Saturday, November 11, 2017

Best Way to Earn Interest on Bitcoin

Bitcoin is getting more and more attention every day and an increasing number of people discover its benefits and invest in it. In just a few years Bitcoin has turned into the best store of value in human history. This made the price of Bitcoin to sky rocket and nowadays it's not easy to accumulate even 1 bitcoin. However no matter how much bitcoin you have it always feels good to increase it in a passive way by just letting your money work for you. The best way to do this is through a bitcoin deposit earning interest every day and thus passively increasing your bitcoin holdings.

There are a lot of options to invest your Bitcoins and earn some interest on top of them, but please note that we are still in the wild west period of crypto currencies, so you should be very careful. Moving your bitcoins out of your wallet to a deposit just like with real money means that you no longer have control over your funds. That is why you should do this only if you trust the organization you deposit your money to. A lot of websites over the Internet promise too good to be true things like 1% daily interest for example, so be very careful. Almost all of these websites are scam and sooner or later will run with your money. If something sounds too good to be true, then it most probably isn't. Anything more than 5-6% yearly interest sounds suspicious and should ring some alarm bells.

Now after I've explained the risks, lets move to the fun part or what is a good and trustworthy website where you can invest a certain amount of bitcoin and watch it grow? My answer to this question is FreeBitcoin and here's why. What makes an organization giving you interest on your bitcoins (or money in general) good and trustworthy? According to me, the following 3 things:

  1. Age - a website that has been created yesterday may be very good but it's still not trustworthy and you shouldn't deposit any money to such website. FreeBitcoin has been around since 2013, so it's been some time and it hasn't had any issues.
  2. Reputation - Has the website been hacked?, Has it cancelled any payments to its users? The answer to these question is NO for FreeBitcoin, which is a very good thing considering that the website is several years old.
  3. Clear business model - They are going to pay you interest on your bitcoins, so it should be very clear how they earn money to pay both you and themselves. If it's not, then stay away, they might run with away your money. In the case of FreeBitcoin, they invest your money and earn from them in 2 ways: they expand their mining operation and they fund the gambling part of their website, where users can gamble with their bitcoins and usually lose them, which means earnings for FreeBitcoin.

FreeBitcoin currently offers a 4.08% annual interest on your bitcoins, but what's even better is that the interest is applied on a daily basis, so you earn a little more than 0.01% interest on your bitcoin balance per day. This means that for each 10 000 satoshis you deposit, you will earn 1 satoshi every day (1 bitcoin consists of 100 mln satoshis). Being a bitcoin faucet, FreeBitcoin also offers other ways to increase your bitcoins like free rolls to earn some satoshis every hour (the Free BTC page on the website). This is safe to use, but be very careful with the Multiply BTC game, because it's pure gambling and you can easily lose your bitcoins there so I recommend you don't play it. For a review of the other features of the website, check out the article Earn Free Bitcoins Online.

If all you want is a passive way to increase your bitcoins simply register on FreeBitcoin, deposit some bitcoins using the green Deposit button at the top, sit back and watch them grow. I recommend you start with a small investment until you get comfortable with the website. Keeping your bitcoins in a web wallet has some risks, so to increase the security of your account you should use a strong password and you can activate 2 factor authentication (i.e. you will have to enter both your password and a code from your smartphone to log in). You can use the Earn BTC page to monitor your bitcoin interest and your daily earnings. At any time you can withdraw some or all of your bitcoins using the green Withdraw button. If you choose the slow withdraw option, the fee for the withdrawal will be very small in most cases, which makes FreeBitcoin a nice low fee bitcoin wallet, too.

Register and start earning!

No comments:

Post a Comment