Saturday, November 16, 2019

I deposit 500 ETH ($120,000 SGD) to earn Crypto Interests

I first blogged about Blockfi on Oct 15. I had put in a casual 200 ETH with them with the intention of earning an easy 4.1% a year of interest in ETH.

Fast forward to the start of November, I blogged about receiving that interest. A nice and expected 0.67 ETH.

One of the reasons why I decided to blog about Blockfi is to force myself to be more organized about segments of my crypto and to also demonstrate to curious people how wildly different the crypto space is from the "traditional" stuff.

Well, the interesting news of November is that Blockfi announced that they would be raising the maximum deposit limit eligible for interests from 200 ETH to 500 ETH. You can check the latest rates here, but here's the screenshot of the page since y'all probably lazy.

I would imagine that this change probably does not affect most people. I mean, how many of you have spare 500 ETH just lying around?

I mean, I do. But I'm a crypto degen that has been in the business for quite a while, and I have actually had some success in my degen habits, so I suppose my situation is not really the same as everyone else. Anyway, since I had spare ETH lying around, I decided to spring clean a few accounts and top up my BlockFi account to 500 ETH and milk it good for those sweet interests.

And how much is that worth in SGD? As usual, just punch in "500 ETH to SGD" into Google and you get the answer.

Hot diggity damn. ~$120,000. That's a nice lil' stack of ETH I got in there, eh?

So why am I putting in ~$120,000 worth of crypto into a recently launched crypto fintech startup with no real operating history for some piss interest?

Because I can, kek.

That's just how I roll. I'm a big pp chad.

There's a reason why crypto is so wild wild west - because it actually is. Please be very aware and walk in with both eyes open regarding the risks of custodianship with a foreign entity. Please, I beg you. If you are a humji chicken shit, please do NOT do what I am doing. If I lose my 500 ETH, then what? I suck thumb and move on. Life is like that. Life is all risk, and then you die. What are you gonna do about it? But I digress...

I am planning on sharing the results of the interest next month. However, since it's already mid month and I had my liquidity a bit scattered, to calculate the amount of interest for the month of Nov is going to be very messy. I'd estimate that the interest I'd finally get paid out for this month on the 500 ETH deposit balance is going to be ~3%, probably a bit under. Roughly just over 1 ETH, I reckon.

Anyway, the interests for December should be better since my whole 500 ETH should be earning interest the entire full month (unless they play around with the eligible balances again!). In which case, I'd probably be looking at roughly ~1.7 ETH paid out at the start of Jan 2020.

Phew, it looks like I'm getting a bit ahead of myself!

I'm still patiently waiting for USDC to be enabled as a deposit type and eligible for interests on Blockfi. I might put in a chunk of USDC to continue my experiment.

Okay, that's it for my post on BlockFi. I probably won't have anything to update until the interest payout at the start of Dec. However, if they do decide to add USDC, I'll definitely update about it and canvas for interest in me making a simple SGD -> USDC -> BlockFi guide.

<insert usual disclaimer that crypto being super freaking dangerous and you shouldn't do anything that you don't understand what you're doing>

Obviously, since crypto is volatile, that 500 ETH could well be worth $50,000 in a few months. Likewise, if the resurgence of interest in crypto comes round again, ETH just needs a simple 8x for that to be worth ~$1M... so roughly all it has to do is go back to all time highs, haha.

If you already own some crypto and are just sitting on it in your Coinhako, Coinbase or Binance SG account, why not consider if it is worth the risks to move it over to BlockFi and earn some returns on it?

That said and done. if you want to give BlockFi a try, remember to sign up with my referral link and you'll be blessed with many many luck, huat ah!

1 comment:

  1. Hello, I was just wondering what do you think of BlockFi versus Celsuis?


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