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How You Can Get Up to 17% Annually Holding Digital Assets – Finance Bitcoin News

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Jamie Redman

The mainstream has caught a whiff of the gains cryptocurrencies like bitcoin and ethereum have seen, but many people are not aware of the passive income crypto users are getting as well. While financial incumbents are giving people with savings accounts a measly 0.35% to 0.60%, digital currencies can give people 1-17% or even more by leveraging certain tactics.

Crypto Returns That Outpace the Savings Account

You may have heard the term “make your money work for you” in the past, and that’s what savings accounts do if they earn a percentage of interest over time. Certainly, a person can be a bit riskier and invest in stocks and such but with a savings account, the money simply sits there and accrues a return over a period of time. The more money held, the more interest an account will get but these days banks don’t like giving interest. We can see that some of the top banks in the world will only give 0.35% to 0.60% returns according to the best savings account rates on bankrate.com.

Crypto Earning vs. Savings Accounts: How You Can Get Up to 17% Annually Holding Digital Assets
Today’s bank rates don’t offer a person who is saving high returns, none of them even offer 1%.

Now you can do the same thing with cryptocurrencies and get a much better annual percentage yield (APY). A lot of centralized exchanges offer anywhere between 1-12% in interest for staking or holding a digital asset on the trading platform for a period of time. For instance, on the trading platform Coinbase you can earn 1.25% APY for holding USDC. Coinbase aso offers earning rewards for staking algorand (ALGO), cosmos (ATOM), and tezos (XTZ). These three coins see payout rates either daily (ALGO), every three days (XTZ), and once a week (ATOM).

Crypto Earning vs. Savings Accounts: How You Can Get Up to 17% Annually Holding Digital Assets

People can also leverage the exchange Crypto.com, which gives customers up to 2% to 6.5% per annum (PA) for a myriad of cryptocurrencies and up to 12% for holding specific stablecoins. Crypto.com users can choose an interest rate by selecting a term which can either be flexible, one month long, and three months long.

Flexible means you can withdraw and use the cryptocurrencies at any time and you can get 2% for supported crypto assets and 8% for stablecoins. A 30-day term with Crypto.com gets the person 4.5% for the average crypto asset, while stablecoins will get up to 10%. 90-day terms accrue 6.5% for coins like ETH and BTC, and stablecoins like USDC can get up to 12%.

Crypto Earning vs. Savings Accounts: How You Can Get Up to 17% Annually Holding Digital Assets
The San Francisco-based exchange Coinbase has started offering savings rewards for certain coins and staking rewards as well.

Coinbase and Crypto.com are not the only exchanges or custodial solutions that offer interest bearing accounts. Other interest-bearing products are offered by Blockfi, Linus, Outlet Finance, Gemini, Kraken, Youhodler, Coinloan, Nexo, and the Celsius Network. Each and everyone has different terms and interest rates depending on the crypto asset being held.

Most of these platforms offer higher percentage rates for stablecoins, as fiat-backed crypto assets can get savers larger returns. Of course, custodial solutions are coins held with a third-party, and people opting to gather interest in this fashion should understand there’s a greater risk. A custodial platform could fake reserves, get hacked, or even run the business into the ground by making poor business decisions. As the old adage goes “not your keys, not your coins,” so holding funds on an exchange means you are trusting them.

Leveraging Proof-of-Stake Tokens, Ethereum 2.0 Staking

Individuals who want to make passive income can also do so by leveraging noncustodial platforms and staking concepts. Staking involves using a proof-of-stake (PoS) crypto asset and the person needs a staking wallet to perform this function (validating transactions) in order to obtain stake. Similar to a savings account, staking simply means holding the asset and being rewarded coins for the amount the user holds. The more tokens held while staking, the more interest the user will obtain.

Crypto Earning vs. Savings Accounts: How You Can Get Up to 17% Annually Holding Digital Assets

Currently, some people are staking ethereum (ETH) using the new ETH 2.0 staking feature. However, in order to earn ETH this way in a noncustodial fashion, the user needs a total of 32 ETH to participate. Although, the person can earn anywhere between 5% to 17% PA. People can also stake ETH in a custodial manner via exchanges like Kraken and Coinbase. The San Francisco exchange Coinbase gives “between 3-7.5% reward on any ETH that you stake.”

Crypto Earning vs. Savings Accounts: How You Can Get Up to 17% Annually Holding Digital Assets

Defi Apps Built on Ethereum, Bitcoin Cash, Polkadot, and Tron

Additionally, besides staking, people who want to acquire yield-bearing returns on their crypto assets can do so by leveraging a decentralized finance (defi) application. There are numerous defi apps like Compound, Aave, Nuo Network, Ddex, and Dydx that can offer a person a return simply by providing liquidity or lending. A good portion of these noncustodial defi apps also provide higher yields these days for stablecoins.

