Crypto.com earn 10% interest on tgbp

User232002

tebbins said:

Thanks but literally couldn't understand a word of that.

Sign up at Coinbase or Binance. Their websites are designed for non crypto natives and so it should be pretty obvious with a bit of hunting around on their site what assets and percentages they offer rewards on.

tebbins said:

Is this riskier than simply holding the crypto asset yourself 

Since for most people 'holding the asset yourself' = ' having it in your Coinbase/Binance account' (which isn't good practice, but it is what most people probably do) then no, its no riskier. I cant see any extra risk in going from holding non staked asset on coinbase to holding a staked asset in coinbase account. 

tebbins said:

what actually is it technically? Are you loaning it? How do they make their money?

Proof of work (Bitcoin) requires real world input, ie. a computer solving a cryptographic puzzle to be given the right to 'mine' a block. Mining blocks grants you a block reward (6.25 BTC per block currently). Proof of stake does away with the real world input and instead allows users to stake their 'coins' and picks them at random to 'mine' a block, but still gives a reward for doing so. Letting the exchange stake your coins is broadly equivalent to letting them use your GFX card to mine Bitcoin.

Hell of a lot of simplifications in there though.

adam06_2

tebbins said:

I get that you can loan crypto like with P2P lending in fiat currency, but what is staking, how does it work, how does it generate money?

As mentioned the interest is generated by proof of stake mining rewards. By staking on an exchange you are staking as part of a big group so you can stake low amounts, if you staked Ethereum 2 alone you would need to stake 32 Ethereum 2 minimum (over £100k) 


 This video might help explain how proof of stake works. https://youtu.be/M3EFi_POhps

Scottex99

tebbins said:

darren232002 said:

tebbins said:

@darren232002

How do I earn more than 10% on an untied coin? I've not heard of this yet.

Staking single assets via exchanges is the entry level version of this. The exchange will do the staking for you and collect the network rate, obviously pocket a commission and then pass the remainder on to you. ETH is 6% ish at the minute (you need to lock it up util the merge though, so its restrictive even though there are workarounds). ALGO was 6% on Coinbase when I bought it earlier in the year. No idea what it is now, but you can get more if you stake yourself directly through the wallet (which would be the next step up from doing it via an exchange). The more secure the asset, and the longer the staking lock up period is, the less the incentive to require people to stake, therefore the lower APY (in general). BNB, DOT, AVAX all reasonable large cap assets running above 10% from memory. Have a look here for more: https://www.stakingrewards.com/

Better question is why bother looking for staking rewards around/above 10%. Stablecoins pay 10% and have no price volatility, so if 10% is good to you then just take that. Secondly, I don't think people are holding SOL or ETH currently because of its 6% staking rewards, they are holding it because they believe its going to do a 3 or 4x in price over the next 6 months. The staking reward is basically a nice extra for holding an asset you believe in. 

Other ways include farming but I'd suggest you stick to USD pairs here because of impermanent loss and the volatility of crypto eating in to your returns. 

Thanks but literally couldn't understand a word of that.
Is this riskier than simply holding the crypto asset yourself and what actually is it technically? Are you loaning it? How do they make their money?

Maybe do some research then. Welcome to the dark side 

robatwork

darren232002 said:

Its hilarious that you're talking about my character here. I'm telling you that the answers are out there if you just lifted your finger and did some searching and you're shouting at me "No, you tell me, or I'll assume it doesn't exist." When did seeking out knowledge actually become a bad thing to suggest someone else engage in? When did people become entitled to be spoon fed information?

Ah the "truth is out there" argument. Very convincing to a knowledge seeker.



So here's my prediction for your 10%. It won't exist in a year, and you won't be on this forum either.

User232002

robatwork said:

Ah the "truth is out there" argument. Very convincing to a knowledge seeker.

The argument was that not that's it out there but that its in one of the ~130 posts I have on this forum. The latter seems a far smaller subset of the former.

robatwork said:

So here's my prediction for your 10%. It won't exist in a year, and you won't be on this forum either.

Bold predictions given that (i) I've already been getting way over 10% for over a year now already, and (ii) my forum account is 8 years old.

Cus

Whether you agree with him or not, darren232002 displays a detailed knowledge of crypto to me. If crypto valuations are sunk in 12 months time, I don't see why someone with the enthusiasm for embracing newer detailed investing mechanisms would just leave the forum. There are always opportunities out there.
Unless he's just here to pump but I doubt it.

HCIMbtw

adam06_2 said:

tebbins said:

darren232002 said:

tebbins said:

@darren232002

How do I earn more than 10% on an untied coin? I've not heard of this yet.

Staking single assets via exchanges is the entry level version of this. The exchange will do the staking for you and collect the network rate, obviously pocket a commission and then pass the remainder on to you. ETH is 6% ish at the minute (you need to lock it up util the merge though, so its restrictive even though there are workarounds). ALGO was 6% on Coinbase when I bought it earlier in the year. No idea what it is now, but you can get more if you stake yourself directly through the wallet (which would be the next step up from doing it via an exchange). The more secure the asset, and the longer the staking lock up period is, the less the incentive to require people to stake, therefore the lower APY (in general). BNB, DOT, AVAX all reasonable large cap assets running above 10% from memory. Have a look here for more: https://www.stakingrewards.com/

Better question is why bother looking for staking rewards around/above 10%. Stablecoins pay 10% and have no price volatility, so if 10% is good to you then just take that. Secondly, I don't think people are holding SOL or ETH currently because of its 6% staking rewards, they are holding it because they believe its going to do a 3 or 4x in price over the next 6 months. The staking reward is basically a nice extra for holding an asset you believe in. 

