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

  • Unorthodox on 10/09/2021 - 16:30
    +3

    Yeah you bought something that just crashed… IE the principle amount tanked…

    It's like buying Telstra shares for the juicy dividend before the stock tanked and then it goes down. Dividend yield % very high but is it going to remain?

    Also your exchange is at risk of being hacked, etc whereas at a proper bank you have the gov guarantee and proper oversight

    • Aerith-Waifu on 10/09/2021 - 16:40

      Yeah thats true, but Binance is maybe the safest exchange due to the fact they have a investor fund to recover against hacking, the last time binance was hacked they repaid all the accounts which got hacked.

    • TilacVIP on 11/09/2021 - 07:57

      That's debatable, you are only partially correct with this example.

      A lot of people purchased under $3 and have been getting a dividend yield of between 5.5% - 9% for many years

    • mqi on 11/09/2021 - 08:30
      -2

      Hex fixes this. Check out HEX.COM

      • idjces on 22/10/2021 - 15:14

        Nice….

        https://coinmarketcap.com/currencies/hex/

        Hope no one fell for the bs that is Richard Heart and Hex

        • rektrading on 22/10/2021 - 15:48
          +1

          HEX/BTC has an inverse correlation that dates back to Nov 2020.

          https://files.ozbargain.com.au/upload/393946/91870/screensho…

          HEXIANS can expect HEX to pump when people start taking profit from BTC to USDC.

        • mqi on 23/10/2021 - 13:48
          +1

          Cool story bro. Meanwhile this year I made 30x gains on HEX whilst BTC only did a 3x.
          HFSP.

            • rektrading on 23/10/2021 - 15:14

              @idjces: The uninformed doesn't know that ETH was a pre-mined ICO at $0.31.

              Pre-mined coins don't get to play the ethical card.

            • mqi on 25/10/2021 - 08:59

              @idjces: Oh yea? Explain how hex is a scam or a ponzi and who have the victims been? Can you even name one?
              Lol If you wanna compare bags come dm me and I’ll show you instead of openly throwing numbers on a public forum

            • mqi on 29/10/2021 - 11:59

              @idjces: That’s right! Didn’t think you could actually tell me where the scam was! Cos there ain’t one!

              • idjces on 29/10/2021 - 18:42
                -1

                @mqi: I don't particularly want to spend a whole lot of effort arguing with one person over the nuances of what does and does not define a scam

                Second google link sums up a lot of the topic

                https://www.reddit.com/r/CryptoCurrency/comments/o3t3zi/comm…

                Richard has nothing better to do than to shill Hex on twitter threads that have no correlation whatsoever to his HEX erc20 token

                https://twitter.com/RichardHeartWin/status/14533776236991692…

                If you feel like investing based on the ramblings of this particular public influencer, than all the best to you

                https://i.imgur.com/7cCejtG.jpg

                • mqi on 29/10/2021 - 22:46

                  @idjces: Ah, now you don't seem so confident in calling Hex a scam.
                  Now you're saying it's up to the definition of what is a scam or not….
                  I've read through the thread on reddit and i think the best and top comment with 17 upvotes has summed it up quite well:
                  "Coins rug pull every other day almost, but many people in this subreddit has decided that Hex is the main villain of this story.
                  Guys, you know, if you put your pitchforks against, ACTUAL scams(hint hint, iron fiance), maybe you will save someone from getting rugged scammed.
                  Hex has been around for almost 2 years with 100% uptime no scam, no ruggs new ATH while BTC and ETH are struggling. But hey if reddit tells you to stay away they are probably right"
                  StevenAvery's rant is full of outdated info. You can't get HEX by sending ETH anymore. That ended like a year ago! He's obviously no aware of what is going on. He also mentions in his comment that is not an expert and it's all just his impression….Great…no facts…just impression.
                  If you don't understand why Richard's comments on twitter like that, then all i can say is that you don't know what hex is.

                  I can understand some people won't like Richard, but to them i say, look past the person and look at the smart contract, look at the code, look at the layman's guide and do your own research (not just reading someone's opinion or impression on reddit).

                  • idjces on 29/10/2021 - 23:32

                    @mqi:

                    Ah, now you don't seem so confident in calling Hex a scam.

