How to Grow Your Cryptocurrency— VAULT Cryptocurrency Blockchain News #17
There are 8744 coins listed on coingecko.com. With all these coins, how do you choose which coins to invest in? Some people only want to stay with the largest market cap coins. Bitcoin and Ethereum are the largest in terms of market cap and are seen as the safest investments for most institutional investors.
Many altcoins have performed better than Bitcoin and Ethereum. Many people who have traded these coins have made huge gains and done well. Trading involves a lot of knowledge and luck. Billions of dollars are traded daily on numerous exchanges.
Once you buy your coins you have 3 different options. You can hold onto your coins in hopes that the coin will go up in value. You can invest them and earn interest or you can sell your coins and get out of the cryptocurrency market. If you simply hold your coins you do not gain any value on those coins other than what you get when the price goes up or down.
Many people have been drawn to coins that allow them to earn interest on their coins. By staking their coins they can earn variable amounts of interest on their coins. If you choose a coin that goes up in value you can earn more coins by staking and make impressive gains.
Decentralized finance (DeFi) has made it possible for people to make impressive returns on their cryptocurrencies. Many people don’t understand what DeFi is. If you don’t understand it or how to use it, then you may be missing out on huge returns if you own cryptocurrencies.
When choosing a cryptocurrency buying a coin that allows you to access DeFi has been very profitable. The question is how can investing in DeFi make you money? There are currently 4 main ways you can make money through DeFi. These ways are described below:
- Staking
When you stake your coins you put them into a smart contract and lock them in or “stake” them for some time to earn more of the same token.
The native asset of the blockchain for most of these staking protocols started on Ethereum. With the tremendous growth of popularity of these DeFi protocols, the Etherium blockchain began to fill up and there was an increase in fees which decreased the returns people were getting. Binance developed its blockchain and many people moved over to that blockchain because fees became much cheaper.
You may have heard that Ethereum has announced that it will be moving to a proof of stake protocol. You might be excited to see that as a possibility. Etherium is a large market cap coin with a 633.8% increase in price over the last year. If you can stake a coin like Ethereum you get the gains and you are also getting more coins through staking.
The proof of stake version of Ethereum will be known as Ethereum 2.0. The minimum requirement to stake on Ethereum 2.0 has been set at 32 ETH ( currently $78,548). Some platforms have announced that they will have a pooling platform so that if you have less than 32 Ethereum you can pool your coins with other people and receive a portion of the rewards based on your percentage owned.
Stakingrewards.com provides a comprehensive list of where you can stake for the best rates.
2. Become a liquidity provider
When you become a liquidity provider you provide tokens to a decentralized exchange such as Uniswap, SushiSwap, Curve and Balancer (Ethereum blockchain) or PancakeSwap, BurgerSwap and BakerySwap (Binance blockchain). These exchanges support swaps between token pairs like ETH and USDT. When you provide equal numbers of tokens to these exchanges you contribute to a liquidity pool which is controlled by a smart contract. The smart contract will provide you a 0.3% fee from all swaps(on the Uniswap DEX) based on what proportion of the pool your share is. The more trades people make in that pool, the more you will earn.
That sounds like a great deal! Ah… but not so fast my friend. There are ways to loose money when you are a liquidity provider. Since liquidity pools rebalance your assets to maintain a 50/50 stake in both, if 1 asset appreciates and the other doesn’t, you’ll sell off some of the more valuable asset to purchase the less valuable asset. There is a process known as impermanent loss. When you provide liquidity to a pool you provide an equal dollar amount of each asset in the pair. Say you want to do a Doge/BTC pair. You provide $1000 of each coin. Doge is $.10 per coin at the time so you get 10,000 coins. Bitcoin is $20,000 so you get 0.05 BTC. While you are providing liquidity to the pool BTC goes to $40,000 and Doge goes to $.05. Now instead of having 0.05 BTC in the pool you have 0.025 BTC to provide your original $1000 liqudity and you have 20,000 Doge. If you cash out now you get 1/2 the amount of BTC you would have had if you would not have participated in the pool. This is called impermanent loss. When providing liquidity you want to choose highly liquid pools with low volatility assets.
