized interest of 6% on USDT, for example.
Others: There are also an infinite number of other protocols on many different blockchains. For example, Osmosis-swap (IBC), Orca on Solana and many others come to mind. However, it must be kept in mind that any movement made on these protocols is very risky and must be considered very carefully.
Always DYOR before invest.
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