How to Earn 6.23% Interest Using Crypto

noshopping on 19/02/2021 - 23:27
Last edited 20/02/2021 - 09:40 by 1 other user

If anyone has higher interest savings account that's relatively simply and safe, please share. I could not find any so that's why I thought I would share this tip!
This rate is even better than any term deposit offering in Australia if I'm not mistaken and thing with TD's is you need to leave your $$ in there for at least 3/6/12mo unlike with this where you get paid every 7 days and you can pull out anytime.

So how you can earn 6.23% interest on your $$$ using crypto with 100% STABLE rates?

How to do it:

1) Register an account on an legit Australian exchange, e.g. BTCMarkets
2) Buy USDT. USDT is pegged to the USD dollar. What you buy in USDT never changes, if you buy $5000, it'll always be worth $5000 USDT.
3) Open a Binance Australia account
4) Deposit that USDT into Binance
5) Stake it
6) Binance offers 6.23% interest on USDT/BUSD. Interest pay outs per 7 days. No minimal amount.
7) You can pull the $$ out any anytime.
8) Send it back to BTCMarkets to sell from USDT to AUD when you want to cash out

The best thing about this is that your money is preserved and the only fee you'll be paying is buying/sending USDT.

Warning: Exchanges don't have the same protection as say Aussie banks so there's a risk your money could be gone if an exchange collapses.
Good thing with Binance is they make like $400m per quarter in fees and I don't see them going anywhere.

Financial Cryptocurrency

Comments

  • noshopping on 19/02/2021 - 23:30
    +3

    *Correction, seems like it's 6.31% per 7 days, 6.48% per 14 days, 6.66% per 30 days or 7.00% per 90 days
    see: https://www.binance.com/en/earn#flex-item

  • noshopping on 19/02/2021 - 23:38
    +4

    woah 1 spam report.. really? Thought this place was all about sharing $$ saving tips. Meh I'll just keep my mouth shut next time :/

    • EightImmortals on 20/02/2021 - 09:29
      +1

      Welcome to ozbargain where negging posts is a reflex action.

      I appreciate your tip though. My cryptos are screaming along this year while my savings/stocks are doing nothing. To avoid the risk in the unlikely event of an exchange collapse could we put the USDT onto a wallet?

      • noshopping on 20/02/2021 - 13:29
        +1

        I think they need your $$ to make more money out of it. Perhaps try Blockfi which a few people here have mentioned. It's backed by Gemini, seems more legit and the interest payouts are way better! (Have not used it myself though)

        https://blockfi.com/rates/

  • adzzz on 19/02/2021 - 23:38
    +10

    You should rename this post to "how to put my money at extreme risk for a measly 6.23% per annum". Invest your money into a Vanguard ETF that pays monthly dividends. Something that is tied to an economy and fiat currency, not this shady bitcoin USDT stake.

    • whooah1979 on 19/02/2021 - 23:42
      +3

      bitcoin USDT

      What is this you speak off? 😖

    • noshopping on 19/02/2021 - 23:47
      +5

      Yes I agree that an index/EFT fund is the best way, but it's based on stock performance. This is more like a savings account where the interest deposited $$ is guaranteed. People who don't like USDT can use BUSD.. Anyway, it's just another option vs all the Aussie banks giving 1% interest/year, paid out per 30 days.

      • adzzz on 19/02/2021 - 23:50

        Guaranteed by who though? Stocks are inherently more valuable because they are tied to economic output, people buying and selling things, companies employing people to do things for one another. The risk here is that this Tether coin becomes worthless, at which point the Guarantee you have wont be covered by any exchange simply because the losses will likely be covered by a disclaimer in the agreement that states they are not liable.

        • whooah1979 on 19/02/2021 - 23:53
          +1

          they are tied to economic output,

          The US economy took a turd last year because they wanted to 🎉 with Rona while the SPX made a new ATH.

          Please explain that.

          • adzzz on 19/02/2021 - 23:55
            +1

            @whooah1979: SPX = SPY = 500 largest companies listed on the NYSE = US Economy.

