Hey Jessiexchange users
Exchanges are the entry point for most of us who want to get into the crypto game, due to the way things are set up, we have to use these shadow banks who make it easier to trade fiat for crypto, or give you the ability to trade your Bitcoin or ETH for all sorts of altcoins.
Many of the biggest exchanges were actually mining pools at one point and then spun off the business into the exchange as they found new ways to use the liquidity they had and profit from the access to their capital pool.
Exchanges have a bad rep
As a central point into crypto, it has also been a point of failure and we've seen that turn into huge issues with exchange failures and hacks making huge headlines. The ability to self custody has also been a cornerstone ideology of cryptocurrency, we all should know the term:
"Not your Keys Not Your Crypto".
Since crypto can be self custodied, theoretically we as users can test their reserves by pulling off a bank run and withdrawing their crypto. This means that exchanges need to be well capitalised at all times or risk not being able to cover withdrawals and run the business.
Keeping your liquidity going
Exchanges have come up with all sorts of ways to keep liquidity in their system from custom tokens where the fees generated are shared with the holders. Coins like BNB, KuCoin shares and CRO employ this model.
As competition for liquidity heats up companies will need to offer more attractive rewards to keep liquidity in their respective ecosystems.
Crypto.com
Crypto.com's CRO token offers a range of staking options, you can stake in the standard app, you can use their supercharger function or stake with their exchange.
CRO Staking with the exchange so far offers the best rate with up to 10% APR. This allows users to earn 10% per annum (paid daily) is available to users that stake a minimum of 10,000 CRO for at least 6 months.
The daily interest is calculated as:
- Daily Interest = Principal amount (in staked cryptocurrency) x (APR/365).
- For example, if you staked 10,000 CRO for 180 days you would receive 5.47945205 CRO every day as interest.
Binance
Binance has a host of products and going through them all would take an eternity but I've seen returns on some of their staking products pushing as high as %13 APR.
BlockFI
BlockFi offers up to 8.6% APY on a range of cryptos, it started out as a lending platform but it has begun to spin out various products like a crypto exchange as well as a debit card.
Kucoin
Kucoin shares are currently paying out at a rate of 6.86%
The cost of non-custody
Having custody of your coins is an important part of financial independence and self-sovereignty and anyone who wants to sweet talk you out holding ownership they need to offer you a sweetheart deal.
In some cases, depending on the size of your portfolio it may be worth the risk to capture some additional return on holding various cryptos with platforms instead of holding it yourself but remember, you are taking on additional risk.
Are you funding any businesses at the moment? What rate are you willing to accept to give up custody of your crypto to a 3rd party provider?
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
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