Those who invest in cryptocurrencies sometimes choose to buy and hold them for long periods, trusting that their value will rise over time. The trend of Bitcoin, the main cryptocurrency, has always been positive, when looked at from a general point of view. For this reason, a HODLER who often buys with an accumulation plan (DCA) accumulates considerable sums. Unlike FIAT coins, however, for cryptocurrencies there are online services that allow you to perceive a passive income on the savings that you decide to bind, making them mature and grow. These services are very interesting and in the long run the interest you receive in some cases reaches 7% annualized on BTC.
I have found some annuity methods for Bitcoin hodlers and have reported them here with some considerations on the risks and difficulty of using them. Let's see in detail what they are:
Binance
Risk: Low
Performance: 0.5 - 7%
Difficulty: Low
Centralized exchange Binance offers several annuity solutions for Bitcoin.
1. The easiest to use is in the "Savings" section, which has an APY of 0.5%. It is not very high but this is justified by the flexibility of the service: it is possible to release your BTC at any time and very quickly. With this service it is also possible to activate the auto-subscription that allows you to compose interest every 24 hours.
2. The second solution is found in the "Staking De-Fi", which currently yields 2.12%. It begins to be an already more interesting percentage but at the time of release you have to wait up to 48H to get your money back. Furthermore, this option is not always available on Binance.
3. Third option: "Liquid Swap". It is possible to add liquidity to the BTC/WBTC pool directly on the exchange, obtaining an APY of 2.55%. However, there are two drawbacks: first you have to convert 50% of your BTC into WBTC and secondly, the interest is paid both in the added pair and in BNB.
4. The last possibility on the exchange concerns the "Fixed Savings", which currently offer an APY of 7% and require a commitment of 90 days. During this period, it is not possible to release your liquidity unless you want to pay a penalty. This option is also subject to limited availability over time and therefore may not always be active.
An interesting thing about Binance is that, by activating the automatic subscription of flexible savings, you can channel all the income derived from the other options on Bitcoin and accrue a minimum additional interest.
Method:
A- Create an account on Binance, here is the LINK where to start.
B- Conclude the KYC procedure.
C- Connect to this section and choose the product you want.
De-Fi
Risk: High
Return: 6.5%
Difficulty: Medium-high
Decentralized finance offers endless annuity solutions. I selected one with the lowest possible risk, without impermanent-loss and with total exposure to Bitcoin. The pool is located on Curve and includes renBTC + wBTC. These are two ERC20 tokens with a value equal to BTC, which can be obtained directly on the DEx. The yield is one of the highest for Bitcoin, but using the platform requires some practice and for this reason it is not suitable for everyone: in fact, you have to make an initial swap to get the tokens and then give liquidity to the pool. Finally, the annuity is paid in CRV, which must be periodically sold in favor of BTC if we want to remain faithful to our initial exposure.
Method:
A- Move ETH or any ERC20 token to a non-custodial wallet with a browser (such as TrustWallet).
B- Connect your wallet to Curve (ETH network).
C- Swap the tokens deposited in WBTC and renBTC (if you don't already have them).
D- Add liquidity to the chosen pool.
BlockFi
Risk: Low
Performance: 4%
Difficulty: Extremely low
The last service I found is the one offered by BlockFi, a centralized platform (CeFi) on which once the funds have been deposited, all you have to do is wait. I have described it thoroughly in this article, but to sum it up it can be said that it offers a 4% APY on Bitcoin and one withdrawal per month is free. In addition, it also gives a sign-up bonus to new subscribers of $10 in BTC. In my opinion this is the most convenient service because it only requires a simple money transfer. There are no conversions or bonding periods, interest begins to accrue immediately.
Method:
A- Create an account on BlockFi and complete the KYC procedure. Start from this LINK to receive a bonus of 10$ in BTC.
B- Click on "Fund" and then on "Crypto Transfer".
C- Choose BTC and copy the address.
D- Make the transfer to the address obtained from the wallet or exchange.
Disclaimer: Using one of these annuity methods involves trusting the service provider. To reduce the risk, it is good to divide your assets into different platforms and not keep them all on the same platform.
Not yet subscribed to Publish0x? Sign up with THIS LINK and start earning cryptocurrency by reading.
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-