Other ways include farming but I'd suggest you stick to USD pairs here because of impermanent loss and the volatility of crypto eating in to your returns. 

Thanks but literally couldn't understand a word of that.
Is this riskier than simply holding the crypto asset yourself and what actually is it technically? Are you loaning it? How do they make their money?

How I understand it, there are 2 ways to earn interest via an exchange:
1) you put your crypto in and they loan it out and pay you a cut of the interest
2) you put your crypto in and they use it for staking in the proof of stake mining process. (Not all crypto is proof of stake, interest from proof of work crypto cannot be earned this way) then give you a cut of the mineing rewards.

Either way you are putting trust into the exchange, so make sure you pick one that has been around for a while and you trust as you don't have any protection if they go bust, get hacked or run off with the crypto. So yes, more risky than holding in a personal hardware wallet. Crypto.com is apparently insured and has been about for a while so I have some trust..  but I wouldn't go putting all my list savings in..

Also if you are putting in non-stable coins, note there is a bear market on its way as the market can't sustain this bull market forever. Could be today, could be 6 months from now.... So be careful about buying at the top and locking yourself in for longer term..

This is not entirely right, u give a couple of examples but there are literally so many ways to earn interest on crypto holding one exchanges

Some will return a small amount of interest just for holding a balance on the platform

Some will stake your asset for you and you don't retain ownership, some will link you to a validator and you retain ownership of your keys, some provides options for validators u can use and choose which and what associated commission..

Some platforms allow you to add to liquidity pools for exchanges, some platforms allow you to use liquidity pools to generate tokens that can be used for farming

Some exchanges allow the use of arbitrage bots, allowing you to purchase shot positions on currency futures and the asset at the same time

These are just some of the examples I know of.. there will be many more

I'm investing currently, planning to build a stake over the next 6 months, but I also think the !!!!!! could well fall out the market in 6 months time (just as it easily could with my S&S holding, buy I'm going long, not short.. do I'll just buy at the lower.rate in that eventuality and keep going

For reference the only one of those interest gaining options I do is a bit of staking where I retain access to my keys, it means any withdrawals are behind a 48hr timer.. but again, I'm going long, on a few projects I believe in.. might end up money down the drain, but it's a small part of my portfolio and money I can lose i it came to that 

chamelion

robatwork said:

So here's my prediction for your 10%. It won't exist in a year, and you won't be on this forum either.

Bold predictions given that (i) I've already been getting way over 10% for over a year now already, and (ii) my forum account is 8 years old.

+1 here, 13 year old account here, not as many posts as I don't frequent here much, and am x000% up on returns since starting with crypto.com in the early days and have been using the card since launch day - have lowered risk by now having mostly stablecoins (TGBP) where I get 14% returns on for past couple of years, only slightly beating the 0.5% that MSE keeps pushing.

For the OP, not sure if you caught this news:
https://www.ft.com/content/0e4af0d3-0ae9-48c5-8aee-9a1a9a5721a4

tebbins

chamelion said:

robatwork said:

So here's my prediction for your 10%. It won't exist in a year, and you won't be on this forum either.

Bold predictions given that (i) I've already been getting way over 10% for over a year now already, and (ii) my forum account is 8 years old.

+1 here, 13 year old account here, not as many posts as I don't frequent here much, and am x000% up on returns since starting with crypto.com in the early days and have been using the card since launch day - have lowered risk by now having mostly stablecoins (TGBP) where I get 14% returns on for past couple of years, only slightly beating the 0.5% that MSE keeps pushing.

For the OP, not sure if you caught this news:
https://www.ft.com/content/0e4af0d3-0ae9-48c5-8aee-9a1a9a5721a4

What does crypto.com, a company which appears to spend more than its revenue on marketing, buying a stadium, have to do with anything?
If you're allegedly so rich, why haven't you retired to Monaco yet?

Malthusian

It means you should buy my new ICO token linked to the value of stadium naming rights. Because when crypto has made millions of people rich for free, all of them will want to use their riches to buy sports stadiums to name after themselves and their companies, which means the value of naming rights will moon. By 2030 it will cost $2 billion to put your name on the home of Yeovil Town FC. The only assets anyone will need to hold will be sports naming rights for your pension fund and Dogecoin for day-to-day transactions like refuelling your private jet.

Just don't ask why Crypto.com spunked $700 million on the right to use a stadium to advertise their platform when they could have just stuck it in Bitcoins and watched them rocket in value. Not unless you have spent at least 50 hours researching the elite sports sponsorship market.

A MoneySaver is walking through downturn LA with a crypto bro. The MoneySaver asks the bro whether he should invest in these "risk free" investments he's been hearing about that pay returns of 10% per year in magic digital pounds, which are just as valuable as regular pounds, only magic. "How can I trust the companies behind these returns?" the MoneySaver asks.

"Just look at that giant stadium," the bro says. "That's the Crypto.com Center. And over there's the Binance Arena. And over there is the BuckItShop Megadome, formerly Huish Park, which the owners airlifted from Summerset Isle using a hundred solid gold helicopters when they bought the franchise. If these platforms can spend hundreds of millions of real dollars to put their name on sports stadiums they must be reliable and able to pay mega returns to investors. After all, a famous sports team would never allow their name to be associated with anything disreputable."

The MoneySaver ponders for a few minutes, and then asks "Where are the investors' sports stadiums?"