So, I have small amount of cryptocurrency I bought and mined over the years and will HODL, but I am seeing news articles and advertisements about earning interest on my coins. And the returns are not bad--5 to 7% per year.
It seems BlockFi is the front runner. They seem to have partnerships with the major US crypto exchanges, e.g. Gemini and Coinbase (I am in the USA). I am also googling and trying to educate myself.
But, I have serious concerns about learning my crypto to 3rd parties. What happens if the institution that I loan to, for example BlockFi, goes brankrupt? I assume I will lose my crypto. Would it be safer to loan to an exchange and I don't run that risk?
What are your experiences so far with loaning your crypto?
What place do you loan to, or recommend loaning your crypto to?
I think the returns that they offer are relatively fair, considering that 5-7% per year is kinda the standard interests in general.
However, I do warn you in engaging into ponzi schemes. Some websites offer ridiculous returns in a shorter amount of time but such platform require you to invest a minimum amount in order to proceed. Last 2019, I personally invested in USI-TECH ponzi scheme where they offered 160% returns in 6 months. For the first 3-4 months, you can actually see your investment increasing in value. But when the mature date is near, their website crashed and I lost all of my bitcoins.
Make sure that when you invest on interest rates, double check the website and its genuineness. Lots of fake and scam websites are plaguing the internet space, taking advantage of this bullish run.