You can decide which pools are best to use by getting data from various liquidity pool (LP) aggregators that pull real-time data and help you choose the pools with the best returns.
3. Yield Farming
By serving as a liquidity provider in a decentralized exchange (DEX) like Uniswap, you will receive tokens denoting your pool share. You can then lock these tokens into yield farms. These farms are essentially DeFi protocols that reward you with more of the same token or with a different token. This allows you to maximize your returns by not only receiving rewards from your LP assets that are getting a share of all the fees in the DEX you are using but you are also farming more of the DEX’s LP tokens daily.
Choosing the right platform is essential if you want to do yield farming. You may be familiar with the term “rug pulling”. This happens when a shady platform and its developers steal LP tokens and use them to withdraw liquidity from DEX pools. You can keep the rug underneath you by choosing platforms that have a positive reputation and whose smart contracts have been externally audited.
4. Lending
Utilizing lending platforms allows users to generate a fixed APY for locking their assets into a smart contract. These tokens are utilized by borrowers who are charged interest. A portion of this interest charged is returned to the lender. Below is a list of current lending platforms and their current rates.
The lending and borrowing process is governed by smart contracts. This ensures that there is no risk of the borrower failing to repay their debt.
In addition to DeFi, there are other ways to make returns by buying cryptocurrencies. Holders of VAULT are very familiar with masternodes. Masternodes are defined as a governing hub in some cryptocurrency networks. The masternodes require initial collateral of tokens to operate and function to validate transactions occurring on the blockchain.
Masternode operators make money by generating block rewards of new coins. Masternodes typically generate rewards between 5%–25% APR. These rewards help pay the costs of running the masternodes and boost the creation of further masternodes as more coins are generated.
One last way to earn more coins from your cryptocurrency is to use a digital certificate of deposit. These function the same as a certificate of deposit (CD) you would purchase at your bank. With these platforms, you earn interest that is based on how much and how long you stake your coins. You can typically earn between 3.6%-40% APY depending on how long you plan to lock in your coins. You can also typically earn bonus coins for staking your coins for 10 years or longer. You can earn large returns with these protocols but the disadvantage is you have no access to your coins during the period you have them staked for. You are charged penalties if you remove your coins before the agreed time is up. These penalties are paid back to all the other members of the platform that have active stakes on the platform. Hex is the coin that currently utilizes this protocol and it has been very successful over the past year seeing its coin go up in value by 1877.3%.
No matter which of these protocols you may be interested in, they all provide you with a way to grow your cryptocurrency assets. If you are just holding your coins you may be missing out on some nice gains.
VAULT Crypto News This Week
BNJ upgraded to the new collateral (13000), all masternodes restarted.
https://my.vault.investments/coins/bnj/
Update from the 6th VAULTility VAULT Reserve Board (VRB) Meeting
Thursday the VAULT Reserve Board concluded its 6th scheduled monthly meeting to discuss and decide VAULT coin’s Minimum Guaranteed Price (MGP) for the next MGP period.
VAULT coin increased over $1 since the July 19th market dip and remains above the MGP* of 10,500 sats as @Bobtilladhun | VAULT. Investments mentioned in his latest VAULT weekly update https://bobtilladhun.medium.com/is-a-cryptocurrency-revolution-coming-vault-cryptocurrency-blockchain-news-16-6396230b3ab
Ian | VAULT. Investments proposed keeping the MGP at 10,500 sats until August 26th, and after discussions, the VRB agreed.
The current status:
VAULT coin MGP 10,500 sats until August 26th, 2021
Currently, 95%+ of VAULT coins are locked in CRYO
Public VAULT Reserve 600%+ AUM
*MGP is the safety net and not the price investors typically trade at. This month, trading prices have ranged from about 14% to 28% above our safety net!
