Alright, I know many of you have some crypto laying around, either if it is Bitcoin Cash, Bitcoin, ETH, stablecoins, or other crypto. You are not actively trading and just HODLING as you are a risk averse person, or one not so experienced in trading. I myself have some Bitcoin Cash laying-around that I didn't know what to do with them.
Therefore, I decided to ask my Noise.Cash community, what are their passive gain strategies? And they responded!
Nexo
NEXO was the one favoured and recommended by most users as it offers the biggest interest rates if you decide to get paid in their native token. It has a number of features that make it appealing such as:
The ability to receive interest for depositing 18 different tokens and EUR, USD
Integrated token swap
8% max interest rate for crypto tokens if you decide to receive your interest in NEXO
12% max interest rate for stablecoins if you decide to get paid in NEXO
9% interest rate for FIAT if you decide to get paid in NEXO
Your interest is calculated and compounded daily
Nexo pays 30% of its net profit as dividend for Nexo token holders
1 free withdrawal / per month for Basic, more for higher loyalty levels.
I should note here that as the photo shows the standard savings interest rate for getting paid in the crypto token you have deposited is 4% for flexible terms. If you decide to get paid in Nexo tokens this goes to 6%. If you increase your loyalty level from base to platinum (by having >10% of your portfolio in NEXO tokens) you get 1% additional interest. If you switch to fixed term (1 month duration) you get an additional 1% interest.
Thus, if you send Bitcoin Cash to Nexo and decide that you want to get paid in Bitcoin Cash your savings interest rate will fall between 4% to 6% depending on your loyalty level and fixed / flexible terms.
What to look out for:
The addition of community voting system that will allow for account holders to choose which new tokens would like to see added.
How I use Nexo
I basically switch my interest payment between their native token and my deposited tokens in regular intervals. This allows me to maintain a high loyalty level. As I look for better interest rates I have most of my tokens in fixed term apart from a portion that I keep on flexible for swapping for more Nexo or withdrawing it to an Exchange/Wallet if I need it.
Celsius Network
Celsius is similar to Nexo. The difference is that you access it through its own app which has a slick and easy to navigate interface. In comparison it has its own Pros and Cons.
PROS
Savings interest in more tokens and stablecoins (39 in total). That includes also BAT that you get for free by browsing through BRAVE browser!
For new users, it has a referral programme where you can claim $40 in BTC for a $400 deposit (https://celsiusnetwork.app.link/177395deb6 join through my referral). If you are determined to invest, then there is a 10% extra you can make in BTC from your initial deposit.
Better interest rates (4,51%) for Bitcoin Cash if you chose to receive your earnings in BCH
Pays interest weekly
CONS
Cannot swap between different crypto tokens inside the app
For some tokens the interest rates are lower than NEXO
What I'm looking out for:
The addition of the token exchange/swap feature within the Celsius wallet app
How I use Celsius
I use Celsius as an alternative to my Nexo wallet in order to split the risks. For the Bitcoin Cash I have deposited in there I chose to get my interest paid in Bitcoin Cash as it is a token for which I am long term holder and confident that its price and my gains will multiply. I also deposit other supported tokens in smaller quantities for which I chose to get my interest paid in Celsius token. In order to boost my loyalty level I purchased some Celsius tokens when I joined and now I buy some more from time to time.
Binance
Binance is a third alternative for getting some interest paid to you by the earnings you are making from Noise.Cash and Read.Cash. In this case, I send Bitcoin Cash in Binance in order to trade them. This means it is not passive earning but also requires active trading. Nevertheless, you can Swap your Bitcoin Cash for the native BNB token which you can then stake in the various Earn programmes of Binance. By swapping my BCH for BNB I made a lot of money when the price of the later increased and reached a new ATH. Also, by owning BNB I can participate in their Launchpad and Launchpool farming new tokens and their flexible savings pays some BNB interest. You can register in Binance through my link and get 10% fees kickback (https://www.binance.com/en/register?ref=FMXIHEEQ).
Conclusion
In order to mitigate my risks and diversify my passive earnings I have decided to split the Bitcoin Cash I hold in three different platforms / wallets each one having its own benefits. I divide a month in 3/10days parts depositing my BCH in one of the three services during each 10 days.
Remember though, that in all these platforms / wallets there is always an inherent risk when depositing your money because they are custodial wallets where you do not own your private keys. Thus, always do your own research and invest responsibly.
Finally, there are other platforms and wallets that offer interest rates for depositing your crypto with them, such as BlockFi, SwissBorg, etc. I will do a more holistic analysis featuring more of them in another article.
PS: I am not a financial advisor and this is not an investment advice. Always do your own research and understand the risks before trusting your Crypto with a third party.
Celsius Network is more regulatory compliant company.