As an addition to latest article “Financing a web-project with Ethereum” I wanted to show how to make your Crypto assets grow a small percentage per year and also to have some additional cash per month using Stablecoins.
Stablecoins are cryptocurrencies designed to minimize volatility, relative to some “stable” asset or basket of assets. For example there is EURS that is tied to the € price also 1 EURS = 1 €.
Another one is PAX Gold that is tied to the price of one ounce of Gold. Both of this stablecoins are a subset of Ethereum network. With PAX Gold you can if you go to London, exchange your coins, for real gold. That’s what they claim at least since I would not fly there to prove it. More than that, the point I want to make here, is that in sites like YouHodler you can make 12% APR + compounding interest per year.
Let’s say you have 10.000 € there for one year untouched.
At the end of the year you should have 11.200 € with a 12% interest.
If you want you could extract this 1200 € to your account and have some extra cash at the end of the year for further investments of a short holidays. That is a quite interesting method to generate a passive income over the years.
Below there is a talk about stablecoins that was recorded and had 464 registered participants from 58 different countries, on April 17 2020
Now the only risk I see is that this money is not on your domains. It’s hosted in a secure wallet in the domains of a company. So what I recommend, no matter what site you choose, is to check very well and read about who is behind the company and how secured are your assets in the event something happens with the company you choose.
I use to trust the banks a lot until one day at the middle of 2001 in my hometown, Buenos Aires, the economy crashed and the banks simply will not let you take your dollars out of your acccount. Or even worse, they where converted to argentinian money, something that at that moment was the equivalent to flush your cash into the toilet.
Ater that happened to me, got an offer to work in Spain and moved to the EU in 2004, and I always take care of where I put my assets and making an analysis of the risks. Of course we are in Europe and here the protection laws, would simply not allow a bank run like that to take place, still with that assumptions it is wise to check where you put your money.
In case of YouHodler my analysis was good and as I mentioned in last post, the fact that they are a members of the BlockChain Association and the Financial Commission, and that they open profiles show an extensive and proved career in the Financial tech industry was enough for me. The fact that they have real offices in Malta but also in Switzerland is also a proof that they real and solid.
Disclaimer about 100% transparency: I’ve decided to sponsor YouHodler and will also make some videos and further analysis openly. The links starting with track.youhodler.com are affiliate links since I want to get additional cash in order to film the videos and use my time to share with my readers the road to financial freedom and to generate an additional income each year.
‘This links won’t work from Germany or from Spain due to country restrictions. But from those countries you can enter directly to youHodler.com
This does not mean that I blindly recommend this company. There are also others in the market like Nexo that offer a similar percentage (2% less on stablecoin). Feel free to explore and take your decision solely on your assumptions.
You can also earn crypto faster with Multi HODL but that is something that must be handled with care and deserves a new Blog post. For the moment I only recommend to keeping combined assets, like for example some Bitcoin and Ethereum, along with Stablecoins like EURS or PAX Gold in order to generate a passive income.
Do not try Multi HODL with the dream of making a fast buck. It’s very risky to use it, specially with the variations value of cryptocurrency, that is like trying to take control of a wild snake. This must be used with care and meditation.
Questions for my subscribers:
What do you think about this?
Would you trust an external company part of your assets provided they are trustable and generate a yearly passive income?
I bough some ETH back when it was 260 -> 280€ now it has gone up almost 100€ in two months. That was a lucky desicion. But is not always like this and it can be that due to market changes, external factors, or just the team Ethereum development roadmap that it simple goes down too.
This was a good analysis made by an user of TradingView months ago:
This second analysis was also quite accurate. 1 ETH is worth today 19 Nov. 2020 about 470 dollars (395 €).