21 sats \ 0 replies \ @TheBTCManual 25 Feb \ on: Generate income with idle bitcoin? Personal_Finance
The CAGR is your reward for hodling and doing nothing, but if you're looking to risk some capital there obvious ones would be
- Running a lightning node and selling liquidity, time-consuming and you need technical expertise and a lot of number crunching
- If the interest rates are attractive, you could borrow against it for a downpayment or the entire cost to purchase real estate and then use that rental income to pay off your loan then you get the bitcoin back and let the rental service the rest of the debt and later maybe buy you some bitcoin to add to your stack
- Arb trading especially in P2P markets can generate some returns, depending on the market you're in, you could be purchasing cheaper bitcoin and selling on various P2P markets for between 5 - 50% but yeah its time consuming and is basically a second job
- Going degen and trading options with something like LN markets
- You can try liquidity pools on Liquid or Rootstock but you could suffer impermanent loss on that
No guarantees, of course, you could end up with fewer Bitcoin, not sure why idle bitcoin is a bad thing, having your money work for you is more of a fiat concept