          • ozbjunkie on 03/03/2022 - 20:49

            @whooah1979: Nobody can. Because the market has become so divorced from fundamentals that I am no less mad for putting it all in blue chip crypto and stable coins, than I would be to put it on black at the casino, or to trust that the stock market is in any way related to the underlying productivity of the underlying companies and assets.

            If I'm wrong, I'll be living under a bridge. You're invited. I'll make the (iced) tea.

        • noshopping on 19/02/2021 - 23:54
          +1

          that's why I said BUSD… (Binance USD)
          You can convert USDT to BUSD on Binance.
          If you don't believe in crypto, then yes, stick to traditional banking system! This is just an option for others to explore.

          Who are you to judge and decide? I know lots of peep who would not touch BTC when I told them about it at $2500, yes it might be sketchy but it doesn't mean you won't make money…. They choose the safe path in life, good for them.

          • adzzz on 19/02/2021 - 23:58
            -1

            @noshopping: I'm not judging your decision to do this. Everything could work out great honestly, but I think its important to make sure the risks are clear to people who might be tempted to think this is a risk equivalent option to something like a term deposit.

            • noshopping on 20/02/2021 - 00:03
              +1

              @adzzz: Yes I agree. Crypto is much riskier vs traditional banking. I made sure to add that they may lose $$ if Binance collapses.

          • EightImmortals on 20/02/2021 - 09:33
            +1

            @noshopping: It's no less sketchy than fiat currency and while the BTC market cap hit a trillion dollars recently, the value of fiat (at least USD) is being REDUCED by TRILLIONS of dollars per year thanks to central bank money printing (QE).

        • [Deactivated] on 20/02/2021 - 07:33

          Stocks are inherently more valuable because they are tied to economic output

          Ah maybe that's the classical definition of the purpose of stocks, and the ex Prime Minister of Australia Paul Keating will advocate of the ownership of stocks for that purpose, but recent market fluctuations have no basis in economic reality.

          We live in an age where there are no safe places to save money and earn reasonable interest, increasing stimulus (debt) on a scale beyond imagination, where the only real way to make money is to simply gamble.

        • netjock on 20/02/2021 - 09:57
          -1

          Nobody is worried about economic output these days.

          Theory is we could all take a cheap course online, sit at home and trade currencies. Not sure what would happen if the farmer and factory workers jump onboard. Do we just all starve together?

    • whooah1979 on 19/02/2021 - 23:48
      +2

      Vanguard ETF

      Investors that shill Vanguard ETF should be aware that they may be indirectly exposed to digital assets. Have a look at their funds recent holding.

      • adzzz on 19/02/2021 - 23:54
        +1

        Holding a BTC as a security is fine, staking your security to another entity in exchange for payment is a completely different thing however. This isn't like short selling a stock, where someone will eventually step in to cover a defaulting party due to market regulation, whether that be a Market Maker or the Government itself.

        • whooah1979 on 20/02/2021 - 00:01

          BTC has never been classified as a securities. It's a unregulated digital asset. It doesn't have a FDIC or FCS guarantee but is still being gulped up by smart 💵.

          When in doubt follow the 💵.

  • SF3 on 19/02/2021 - 23:40

    Ponzi or This. 🤔

    • whooah1979 on 19/02/2021 - 23:45
      +2

      Ponzi scheme are unlawful. This is fully supported by many governments including the Australian government.

  • Tiredman on 19/02/2021 - 23:41
    +1

    Still too early for most people. But good tip. Exactly what i'm doing now. Some in Blockfi too.

    • adzzz on 19/02/2021 - 23:43
      -1

      How is it too early though? The benefit to them is extremely clear, they need your fiat currency to give them the liquidity to sell and buy their shitty alt coin. Your hard earned cash is needed to make it worth anything, it's a different story if you plan on holding traditional crypto, like any other security you buy at one price and sell at another (higher or lower) but this is super super super risky.

      • Tiredman on 19/02/2021 - 23:49
        -1

        That's fine. I have no interest nor time to spend on online debates.

    • noshopping on 20/02/2021 - 00:05

      Blockfi doing 8.6% on USDC? niceee
      Is that per 7 days/30days/90days?