                    Only so far as scam is not the best word to describe the deceptions at play

                    Don't know whether it needs highlighting since it's a reddit comment, not your response

                    ACTUAL scams(hint hint, iron fiance)

                    Same issue, not a scam in the sense that it was just poorly designed tokenomics, that eventually failed at the extremes (the failure then made obvious the oversight on design flaws).

                    Hex has been around for almost 2 years with 100% uptime no scam, no ruggs new ATH

                    Kind of hard to not have downtime when all it is, is a token that will forever exist on Ethereum. Shiba, another token on Ethereum, has 100% uptime too.

                    not just reading someone's opinion or impression on reddit

                    I've seen more than I care to, of Richard explaining Hex on youtube

                    It is a token solely designed to enforce scarcity, hoping newcomers will pay more and show higher paper profits for existing holders. At least the shiba memes are honest about the fact that the token provides no real world utility in any sense, and warn you of what you are participating in.

  • Mechz on 10/09/2021 - 16:37

    Don't forget to declare any profits on your tax.

    • Aerith-Waifu on 10/09/2021 - 16:38

      Not selling! Keeping for the next 5 - 10 years. Will pay tax as no one can get away with no paying tax in aus

      • dust on 10/09/2021 - 16:56
        +6

        Not just capital gains from selling, the "interest" you earned is assessable income.

        • Aerith-Waifu on 10/09/2021 - 17:39

          Oh really? So if MATIC is worth say $3.5 at the time, I need to add: $3.5 x 2.33 = $8.155 to my taxable income?

          And when I sell, what's my cost base? Is it $3.50 per coin? (As I have now paid tax on those $8.155 gains?), or my cost base is $0 as I didnt pay for these coins?

          (I understand there is the capital gains tax rule if I sell in 12 months I get a 50% tax discount)

          • dust on 10/09/2021 - 17:40

            @Aerith-Waifu: I believe so, but I don't have the answer to your question, I don't know if the ATO are clear on that but yeah it's totally cooked.

            If you get audited, I have no idea what the ATO will do to validate what we've put in our tax return.

            • Aerith-Waifu on 10/09/2021 - 17:44

              @dust: Amazing! Sounds like its double tax on staking then.

              I have not done any staking as I would like to find out how everything works first. Thanks for your input Vegeta:)

              Love to hear how those who does staking do their calculations on Staking Earned and how is cost based calculated after income from staking is reported.

              • Mechz on 10/09/2021 - 18:06
                +1

                @Aerith-Waifu: I think you will only be taxed when you cash out back into AUD.

                • Kenb0 on 10/09/2021 - 22:50
                  +3

                  @Mechz: Not just when you cash back into AUD or any other fiat, any time you convert to a different crypto token, that counts as a cgt event as well ie. MATIC to BTC, or BTC to ETH. This has been made quite clear by ATO.

                • FredAstair on 22/10/2021 - 13:54

                  @Mechz: If you cash out.

                  I hear of people lending their coins and earning from that.

          • terlalu on 10/09/2021 - 18:06
            +2

            @Aerith-Waifu: nah, your cost base is what it cost you to acquire the asset, so $3.50 (plus any fees etc).
            the 50% discount is if you sell after 12 months.

            if you lose money, can you nominally negative gear… not just for investment properties and originally brought it to encourage stock market investment

            • Aerith-Waifu on 10/09/2021 - 18:13

              @terlalu: So I will have 2 cost bases then?

              One cost base is the 250 Matic I paid at $1.50
              The other cost base is the 2.033 Matic at $3.50?

              • terlalu on 10/09/2021 - 19:46

                @Aerith-Waifu: Yes, that's why trading can be slightly complex.
                But most brokers/aggregates can give you a summarised but detailed account of all your purchases/sales for you which helps if you do a lot of trading.
                I have no idea about Binance though.

                • Aerith-Waifu on 10/09/2021 - 20:02

                  @terlalu: Thanks, good to know, I think Binance has a summary too. Just need to find out where, its alot to take on for a noob with their page. A lot more complex compares to Comsec…….lol

                  Its crazy to think coins earned through STAKED REWARDS needs to be taxed twice to be honest, once at the time it was received (goes into income tax), and capital gains tax when its been disposed off.

