Quote from: bitmover on Today at 11:44:13 PM

Quote from: somac. on Today at 11:22:37 PM

Quote from: d_eddie on Today at 11:05:05 PM

How about elaborating on that a little more, somac.? Wink

ELI5...

Ways to make an income from your current stash:

1. Lend your coins. celsius.network etc

Isnt this also a good way to lose your coins.?
Do we really need income from btc, which already did like thousands per cent in the last months?
This extra income comes with a risky. Personally, I am afraid of all those exchanges and defi

I think keeping your coins safe in cold storage is top priority now, at least for me.

Remember the aim here is genearating an income so you don't have to sell a large part of capital to fund your lifestyle. Yes you may have to deliver your coins if contract gets exercised, but you then have the option to buy back in (maybe at a higher price, or may it dips and you get a lower price) and repeat the process. You may have slightly less BTC, but you can still sell calls on that. If you are concerned about being exercised, go for higher strike prices.

There is counterparty risk with the exchanges, but in 2021 there is fair less risk then back several years ago. One way to reduce this risk is by not keeping a full BTC on exchange when selling the contract, you can keep half or less than half, but that does open you up to margin call risk. Cold storage is definitely best, I'm just saying this is an alternative, other then selling, for people who now have enough net worth in BTC.