Ways of Cryptocurrency Investing and Financing

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Just as we have discussed before that from the view of bitcoin address, the proportion of long-term holders are still increasing. Then, for those who choose to hold the coins for a long term, what are the methods to “make profits with coin storage” under the premise of security? Since some mining workers always asked similar questions, we will put into our discussion today.

The ways of obtaining the “profits after sleeping” in the cryptocurrency circle are divided into three categories:

  1. Loan;
  2. “Mining” with POS mortgage;
  3. Others.



If your coins are stored in the exchange for a long time, you can lend it to the futures trading users. At present, almost all the futures trading platforms have corresponding financial trading portals, just try to search and find.

Take the gate as an example here. The interest rate of most currencies is 0.02%-0.03% per day, about 7%-10% annualized interest rate.

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Note, the loan is ultra-short-term including the queuing time as well as the fees for each platform, so the actual annualized interest rate is not high. If only focus on the interest rate, it may be worthwhile to loan at USDT. For example, when the market is optimistic, the short-term lending rate at USDT can reach 30% of annualized rate, that is, about more than ten percent averagely every year.

The advantage of such a kind of lending is that it’s based on the big platform to lend to the trading users, so there’s no need to worry too much about the security.


“Mining” with POS Mortgage

It’s also very popular this year and almost covers all the POS-type currencies, such as BTM which used to adopt POW has partially transferred to the POS mode.

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Entrance and Threshold

One of the main entrances for mortgage mining is the exchange, such as the Huobi Pool, and the other is the wallet, such as the BitPie, Imtoken, Cobo and other entrances. Moreover, some currencies also have their own official wallets.

It seems that most mortgages don’t have any thresholds, and some currencies require a minimum mortgage to earn profits. Since there are too many POS currencies, it’s unnecessary to list all of them.


In the POS mode, the mortgage of locked token in the network can bring income within a certain period. The more mortgage, the more gains. The income mainly comes from the inflation rate in the cryptocurrency network. The cryptocurrency network uses the staking as reward to encourage the holders or nodes to participate in verification for the sake of network maintenance.

The annualized income of most currencies ranges from 3% to 15%, but different targets of pools have different rates of return.

What most project mortgages gets is the original token, while what the mortgage of NEO gets is GAS; what the mortgage of huobi Pool gets is HPT. Here, the situation is more complicated because more complicated here, because the income depends on the price fluctuation of another token instead of the local currency.

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Another issue to be noted is that many people are worry about some POS mining which can gain high profits. But we should make specific analysis on specific issues, not just focusing on the annualized interest rate.

For example, many of them are super-node models, so the annualized income obtained by retail investors mainly comes from the profits and the coins mortgaged to the node, rather than the inflation rate of overall net. Therefore, although some projects have only a few percent of annual inflation, its mining profits can still reach the level of 20% since not all the chips will participate in the mining.

Therefore, it’s necessary to consider where the high returns come from. Of course, if the inflation of the network itself is relatively high or the project owner holds most of the chips, I suggest we pay attention to the risks, because there are no commercial modes good enough for the public chain. Without actual application and growth potential, all the coins received as profits will return to the market as well.

Create Master Node

Many projects now have a super node model and it’s also profitable to create main node. Many organizations and small teams have started businesses in this field this year. Take tezos as an example, it has certain status in the POS and all the nodes will charge a certain percentage of commission from the mortgage users.

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Of course, compared to retail investors, there are higher requirements for the master node, such as the expense on network maintenance. It has more risks due to certain threshold for holding.



Others mainly refer to the potential benefits which are randomly available, such as airdrop and fork coins.

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For instance, there are many airdrops in public chain projects while the fork coins are mainly the POW currency, which should also be known as another form of dividend.


Risks of Passive Coin Mining

Of course, passive coin mining also has some risks. Such as:

  • After long term of POS mining, people finally find it’s worthless in the long run.
  • The risk of operational mistakes. For instance, a guy wanted to exchange EOS for REX to make profit; however, he made an operational mistake to rent REX, which resulted in the loss of 5000 EOS.
  • Pay attention to the lock-up period. Many mortgage mining has a lock-up period, so pay attention to the time in case it’s still locked in the account when you want to sell out.
  • The risk of fraud, such as the airdrop and fork coins, there may appear some fake wallets to directly steal your private key; furthermore, people should avoid the risk from the platforms. It’s very necessary to choose the mainstream platforms.

Therefore, to get passive benefits from cryptocurrencies, people should pay attention to the risks with great cautions and detailed survey beforehand.



Nowadays, to earn coins with coins is not the mainstream in the circle of cryptocurrency, because the market is so volatile that such a little interest may not be enough to make up the losses.

However, for long-term holders, they may consider it seriously, or we should say it’s a good opportunity now.

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Although the profits are not so attractive in the bear market, it would be completely different and even double in the bull market in the future.