Set & Forget Ways To Earn Passive BTC - Part 2

Essential Economic Construct

Building an economic portfolio is foundational to earning a Crypto income and has many arms of exposure. Most people don't understand this because they are still building investment portfolios. An investment portfolio is only one arm of an economic portfolio. If you wish to create a portfolio that actually generates income, then you need to have exposure to multiple earning opportunities, outside of just holding a number of coins. In Part 1 I discussed some approaches that for the most part did not require any capital investment. This edition will focus on investments that can earn you passive BTC. There are pretty much no real barriers to entry and most readers will be able to utilize these opportunities. It can be argued that one can earn any Crypto passively and then sell it for BTC. This is very true and is also an approach that I make use of.

However, we are looking at set and forget approaches that can be left to run over time. Selling altcoins for BTC can be very burdensome, as gains need to be locked into BTC at opportune times and if not executed efficiently can result in losses. 

This is very much a focus on the passive approach, allowing you to concentrate on other ventures while you stack BTC via these passive mechanisms.

An Old Favorite

This is an old favorite of mine, especially since the performance is approximately 10%, whereas typical returns on BTC are a lot lower. By holding GIO tokens on the Graviex exchange you earn BTC dividends that are credited to your wallet every 24 hours. This can be increased, if you set orders to purchase the GIO token in the dips. I have been able to push my earnings over the 20% mark by executing this strategy. For many of us, accumulating BTC over the long-term is a very important part of our strategy. Another side to the GIO BTC strategy is that GIO tokens can also be mined and subsequently staked to earn BTC. The Graviex exchange is still however very small.

A significant increase in trading volume will ultimately see the daily BTC dividends skyrocket. If the market experiences a significant crash, I will load up on these tokens, as they have the ability to produce BTC on an ongoing basis.

DeFi Options

Prior to the Bunny exploit, Bunny had very high interest vaults on both BTC and ETH. Unfortunately those returns are now very low, even when compared to CeFi alternatives. At one point ETH was well over 20% and BTC approximately 20%. However, keeping in mind that part of the reward is paid out in BUNNY. Utilizing these DeFi opportunities does however involve taking your BTC off of the native chain and onto the Binance smart chain, or other alternatives, leaving you with a token that is pegged to the BTC price. Costs involved are very low when utilizing BSC and others, making it extremely cost effective when moving and staking tokens.

DeFireX currently have a BTCB vault paying out 12.75% APY, which is pretty decent. However these guys are relatively new and are still to develop a reputation. Exercise caution, as TVL is very low, compounded by the fact that they are new to the space.

Both Beefy and Autofarm provide access to beltBTC vaults, where the interest is approximately 7%APR and over 8% APY! There are however significant risks involved in the DeFi space and anyone wishing to make use of yield optimizers needs to do significant research before getting involved. The one positive aspect is that you are working with BTC and earning BTC. Many vaults will take your assets and provide rewards in a token that could literally go to zero overnight.

If the reward is extremely high, the token being used as a rewards payment is usually close to worthless because it is continuously being sold by those earning the rewards. This is what happens when a token has no utility outside of being a reward token for an AMM.

KYC Free Alternatives To BlockFi & Celsius

Many people would like to earn interest on their BTC holdings but are not really keen on the idea of giving out their information to a company or entity that they are not familiar with. There are however some alternatives but I would not personally place significant amounts on these platforms. Both Freebitcoin and Cointiply offer interest on amounts over 30K satoshis, which is a very low threshold. I have been utilizing these sites for many years and have personally had no issues. However, they are not licensed professional services and one needs to comprehend the risks. That being said, there are also risks associated with even licensed entities such as BlockFi. Freebitcoin offers 4.08%, while Cointiply offers 5% on balances that meet the minimum requirement. StakeCube is also another exchange/staking platform that pays 7.57% on balances over 50K satoshis. I have also been using this platform for approximately 3 or 4 years.

For me, I personally put fairly modest amounts to work on these platforms and simply allow to compound over time. All 3 platforms also offer faucets and other ways to earn BTC, making it easier to compound and grow these earnings over time.

This is not investment advice and should not be interpreted as such, please do your own research and take responsibility for your own investments. All the best and keep expanding your Crypto exposure!