Group Mentoring: Crypto Income, Blockfi, Kucoin, Interest, Lending, Staking

Note: Do your own analysis on the suitability of these strategies and the safety/reliability of the platforms on which they are executed. I am using risk-only capital at this stage. 

Objective: Earn 5-30% interest in the crypto markets without necessarily having to own crypto currencies 

  • The platforms involved in this 
    • Coinbase (potentially swanbit for lower fees) 
    • Blockfi 
    • Kucoin
    • Others 
  • Approaches / strategies 
    • Crypto lending 
      • Hold the crypto assets for potential appreciation (5% to 6.5% annual right now) 
      • Earn interest 
      • They are charging higher interest to large/trustworthy short sellers and arbitrageurs (pairs traders) 
      • Interest rates have declined during strong bullish periods since there are fewer short sellers left 
    • Dollar based lending to crypto market 
      • Higher interest but lose out on potential gains from HODL
      • USDC – 8.6% annualized right now
      • GUSD “”
      • USDT
      • BUSD?
      • Etc. 
    • Direct lending – Kucoin (or others) 
      • Higher rates by bidding on an open market 
      • Used for pairs trading, leveraged trading, short selling 
      • More effort, more reward (8% to 38% interest) 
    • Staking 
      • Committed to hold for a period of time (locked and unable to sell) 
      • Sometimes, incentivized with higher interest (paid as rewards with coin) 
      • Some “alt coins” and lower market cap are paying massive rewards in order to boost demand, jumpstart the network, and stabilize price volatility that comes from skittish traders and noise networks (aka news) 
  • Tips 
    • Decide what you want ahead of time, avoid getting into a situation where you are changing your mind or moving things 2 or 3 times 
    • Convert cash to crypto currency for the lowest cost/fees — so far coinbase nets out to the lowest 
    • Direct transfer to the exchange that has the product you want 
    • Blockfi simple lending

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