Re: Earning interest on your crypto

There is always something to lose when investing, lending your coins for interest will always be risky and the ones who put their feet to risk are always the ones going to take profit when things are going good but they are also the ones losing more when things got ugly. The only safer option if you want to make money without taking a high risk is POS.

I don't think POS is possible with Bitcoin Ethereum and some top currencies rest all are pretty volatile so even if you are gaining coins you might not end up gaining anything in dollars.

Yeah its always been the dollar that matters when it comes to profit. That when BTC hit ATH and will try to dump all they have because they think bull market is about to end. If you have 1BTC before this bull run and then end up having 1BTC still after the dumps, there is no difference as you didn't get richer.

OP didn't say its just BTC, he meant crypto, which means it could be ETH or just about any token that's POS. Having 50K of ADA and then stake it in a wallet and after a week of epoch he gets about 51K of ADA then he is 1000 ADA more richer than before.

Very good point I must say. I have seen a lot of HODLers thinking they will never sell. I am myself more interested in selling somewhere around the highs so that I can buy back later you can obviously expect a correction really soon in this market. So dollar does matter. What good is a btc that gives you 20% interest in a year but after the year the value has already depreciated by 30% ideally you lost your money instead of gaining anything. I am surprised why most people don't think this way.

The market price is not consistently increasing every year, it does depend to the market behavior whether an investment will earn or not. There are just times more advisable to hold and times wherein selling will be considered. Holding alone will not lead to big and assured profit knowing that the market price could fall anytime. Interest will depend on how will this market in general will behave for that certain year. If an investor will just hold, no profit will be earned unless you have invested in its early years wherein the price is not even 10% of the present.

Obviously that is where the concept of Risk emerged from. Keeping this in another way even when you are only holding you are still taking a lot of risk therefore there is nothing like non risky investment when it comes to cryptocurrencies. moreover it depends on how much profit you expect. The interest rates which OP was mentioning are pretty low almost negligible when you compare them with daily movements of Cryptos this means betting on those daily movements is much more advantageous than to crib upon the fact that you couldn't buy early.

The profit expectancy is the major thing with investment. Based on the expectation will be the risk. With any form of investments there is risk, when it comes to cryptocurrency it is bit more high due to the volatile market. Lending the cryptoholdings and making an earning out of the interest is a good choice than keeping the holdings idle. As per my understanding