QuoteAt a time when high interest savings accounts are languishing at an anemic 2%, Craig Hammell found a way to earn more than 8% this past summer. Instead of storing his money with a bank, the software engineer lent it out to cryptocurrency owners on Compound, an automated lending platform.
More here (https://fortune.com/2019/11/14/crypto-interest-startup-compound-decentralized-finance/) and below.
Website: https://compound.finance/
Let us know how it worked, if you try it.
Need to be careful these days, many cheaters & tricksters out there (apparently some using to the "hype" around cryptocurrency).
Yes, of course. But compound.finance is just one actor from DeFi, what is happening there is going to be a revolution, but it will take time. We are just starting and at the moment even investing there is more for geeks because of all the technicalities. Some good reading here:
DeFi' movement promises high interest but high risk (https://www.ft.com/content/16db565a-25a1-11ea-9305-4234e74b0ef3)
Decentralized Finance: 5 Things You Should Know About DeFi (https://defiprime.com/decentralized-finance-5-things-you-should-know)
And although I trust compound.finance (https://compound.finance/) (the other one reliable is makerdao (https://makerdao.com/en/)) the main risk is someone hacking and stealing the funds (not really a scam in this case), although this has happened also with traditional banks. That's why these systems are audited (https://blog.openzeppelin.com/compound-audit/) every 3 months at least, looking for flaws and vulnerabilities. I loaded about 500 EUR there just to see how it goes, need more time to see how stable and reliable this is. For now, most of my savings are distributed more or less this way:
1) 30% in a traditional bank account which pays a ridiculous 0,3% year (in Peru banks pay 4% year!)
2) 60% invested in the stock market. I have a mix of bonds, stocks and commodities to manage risk. 2019 was a great year, with 25% in profits! Just 83x more what the bank above would offer :P For those in the EU I recommend degiro (https://www.degiro.com/) (which was recently acquired by German broker Flatex AG)
3) About 5-10% is invested in Bitcoin and Etherum. As of this writing Ether is worth 119.37 EUR but I think it will double (at least) its price this year (the reason being is DeFi, because as more people will use this, the value of Ether will proportionally increase). This of course is a high risk market hence I only invest here something that wouldn't put me on the streets if it crashes hard :)
I do really hope DeFi will succeed and people will have real control of their money. f*ck the banks! (https://www.youtube.com/watch?v=acx8pyFavas)
Thanks for your impressions, seems it worked out well for you.
And one of those links gives a good "headline": high interest, but high risk. :1f62e:
Well you know, if you don't risk you don't win :)
Just starting putting some money aside for future Cure gigs in Compound through the Argent wallet (https://www.argent.xyz/) (very easy to install and use!). Will keep you updated on this. Current yearly interest in compound is 5,9% (in Slovakia my bank offers no more than 0,3%). I am of course not putting too much there (top would be perhaps 2,000 EUR) as this is in it's infancy and need to see how it goes before I can fully trust this:
(https://pbs.twimg.com/media/EPOjt4dWsAELWVn?format=jpg&name=4096x4096)
Quote from: dsanchez on January 04, 2020, 17:01:20As of this writing Ether is worth 119.37 EUR but I think it will double (at least) its price this year
should have bought more... it's about 205 EUR now!
Quote from: dsanchez on February 08, 2020, 18:27:32QuoteAs of this writing Ether is worth 119.37 EUR but I think it will double (at least) its price this year
I was wrong, it did not double, price went up 4 times! Price at the moment of writing this: 1 ETH = 395 EUR. 1,000 EUR invested earlier this year would be now nearly 4,000 EUR. Yep :)
https://www.coingecko.com/en/coins/ethereum/eur
Quote from: dsanchez on November 11, 2020, 21:27:36I was wrong, it did not double, price went up 4 times! Price at the moment of writing this: 1 ETH = 395 EUR. 1,000 EUR invested earlier this year would be now nearly 4,000 EUR. Yep (http://curefans.com/Smileys/twitter/1f600.png)
1ETH = 507 EUR today.
1,000 EUR invested earlier this year would be now nearly 5,000 EUR.
Ending the year at 1 ETH = 602 EUR...meaning a 1,000 EUR investment earlier this year would have get you now 5,058 EUR i.e. +4,058 EUR in profit.
Starting 2021 at 1 ETH = 872 EUR...meaning a 1,000 EUR investment one year ago would have get you now 7,305 EUR i.e. +6,305 EUR in profit, a 632% increase.
Quote from: dsanchez on January 04, 2020, 17:01:20As of this writing Ether is worth 119.37 EUR but I think it will double (at least) its price this yea
I wrote the above exactly one year ago! I was wrong, price multiplied by 6 in the last year LOL.
Quote from: dsanchez on January 04, 2020, 17:01:20As of this writing Ether is worth 119.37 EUR
Ether is right now 2721 EUR. This means 1,000 EUR invested back then would now be worth 22,794.67 EUR.
Quote from: dsanchez on May 03, 2021, 23:25:32... means 1,000 EUR invested back then would now be worth 22,794.67 EUR.
Wish you'd told me back then. :winking_tongue
Quote from: dsanchez on January 04, 2020, 17:01:203) About 5-10% is invested in Bitcoin and Etherum. As of this writing Ether is worth 119.37 EUR but I think it will double (at least) its price this year (the reason being is DeFi, because as more people will use this, the value of Ether will proportionally increase). This of course is a high risk market hence I only invest here something that wouldn't put me on the streets if it crashes hard (http://curefans.com/Smileys/twitter/1f600.png)
Ethereum is now € 2,885.61 which is a 2317.36% increase from this post I wrote in January 2020.