                  • MrHyde on 10/09/2021 - 20:58
                    +1

                    @Aerith-Waifu: It's no different to reinvested dividends. It is two transactions.

                    First is income earnt, so income tax

                    That income is being used to purchase coins, so those coins have cgt on disposal.

  • Seraphin7 on 10/09/2021 - 16:38

    Say hell no to FOMO … YOLO !!!

    • Aerith-Waifu on 10/09/2021 - 16:41
      +1

      Only buys during the crash.

  • Drakesy on 10/09/2021 - 16:52
    +5

    Each to their own.
    Wouldn't trust anyone who's giving me a guaranteed return of 11.0% PA on some virtual currency
    For some reason screams ponzi/pyramid scheme.

    • KaTst3R on 10/09/2021 - 17:48
      +3

      If its too good to be true, it probably is…

      • FredAstair on 22/10/2021 - 13:56

        My thoughts are it sounds too good because the banks have brainwashed us into thinking 1% PA is good.

        I'll just keep enjoying my 12% APY on my coins and slowly cash out on them as needed thanks,

    • Mechz on 10/09/2021 - 18:07
      +6

      Very similar to the Aus housing market then I guess.

      • Aerith-Waifu on 10/09/2021 - 18:17

        Hard one this is. As most politicians in this country has invested in the housing market, it will be not their best interests to let it fail…………….but never say never

      • cloudy on 12/09/2021 - 22:02

        wait, what housing promises guaranteed return of 11%?

        • Mechz on 13/09/2021 - 00:51

          More ponzi than 11% promise.

          • cloudy on 13/09/2021 - 11:27

            @Mechz: Comparing something we need to something we don’t is funny

  • stirlo on 10/09/2021 - 16:55
    +1

    And if the price of MATIC (which I've never heard of) halves in the next year?

    Then your return is suddenly -38.66%

    Considering this crypto is some random coin with no real world use (unlike BTC or Ether) then it's relatively likely it crashes in the next year. Especially when there's nothing in the real economy generating those 11.35% returns…

  • brendanm on 10/09/2021 - 17:48

    I currently have my very small amount of Matic staked on binance, as well as some other coins. The risk is that crypto is so volatile, by the end of your staking term, the coin itself could be worth half, or could be worth double. As with most things, the higher the risk, the higher the potential reward, as well as the higher the potential loss

    • Aerith-Waifu on 10/09/2021 - 18:09

      How do you workout the Cost Base once you paid income tax on the staked rewards? Based on the day its received or just have a cost base of $0 going forward?

      • brendanm on 10/09/2021 - 18:43

        Haven't done it yet, as have only been doing it for the last month or so. I don't see how they could police it, and don't see why they should get tax when you receive it, as well as when you sell it. There has been no money made on it until the sale.

          • brendanm on 10/09/2021 - 18:55

            @Aerith-Waifu: The ATO can say that, buy I'm not sure how enforceable it is. It's like saying someone who works at KFC, who gets some leftover chicken at the end of the night, should pay tax on the value of that chicken.

            As far as I know, you don't have to pay tax on shares received from an employer when you receive them, only when they are sold, however I could be wrong on that.

            • trialex on 13/09/2021 - 09:35

              @brendanm: You do have to pay tax, if you got more than $1000 worth of "discount" when you acquired them (i.e. got $1200 worth for free, or $3000 worth for $1500) etc. Also if you earn over $180k you don't get the discount.

              Income test for the upfront concession – $1,000 reduction

              • brendanm on 13/09/2021 - 10:25

                @trialex: Thanks for the info, I've never really looked into it properly. My pittance of crypto is earning well under $1000 when staked.

                • trialex on 13/09/2021 - 10:48

                  @brendanm: No worries, but just to clarify the $1000 number is only for employee share schemes - I'm not aware of a similar threshold for crypto. Share dividends don't have a threshold for example (as far as I'm aware).

        • trialex on 13/09/2021 - 09:41

          If you earn dividends from a share on the stock market and use their dividend reinvestment scheme, you pay tax on the dividend amount even though you didn't get the cash. You then also pay capital gains tax when you sell that new share sometime in the future.

