Banks Dont Even Give Me 1%, Yet on Binance if I Stake MATIC I Can Get 11.34% API, What's The Catch?

Aerith-Waifu on 10/09/2021 - 16:25
Last edited 10/09/2021 - 20:06 by 1 other user

Total Noob here, just opened binance account and bought some 250 MATIC coins during the crash, been trying to navigate Binance ever since, found staking today and saw they actually paying a rate of 11.34% API on MATIC??? I mean seriously this is even higher than most of my Share return, so I have 2 question:

1: What's the catch here that they are able to pay 11.34% PA API? My bank wont even pay me 1%……………….

2: I chose Australia Dollar as my trade when I bought MATIC, so if I were to going to stake them, at the moment it tells me I can get 2.33010000 MATIC every 30 days. Does that mean the 2.33010000 MATIC I get at the end of the 30 days will be calculated in the AUD and not the USD?

3: Just to confirm those 2.33010000 MATIC will have a cost base of whatever the market price is at the time of earning? Say MATIC is worth $3.50 a coin, then those will have a cost base of $3.50 when I sell in the future?

Poll Options

  • 5
    1: This is why CRYPTO is going places
  • 79
    2: Higher the risk higher the rewards
  • 8
    3: It is that EASY! You get 11.34% no other catch
  • 6
    4: Stay with the banks and earn your 1%
Financial

Comments

      • rektrading on 13/09/2021 - 14:44

        Users can't stake USDT or any other stablecoin for that matter.

        Platforms that gives interest on stablecoin are doing so by lending them out to borrowers and/or leverage traders.

        The term staking in the cryptocurrency world means to lockup coins (not tokens e.g. USDC, USDT, BUSD, etc,) to validate Tx.

        Users that want to stake can either run a validator node or delegate their coins to a validator to earn block rewards.

        Google "how to earn interest on stablecoins".

      • GrillnKill on 14/09/2021 - 08:04

        Mate check out Nexo, you can park your stable coin there and get 5% interest, more if you fix the term for a month, and even more if you hold the Nexo token.

        • bobwokeup on 14/09/2021 - 09:04

          You can’t use their exchange to buy NEXO tokens though. How do you buy and transfer NEXO into the exchange?

          • GrillnKill on 14/09/2021 - 09:33

            @bobwokeup: Hmm, I am sure I bought my tokens through their app with BTC?

  • Peck on 11/09/2021 - 14:58

    Spare a thought for pensioners who are notoriously cautious with their money, and most are unlikely to have their money in high risk assets. They usually live quite frugal lifestyles too.
    Financial assets deeming rates to cut their pensions:-
    Singles - Anything over $53,600 is deemed to earn 2.25%.
    Couples combines - Anything over $89,000 is deemed to earn 2.25%.
    I'd love to find 2.25% rates on financial assets that aren't a gamble.

    • Aerith-Waifu on 11/09/2021 - 22:02
      +1

      What about shares? There is plenty of shares which have a net divident yield way higher than that and also top 200 asx companies?

  • techlead on 11/09/2021 - 16:00
    +1

    Its definitely higher risk higher rewards.

    You don't get the deposit guarantee with Binance, can't run to the RBA to claim up to $250k back if Binance goes under.

    Matic can go to zero. Staking tether or other stable coins may be better, but again, no insurance and they can also go to zero.

    • Aerith-Waifu on 11/09/2021 - 22:03

      Yeah true. I guess as long as they dont get hacked its as a safe bet as you can get in order to get the high yield returns.

      And of course there is FMG, which is paying like 10% pa or something like that

      • techlead on 11/09/2021 - 22:28

        Even if they are hacked, its usually fine for the big exchanges. For example, Binance has a fund called, "SAFU" which it can use to reimburse investors if the exchange was hacked. They've used it before so no investor was out of pocket from a hack on Binance.

        Other exchanges like Cryptopia and Mt Gox didn't have this.

        • Aerith-Waifu on 13/09/2021 - 00:05

          What if the hack is TOO BIG even for Binance to cover the funds? Thats where the danger is i suppose.

          • techlead on 13/09/2021 - 11:03

            @Aerith-Waifu: That's the risk, hence you are compensated more highly for it.

            Its important to note, you only get $250k back per bank from the RBA if the banks goes under. So if you have $1 mil AUD and want to keep it as cash, best to have it across 4 banks.

            There's always a risk and your returns should be commiserate to the risk. Its up to you to decide whether the risk is worth taking or not. There's even a risk with a term deposit from an ADI (authorized deposit taking institution).

            There's also a risk with keeping it under your mattress as well. So risks are everywhere. :D

  • cloudy on 12/09/2021 - 22:05

    Most people throw out the old saying higher risk higher return la la la

    the correct way i think, you should think is, how is someone able to pay me 11% by borrowing my coin, and every other coin? If you can't answer that you might find yourself coinless

    • rektrading on 12/09/2021 - 22:43

      People that play stonks should stay in their lane and leave the crypto alpha to the early adopters. The rest of the world can enter when their pension funds start to FOMO into digital assets.

