New Way to Earn Interest on Your Money
by S Beez on Oct 09, 2020
If you have read my book or have seen my tweets then you are already familiar with High Yield Savings accounts (HYSA) . If you have one of these accounts, then you know like I know that rates are dropping like a rock due to the Fed dropping rates to keep the economy afloat. Rates have dropped from 2.5% APY down to 0.5% APY in the matter of 8-12 months. Currently keeping your money in these accounts is not helping us earn much interest. HYSA are still much better than regular savings accounts, but you will not see much of a return. I am still using my HYSA but I have been investing everything above my emergency fund amount into other investments, because your dollars are losing value due to inflation. If all of this is going over your head, check out my book after reading this blog post.
So let me tell you about an alternative to HYSA that a good friend Doe told me about. Before I decided to present this fairly new kind of account to you, I wanted to make sure that it was safe and to figure out a strategy that I believe worked best. The new account type that I think that people should seriously look into are Crypto Interest Accounts. Currently you are able to earn 8.6% APY on USDC and GUSD compared to the 0.5% APY with HYSA. This is a very good return on your money, much higher than any interest rate I have seen before. You can open a Crypto Interest Account on BlockFi.com
USDC and GUSD are two stable coins that are basically the equivalent of $1. 1 USDC = $1 . 1 GUSD = $1. These two coins can be purchased on Coinbase.com or Gemini.com. It is called a stable coin, because it isn’t supposed to change in price, the coin is pegged to $1.00. The benefit to this stable coin is that it is not volatile like Bitcoin and other cryptocurrencies, so you do not have to worry about losing any money while you store your coins in the Crypto Interest Account. You are also able to withdraw from the crypto interest account at any time.
How Do You Earn Money?
The process is very simple to start earning money with your Crypto Interest Account.
- You open your account
- Deposit USDC or GUSD
- Start earning interest
Once you start earning money I want you to make sure that your money is safe as well. You will want to turn on Two Factor Authentication for BlockFi and Coinbase or Gemini. If you aren’t familiar with 2FA please check out my blog post on how to set it up >>> here <<<.
If you want to earn $10 in Bitcoin when signing up for Coinbase use my link to sign up
If you want to earn $10 in Bitcoin when signing up for BlockFi use my link to sign up
Disclaimer : Please do your research if you have not used cryptocurrencies before diving in (buying/sending and 2FA), I do not suggest anyone to put all of their money into a Crypto Interest Account. I’d put an amount that you are comfortable with, maybe 20-40% of your Emergency Fund max.
How to Send Money from Coinbase to BlockFi
1. Purchase USDC on Coinbase of the amount of money that you want to deposit into your BockFi account
2. Go into BlockFi and click "Deposit"
3. Switch your currency to "USDC" then copy your USDC address
3. Go to Coinbase click on your USDC wallet, then hit "Send"
4. Paste your BlockFi USDC address into the "To" address box on Coinbase
Make sure your triple check your address. Make sure it is correct.
5. Hit "Send", then wait 10-20 minutes for the USDC to show up in your BlockFi account.
After you deposit your money you will begin earning 8.6% interest. That's all there is to it.
Thanks for reading this blog. This is a new way to earn money that we should be taking advantage of while interest rates for traditional rates are dropping.
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