          I think it would be the same for crypto earned by staking - pay tax on the new coin (not sure of the rate for that though or where on your return you disclose it) in the tax year you earn it, and then capital gains on it later when you sell it.
          The cost basis if the coin price when you earn it, so keep track of that. If the coin value drops to nothing by the time you sell, then you have made a capital loss, and you can use that to offset a gain made on other coins (either that year or rolled forward to future years)

    • bobwokeup on 10/09/2021 - 20:13
      +1

      True although you only lose if you sell and if you HODL then it should come back eventually (plus you’d keep earning staking rewards).

      • brendanm on 10/09/2021 - 20:19

        then it should come back eventually

        Should, but it also could not, which people don't seem to allow for.

        • FredAstair on 22/10/2021 - 13:57

          Thus why it's import to diversify.

  • mskeggs on 10/09/2021 - 17:51
    +1

    The question is what happens if MATIC is not $3.50 next year, but $0.000000035.
    I certainly hope for you it becomes $35, but consider the downside.

    In past examples of these kinds of bubbles, at least you could enjoy the tulips.

    • mskeggs on 10/09/2021 - 17:55
      +1

      Or to put it another way, why didn’t you buy it under 3c last November?
      Or why not buy the coin trading now for fractions of a cent that will be $1+ in a year?

      • Aerith-Waifu on 10/09/2021 - 18:08

        Only just got into the crypto space, more of a share person, however you do have a very valid point, put a few hundred dollars into some of the 0.0000000001 one and let it either die or boom.

        • mskeggs on 10/09/2021 - 18:13
          +2

          Probably not the exact point I was making.
          Why not put the money on black at the casino? Known odds and return. You can always keep doubling down on the next spin.
          Get it right ten times in a row and you will have 1000 times the initial stake.

          • Aerith-Waifu on 10/09/2021 - 18:16

            @mskeggs: Martingale system only works to a certain degree. I saw a video about the Martingale system on youtube and its very possible to lose 14 hands in a row at the casino. By then a initial $1 bet will become million or something crazy

    • brendanm on 10/09/2021 - 18:46

      This is the same for anything though. I don't "believe" in crypto, but I know others do, and things can go crazy with it. Having a little bit of money spread around a couple of things could net you a nice payday, with very little downside.

  • ndea on 10/09/2021 - 17:53
    -2

    Banks don't want your money, even 1% is too high for them; they prefer nearly free money from the government.

    Then leverage it up using the money multiplier, keep scant reserves, and lend to negatively geared property tycoons for juicy profits. If the ponzi collapses, the government will bail them out.

    Crypto must be stopped.

    • FredAstair on 22/10/2021 - 13:58

      I can see why you've been down voted here.
      You comment appears to be only based on fear not fact.

      I think a better statement would be 'greedy banks need to be stopped'

  • idjces on 10/09/2021 - 17:53
    +1

    They're basically printing/diluting the count of circulating MATIC. If you own 10/10,000,000 now, you own 11/11,000,000 in the future. The 11.34% won't last indefinitely. Same with cardano iirc. You're getting a 'bonus'.

    Most crypto stuff has incentive systems to try and drive adoption.

    • Aerith-Waifu on 10/09/2021 - 18:56

      Same can be said about the Trillions of USD which is been printed each year. Each to their own I suppose

      • idjces on 11/09/2021 - 16:00

        Just posting here since it noted some interesting Polygon stats. See the first image.

        https://twitter.com/DefiMoon/status/1436212995772747815/phot…

        Pulls in $50,000/day in transaction fees, or $18M a year. Issues $400M a year in tokens.

        I like polygon for what it does, and I use it myself. Just understand how safe your $875/11.34% really is, over an extended period.

        • rektrading on 11/09/2021 - 16:58
          +1

          Pulls in $50,000/day in transaction fees, or $18M a year. Issues $400M a year in tokens.

          The $50k p/d is the Polygon on-chain network Tx fee.

          Binance doesn't use the Polygon on-chain network for trades. The trades are off-chain.

          https://ibb.co/Pjmtwkv
          https://coinmarketcap.com/currencies/polygon/markets/

          The coins (MATIC) never leave the user's wallet when using Binance. This can be verified using a block explorer.
          https://polygonscan.com/

          Binance collects closer to between $192.8k ($241m * 0.08%) p/d to $241k ($241m * 0.1%) p/d in trading fees from users that trade MATIC.
          https://www.binance.com/en/fee/trading

          That is $70m p/y from fees alone. Now add the staking node and it's easy to see how they can pay 11.34% on short-term deposits.
          https://www.stakingrewards.com/earn/matic-network/

          • idjces on 11/09/2021 - 17:22

            @rektrading: ok, but why would Binance pay any of its revenue to matic stakers?