Crypto Earning vs. Savings Accounts: How You Can Get Up to 17% Annually Holding Digital Assets
Decentralized finance applications, otherwise known as defi, lets people earn yields in a noncustodial fashion.

Using these types of apps, people can earn returns based on a period of time with numerous ERC20 tokens like TUSD, LINK, DAI, ETH, WBTC, and USDC. Moreover, there are other blockchains that are moving toward creating defi ecosystems as well including networks like Tron, Bitcoin Cash, EOS, and Polkadot.

Crypto Earning vs. Savings Accounts: How You Can Get Up to 17% Annually Holding Digital Assets

One example on the BCH network is the Anyhedge protocol developed by the General Protocols team, a concept that allows people to leverage BCH with the noncustodial application Detoken.

“The first product available on Detoken is the Anyhedge BCH-USD futures contract,” the team detailed when the app first launched. “This is a smart contract which allows users to Hedge or Long their BCH while earning funding premium. Users also retain control of their own money throughout the entire process.”

Make Your Money Work for You

All of the aforementioned platforms and tools offer people a chance to make their money work for them. Individuals can earn a return by doing something they probably were doing before they knew they could earn interest – simply holding. This decentralized form of liquidity will continue to grow, as long as the demand for crypto assets remains strong.

If mass adoption continues to increase, liquidity and potential earnings can only get better over time. Once the mainstream catches on to these massively larger interest rates than the banks’ petty 0.35% to 0.60% rates, it won’t be long before they will want to move their funds into something that gathers real interest over time.

What do you think about all the platforms and services that allow people to make passive income just by storing their crypto assets? Let us know what you think about this subject in the comments section below.

Tags in this story
Aave, APY, Bank Rates, banks, Blockfi, Coinbase, Compound, Crypto.com, custodial, Ddex., decentralized finance, DeFi, earn, Earning, High Yield Returns, Just Mining, Kraken, Noncustodial, PA, passive income, PoS, Proof-of-Stake, savings accounts, Staked, staking

Image Credits: Shutterstock, Pixabay, Wiki Commons, Coinbase, Crypto.com, Ethereum, Bank Rates, Detoken, General Protocols,

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





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Camarasal Poll Shows Entrepreneurs Are Worried About Bitcoin Law in El Salvador – Economics Bitcoin News

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Sergio Goschenko

Camarasal, a well known entrepreneur association in El Salvador, announced the results of a poll made this month. The poll shows almost 100% of Salvadorans worry about the implementation of the bitcoin tender law approved recently. Most criticize the obligatory character of receiving bitcoin payments and don’t expect this move to bring investment to the country.

Camarasal Poll Shows Concerns About Bitcoin Tender Law Implementation

A quick poll conducted by Camarasal, one of the biggest entrepreneur groups in El Salvador, is showing people have deep concerns about the future application of the Bitcoin Law. The poll got more than 1,600 answers in just four days from entrepreneurs and non-entrepreneurs. Camarasal president Jorge Hasbún stated on the massive participation that:

We believe that this excellent response is a reflection of how urgent this issue is for Salvadorans, in the sense of the implications it will have for the family economy on a day-to-day basis.

More than 96% of the entrepreneurs polled prefer an optional use of bitcoin for payments. The bitcoin tender law forces entrepreneurs to accept bitcoin for payments, as long as the entrepreneur manages the technological infrastructure to do so. In the same way, 45.3% indicated they were concerned that the circulation of cryptocurrency in the country is mandatory; while 35.9% assured that it generates mistrust.

Also, most of the entrepreneurs won’t keep the bitcoin received as payment for their goods and services: 51.6% of them answered they would exchange the bitcoin received for dollars. Bitcoin is a pretty volatile asset too, and that scares entrepreneurs that work with tight margins.

Non-Entrepreneurs Also Skeptical About Bitcoin

Camarasal also polled non-entrepreneurs, but the answers were not optimistic either. About using bitcoin as a medium of exchange, 36% said they are concerned and 39% said they distrusted it. The topic of wages and remittances was also included in the poll. El Salvador is a remittance-intensive country, with 23% of the GDP coming from these, according to AP. 93.2% said that they do not want to receive their salary in cryptocurrency, while 82.5% assured that they are not interested in receiving remittances in bitcoin.

Salvadoreans are still lack training on bitcoin and its management, and that might be the key behind these unoptimistic answers. Camarasal vicepresident Carmen Alas stated:

It will be essential that there is a broad consultation with an interdisciplinary group that represents the sectors involved for the construction of the regulations that make this law operational

What do you think about Camarasal’s latest poll in El Salvador? Tell us in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





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SEC Seeks Commentary From ‘Interested’ Individuals on Vaneck Bitcoin ETF – Regulation Bitcoin News

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Jamie Redman

The U.S. Securities and Exchange Commission (SEC) is currently seeking additional commentary from the public, as the regulating body ponders the Vaneck bitcoin exchange-traded fund (ETF) decision. In a notice published on Wednesday, the SEC thinks “interested persons” should provide comments on the proceedings.

