01-13-2021, 07:21 AM
How to make the most out of your Bitcoin holdings
<table> <tr><td> <a href="https://www.reddit.com/r/CryptoCurrency/comments/kw27bm/how_to_make_the_most_out_of_your_bitcoin_holdings/"> <img src="https://b.thumbs.redditmedia.com/TpmCgMjaX4Fz9W51AzYio1BtTozPWO7JL-yOcwtZc3c.jpg" alt="How to make the most out of your Bitcoin holdings" title="How to make the most out of your Bitcoin holdings" /> </a> </td><td> <!-- SC_OFF --><div class="md"><p>For those of you who are new to crypto and just acquired some Bitcoin, here is how you can earn more Bitcoin with your Bitcoin:</p> <h1>Vaults</h1> <p><strong>What are vaults?</strong> You can think of them as savings accounts, each with a different strategy to earn you more of what you put it. In vaults you deposit capital to a contract, which takes control of the capital, and uses it typically to put in a liquidity pool, which typically earns returns based on other users trading through that liquidity pool, and through liquidity mining programs where tokens are distributed based on how much liquidity you provide. The vault can then automate the harvesting of those rewards, which in turn can be traded for the same capital you provided, which in turn grows your savings account. You can do everything a vault does manually, but depending on how much capital you provide, you will be better of with a vault because it shares the gas and transaction fees with everyone who deposited into the vault, so in turn you lose out much less from the gas fees you would have to pay if you did everything manually.</p> <p>​</p> <p><strong>What are the risks?</strong> Well it depends on the vault you choose. Some can be quite risky because they can be affected by the price of the asset changing. Others can be relatively risk-free (aside from smart contract risk), where the funds aren't exposed to risks when the capital changes price. These latter ones are typically recommended if you don't want to be called an 'ape' or a 'degen'.</p> <p>​</p> <p><strong>Who creates the vaults?</strong> There are many organisations creating vaults. The first, best, and the most famous one is <a href="https://yearn.finance/vaults">Yearn</a>. And there are other similar ones, like <a href="https://harvest.finance/">Harvest</a>, and <a href="https://app.badger.finance/">Badger</a>, which focuses on Bitcoin vaults.</p> <p>​</p> <p><strong>How do you use the vaults?</strong> You could visit any of those links above to get started, but if you are unsure on how to proceed, best visit their communities first to get some help (and be careful with folks who DM you first, they are typically scammers).</p> <p>​</p> <p><strong>What are the returns?</strong> If we focus only on Bitcoin here, and the relatively low-risk ones that aren't exposed to price volatility risk, the returns you can expect are between 3-30%, depending on where you turn to. One of the highest one I can find right now is the 'Super Sett' which you can find at <a href="https://app.badger.finance/">Badger</a>, that provides at the current time of writing <a href="https://app.badger.finance/super-setts">31% APY</a>, meaning if you put in 1 BTC at the start of the year, you can expect 1.31 BTC at the end of the year, if the APY stays at this level.</p> <p><a href="https://imgur.com/a/K7TZHEr">https://imgur.com/a/K7TZHEr</a></p> <p><a href="https://preview.redd.it/27p9izqa8za61.png?width=628&format=png&auto=webp&s=f058312b20c60f42eafcb8f9b310ae6c0a87303c">https://preview.redd.it/27p9izqa8za61.png?width=628&format=png&auto=webp&s=f058312b20c60f42eafcb8f9b310ae6c0a87303c</a></p> <p>To use that vault, you first actually have to go to <a href="https://www.curve.fi/ren/deposit">Curve Finance</a>, deposit BTC into the pool (you can either deposit regular BTC, or if you already have BTC on Ethereum (wBTC, renBTC etc.), you can deposit that, and then you get a Curve liquidity pool token (in this case a token called 'crvRenWBTC'
, and this liquidity pool token you deposit on the Badger site.</p> <p>--------------------------------------------------------------------------------------------</p> <p>Vaults are pretty great, as someone myself who prefers long-term holding over trading, a vault is a way to put your capital to work without having to micro-manage it, while staying exposed to price appreciation that may happen. You are still exposed to risks though, depending on the vault, and in general smart-contract risks are always relevant, so be careful out there, this is not financial advice.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Metamilian"> /u/Metamilian </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/kw27bm/how_to_make_the_most_out_of_your_bitcoin_holdings/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/kw27bm/how_to_make_the_most_out_of_your_bitcoin_holdings/">[comments]</a></span> </td></tr></table>Kind Regards R
