The Easy Crypto Strategy Earning Me 15% On My Dollars

Even With Bitcoin Down, You Can Earn Income from Crypto

Today’s topic: Breaking out of the traditional banking system to earn a much higher return on your cash than you’ll get at any US bank.

How much? I’m earning 15% on boring ol’ US dollars right now. 

In this case, specifically, I’m talking about USDC, or US Dollar Coin, a so-called crypto stablecoin that shadows the dollar. No crazy volatility. You deposit $100 in real fiat greenbacks and you get 100 USDC that you can move around the blockchain at the speed of electrons. You sell 100 USDC back to fiat and you get $100. No risk.

That’s a stablecoin—a crypto designed to mimic a fiat currency such as the buck, the euro, the Swiss franc and others.

Now, as for the fat-n-juicy returns of 15% (or more)… that happens inside a world called “decentralized finance,” or DeFi as it’s known.

DeFi allows for products and services that real-world banks cannot offer because the infrastructure doesn’t exist. It only exists on the blockchain (the tech infrastructure behind crypto), i.e. in the crypto world.

Let me give you an example of what I’m talking about: Looping.

And already that sounds weird, and I understand why. “Looping” is not a term any of us have used anywhere in our personal financial lives over the last, oh, forever.

But there’s real opportunity here.

I’m stealing this example from my latest issue of Frontier Fortunes, where I offer readers a detailed description of three DeFi strategies for earning between 8.7% and nearly 30% on stablecoins.

Looping is an income strategy you won’t find in the real world because it cannot exist there. It can only exist in a world where transactions happen instantaneously, i.e. on the blockchain. The looping process involves depositing an asset such as a stablecoin, then repeatedly borrowing and redepositing that same asset to amplify your yield, up to a level you’re comfortable with.

All the borrowing and whatnot happens in an instant and automatically, orchestrated and executed by so-called “smart contracts” that, as with looping, can only exist on the blockchain. These contracts have certain parameters programmed into their coding, and when those parameters are met, the contracts automatically execute.

Some people use looping to leverage to the max, which is 5x on a particular site I use. I leverage between 2x and 2.5x.

The leverage part makes it sound exceedingly risky. And, yes, there is some risk. But when you’re using stablecoins as your asset, the risk is quite small.

Depending on which stablecoins you’re depositing, you’re looking at yields in the high single digits to double digits. (I’m personally using a looping strategy that’s earning me 14.1% at the moment.) The highest yield I’ve recently found on a one-year bank deposit is just over 4%.

But let’s assume you despise the idea of leverage.

Then there are other strategies you can use to generate plump yields as well.

I’m using one at the moment in which I’ve dumped a bunch of USDC stablecoins into a giant pool of stablecoins owned by other investors and savers. The DeFi site then uses that pool to generate fees through:

• Crypto traders converting one crypto for another (they pay a fee just like you pay when traveling abroad and converting US dollars into another currency).
• Investing in low-risk activities such as lending to crypto traders by way of overcollateralized loans.
• Earning a return through real-world assets such as short-term US Treasury notes.
• And making balanced trades in the crypto market that do not rely on a particular crypto going up or down.

All of that is very low risk, but right now this particular DeFi strategy is generating a 14.9% return on a deposit of a very vanilla asset that simply tracks the US dollar 1 for 1.

And one of the best parts is… this income strategy is designed to be market neutral. In other words, you make a return whether the crypto market goes up or down.

This is the world the mass market of consumer banking is moving into.

Soon enough, we’re going to see banks partnering with—probably buying—DeFi sites so that they can begin offering these same innovative, income-generating products with plump yields that simply cannot exist outside the world of blockchain.

The thing is, you don’t have to wait for that day to arrive at your local bank.

Those yields are available today.

I’m earning them myself.

So too are untold numbers of other crypto investors who’ve come to realize that if you want to make real money on your idle fiat currency, you’ve got to head in the DeFi world, where abundant yield awaits.