You need 500 CRYO VAULT to join VAULT Investors, and 1000 CRYO VAULT to join VAULT Club and VAULT Reserve Board, which also gives you access to higher APR levels in the BTC% program.
VAULTility
https://vaultility.vault.investments/
CRYO VAULT Coin Packs
https://my.vault.investments/coins/vault/coin-packs/
VAULT on Exchanges
https://www.southxchange.com/Market/Book/VAULT/BTC
https://crex24.com/exchange/VAULT-BTC
BTC% Program
https://bitcoin-interest.vault.investments/
VAULT Coin’s Market Performance This Week
As usual, VAULT’s blockchain is running smoothly and producing great rewards for investors. What a week to be holding VAULT! We saw some impressive gains this week. We saw the high at $5.08 on Friday. We had a low of $4.10 on Saturday. We closed out the week at $5.01, up from $4.07 last week for a gain of 25.4% for the week.
We saw an average of $1,746.38 traded daily. This held above the $1,000 daily level and is nicely above last week’s number of $1,221.59.
VAULT coin trades on CREX24 and SouthXchange and we saw 100% of the trading volume this week occurring on CREX24. The Minimum Guaranteed Price buy wall of 1,000 VAULT at 10,500 Satoshi continues to be well-protected by investor demand, with orders currently totaling 363.27 VAULT above the wall. The current price is 12,100 Satoshi (0.00012100 BTC), above last week’s closing price of 12,031Satoshi (0.00012031 BTC).
In addition to the platform, products, use, and demand, VAULT continues to benefit greatly from being tied to Bitcoin. This week we saw BTC go up an amazing 24%.
https://vaultility.vault.investments/
VAULT has been rated a profitable investment on digitalcoinprice.com. Check out their price predictions below.
Bitcoin (BTC) Update
Bitcoin has had an amazing week so far. Hopefully, we are going to see a bull run to $100,000 soon. With this great growth, how amazing would it be to make interest on your coins and generate additional coins in addition to nice price increases?
In this update, I want to compare VAULT to the other methods of growing your cryptocurrency that I described in the introduction and give you some information on why VAULT is the best-kept secret in cryptocurrency investments. Remember if you have a VAULT masternode or a portion of a shared masternode on the platform you are earning 25% APR on a coin that is up 127.6% in value year to date.
Vault Versus DeFi Staking
Doing a quick search of the top 10 DeFi staking coins on stakingrewards.com we find the following returns available:
Polkadot and Binance smart chains come in with impressive 13.29% and 13.13% APR returns. This is well below the 25% APR of VAULT so there would be no reason to switch to DeFi staking versus investing in VAULT.
Vault Versus DeFi Liquidity Pools
Remember our discussion about impermanent loss previously? To prevent this you are usually much safer to choose a stablecoin base liquidity pool. A quick review of the most popular liquidity pools and their returns is listed below:
None of these can beat VAULT’s 25% APR so there is no advantage to moving any funds to them. You will also never suffer impermanent loss when you invest in VAULT.
Vault Versus DeFi Yield Farming
You may be thinking that this is where DeFi has the advantage and will beat the VAULT rewards finally. I have listed the top 5 yield farming platforms and their rates of return. You may see several that offer rates better than VAULT. There is a key concept that you have to remember about yield farming. This concept is known as “crop rotation”. The yields you receive while yield farming is not fixed. As more people farm the same pool the APR decreases. When the rates drop you have to pull out your funds and move to the more profitable ground. This is known as crop rotation and means if you want to yield farm you constantly have to monitor all the different platforms and move funds to get the best yields
- Uniswap: ~20% to 50% APR
2. Aave: ~0.01% to 15% APR
3. PancakeSwap: ~8% to 250% APR
4. Curve Finance: ~2.5% to 25% APR
5. Yearn Finance: ~0.3% to 35% APY
You might get higher rewards with DeFi yield farming but you will have to put in a lot more work. Platforms like Pancake Swap offer high rewards and look very appealing. Just remember yield farming is also subject to impermanent loss. This can be much greater on platforms with low liquidity like Pancake Swap. You may earn a higher APR but your risk of impermanent loss is much greater on these platforms.
