Earning whilst you are holding your crypto without having to trade is an opportunity that I wasn't aware of.
I was reading the SPinvest post published yesterday and in the comments section a discussion was had about the interest earned by just holding Bitcoins in certain wallets. My ears pricked up as it aroused some serious interest from me as it explains a lot of why the institutions are jumping in besides the obvious. Why would anyone sell is what I am asking myself if you can earn whilst just stacking them.
Just imagine you were lucky enough to buy $100 000 w0rth of Bitcoin in March this year and you were receiving 6% roughly per annum so $500 per month. That has all changed now with Bitcoin rising in price and your $100 000 is now worth $1.5 Million so your 6% is now all of a sudden looking bloody great.
The $500 you were receiving is now $7500 per month and even if the price drops slightly you are still earning more than you were before. What you bought in March becomes negligible as suddenly that is theoretically paid off within a short time frame.
We all know Bitcoin is going up in price and believe that it will hit the highs of $100 000 or $200 000 or much more so it is still not too late to buy and why the institutions still are. Buying $100 000 now won't obviously be as profitable as the early investors but it is still profitable on the interest alone as it goes up more and more as the value increases.
I had no idea that this was an option and just by keeping your Bitcoin in Celsius Network,Nexo or Blockfi you earn the interest. I like the idea of having interest paid out against the value you hold even though it can go down and up along with the price of the asset you are holding.
What other investments can offer you this type of opportunity as getting around 6% of something that increases 10x suddenly gives you a 60% return per annum. I honestly wish I had paid attention and was aware of this before as this is a game changer on what is possible as the earning potential over and above the obvious of the price going up.
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