The Bitcoin Hodler’s Portfolio

You do not want to trade Bitcoin, but just hodl and still make your money work for you? This is how we would do it. We recommend to keep most of your Bitcoins in a secure hardware wallet to which you hold the keys. You may then invest a part of your money in lending platforms which pay an interest, as they lend out your coins to traders who use them as leverage. We naturally prefer decentralized lending platforms based on smart contracts, but not many of them are available yet.

The only reliable source of passive income via DeFi on Bitcoin so far is BitPro which last year had a yield of more than 20%. As BitPro can also go down, we have included some custodian lending sites with a guaranteed interest to mitigate that risk. You have to be aware that if you lend your Bitcoins to a third party website, it might get hacked and you could lose your money. However, it might be worth taking that risk to get a good yield. As one should not “put all eggs into one basket”, we advise to use several lending platforms.

For our exemplary investment of one Bitcoin, we have chosen BitPro as a DeFi service (40%) and BlockFi, Coinloan, Nexo, and YouHodler on the custodian side (15% in each), as they currently offer the highest interest rates. Please feel free to do your own research!

We will inform you on a weekly basis in our report how our portfolio has performed.