  • BigBirdy on 13/09/2021 - 08:56
    -1

    It’s quite apparent many of the ‘investors’ here have little understanding of the way business and financial markets operate, and are instead turning to “get rich quick” ponzi-like schemes. That’s entirely their business, but I suggest you read up on what a Ponzi scheme is, and treat marketing spiel promising big returns with a healthy dose of scepticism. Ultimately these promises are based on other punters being lured in to keep the scheme going, and when it crashes (they always do), the perpetrators drive off in the Ferrari you paid for.
    Ponzi Scheme

    • techlead on 13/09/2021 - 11:11
      +1

      I agree, do not invest in Ponzi schemes like Bitconnect, Davor coin, Onecoin (not related to Harmony One), Lendconnect and many others which have already collapsed.

      @BigBirdy, can you be more specific about what you are alluding to as "Ponzi Schemes"? I wholehearted agree with your general premise that ponzi schemes are detrimental and investors should not ever touch it.

      Can you please give some specific examples like I have?

    • rektrading on 13/09/2021 - 11:57

      You're right.

      Legal Ponzi schemes like ETF, REIT, pension funds, managed funds, term deposits and saving accounts can be found everywhere. They are often promoted on TV, radio, social media, bargain sites, etc, as safe investments and good and/or high returns.

      All of these schemes have two things in common. An expected return from the work of others and the constant inflow of capital is higher than the outflow. These schemes would crash the second the work stops and there is a run on the capital.

      • BigBirdy on 13/09/2021 - 12:56

        You're confusing tradition financial instruments that actually have real assets behind them, albeit possibly over-valued, with virtual assets that are, quite simply, virtual. Cash, term deposits, etc are back by publicly owned infrastructure, roads, bridges, crown land etc. Shares (& managed funds, pension funds, etc) are backed by the products and services (& property, plant, etc) business creates and we consume. Property obviously provides shelter and security. I'm not sure why you would read some of the hype pasted in other comments here and see it as anything more than snake-oil spin. Wishful thinking perhaps?

        • Caromi on 04/10/2021 - 17:01
          -1

          Crypto is also worth money, in fact the networks it creates are worth money.

          Did you know that you currently pay money to the land titles office to get information? You pay for the newspaper to get information. What is the difference here? You can store information in the blockchain and retrieve it later; you can encrypt data and store it there.

          • cloudy on 04/10/2021 - 21:21

            @Caromi: You pay for a newspaper for information yes, but more importantly for the journalistic input. A bit like paying a landscaper to tend to your garden. The end result may be information to you, but it’s labour your paying for.

            As for storing information on the block, and getting it later. There’s emails that store information that you can get later, do you pay for your email? MS notes can store information and retrieve later, do you pay for MS note? You answer no to them because there is no labour you are willing to pay for.

            When you pay for Bitcoin, what labour are you paying for?

  • rektrading on 15/09/2021 - 14:33
    +1

    Always follow the money.

    Announced on Monday, Ernst & Young’s flagship blockchain services, including EY OpsChain and EY Blockchain Analyzer, will be integrated with Polygon, allowing transactions to be committed to Ethereum via the sidechain.

    EY emphasized that its enterprise clients will have access to increased transaction throughput with predictable fees and settlement times using Polygon.
    https://cointelegraph.com/news/ey-selects-polygon-to-scale-i…

    • Aerith-Waifu on 15/09/2021 - 22:55

      I saw this also, will be keen to see what this pans out in say 12 month time. I wont look at this in the short term.

      • bobwokeup on 15/09/2021 - 23:02

        Same although why wouldn’t you look into it in the short term?

  • Caromi on 04/10/2021 - 16:58

    Who knows, Evergrande?

  • rektrading on 05/10/2021 - 09:07

    Users pay miners to keep the network accurate and running.

    A network is only as valuable as its ability to withstand DDoS and stay online.

    Facebook, WhatsApp and Instagram go down for hours in widespread outage
    The social networks have been down for hours.
    Eli Blumenthal headshot
    Eli Blumenthal
    Oct. 4, 2021 2:12 p.m. PT
    https://www.cnet.com/tech/mobile/facebook-whatsapp-and-insta…

    .

    Facebook team attempts 'manual reset' of servers at California HQ as Instagram and WhatsApp go DOWN worldwide for SIX hours, Mark Zuckerberg loses $7bn and experts blame internal error
    By Jennifer Smith and Stacy Liberatore For Dailymail.com
    18:05 BST 04 Oct 2021 , updated 22:54 BST 04 Oct 2021
    https://www.dailymail.co.uk/sciencetech/article-10058203/Ver…

    costing the company $50billion and CEO Mark Zuckerberg $7billion and counting.

    Billions of dollars gone, just like that.

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