New investment opportunity around : interests bearing Bitcoin accounts.

Bitcoin is evolving at a fast pace, more and more services are growing and some of them are aimed at growing your crypto wealth. Lately I’ve found about those kind of « Bitcoin banks » that are paying you interests just to hold a positive balance with them. Instantly, the experienced investor see some advantages such as a totally passive income opportunity while being still « legit » (yes, no shady Pyramid Scheme promising you 3000 %/year), and some risks such as the possibility of the service to go down and disappear or to try to steal your precious digital money. That’s why I’ve been extensively searching about it and can list two of those services here.

Magnr savings account.
Magnr savings account.

HaoBTC, the « Chinese Coinbase ».

To be honest, I wasn’t really interested in those Chinese Bitcoin saving accounts services because I though that it was far too risky. It’s still is, it’s just that I think that HaoBTC is an acceptable risk to take. Despite their choppy and non-complete English translation, it seems that this company is trying hard to get respect and trust from bitcoiners. Like Coinbase, they are acting as an online wallet or secured multi signatures vault. The good thing though is that if you let your money with them on their online wallet, they’ll pay you interests. Not that much for small investors (2~3 % per year now) but people that can invest a stash of more thant 10 bitcoins will get far more (more than 10%) in a special account. Great right ? But you must be asking yourself does the money come from… HaoBTC is claiming that it’s from their mining operation and it sounds (China is the place to be if you’re mining on a big scale) and look legit (many pictures of their operation). They probably use the customers funds to buy more equipments and so on. Risky ? Yes, there is no insurance, no guarantee they won’t fly away with the money, but as I said, their business seems legit. Chinese users may also find useful the buying option (like on Coinbase wallet).

They also have been developing a blockchain explorer, which is always nice.
So it’s basically investing into mining, yes, but they’ll take care of everything and normally you don’t have to worry about buying more hashing power which can be nice.

Magnr, trading and savings account.

Magnr is a United-Kingdom based service and the only western company that I know offering a true saving account. Where does the interests are coming from ? Well, simple : from people borrowing money to leverage trade. Yes it’s basically the same kind of scheme as Bitfinex, just a lot more simple. They don’t have an insurance yet though, so a succesful hack could wipe your stash. The good thing is that they use the BitGo system to secure their wallets. Interests are relatively small though, but higher that in my actual Bank account anyway ! Oh also, for the wealthy folks around, interests are paid for up to 100 btc.

Overral, these type of services are really welcomed as saving and earning interests (make that money do some work for you !) and moving your precious stash is becoming incredibly easy. Still, always assess the risks and see if it’s good for you. Bitcoin services are often not covered by insurance.