      If given the option I would choose USDC… USDC is backed by Circle/Coinbase/Goldman Sachs.

      • brendanm on 20/02/2021 - 10:15

        Celsius is doing 12.5% on usdc

      • Tiredman on 20/02/2021 - 18:58

        No harm spreading across a few providers to minimize risk. I keep my stablecoins handy for convenience and quick trades too.

      • firestint on 20/02/2021 - 22:30

        Blockfi accrue interests daily but pay out monthly.

  • mr_asstight on 19/02/2021 - 23:45

    This has been going on for a while and not just with Binance…a bit late to the party

  • plmko on 19/02/2021 - 23:53

    If you're going to do this, you'd may as well HODL on real Crypto.

    • noshopping on 19/02/2021 - 23:56
      +1

      True but some people prefer comfort that their money doesn't change by 20-30% in a day, for the HODLers it's normal :P

  • MS Paint on 20/02/2021 - 00:02
    +1

    Sounds legit. Will give it a crack. Will report back in 90 days with my results. Cheers op.

    • TheGoodPart on 20/02/2021 - 08:30
      +2

      If you're not planning on trading you're better off sending a stable coin to BlockFi - 8.6% fully insured hot wallets through their custodian Gemini a highly regulated US player.

      • AlienC on 20/02/2021 - 19:17
        -1

        /r/hailcorporate

    • AlienC on 20/02/2021 - 19:18

      Make sure to crack it a go

  • owli on 20/02/2021 - 00:52

    all this counterparty risk with USDT and binance is only worth 6%? the chase for yield is real out chea

  • JDMcarfan on 20/02/2021 - 01:05
    +17

    TLDR: Sorry for the long response, but I feel people should be better informed when making decisions like these and take consideration of such factors when publicly marketing them.

    You haven't taken into consideration any effect that FX movement will have on your 'savings' investment. If the investment is pegged to the USD then all you money will be at the mercy of $AUD/$USD movements. With the AUD expected to improve over the next year, any interest earnings you make will likely be stripped, leading to a potentially negative return.
    Please do your own research!

    Preface: I work at a Big 4 Bank (working in Financial Services with exposure to Markets), and express that this is solely my own opinion.

    The AUD is a commodity driven economy and hence its FX rate is strongly driven by commodity demand and price movements. In the current market and for the near-medium term future, Australia's balance of trade, esp. in a commodity context, (read about WA's 'mining boom' atm) is positive and has been driving positive $AUD growth since its slump in March 2020. This slump was primarily a result of a flight to quality during the early stages of the pandemic (where the $USD is considered universal currency) but has since corrected and is entering a period of strong growth as Australia emerges in a relatively strong position.
    (https://www.dfat.gov.au/trade/resources/trade-statistics/Pag… - basically a graphical explanation of what I'm saying).

    In periods like this the $AUD starts to grow (potentially boom) in comparison to other periods (see 2010-2012 spike in $AUD). This growth potential is currently further inflated by depressed supply-side factors. As Australia typically has a net outflow of tourism (i.e. more locals flying o/s than incoming visitors) and given the border restriction in place atm, global supply of the $AUD is reduced further pushing prices higher for foreign markets wishing to buy our commodities.

    This will ultimately lead to the $AUD (and other commodity driven nations e.g. Canada & NZ) to continue appreciating against the $USD for the forecast period (2021-2022). This can clearly be seen in the movements over the last 6-12 months where pre-pandemic (1 Jan 2020) the FX rate was 0.6708. Whilst this slumped to the mid 50s in the March market crash, it recovered to Pre-Pandemic levels by June 2020 and has since appreciated steadily to 0.7862 today.

    This would mean that an investment of AUD$1000 in June 2020 would be worth $874.13 (not factoring 'interest'), or a -12.6% drop in a 8 month period (18.3% Annualised). As such, the depreciation of the $USD outpaces your interest returns by approx 3x. And you would made a net loss of approx 12% (annualised).

    Many economists and forecasters reflect my views, and have broad expectations for the FX Rate to exceed 85c by years end. This is approx. a 8% appreciation on current values, and would again completely strip out any gains you make on 'interest' (let alone leave you exposed to further FX movements & general crypto risk).

