I'm new to Cryptocurrency and instead of learning the in and outs of trading, I decided to buy BTC and hold. The reason being, is because of the dozen websites I've visited they all claim BTC will skyrocket in the upcoming years. People tell me that if I buy BTC on Coinbase, then I should transfer the BTC to a Cryptowallet.
Wouldn't it be best to store the BTC in a wallet that pays high interest?
Nexo: Nexo pays its customers high-interest rates on crypto, stablecoins, and standard currencies such as USD, EUR and GBP. Storing crypto or stable coins on Nexo will earn interest back in those coins at a rate of between 8% and 12%. Nexo pays interest of 12% on standard currencies such as the U.S. dollar and the euro, far more than any typical bank pays.
But there are other crypto wallets that pay high interest.
If someone was to buy and hold, why would they get a wallet that doesn't pay interest?
Because BTC wallets are created for only one function - storage. The percentages that such services promise, like Nexo, are not taken out of thin air, and no one will just hand out these percentages. This means that Nexo wants to get something in return, and this will be that you will give control of your assets into the hands of this service. Is it worth risking 100% of your assets for that 8-12% extra interest? I think these are inconsistent values.
BTC should not be stored in a wallet with a high interest rate, but in the safest wallet. Everything else is unnecessary risk.