5 Ways To Earn More Money From Your Crypto
If your crypto is currently sitting on one of the big exchanges, you are undoubtedly missing out on a lot of income. How much? According to stakingrewards.com the average interest earned across 9000+ providers on cryptocurrencies is 14.92%. At that rate, you can double the amount of crypto you hold every 4 years without doing anything.
What are the best ways to do it then?
Lend it to your broker
If you have an account with one of the big exchanges, they will offer to pay you interest on the crypto you hold with them. This might not be easy to find on their site but that is often intentional. If you aren’t earning on the crypto you have deposited, then often the exchange is already doing it on your behalf and pocketing the earnings. At the time of writing, for Bitcoin, Binance is paying 1.20% and Coinbase is paying 0.10% via a connection to Compound Finance. Not great but one of the easiest options for crypto novices to use.
Borrow and Invest in crypto
This is extremely popular with platforms such as Aave where there are almost $20 billion in crypto assets deposited. The method isn’t simple, but it can provide some very high returns. Deposit crypto onto the platform, borrow against your deposit, and then invest that somewhere to get a yield. For example, you can deposit Bitcoin with Aave and earn 2%, you can then borrow 30% of the value of your Bitcoin in a stablecoin asset for which Aave will pay you around 0% (the weird world of crypto sometimes has positive net borrowing rates) some of which will be charged directly and some of which is paid back in their token. You can then deposit the borrowed stablecoin on their platform for yields of up to 10%.
Borrow and invest in fiat
This is becoming popular as platforms such as Celsius and Nexo allow you to borrow and withdraw fiat currency against the value of your crypto. Like the previous strategy, however, you borrow in fiat so can invest the money in the ‘real-world’ for whatever return you can find out there. Don’t be surprised if you hear stories of people borrowing against crypto and buying property that generates rental yield in the future.
Staking refers to the process of lodging assets within a smart contract for the purpose of providing liquidity. The most common place to stake assets is with decentralised exchanges where you help support a specific cross. An example would be Uniswap, a decentralised exchange, which will pay you to stake assets to support their customers exchanging Stablecoins. You can lodge either crypto with Uniswap and it will convert your assets into a balanced mix of both coins. This balancing or Automated Market Making (AMM) will continue as customers buy and sell on the platform. Each time a customer buys or sells they pay a trading fee which is shared with those that have supplied liquidity.
Or Hold On for Dear Life. The world of traditional finance has shown us that active retail traders lose money. There is now a requirement from regulators that most brokers have to display the percentage of users who use their service that loses money. The figure is usually above 80%. The same goes for crypto, buying and selling actively will invariably see you buy the top and sell the bottom. Long-term investing can often be the best way if you are buying into solid businesses.
Earn Interest with AQRU
Why then aren’t more of us taking advantage of these opportunities to earn money on our crypto? Simply put, it’s complicated, expensive, time-consuming, and risky for the uninitiated. It is for this reason that AQRU has developed a simple app that allows you to earn a yield on your crypto assets or simply deposit fiat currency and convert it into crypto to immediately start earning. All the heavy lifting, rebalancing, and cost are undertaken by AQRU saving you time and money. Yields range from 0% on BTC and ETH up to 12% for EUR and USD pegged assets. Accounts can be set up in minutes, and you can start earning rewards immediately.