I was asked by several people who want to get into crypto "how come there is such a high %APY, even for stable coins (crypto version of fiat currencies - USD, EUR, GBP...)?"
Positions summary
- Best if you want to earn
highinterest on a few coins (earn BTC on BTC, if you have less than 1 BTC): Blockfi. Use my referral code. Double-check the earning rates of Blockfi. I keep about 50% there. - Best if you want to earn a lot of NEXO (which is appreciating fast) and you are based in Europe: NEXO. Use my referral code. Double-check the earning rates of NEXO. I keep about 5% there.
- Best if you have a lot of currencies and want to earn a piece of the company earnings: CEL. Use my referral code. Double-check the earning rates of Celsius. I keep about 5% there.
- I keep 15% active in trading accounts and online wallets.
- I keep 15% active in staking projects and launchpads.
- I keep 10% on offline wallet.
That distribution will definitely change over time.
My strategy and distribution
- Blockfi: I keep <1 BTC, <100 ETH, my LINK and most of my USDT on Blockfi, which is about 50% of all my portfolio. I love the Blockfi ability to trade on the platform instantly, so this is how I take profit and buy dips on BTC and ETH. I hate Blockfi slow withdrawal time and the fact that it takes a week to whitelist and address. Most of my ETH2.0 is staked with a 20% APY on Binance BTW, HODLING for the long term. I use Blockfi to ramp my fiat and distribute from there. Usually offloading ETH on my Metamask to invest in alts on Uniswap and lower caps on Binance. I have other crypto staked on native wallets, and some earning on Binance.
- NEXO: All the coins that are not listed on Blockfi or Celsius, I put on NEXO (True USD, DAI / MCDAI, HUSD, XRP, Stellar, BItcoin Cash, EOS, TRON, Binance, EUR (Fixed Term)). NEXO just improved its exchange.
- CEL: CEL, True CAD, True HKD, True GB, SGA, DASH, xAUT, ZRX, XLM, OMG. I don't really keep GUSD there (because I keep my USDT on Blockfi where I earn 9.3% APY and have good mobility).
I keep my "eggs" in several baskets, even if the APY is not the best, just to mitigate the possibility of a hack on any platform. I even keep some totally offline, doing "nothing".
I haven't got enough experience in DEFI, yield farming, providing liquidity or lending yet, but for those who want to earn a stable interest rate on your crypto, in a centralized way (read "not my keys, not my crypto"), that can be a good option that's reminiscent of the traditional banking system, with much higher APY. I must disclaim I have no experience leveraging, options, doing arbitrage, and beginning on launchpads so still a lot to learn! Nothing close to an expert!
Name | BlockFi | NEXO <10% in Kind | NEXO >10% earn NEXO | Celsius Earn Native | Celsius Earn CEL | Yield | Winner Native APY | Winner Platform Currency APY | Comment |
---|---|---|---|---|---|---|---|---|---|
BTC | 5 | 5 | 8 | 4.13 | 7.27 | Blockfi | NEXO | - Blockfi 0-1 BTC has 6% APY, 1-20 BTC is 2%, >20BTC is 0.5% and ETH 0-100 is 5.25% APY.
- NEXO if you hold >10% of your account in NEXO, you can earn 12% on your BTC in NEXO coin. So you may want to buy a lot of NEXO because the APY is really great
| |
ETH | 4.5 | 5 | 8 | 3.82 | 7.27 | 10 | YLD | NEXO | |
LINK | 4.5 | 5 | 8 | Blockfi | NEXO | ||||
USDT (Tether) | 9.3 | 8 | 12 | 8.05 | 11.02 | 10 | YLD | NEXO | |
GUSD | 8.6 | 8.05 | 11.02 | Blockfi | Celcius | ||||
USDC | 8.6 | 8 | 12 | 8.05 | 11.02 | 10 | Blockfi | NEXO | |
LTC | 5.5 | 5 | 8 | 4.13 | 5.62 | Blockfi | NEXO | ||
PAX | 4 | 8 | 12 | 8.05 | 11.02 | Blockfi | NEXO | ||
PAXG | 4 | 5 | Blockfi | Blockfi | |||||
BUSD | 8.6 | Blockfi | Blockfi | ||||||
True USD | 8 | 12 | 8.05 | 11.02 | Celsius | NEXO | |||
DAI / MCDAI | 8 | 12 | 8.05 | 11.02 | Celsius | NEXO | |||
HUSD | 8 | 12 | NEXO | NEXO | |||||
XRP | 5 | 8 | 3.61 | 4.91 | NEXO | NEXO | |||
Stellar | 5 | 8 | 3.83 | 5.19 | NEXO | NEXO | |||
BItcoin Cash | 5 | 8 | NEXO | NEXO | |||||
EOS | 5 | 8 | 4.34 | 5.9 | NEXO | NEXO | |||
TRON | 5 | 8 | NEXO | NEXO | |||||
Binance | 5 | 8 | NEXO | NEXO | |||||
EUR (Fixed Term) | 12 | NEXO | NEXO | ||||||
CEL | 5.12 | 7.27 | Celsius | Celcius | |||||
True CAD | 8.05 | 11.02 | Celsius | Celcius | |||||
True HKD | 8.05 | 11.02 | Celsius | Celcius | |||||
True GBP | 8.05 | 11.02 | Celsius | Celcius | |||||
SGA | 8.05 | 11.02 | Celsius | Celcius | |||||
DASH | 6.18 | 8.43 | Celsius | Celcius | |||||
xAUT | 3.04 | 4.13 | Celsius | Celcius | |||||
ZRX | 2.89 | 3.92 | Celsius | Celcius | |||||
XLM | 2.53 | 3.43 | Celsius | Celcius | |||||
OMG | 1.51 | 2.05 | Celsius | Celcius | |||||
YLD | 10 | YLD | YLD | ||||||
PS 1: Given that the USD stable coins are indexed on the USD, I would prefer to shield my savings from USD inflation - but now USD stable coins have the most liquidity... If I find an Asian, Southeast Asian stable coin with good liquidity, I would rather use that as "reserve currency" for my personal savings.
PS 2: Crypto.com is not available to my jurisdiction (Hong Kong) so I did not include it in my comparison. Check Crypto.com rates, and let me know where it's competitive. I hear it's spectacular! https://crypto.com/earn
I got a bag of CRO just in case Crypto.com becomes available where I live one day - or we move. Crypto.com Credit card looks like it's the best. Nexo Credit Cards looks good. Looks like I will never receive my Blockfi Credit Card, I'm not moving at all in the waiting line.
Crypto.com Earnings
NEXO, Blockfi, Celsius Earnings
PS 3: If you want to earn in either NEXO or CEL, here is how these two coins are growing.
NEXO picked up late but it's growing very aggressively in the last 3 months. CEL has been growing in steps, more slowly, but surely.
Over 1 Y, CEL APY is 6332% VS NEXO 3696%. Insane.
On a different note: "BlockFi remains one of the few retail-focused interest-earning platforms that is also domiciled in the United States, regulated under US law, and that's also institutionally backed and doesn't have a utility token. That's importantβwe play by the rules, to the benefit of our company and our clients." https://blockfi.com/blockfi-vs-the-competition-what-sets-us-apart-in-the-crypto-market
UPDATE Apr 27, 2021: Blockfi Updated rates as of May 1, 2021 (not good news) - I'm moving most of my coins to Celsius and ETH to Yield.
- BTC 6% β 5%
- ETH 5.25% β 4.5%
- LINK 5.5% β 4.5%
- LTC 6.5% β 5.5%
- PAXG 5% β 4%