How can i earn Interest on my Bitcoin?
Let’s face it most of us hold some Bitcoin, after-all it is the most popular crypto, But it’s not very exciting if its just sitting in a wallet not doing anything. So why not put your Bitcoin to work and earn some daily interest and grow your balance overtime?
It seems simple enough, but the question is how? Depending on your risk tolerance there are a number of ways to earn interest. This can range from daily interest on faucets, lending your Bitcoin to businesses or locking up your money for a short-period. As you would expect all have different returns and its recommended you do your due diligence before depositing your coins anywhere.
Earning daily interest with faucets
One of my personal favorites, is earning interest on your faucet balance. This seems to be a more popular thing these days since Freebitcoin starting doing it. This is mainly for the smaller investor but can still be quite profitable regardless of your amount. Interest is paid on a daily basis and your interest will naturally compound and grow overtime.
Currently there are only two major faucets i would recommend that offer daily interest. They are Freebitcoin and Cointiply.
FreeBitcoin users with more then 30,000 Satoshis will automatically begin to receive daily interest. This is paid at a random time throughout the day, and requires no user interaction. The currently interest rate is set at : 0.0109589% Daily or 4.08% Annually.
Cointiply users need to accumulate 35,000 coins and activate daily interest. (Settings >Interest) Once this is activated you will receive a daily interest payment that will be added to your coin balance everyday. The current interest rate is a flat 5% annually. This will be paid daily.
Bitcoin lending is aimed at the more risk tolerant investor looking for a bigger return. Currently the most popular Bitcoin lending platform is Bitbond, they have been around for several years and allow users to invest in small businesses, startup companies, and regular people.
The minimum investment is currently 0.1 Bitcoin, however this can be made up between several lenders. The amount of interest you can earn varies greatly depending on the risk and time of the loan. However it is not uncommon to earn over 10% annually.
Bitbond recommend you to diversify your portfolio and only invest what you are willing to lose. As with anything, i advise you to do your own research before any investing.
Staking your Crypto
Another personal favorite of mine is proof of stake or “Staking”. Staking is a great way to earn some passive income on the side. If your unfamiliar with staking you can read my guide and quickly get up to speed. Or read my review of the best staking pools here.
While technically your not earning Bitcoin interest, you could sell your Bitcoin and purchase some staking coins. Let them stake, then sell for Bitcoin whenever you like.
Personally i would recommend joining a staking pool unless you have a large amount of Bitcoin, This way you will get more profitable results. Choosing an average coin you could expect to earn up to 10% Annually via staking, plus if those coin appreciate in value you also get that added bonus.