Ethereum (ETH) is a different cryptocurrency than Bitcoin. Thanks to the numerous ERC20 tokens and the DeFi that has been built on it, it is possible to find numerous annuity strategies. The Hodlers of ETH are many and, as already said other times, it is important to make your possessions work in order to increase them as much as possible. As I did for Bitcoin in THIS article, I also found the simplest and most profitable passive income possibilities for ETH. Obviously I state that for some of these we must accept the compromise of trusting some centralized platforms.
The possibilities of passive income on ETH reach 6%. Let's see now what are the various options:
Performance: 0.24 - 6%
Binance is one of the platforms that provides more income possibilities for both Ethereum and other cryptocurrencies. In the case of ETH there are 4 options:
1- In the "Flexible Savings" section it is possible to deposit your ETH without time constraints, receiving an APY of 0.24%. It is not very high but this is justified by the fact that you can remove the liquidity at will and without fees. Furthermore, by activating the automatic subscription, the interest is composed daily.
2- On Binance "Liquid Swap" there is a pool with ETH/BETH where it is possible to add one or both coins to receive an interest of 1.69%, paid in BNB. On this pool there is no impermanent loss given the equal value of the pair and it is possible to remove liquidity without time constraints.
3- Going to the "Staking De-Fi" section you can find a product that returns 1.73% (when available). This option provides that if we want to withdraw our ETH these are available after one day. Given the non-immediacy, I recommend that you carefully evaluate the advance with which to withdraw them.
4- Finally, the highest return method offered by Binance is "ETH 2.0" staking. By connecting to the appropriate section, in fact, you can stake your ETH, receiving in exchange an equal value of BETH which are in turn exchangeable on the exchange. However, it is advisable to hold the BETH received on the spot wallet as by doing so they guarantee the income of staking 2.0 which at the moment is 6%. Beware, however, that to redeem your ETH in staking you have to wait for the launch of version 2.0 which does not yet have a date.
It is interesting to activate the automatic subscription to flexible savings on Binance because it allows you to accrue a small daily interest even on the interest already received from the other options, with the exception of those in BETH.
B- Conclude the KYC procedure.
C- Connect to this section and choose the product you want.
As a De-Fi platform, I chose Venus Protocol, on Binance Smart Chain. I made this choice because of the incredibly low fees it has, unlike those of Ethereum. This platform gives an income on BETH, that is a BEP20 token (on Smart Chain) linked to the value of Ethereum. To get it, just buy it and withdraw it from Binance (here is a LINK to create an account with a discount on fees), or stake your ETH always on Binance, on the "Ethereum 2.0" option. On Venus it is possible to choose whether to receive the income in ETH or in XVS, the token of the platform. Obviously if you choose the latter the APY increases from 0.96 to 2.59% and it is possible to sell XVS periodically.
A- Move BETH to a non-custodial wallet with a browser (such as TrustWallet), using Binance Smart Chain.
B- Connect your wallet to Venus.io.
C- Enable BETH smart contract (you may need some BNB to pay fees).
D- Add liquidity to the platform.
Difficulty: Extremely low
BlockFi remains my favorite annuity Ce-Fi platform for both ease of use and yield. The simplicity is given by the fact that it is immediate and there is no need to make exchanges or other movements, once ETH is deposited on BlockFi it begins to accrue interest. What's more, one withdrawal per month is free. It is a platform within everyone's reach and which guarantees an APY of 4% on ETH.
B- Click on "Fund" and then on "Crypto Transfer".
C- Choose ETH and copy the address.
D- Transfer your ETH 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.
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