VAULT Versus DeFi Lending
Once again the 25% APR generated by VAULT tops all of the current rates for most DeFi lending platforms. Wrapped BTC on Fulcrum appears to be the only exception currently. Below is a current list:
A key thing to keep in mind if you want to invest in DeFi, especially on the Ethereum network, is fees. You pay fees when you buy Ethereum, more fees when you start your smart contract to start your staking, lending, or liquidity pool. You pay additional fees on the smart contract you open for yield farming. If you think that is all, then you will be disappointed that you will also pay fees when you close your smart contracts and cash out. Your 50% APR can quickly be cut down to 10% due to all the profits you lost in fees. Pancake Swap has exploded in popularity because the fees are much lower on the Binance chain. The fees are going up even on Binance as people are moving over and using it more.
VAULT Versus Other Masternode Coins
There have been a couple of master node coins that have done well. The classic problem with most masternode coins is that there usually is not enough demand for the coins generated so the coins get dumped and the price goes down dramatically. You are getting rewarded with new coins but they become worthless. VAULT created the cryo program to reward investors for locking their coins in masternodes and currently has 96.05% of all coins locked in masternodes.
Nodetrade looks impressive with 528.07% ROI. A closer look reveals it has only been around 1 month and its price is down 24.6% already. Sapphire and DeFichain have done well and are the only 2 coins on this list currently outperforming VAULT in terms of ROI and price appreciation.
VAULT Versus Digital Certificate of Deposit (Hex)
For full disclosure, I own both of these coins.
Both of these coins utilize inflation of their coins to provide additional coins to investors who choose to invest in their platforms. Those investors who choose to invest more money over a longer period will see the highest rewards. VAULT does this through the generation of new coins by owning a share of a VAULT masternode. These rewards can be withdrawn or reinvested to generate compound interest daily.
Hex uses a little more complex system. In Hex your rewards are calculated by T-shares. This stands for trillion shares and the more of these you have when you stake your coins the higher your rewards will be. VAULT generates returns based on a set APY generating simple or compound interest daily depending on the investor’s preference. The Hex T-shares calculate daily returns based on what percentage of the daily rewards and accumulated penalties an investor is entitled to based on the number of T-shares they have. Here is a little more detailed explanation:
“A user’s HEX and stake days are ultimately converted to Shares. When calculating a user’s portion of the day’s inflation + penalty payments, they receive an amount equal to their stake’s Shares / Total shares in existence on that day. Meaning, if my stake has 10 shares and there are other active stakes with 90 shares, I will receive 10 / 100 of all payment for that day. If tomorrow there are 110 total shares (a new stake becomes active), I will receive 10 / 110 of all payments for that day. And so on.
Payments are all tracked in persistent storage and are only applied when stakes end. This means that “payments” is a bit of a misnomer — it’s more like “credited” or “recorded”. Upon ending a stake, the contract calculates the total payment from recorded data across all active stake days. See the Layman’s Guide for a more detailed description of the process.”
The main advantage VAULT has is that your daily rewards can be withdrawn. This makes it a much better platform if you are trying to generate daily passive income. If you choose to invest in Hex for 10 plus years you will get a much better APR than you can get with VAULT but you won’t have access to your funds until the 10 years are up. You can cancel your stake but you will suffer severe penalties if you do.
The biggest difference you will notice immediately is the difference in the market cap and daily volume between Hex and VAULT. Hex currently is the #3 rated coin on nomics.com in terms of market cap sitting at $67.46 billion. VAULT is only a fraction of this at $1,865,630.
