I always want to find a way to make my bitcoin work for me, and lately I’ve been sending money into my Bitfinex wallet, and earning interest on it!
Bitfinex are based from Hong Kong, have been in business for almost 2 years – they are one of the big 5 global exchanges – but they are more than this, not just a source to buy bitcoin from they are THE authoritative bitcoin exchange for bitcoin TRADERS. I.e. people who daytrade bitcoin, or who margin trade (take out positions to “bet” that bitcoin is going to rise or fall)
EARN INTEREST on the bitcoin in your wallet!
And the best part of their platform is that you can EARN INTEREST on the bitcoin in your wallet!
You can store bitcoin in your wallet with them while at the same time, lend it out to investors / traders who want to margin trade – the rate varies depending on optimism or negativity about the bitcoin price, but its a very solid and secure to earn extra satoshi
You can even make a free account and have a look around before investing just to see how everything works:
It’s pretty simple, I’ve made a screenshot just below for you, but here are the 5 steps:
1. Click the tab called “Total Return Swaps” on your main dashboard.
This takes you to the area where you can lend out your bitcoin.
2. Click on the BTC tab below it
This is because you want to lend out bitcoin and earn interest on it.
3. A little lower down, click on the Auto-renew tab.
It’s easier to use the auto-renew and set and forget it rather than having to login each day (or even multiple times each day if people pay back your swaps quickly.. which they do).
4. Change the lending period down from 30 to only 2 days.
This is because the interest rate varies so greatly as bitcoin is so volatile.. so set it to 2 days and you will always be getting a live, accurate rate, rather than being stuck in a low interest position for a long time.
Also you would never be in a situation where you have a higher interest rate locked in over a long time as people always have the option to close the position and pay you back – which they do.
5. Click on the text saying “Options” just below.
In here you can select “Flash Return Rate” – this lets bitfinex give you the optimum, market rate interest – again this changes so massively over time.
I just haven’t found it worth it to try and pick higher rates myself, sometimes they just never get picked, other times they get paid back too soon – I just set a 2 day lending period, auto-renew it, at the flash return rate, and most of the time, most of my bitcoin is lent out and I am earning bitcoin/satoshi every day!
6. Click the Green Autorenew button to start it
It will then turn red. And if you refresh the page in 30 seconds or so then you will probably see your bitcoin waiting in the “unfilled swap demands” area above, and in time it will move into the “Swaps currently provided” area – this could take a few minutes or a few hours, but in time you will generally see them in here more often than not, earning you satoshi passively