Continuous Maximization of the interest rates on your cryptocurrency


Lend out your crypto, safe and every time for the optimized rate !

 

At some point in time you get tired of following all the news, and trying to buy the next "bitcoin" or any other coin that will soar to great heights and make you an overnight millionaire. Well, at least I got tired of this. So is there a way to to make money in crypto space and not take these risks ?

Well it turns out there is: simply let other take the risks and lend them your money to make their undoubtedly HUGE profits ! Yeah right, I can hear you say this is even a bigger risk ! Well actually, no it isn't. It works like this.

Step 1. Sign up at a trading platform

You sign up at a trading platform that has the ability to lend out your money, e.g.  Bitfinex.com. Disclaimer: most links presented on this website are referral links from me. Yeah, so shoot me. That doesn't mean what I am telling you here is crap. It isn't. Ah well judge for yourself. Anyway let's continue....

So once you signed up, just deposit some crypto there ( I always like Dash, it is cheap, has low latency and the price is fairly stable). Then you want to convert your crypto into currencies which actually have a high interest rate when you lend them out. Of course, if you are like me, you want as minimal fluctuation on your coin as possible. So I converted my crypto coins into stable coins on Bitfinex.com. I converted it to USD,  JP-Yen and Euros. You can do this by switching to the Exchange of Bitfinex and then trading your crypto to stable coins. Feel free to choose another crypto with a much higher interest rate but I found out the hard way that those rates do not last. With these stable coins I have a steady flow of interest and very little volatility.

Step 2. Move your currency to the lending wallet

So once you converted your crypto into your coins of choice, move them from your exchange wallet to the lending wallet. Beware ! only amounts of 50 USD equivalent (per coin) actually make sense, because lower amounts will not be lend out by Bitfinex.com.

So now you can set your lending rates. You can even let it follow the best rates possible (FRR), and set the duration of the lending periods. Normally you can get a 9-10% interest rate for USD. All too often it is much higher, up to and above 20%. The percentages quoted here are per year. So now your set to get your steady income. The beauty of it is that the interest earned can be immediately lend out again. So you get the well-known "interest on interest" effect, or to quote the famous Albert Einstein : 

“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”

You can do the math for yourself. Suppose you start with 1000 USD you lend out every 2 days at 10% per year. So that is about (365/2) = 182 lending periods in a year, and every lending period gives you 10/182 = 0.055 %. Damn, that's low. But it is compounded. So you get the following return: 1000*(1+0.00055)^182 = 1105. In practice it is much higher, also because some lendings are already paid back within 2 days. So you will have more lending periods than 182.

Step 3. Use a bot to track the best interest rate continuously

Of course, the above only works if you re-lend all the time. And wouldn't it be nice if someone just periodically looks into your account and chooses the best time and lending rates ? Preferably a Bot or something. Well, Lo and Behold, there already is such a thing. Sign up here at Coinlend please ! This Beauty can connect to a lot of different trading platforms and does automatic lending for you. Just make new api keys on your trading platform. Follow the excellent tutorials at Coinlend to show you how it is done. (Beware ! do not give the api keys permissions to withdraw money !).  Unfortunately, the coinlend service is not free (it used to be),  but you can very easily cover your expenses. I can tell you that I already earned an interest of about 20% in 6 months using Coinlend.

So, that's all. If you liked this piece, please consider signing up at 1 or more (or all of them ! ) of the links provided above.

Best Regards,

B

 

Disclaimer.

This is a post with content from a website I also host: 

https://cryptothoughts.yolasite.com/Lend-Out-your-crypto-coins-and-safely-earn-money.php

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thoughts on how to earn your crypto currency
thoughts on how to earn your crypto currency

In this blog I will write my experiences from the time I entered the crypto space a few years back. I tried al lot of things (and bumped my head almost as often) to get free crypto, earn fast with HYIP, faucets, exchanges, mining etc. A few things in the long run worked for me. Hopefully my experiences are helpful for you too.

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