Is this possible? Example you lend bitcoin to something similar to like a bank and they give you interest on it? Like how now they give you 2% interest?
I heard binance is doing something similar like that but it was like 10%?
Yes this can happen! You can make a profit from Bitcoin. For example, you buy into a Bitcoin for $ 200 after a while you sell about $ 400. So you have 100% profit compared to the initial capital. If you lend for interest I think this is less likely. Bitcoin is different from borrowing money in a bank. Bank interest rates are very low and bitcoin makes very high profits.
Thats not interest. You will still have 1btc it will just be worth more. Interest will grow the bitcoin itself. The only safe way is staking. I feel if you dont control your privatekey its not safe. You can lose everything all at once.