Thanks to Celsius I’m able to earn an additional 11.68% interest every year by investing in stablecoins and putting it into a fixed deposit.
Given that I’m already invested in Bitcoin, I am using Bitcoin as a collateral to borrow out stablecoins specifically, Tether (commonly known as USDT).
How to Deploy This Strategy?
Here’s the mathematical breakdown of this technique:
Firstly, you borrow Tether (USDT) from Celsius using Bitcoin or Ethereum as your collateral, which costs you 1% interest per year.
Next, you transfer the money you’ve borrowed from Celsius to another app called Vauld, which you can lock in your coins in return for 12.68% interest per year.
Your cost is 1% interest per year, and your net interest payout is 11.68% (11.68% is the compounded interest if you lock in your fixed deposit for an entire year).
This strategy is extremely impactful to generate additional passive income. However, this technique has its risks.
Risks of This Strategy
This technique only works if you agree to the following criteria:
I am invested in Bitcoin or Ethereum for long-term profits.
I do NOT plan to sell more than 50% of my Bitcoin or Ethereum holdings within ONE year.
I have a conviction that cryptocurrency will be the future.
When your Bitcoin or Ethereum assets are locked with Celsius, investors can not sell their assets because it is used as collateral.
Investors face the risk of Bitcoin or Ethereum depreciating in value over time. Therefore, it is important that the investor is confident in the future of Bitcoin or Ethereum to have the correct mindset to ignore large price swings.
More About Celsius and Vauld
I’ve been using this strategy for about 6 months now, and the interest payout has been working perfectly.
I’ve been using Celsius and Vauld for over a year and there haven't been any problems with deposit and withdrawals.
If you want to learn more about Celsius, I’ve written a blogpost about it.
If I were to rate them out of 10 for reliability: 10/10 being 100% secure,
Celsius: 8.5/10 Vauld: 8/10
Celsius receives a higher rating due to their longer operation and larger assets under management.
This doesn’t mean Vauld can’t be trusted, it simply means that Vauld is still a younger app and may possess higher risk of security.
Create an Account
If you don’t have a account in Celsius and Vauld, feel free to use this signup link to earn US$50 in BTC now:
*Receive US$50 after you deposit over US$400.
*Earn 1.5% of the amount you trade on Vauld
Learn More About Cryptocurrency
If you want assistance in the process of buying and selling crypto or want to learn more about crypto in general, schedule a free 1-1 workshop with me to learn more.
Join Our Short-Courses
Or, if you’re already invested in cryptocurrency but want to learn more strategies for short-term profits, you can read more about it on my blog.
What’s Your Take?
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Share Your Experience With Us
If you have trading strategies like this one that you would like to share with this community, I am more than happy to create a post for it.
To share with us, submit your strategy to firstname.lastname@example.org.