    I'd like to offer my personal opinion and recommend ETF's as a more appropriate solution (still carries market risk), as is has a more steady return that what you've suggested. Of course any investment carries risk and only really a term deposit/bank deposit carries nearly nil (but likewise has a 1% return). Please DYOR (Do your own research) and feel free to mark my words and get back to me in a year's time if you decide to proceed.

    Feel free to rebut at my thoughts, happy to engage in healthy discussion.

    • DashCam AKA Rolts on 20/02/2021 - 07:40
      +1

      Clear explanation! Great contribution @JDMcarfan.

    • EightImmortals on 20/02/2021 - 09:41
      +1

      Which ETF's are you keen on? And how are they effected by general market moves.

    • netjock on 20/02/2021 - 10:00

      The flip side is you buy overseas assets when AUD is appreciating then sell it when the AUD drops but the cycle is always drawn out and long. Last time $1AUD was $1USD then how far it dropped. If you buy overseas income producing assets and wait until the cycle runs it's course and AUD goes back to 70c it is a good profit.

      But then who am I? When you can make squillions with crypto.

      • whooah1979 on 20/02/2021 - 10:20
        +1

        You bring common sense to otherwise irrational markets.

        New 💵 need all the help they can get.

  • ihbh on 20/02/2021 - 07:39
    +1

    Two things to consider:

    • Return of your capital, not just return on your capital - don't be penny wise and pound foolish
    • Interest rate parity - the expected change in exchange rate; profits would be arbitraged away long before you can read this post.

    TLDR: the higher the expected return, the most likely the higher the risk

  • TheGoodPart on 20/02/2021 - 08:28

    You're better off putting USDC into Blockfi at 8.6% if you have no interest in trading other coins on Binance. BlockFi hot wallets are fully insured by their custodian Gemini and while I love Binance you do not have that assurance with them.

    • whooah1979 on 20/02/2021 - 08:31
      +2

      CZ says funds SAFU.

    • Tiredman on 20/02/2021 - 09:17
      +1

      I do prefer USDC more than USDT.

    • noshopping on 20/02/2021 - 13:22
      +1

      Found the rates table https://blockfi.com/rates/.
      Payout per 30 days.
      Think I'm gotta switch to blockfi! :)
      9.3% APR on USDT!

  • funnysht on 20/02/2021 - 10:44

    prob better just ETF i reckon

  • Trying2SaveABuck on 20/02/2021 - 11:01

    Thanks for the tip bro

  • Kramo on 20/02/2021 - 11:39

    USDT is 'pegged' to the US dollar with about as much reality as 'because they say it is'. So maybe you can get 6% interest for now, but you'll have to time the question of when will the Ponzi scheme of USDT collapse?

    https://crypto-anonymous-2021.medium.com/the-bit-short-insid…

    • whooah1979 on 20/02/2021 - 12:45

      USDT FUD by their competitors. Coinbase and Circle isn't holding back punches trying to promote their USDC.

      The OCC has already expressed their willingness to allow corporations to settle transactions in stablecoins. They know that they can't do bugger all to stop it so they'll try and regulate instead.
      https://www.occ.gov/news-issuances/news-releases/2021/nr-occ…

      • idjces on 20/02/2021 - 13:17
        +1

        Aside from all the other inherent safety issues with holding cryptocurrency, does tether actually have $34 billion sitting in a bank account, or treasuries?

        https://www.coindesk.com/tether-lawyer-confirms-stablecoin-7…

        Also regarding OP's post, 6% p.a. is a measly return for all the risks involved, if you want to take a risk on fiat cryptocurrencies you can make at least 0.1% a day lending it out for others to trade with

        • whooah1979 on 20/02/2021 - 14:19
          -1

          USDT FUD has been around for years and years.

          The only one that cares about USDT is the NYAG.

  • deme on 20/02/2021 - 13:39
    -1

    This is top kek.

    Bitcoin
    No fees: 🤣
    Instant payments: 🤣
    Value store:🤣

    Now we are up to "no one can't print money".