<table> <tr><td> <a href="https://www.reddit.com/r/CryptoCurrency/comments/kw27bm/how_to_make_the_most_out_of_your_bitcoin_holdings/"> <img src="https://b.thumbs.redditmedia.com/TpmCgMjaX4Fz9W51AzYio1BtTozPWO7JL-yOcwtZc3c.jpg" alt="How to make the most out of your Bitcoin holdings" title="How to make the most out of your Bitcoin holdings" /> </a> </td><td> <!-- SC_OFF --><div class="md"><p>For those of you who are new to crypto and just acquired some Bitcoin, here is how you can earn more Bitcoin with your Bitcoin:</p> <h1>Vaults</h1> <p><strong>What are vaults?</strong> You can think of them as savings accounts, each with a different strategy to earn you more of what you put it. In vaults you deposit capital to a contract, which takes control of the capital, and uses it typically to put in a liquidity pool, which typically earns returns based on other users trading through that liquidity pool, and through liquidity mining programs where tokens are distributed based on how much liquidity you provide. The vault can then automate the harvesting of those rewards, which in turn can be traded for the same capital you provided, which in turn grows your savings account. You can do everything a vault does manually, but depending on how much capital you provide, you will be better of with a vault because it shares the gas and transaction fees with everyone who deposited into the vault, so in turn you lose out much less from the gas fees you would have to pay if you did everything manually.</p> <p>​</p> <p><strong>What are the risks?</strong> Well it depends on the vault you choose. Some can be quite risky because they can be affected by the price of the asset changing. Others can be relatively risk-free (aside from smart contract risk), where the funds aren't exposed to risks when the capital changes price. These latter ones are typically recommended if you don't want to be called an 'ape' or a 'degen'.</p> <p>​</p> <p><strong>Who creates the vaults?</strong> There are many organisations creating vaults. The first, best, and the most famous one is <a href="https://yearn.finance/vaults">Yearn</a>. And there are other similar ones, like <a href="https://harvest.finance/">Harvest</a>, and <a href="https://app.badger.finance/">Badger</a>, which focuses on Bitcoin vaults.</p> <p>​</p> <p><strong>How do you use the vaults?</strong> You could visit any of those links above to get started, but if you are unsure on how to proceed, best visit their communities first to get some help (and be careful with folks who DM you first, they are typically scammers).</p> <p>​</p> <p><strong>What are the returns?</strong> If we focus only on Bitcoin here, and the relatively low-risk ones that aren't exposed to price volatility risk, the returns you can expect are between 3-30%, depending on where you turn to. One of the highest one I can find right now is the 'Super Sett' which you can find at <a href="https://app.badger.finance/">Badger</a>, that provides at the current time of writing <a href="https://app.badger.finance/super-setts">31% APY</a>, meaning if you put in 1 BTC at the start of the year, you can expect 1.31 BTC at the end of the year, if the APY stays at this level.</p> <p><a href="https://imgur.com/a/K7TZHEr">https://imgur.com/a/K7TZHEr</a></p> <p><a href="https://preview.redd.it/27p9izqa8za61.png?width=628&format=png&auto=webp&s=f058312b20c60f42eafcb8f9b310ae6c0a87303c">https://preview.redd.it/27p9izqa8za61.png?width=628&format=png&auto=webp&s=f058312b20c60f42eafcb8f9b310ae6c0a87303c</a></p> <p>To use that vault, you first actually have to go to <a href="https://www.curve.fi/ren/deposit">Curve Finance</a>, deposit BTC into the pool (you can either deposit regular BTC, or if you already have BTC on Ethereum (wBTC, renBTC etc.), you can deposit that, and then you get a Curve liquidity pool token (in this case a token called 'crvRenWBTC'
, and this liquidity pool token you deposit on the Badger site.</p> <p>--------------------------------------------------------------------------------------------</p> <p>Vaults are pretty great, as someone myself who prefers long-term holding over trading, a vault is a way to put your capital to work without having to micro-manage it, while staying exposed to price appreciation that may happen. You are still exposed to risks though, depending on the vault, and in general smart-contract risks are always relevant, so be careful out there, this is not financial advice.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Metamilian"> /u/Metamilian </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/kw27bm/how_to_make_the_most_out_of_your_bitcoin_holdings/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/kw27bm/how_to_make_the_most_out_of_your_bitcoin_holdings/">[comments]</a></span> </td></tr></table>Kind Regards R