We All Love Those High Yields But There's Reason For Alarm

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I'm not one for FUD in fact I hate it so don't take this article as FUD but instead lessons learned over years and the good old say... "If it sounds too good to be true, it probably is" quote from Richard Carlson.

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High Yields Outside of DeFi

There are a number of ways to earn high yields on crypto. First let me start off with my all time favorite and what I consider to be the safest out of them all. That would be PoS (Proof of Stake) For staking tokens on a open wallet you can be selected to process a block in the chain. For doing so you get the "mining reward" plus any fees collected for that block.

To me this is the safest as you still are in control of your wallet but of course it has some risks such as losing your keys, possible attack, someone stealing your computer etc. I consider it safest however as it's going to take some serious effort to acomplish any of downfalls.

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Earning Interest

These sites seem to be ok however you are giving up your rights in terms of you are sending your crypto out of your own wallet into theirs. Sites like Nexo which offer you to deposit your crypto into a "bank" like savings account and earn up to 8% on your crypto and 12% on your stable coins sounds very promising. I mean you could in theory take all your stock investments cash out and depots them into a stable coin and most likely earn more than the stock market would give you or most dividend stocks.

However there is high risk as you no longer own that crypto instead it's sitting in their account and they could close up shop at any moment. That's kind of the negative of decentralization is no one is held accountable for the rug pulls.

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DeFi

Good old DeFi, I recently learned it a few months back when CubDeFi launched and I've fallen in love with it. However VERY high risk but not any more risk as the Earning Interest part above. If you do your research, invest only want you can afford to lose.

DeFi currently offers the highest of the yields but also the highest of the risks. We are talking about 50%+ APR in most cases or upwards of 100%+ in others if you get in early enough or get into a good pool.

DeFi for sure will be the primary focus moving forward as that's where the money is at. I'm sure the next innovation we will see is some way of making it decentralized enough to the point that no single person controls wallets or a way to better prevent rug pulls.

In any case stacking now and getting ready could be a very positive play.

*This article is not investment advice and is for entertainment purposes only.

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10 comments
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DEFI follows the market behavior.
You may not lose your bnb or btc in the platform but holding the defi token is high risk where you can be stuck and wait for the token to rise, wen ?

!BEER

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The token really doesn't do anything it's just speculation. This also goes for tokens earned on some of these interest type platforms which now have their own token. I'd rather be rewarded with some of the use case tokens which is another reason why I'm loving CUB Kingdoms

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Well everything tends to have some risk. I have a small amount in Blockfi right now and its only an amount I can afford to lose. The interest seemed like a good offer and I see no reason to refuse it. Of course they could rug pull at some point but I was thinking of the fact that they are a US based company. So I was thinking eventually I might get it back.

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Do you have to fill out a KYC for that one? Being that it's a US company I would think so or it's going to be required soon.

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I think I did do KYC for it since I was trying to figure out where to split my BTC after the lockdowns started. For the most part, the BTC I bought was bought around 10k so I am in the profit and there is additional BTC profit on top.

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As I once heard here, even breathing is a risk and the coronavirus knows it.

In reality everything can be risky and if you manage to be smart and not lose anything, death takes you and in the end you have nothing, so it is better to take certain risks and know how to enjoy yourself.

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Great write up and definitely a great focus on the high risk game. At current everything is pretty much in a bear market and it's wait and see at the next bull run.

Will be very interesting

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No risk, no gain. However sticking with low yield as I wouldn't want to part away with my funds as a result of been greedy.

With lot of DeFi projects out there, APR of 50-150% sits good to me has they seem more sustainable


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Ok so as the article states with hding accounts. I have all my bitcoin and etherium in celsius for long term saving.
Is this a bad move as it then it will only be my crypto in name only.

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