The daily volume difference is also dramatically different. Hex has a daily volume today of $23.69 million compared to $2,197.98 for VAULT.
If VAULT provides a platform for generating interest for cryptocurrency investments that is just as good and in some ways better than Hex then why is there such a huge disparity in market cap and daily volume? What can VAULT do to decrease this disparity? Stay tuned as options are being explored.
Just for fun, if VAULT had the same market cap as Hex then each Vault coin would be worth $22,483/VAULT and 1 MN would be worth $22,483,333.
Cryptocurrency News This Week
It’s About Time we got Some Good News
Bitcoin Spikes to a 2-Month High Above $42K: Up 25% in July (Market Watch)
MicroStrategy to Buy More Bitcoin Despite Q2 Impairment Loss
Here Comes the Tax Man
New Cryptocurrency Tax Legislation in The US to Raise $28 Billion
More People Getting Into Crypto
Number of Crypto Users Doubled in Just 6 Months: Survey
PayPal Stepping it up
PayPal to Introduce a Crypto ‘Supper App Wallet’ Soon
Here Comes Ghana
Ghana’s Vice President: African Countries Should Embrace Digital Currencies
Bitcoin Mining Goes Industrial
Genesis Digital Assets Raises $125M to Expand Industrial-Scale Bitcoin Mining
Here Comes Mastercard
Mastercard Unveils New Start Path Initiative for Blockchain and Cryptocurrency Companies
Not So Fast on the Amazon Rumors
Not Yet: Amazon Denies Rumours on Plans to Accept Bitcoin
VAULT Crypto Portfolio Tracker
I wanted to give you a running tally of what you could potentially be earning with VAULT. The example I’m using is holding 1 CRYO VAULT masternode (CRYO VAULT available here) with 0.1 BTC invested in the BTC% program (check it out here).
I wanted to show you what kind of returns you could be earning weekly and cumulatively.
One VAULT masternode of 1,000 VAULT with current ~25% ROI generated 4.76 VAULT blockchain rewards this week for a total of 96.65 VAULT over the past 18 weeks. Total is now 1,096.65 VAULT. The total dollar value earned was $484.22 at VAULT’s current price of $5.01. The total BTC value at VAULT’s current price (0.00012100 BTC) is 0.0116946.
Investing 0.1 BTC in the BTC% program earns you 11% APR, giving you a weekly return of 0.00021089 BTC. Over the last 18 weeks, this would be worth 0.00379602 BTC or $158.12.
The total value of your potential returns over the past 18 weeks would be $642.34 or 0.01549062 BTC.
We Are Here To Help You DYOR (Do Your Own Research)
I hope this week’s lesson in price prediction models has given you some new knowledge. If you have any questions please feel free to post or contact me Bobtilladhun (rmcowherd@icloud.com) or any team member on VAULT Investments Discord server:
Ian|VAULT.Investments#4786
Jules|VAULT.Investments#7692
CM| VAULT.Investments#4777
Flowguy81#9906
cryptosmith#9920
Bobtilladhun#8522
fivedaywait#7565
Harris|BITBUZZ#0043
VAULT Global Ambassadors
We want to again invite people to become a VAULT Ambassador. It is a great way for us to spread the great news of VAULT investments to everyone around the world. If you would like to join our growing international community, please click here for more information.
Nick.consult #7284
kikiriki#9227 — Greece
CryptoEva[Own CS Team]#3733 — Bangladesh
bevan honas#7388 — South Africa
Farting Rocket#0302 — France
wltjnes1#1227 — Nigeria
Long Miguel#6762 — Vietnam
https://my.vault.investments/coins/vault/coin-packs
https://bitcoin-interest.vault.investments/
This is not financial advice. VAULT Investments provides a service to its clients and is not responsible for projects listed or featured in its platform or ecosystem. Users should always DYOR. Invest at your own risk.