SEC Is Looking for Comments Concerning Vaneck’s Proposed Bitcoin ETF Listing

In December 2020, New York-based investment management firm Vaneck filed with the SEC to list a bitcoin ETF. Following the original filing, in March 2021, the Chicago Board Options Exchange (Cboe) applied to list the Vaneck Bitcoin Trust. Then at the end of April, as the U.S. regulator was determining whether or not it would reach a conclusion on the Vaneck ETF, the SEC gave itself 45 more days to decide.

The SEC’s order detailed that the notice of designation has been postponed to June 17, 2021. The regulator could increase it to a “longer period up to 90 days” the notice said. “As the Commission may designate if it finds such longer period to be appropriate and publishes its reasons,” the U.S. regulator’s order revealed. The order was composed by the SEC’s assistant secretary Matt DeLesDernier on April 28, 2021.

This week, on June 16, 2021, the SEC has disclosed that it’s seeking commentary from “interested persons” who are for or against the Vaneck bitcoin ETF listing. Interested commenters have approximately 21 days to give a statement to the regulator.

“The Commission is instituting proceedings pursuant to Section 19(b)(2)(B) of the Act14 to determine whether the proposed rule change should be approved or disapproved. Institution of proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change, as discussed below,” the SEC’s June 16 notice discloses. The announcement adds:

[The] institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.

SEC’s Decisions Designed to ‘Protect Investors and the Public Interest’

The U.S. regulator declares that its methods for decision-making are in the best interests of the public. Moreover, the SEC may institute procedures that allow for further review of the proposed rule change.

“Pursuant to Section 19(b)(2)(B) of the Act, the Commission is providing notice of the grounds for disapproval under consideration,” the notice details. “The Commission is instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest.’”

This is not the first time the U.S. regulator has asked for statements concerning approval or disapproval of a bitcoin-based ETF in the country. So far, however, despite the many applicants in 2021 and previous years, the Securities and Exchange Commission has yet to approve a bitcoin ETF.

What do you think about the SEC seeking commentary on the Vaneck Bitcoin Trust? Do you think the U.S. regulator will approve a bitcoin ETF this year? Let us know what you think in the comments section below.

Tags in this story
45 days, approval, Bitcoin, Bitcoin (BTC), BTC, Decision Making, exchange traded fund, Matt DeLesDernier, Postponed, Public Commentary, Public Interest, Regulation, SEC, us regulator, vaneck, Vaneck bitcoin ETF

Image Credits: Shutterstock, Pixabay, Wiki Commons, SEC Logo,

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





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Bitdao Collects $230 Million in Private Capital From Investors – Finance Bitcoin News

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Reuben Jackson

As the decentralized finance movement proves its staying power and resilience, one of the world’s largest decentralized autonomous organizations, Bitdao, has concluded a private fundraising round to promote mass adoption of open finance.

DAO to Allocate Capital Towards Improving Defi R&D, Funding, & Liquidity

As decentralized finance (defi) slowly regains its footing following the May decline in total value locked, there is no shortage of investment capital chasing after the idea’s tremendous potential.

Bitdao, a decentralized autonomous organization focused on defi, is launching following the successful conclusion of a $230 million private funding round. The private capital raise featured participation from more than 20 institutions and defi partners, including hedge fund manager Alan Howard, well-known entrepreneur Peter Thiel, Dragonfly Capital, Fenbushi, Founders Fund, Jump Capital, Pantera Capital, and Spartan Group, among others.

To resolve the Bitcoin network’s persistent throughput issues and Ethereum’s high transaction cost, Bitdao’s multichain design intends to unseat existing centralized pegged tokens that pose censorship and counterparty risks through a fast and affordable decentralized solution. The organization’s native BDAO governance and defi token is pegged to the value of bitcoin, with plans to introduce other pegs in the future for coins like ethereum.

The fresh capital will be allocated to multiple areas of operation, including research and development, funding, and liquidity operations. Attracting developer talent is one of the primary aims of this initiative, and capital will also be distributed as grants and token swaps to support blockchain technologies. In addition, contributions to the Bitdao treasury will be used to back partners, add liquidity, and help bootstrap new protocols in decentralized exchange (dex) platforms, lending, and synthetics.

Besides this funding, Bybit, one of Bitdao’s ardent supporters, has pledged 2.5 basis points from all futures contracts transaction volume on its platform in recurring support to the treasury. Based on the platform’s 2021’s transaction volumes, this figure could reach $1 billion annually, helping underpin Bitdao’s mission of improving adoption, collaboration, and innovation within decentralized finance as inclusively as possible.

What do you think about Bitdao raising $230 million? Let us know what you think about this subject in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





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