            From what I recall, all fee revenue binance has decided to share, gets routed into BNB repurchases/burns.

            That $70m would go towards BNB burning, not matic stakers

  • rektrading on 10/09/2021 - 19:16

    Traditional banks make enough ROE to pay their depositors more, but they don't want to. They rather do share buybacks and pay their shareholders.

    August 11, 2021
    5:39 PM AEST
    Last Updated a month ago
    Asia Pacific
    Australia's CBA returns record $7 bln in buyback and dividend as profit rebounds

    A$6 bln off-market buyback at 10%-14% discount to market price
    A$2 per share final dividend to payout 71% of cash earnings
    Income rises 1.7% but expenses up 3.3%, higher than expected
    Investors welcome buyback but outlook challenged - Citigroup
    https://www.reuters.com/world/asia-pacific/australias-cba-se…

    Here are the basics of how Celsius rewards its users. Celsius is another popular lending platform that rewards its users with a high yield on their digital assets.

    Celsius Network Interest Rates, Explained | by Celsius | Medium

    Celsius Network Interest Rates, Explained
    Hint: There’s no magic formula to the Celsius business model.
    Celsius
    Celsius

    Apr 24, 2019·5 min read

    How can Celsius Network pay 7.1% interest?
    One of the most common questions we’re asked is how we are able to consistently fund interest rates between 3–10% APR. Skeptics have tried to argue that our business model is “too good to be true,” but anyone who has earned interest with Celsius Network knows it’s the real deal. So, how are we able to pay upwards of 10% when banks are only paying depositors, on average, less than 1%?

    The answer is very simple — banks could also pay you 3–10%, they just don’t want to, and if we’ve learned anything in the last hundred years, it’s that they certainly don’t have to pay you above 1% because we’re giving them our hard-earned cash for almost nothing in return. Banks have gotten away with lowering the payout rate as they merged with other banks reducing competition and paying depositors the bare minimum in interest while keeping most of the profits for themselves.
    https://blog.celsius.network/celsius-network-interest-rates-…

    Binance Earn works in a similar fashion but with a twist. Their Earn platform payout comes from validating blocks on the network and short-term loans to leverage traders.

    Please re-consider staking your Matic on Binance
    I know Binance is offering like 43% APY for 15 days, but the size of their validator node on the Polygon staking pool has ballooned to almost 30%.

    This gives Binance an almost cartel-like influence over the network, where they can collude with other massive validators to hold the network “hostage”.

    I imagine the Polygon team is silent about this because of Binance’s huge influence in the space, but we could really use a bit more decentralization.

    Some alternatives to make even more Matic then you are making by staking on Binance include lending/borrowing on Aave to claim wMatic rewards through the Polygon rewards program and delegating your Matic to a different validator other than Binance.

    Binance currently has a 10% commission rate (quite high) on their validator node which I imagine is being used to fund the 43% 15 day APY.
    https://www.reddit.com/r/maticnetwork/comments/ns8hz3/please…

    Binance validator node
    https://wallet.matic.network/staking/validators/97
    0x7b5000af8ab69fd59eb0d4f5762bff57c9c04385

    Matic Top 25 validators by blocks
    https://polygonscan.com/stat/miner?blocktype=blocks

    • Aerith-Waifu on 10/09/2021 - 23:59

      Very interesting reading. thanks

      • popsiee on 11/09/2021 - 08:07

        Get Musk to tweet some crap about your crappy crypto or else it basically its not even going to be toilet paper hehe :)
        I thought it was well know the ridiculous interest rates was for the sharks to catch fish who will eventually lose their whole stake .

