Earn compound interest on Crypto

Hi All,

Since a few years now I am checking out viable and safe options how to make some interest on the top of the cryptos I have.
I am a long term crypto investor, not looking to daily charts, I have around 5% of my assets mostly in BTC.
I hear since 1-2 years already about the saving accounts in crypto, but I did never trust any of the news in such a way so I would give my cryptos to any of these companies. I used exchanges to buy Crypto from CHF, but then I was moving out the assets to cold wallets.
Now after a few months of further checks, questions and usage, I found a platform I can use.

My scenario: buy crypto for long term, as some kind of diversification to my stock-dominant portfolio.

How this works: I transfer my coins to this platform, I get a daily interest, which is paid out every week. My current BTC brings above 5% per year in BTC, I also have other coins, even USDC on 8%+ p.a. (dollar bound stable coin, as I did not want to use Tether anymore), so also my “cash” is more inflation proof. There are also gold-bound coins, which one could use to have some gold in the portfolio, which also brings some interest. I would say that at least a few months one should use the platform prior cashing, cryptoing out, so the transfers from CHF to crypto and back are clearly worth it even without an exchange rate increase.

If you have any questions, feel free to ask. I am open for discussion. Why I am wrong? What should I consider, etc. Interested about your experience.

Probably the most relevant question, why do I trust these guys now if I am so cautious? It is because I followed the company, the blog, the life of the owner of this company for more than 4 years now (at that time there was no company yet, just a technical blog where this guy discussed mostly about the technical aspects of the blockchain technology).
I do not say there are no risks with this, or in general with crypto, but this guy is not a scam creator that is sure :D. He is a super technical, well-thinking software engineer, who understands the economy as well. A crypto-pioneer. So I transferred my assets to him. Let`s see what is you opinion :).

Do you use any similar platforms, solutions?

Hi!

Yes, It’s a risk decision but all cryptos are risk…
Me I kwow Celsius & Blockfi for earn some interest for cryptos

Can we merge with USDC at Hodl Hodl - #20 by HoiZame ?

(it’s the same topic)

What risks are you taking that explain the 4% difference over the risk free rate of USD?

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What platform did you end up going for?

I use the “Inlock” platform, mainly on web, but I have their app as well. As I said, the fact that I followed this guy for several years, and then he created a company like this, gave me the easy sleep.
There is also a referral program if you want :), but I don`t copy here the link

I get 8%+ on USDC at inlock. What do you mean by risk-free USD? if you keep it in USD, I guess you can best do 1%. Which is eaten by the inflation. In addition you have the USD-CHF risk. So I agree that the USD currently with all the trillion packages is still safer than a crypto, but I am not sure about this in a 20+ years horizon anyway.
USDC as a stablecoin I think is the most trustworthy anyway. So from that perspective I see very low risk. From the saving account perspective, I trust the algorithms that the amounts are covered and the contracts being executed when needed.

Risk free rate is defined by the rate you get with 0 risk for a given currency (usually that means sovereign bonds for a given duration). Anything higher will be due to some risk premium (e.g. solvency).

This seems to give you 7%+ over the risk free rate so I’m just asking if you understand what the idiosyncratic risk of this particular investment is (given that there’s no free lunch).
(It could be many things, I personally don’t know what this is, but by definition there’s a large risk that’s currently being priced in)

Here you find the staking contractual information with Bitcoin Suisse.

ahh, then we are on the same page. I did not get how the 4% came to you, but I see it now. So yes, if the US treasury bonds are at 1%… of course this 7%+ is due to the risks.
This is exactly my question: if this business model is safe due to the contracts (always over-insured, and in case of price fluctuation these are fired automatically to protect the amount), then why so great percentage is given. It is due to unspoken, unforeseen risks, or because no-one would give money to such a setup for a lower rate? There is even an insurance to the handled amount if there would be a security breach, there are auditors checking these companies. So the rate is high because this would be unpopular with smaller rates, or because I don`t see what other technical risks are there for this lunch:D

Zug; March 5, 2021 – Demand for our broad range of products is increasing rapidly, mostly due to dynamic markets and growing institutional adoption. This has led to a surge in onboarding requests and support inquiries. Onboarding and response time of our dedicated client support extended quite a bit. To enable all our clients to benefit from a stellar Bitcoin Suisse experience we temporarily increase the initial deposit amount for new clients as of March 5, 2021.

For private clients we set the amount to CHF 100’000 and for institutional clients to CHF 500’000.

Sweet mother of god, I need to find 100’000 CHF to register to Bitcoin Suisse :joy:

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Is there are big benefit to have access to the bitcoin suisse plattform??

I don’t know, I was looking for swiss cryptocurrencies broker other than Swissquote. However, I don’t know if it is better to use a swiss broker for that or just go with Binance. I’m kindly new in this investment and I don’t project to put money before understanding a bit more how it works :slight_smile: So I’m curious about which platform could be the best. I heard about Kraken also.

I use swissborg since last week, really cool app (if you need referal, hit me up…).
But I have only around 3k invested there in USDC to get some daily yield :wink:

2 Likes

A couple of counterparty default risks to start with (your broker, but also coinbase if you hold USDC)

Several friends are using Blockfi and are happy with it :+1: I have opened an account too and considering to borrow some usdc there to compare the experience with Hodlhodl.

You should really have a look at Swissborg.com

They offer a great platform for buying and selling cryptocurrencies, they are based in Lausanne with a strong focus on security and simplicity of use, and they offer very good yield on ETH and USDC.

Wow those yields are really mega-junk bond level, from the website it’s currently 40% pa on USDC…
(and swissborg takes a cut between 50% and 75% of the returns). I wonder how many people will be burned by it, even the p2p craze didn’t offer such yields iirc.

At least the CHSB ones are (only slightly) more reasonable (tho still pretty high, ~8%)

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40% ??
No…it’ should be around 10% p.a. for USDC…

From the website:

For USDC

Standard 10.49% p.a.
Premium 20.98% p.a.

And the fees as 50% on premium / 75% on standard, so the underlying yield is 40%.

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