    Tether:🤣

    https://hackernoon.com/tether-is-no-more-a-cryptocurrency-th…

    This is about as safe as putting your money in Mt. Gox

    • noshopping on 20/02/2021 - 13:48
      +1

      "TheGoodPart: If you're not planning on trading you're better off sending a stable coin to BlockFi - 8.6% fully insured hot wallets through their custodian Gemini a highly regulated US player."

    • whooah1979 on 20/02/2021 - 14:23
      -1

      What happened to Mt Gox was a crime. What USDT is doing isn't.

      We can continue this FUD when the NYAG actually charges someone with an offence.

  • corybaxterr on 20/02/2021 - 17:41
    +1

    I much prefer Celsius.

    They pay 12.5% with no lockup or withdrawal fee, paid out weekly and you can deposit TAUD (a stable coin pegged to the Aussie dollar).

    Plus the regular promo codes and referral bonuses are very nice.

    • rev0 on 20/02/2021 - 17:57

      If Celsius goes out of business all depositors lose their funds. As long as you understand this risk and trade-off then it's fine.

      • whooah1979 on 20/02/2021 - 18:40
        +1

        It's the same as other markets.

        • rev0 on 22/02/2021 - 15:15

          Not sure what you mean by other markets. If you're referring to other crypto service providers that's not the case. Blockfi's custodian Gemini is regulated in NYC and they insure their hot wallets. Not the case with Celsius Network.

          • whooah1979 on 22/02/2021 - 15:48

            @rev0: Stakeholders are unsecured creditors and the last party to get anything back when a company files for bankruptcy.

            Duckduck-Fu
            https://support.celsius.network/hc/en-us/articles/3600021747…

            Fireblocks and PrimeTrust (our custodians) both provide insurance on digital assets held by Celsius.

            However, we generate interest rewards by deploying assets. When these assets are out of Celsius’s control, they can’t be insured by such insurance.

            To ensure coin loans are always returned to Celsius, we require borrowers to post collateral of up to 150% (which means that the borrower gives Celsius an alternative asset as collateral for the asset they are borrowing) or we conduct thorough due diligence reviews of borrower’s financials and repayment ability.

            btw Celsius Network is registered with the SEC.
            https://sec.report/CIK/0001739052?cf_chl_jschl_tk=3a73ff6305225ea95968dcb99ab631d761e7a07a-1613969709-0-AaJX5brCNWON7p3cXKF2y5s3Z2iO_UrFaSv4Q7rudgaxpU8HCQcA2ZfFo1p9Lx43gZb4VPju9P339fIazxs1hAbrpXHFBjQYuAH6B10sx7vWqQNJpl2w6ss2uV-QOcs1SCrYezKh_rYaMoJhA0YL-pJTEynRsc_QXlITvsng7xwdax-ayy2OzDNUq0Ry1CyKE1CuOvZxRSEHNvvxnNau-90tvC9bfMk6tYSqIAaXv3Nw0VUk15yFGvgWQ-GCOwcmHchiGIqUUGEZvrrfPiBtxFwvj7ivTfWsvWI1TWOmyE6GreHLR8rYcsJKnPyuFB22n58cauy0sPmJf0wAiBTjbQ9rcJzcPtULAk4jCGRfgtANurrimEZPo-_EOs5NiEX0Vw

    • oldmate78 on 09/03/2022 - 03:07
      +1

      How are you getting TAUD into Celsius?

      Can’t transfer from crypto.com

      • corybaxterr on 10/03/2022 - 19:48

        Crypto.com is how I've moved TAUD to celsius in the past so not sure why it wouldn't work now.

      • oldmate78 on 10/03/2022 - 22:34

        Maybe it used to work? But now in the app now, it says TAUD withdrawals are not yet available.

        I can transfer to crypto exchange for $25USD, but not keen to do that then potentially pay another $25 to move to celsius.

        If anyone has found a cheap reliable way to transfer TAUD into celsius, please enlighten us!

      • oldmate78 on 12/03/2022 - 22:05

        https://help.crypto.com/en/articles/5978017-what-should-i-kn…

        confirmed, TAUD withdrawals are paused

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