      • BigBirdy on 11/09/2021 - 08:30

        If you believe this bs spiel, think about this … banks are paying <1% on most of their deposits, and lending out for mortgages at 2-3%. They collect some cream on credit card finance, but that lending is tiny compared to mortgages. So how are these 10%+ returns being generated? Most likely it’s just a relabelling of capital as earnings, propped up by new deposits to disguise the scheme, or it’s investing in high risk ventures that may ultimately just be relabelling capital as earnings. Someone’s paying for that “free lunch”, and you’re just hoping it’ll be someone else. Good luck with that.

        • FredAstair on 22/10/2021 - 14:00

          Are you basing this opinion on facts or fears?

  • echelon6 on 10/09/2021 - 22:57

    credit risk of the counterparty (the exchange? who holds onto the stake?)

  • GrillnKill on 11/09/2021 - 07:43
    +2

    Mate check out Pancake swap, up to 90% apy staking their cake token. Made a lot of money from staking there, how sustainable it is, I cannot say - but it’s been good to me for a long time!

    • Aerith-Waifu on 11/09/2021 - 22:01

      This too me is just way too risky, there is no reason why they can keep paying that kind of API year on year…….

      • GrillnKill on 14/09/2021 - 09:32

        Maybe… but pancakeswap isn’t a fly by night kind of dex, they are the BSC version of Uniswap (ETH) I got cake tokens at around $10, staked at 110% apy (at that time) and it’s been cheap and hassle free. Cake is now $20 + the value of my staking rewards, it’s been my most lucrative investment. You are also free to pull it out any time if you get concerned. Anyway this is most definitely NOT financial advice, just my experience.

        Check out stakingrewards.com to find what’s giving the best returns.

      • GrillnKill on 14/09/2021 - 11:53

        It’s no more or less risky than polygon.

  • mqi on 11/09/2021 - 08:34

    Check out hex at HEX.COM
    Thank me later

  • tulip99 on 11/09/2021 - 08:35
    +2

    Cryptotips with Heidi on Youtube is good - she seems legit and explains things and has been in crypto for a few years with her boyfriend/husband Toby.

    Sometimes the staking interest on Binance is sold out by the time you click the Stake button. I'm getting 36?% on there staking Cake for a month but I could get 87% if I stake it on Pancake Swap but I'd have to watch videos all over again on how to put my crypto into my Metamask wallet, then deposit it into Pancake Swap. It's been a couple of months since I did it and it was a bit fiddly for a newbie like me.

    I have no idea how safe Pancake Swap is but I know a lot of people use it for staking. I've read don't do farming anywhere because you can suffer an impermanent loss if the price of the coins go down and you'll lose money.

    I researched for over a month before I bought my first bit of Bitcoin and then other coins so I had some idea of what I was doing (I hope) and I'm still a newbie! :-)

  • popsiee on 11/09/2021 - 08:44
    +1

    I researched for over a month before I bought my first bit of Bitcoin and then other coins so I had some idea of what I was doing (I hope)

    So you haven't figure out who promotes their crypto the best catches the most fish .

  • ilikeradiohead on 11/09/2021 - 12:44

    Banks pay 1% because they take your money and lend it out at 2%, with the difference used in administration and profits for the bank. How do these guys get money?

  • funduguy4u on 11/09/2021 - 13:02
    +2

    I am newbie to this staking. But it sounds super interesting and want to dip my toe into it.

    Anyone who is doing it can be so kind to give some orientation or any page which I can refer and start. I have made some tiny investments into BTC and ETH via Binance but now want to get in Staking. Thanks in advance.

    • smashman42 on 11/09/2021 - 14:57

      both of those can be staked in Binance already, though they have some of the worst staking returns out there getting another teeny bit for free ain't bad, yeah?

      Just the flexible savings product with bank like less than 1% rates, or you could look at the locked staking for X time period (tho usually sold out for BTC and ETH), DeFi Staking, Liquid Swaps (matched with another coin, possibly each other if you have enough of them - but this one is a bit more complex and isn't simply "interest" equivalent and you can potentially lose some of your principle, or really have one of the pair go down in qty while the other goes up in qty) etc

  • rektrading on 11/09/2021 - 14:09

    BigBirdy https://www.ozbargain.com.au/comment/11030175/redir
    banks are paying <1% on most of their deposits, and lending out for mortgages at 2-3%.

    ilikeradiohead https://www.ozbargain.com.au/comment/11031123/redir
    Banks pay 1% because they take your money and lend it out at 2%,

