CRYPTO PASSIVE INCOME (A)(ALTERNATIVE WAYS TO RE-INVESTING YOUR CRYPTO REWARDS FOR STEEMIT POWERING UP PURPOSES )
Introduction:
These are lending services that offers deposits and loans on a centralized platform.
Those who deposit crypto earns interest on those funds.
Similar to how it works in to a bank interest are allowed to be deposited and compound daily .
Although it would be due to note that these loans are heavily collaterized the amount of funds they loan is unlikely term deposits in bank account.
You do not have to tie your crypto for a certain period of time hence you have access to your funds all the time.
Similarly most of the platforms report numerous coins and that means you can usually earn interest on a coin you are looking to hordle. Alternatively if you were just looking to earn interest in us dollar than you are doing than a bank account then you can simply supply stable coin like a USDC and USDT.When it comes to this services you have to be very careful with those you decide to use because the hold your funds so therefore 100% secure and legit.There are perhaps a few lending services but 3 of the most well known are Nexo, Celsius,and blockFi and steemit app.
1A)NEXO-
-Nexo is part in Europe based.
-They have over 4 bilion in management and they were founded by a fintech firm QUARISMA.
-They provide instant lines of credit and crypto lending services as well as a credit and crypto card tied to your bank account.
-Nexo has a utility token which is also provided to supply benefits to nexo ecosystem.
-In terms of interest rate they vary according to the coin your supplying or wether you will like to earn Nexo.
-Rough earning estimates are between 8% and 12% on stable coins paid out daily.
B)BLOCKFI
-This is for US based users.
- blockFi has been in the press quite recently as there has been raising hundreds of millions of dollars to fund their growth.
- They have been over 4 billion dollars in (AUM).Assets under management up from just under 250 billion recently which represent 1500% up.
-Interst are up to Max of 8.6% resp in their BlockFi interest account.
-you can earn up to 9.3% App if you earn via stable coins like USDT.
-It should however be pointed out that blockFi suffered a hack last year where customer data where leaked it should be noted however that these was not a crypto hack and no customer funds were breached.
However a hacker knowing that you own crypto including your own personal information is is not a great position to be hence this makes Celsius my personal choice.
1c) CELSIUS
-This is available for both Us based customer and international customers.
-They offer attractive range on various crypto currencies for its US customers.
-They offer 6.2© App on btc and 10.5% on stable coins such as USDT.
-They also offer their international users to earn interest in their on slightly higher rates and hence it's entirely mobile.you can also earn and lend right there on the mobile.
-# paragraph summary:
Note that any of these services you use are entirely centralized which means u do not technically control your crypto therefore it's analogous to keep some of your funds in Coinbase et all morever seeing that these services are technically regulated you are advised to complete your kyc form before being able to use them hence these is where DEFI comes in I.e decentralized finance.
- DECENTRALIZED FINANCE
-so what happens if you intend to control your own keys and avoid kyc protocol that's exactly where DEFI lending comes in.
-When it comes to DECENTRALIZED FINANCE what primary feature it's enforces is trustless and permissionless peer to peer lending/borrowing essentially instead of a centralized lending and borrowing platforms matching lenders and borrowers .
-you have a set of smart contract in place.These smart contract adapts interest rate based on demand, supply of those coin on the contracts.
-The most important point about define that you are in control of your keys at all times.
-They are no platform which can restrain you from earning interest and you don't need to complete kyc.
-All you need is a web free point o wallet that can connect you to them and you can start earning interest.
-These lending contracts accrues interest continuously which means the impact of compound interest is likely to be considerable and as compared to any lock up period here and you can withdraw funds at any time.
-There are numerous DEFI protocol currently available e.gs
A maker, Compound,Have,instaApp,Alpha Homera, DEFI saver,reflexer,C.R.E.A.M Finance
-Hence to check at best lending rates currently on DEFI you can access it though DEFI PULSE and DEFI RATES.
But the first three are highly recommended with appealing and competitive DEFI lending rates.
- In centralized platforms stables coins earns a higher returns that most of the crypto.
AVE
- when it comes to ave they same lending tools as compound finance.
-And as the case with compound you have higher rates of interest on stable coins than you do on normal crypto assets.Infact i hardly see same of this lending right being equal or same across all and this therefore gives room for ARBITRAGE exploitation opportunities due to the consumer being spoilt for variation ranges in the prices of the same product which makes room offer buying and selling of the same product by taking advantage of the spread.
STEEM CRYPTO POWER UP'S:
It is not a secret that using part or all of your STEEM crpypto to power up your STEEM account could also visibly affect or increase their Quota they earn with respect to curational rewards.
-morever,this could in turn constructively bring them more access to more STEEM tokens which could be used to power up in more progressive constructive feedback format.
-This increase in STEEM power also allows them to have more say in the STEEM ecosystem by the form of voting rights.
Excerpts;
Materials taken from various sources as indicated below
-Eddie moon patreon group & ytube videos
-http://www.patreon.com/eddiemoon
-Guy patreon group
https://guy.coinbareau.com/socials/
-Gerald umeh blog
https://onlinehustle.com.ng