    You're right that the CBA is paying <1.0% to their customers. The CBA's highest interest rate on saving is -0.85% of the inflation rate of 3.8% 1Y. People that leave money in banks are guaranteed to see it lose its value.

    https://ibb.co/JvcJr4m
    https://ibb.co/9bk3d3P
    https://ibb.co/QFQkLkb
    https://ibb.co/02NvsV8
    https://www.commbank.com.au/savings-accounts.html

    The CBA gets a 10.3% ROE but only pays <0.053% of that back as savings to their customers.

    https://ibb.co/58BPMnW
    https://www.commbank.com.au/content/dam/commbank/about-us/sh…

    Every bank in the world does the same thing. The SEB gets a 13.8% ROE and pays their customers 0.0% on saving.

    https://ibb.co/VV5hTSz
    https://youtu.be/EbnibyhNd6M?t=191

    CeFi / DeFi deposits (TVL) are growing bigger every day because their users are tired of getting ripoff by the banks.

    • BigBirdy on 11/09/2021 - 15:17

      ROE is the return on shareholders equity. Why would they pay any of that to their customers?

      • rektrading on 11/09/2021 - 15:46

        That is the difference between how traditional banks and the CeFi / DeFi lending platforms operate.

        The banks pay shareholders the bulk of the profits even though the shareholders don't provide value to the business. The bank customers are the ones that provide the value by deposits and/or paying fees.

        CeFi / DeFi users on the other hand provide value to the lending platforms in the form of liquidity. The platform depending on its structure gives back to its users 80% of the profits, <0.3% of the swap fees or staking rewards.

        It's easy to see why CeFi / DeFi lending platforms have grown from $273m TVL on Jan 04, 2019, to $151b TVL on Sep 11, 2021. People are starting to wake up to the reality that there is a better way to make passive income.

    • techlead on 11/09/2021 - 22:31

      Yet billions are still deposited into CBA's transaction accounts. Its daylight robbery and those people are paying the lazy tax.

      Unfortunately, too many people are either not willing or unable to learn financial literacy. This is also not taught in schools. People are taught to work and deposit money in the banks. They are essential hording trash. The value of cash will continue to be eroded away. Those kind of people are the biggest losers and they will fall further and further behind.

      • rektrading on 11/09/2021 - 22:55

        Is this you? ;)

        https://youtu.be/uDfUAppPkIY

        • techlead on 12/09/2021 - 13:58

          I am, in spirit. :D

          I do believe Bitcoin is the best savings account. Crypto in general.

          I have very very minimal trash (aka cash) in my transaction account, just enough for the essentials, that's it.

  • smashman42 on 11/09/2021 - 14:51

    If you want to be that liiiiitle bit safer but still dip your toes in crypto, you could stake stablecoins (USDT, BUSD, USDC etc), so at least your principle isn't jumping all over the shop cause they're tied to a fiat currency, but you're still getting like 5-7% instead of 1% or whatever (depending on flexible or lock period, where you stake through, etc, how long is a piece of string?)

    • Aerith-Waifu on 11/09/2021 - 22:04

      USDC is a good one, paying around 8% at the moment

    • funduguy4u on 13/09/2021 - 08:04

      @smashman42 could you please tell me how to start in USDT staking? Anything you can share that i can refer to take off? Thanks

      • smashman42 on 13/09/2021 - 13:47
        +1

        If you're on an exchange that supports staking for that currency, you follow their help guides pretty much - you've asked a very open ended question cause there is a million answers I could give, and potentially I could be giving you a dodgy one to steal your stuff. It is always best to do your own research.

        Not all exchanges support staking in all countries so don't sign up to new ones that advertise good rates until you double check you can actually do it - eg in the US you can stake on Coinbase, but not in Australia.

        The legit places do the whole "Know Your Customer" thing with verifying identify to pass on your details to the ATO, so it is a bit of a process to get started. (some not so legit places no doubt do it too)

        I use Binance but they might not be the best option for you. They do have pretty good help guides to help n00bs though so they might be worth a look.

        There are referral codes to a lot of the exchanges on here where you can get some free BTC or something for signing up if you spend $x on crypto within y time, but I'd check if any place/s you currently use support staking before you sign up to a new one looking for a better rate or whatever

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