Get Your Bitcoin Working For You
Now that you have bought Bitcoin, you might be wondering how you can start putting it to work for you and get more sats. Thankfully, there are many options available which allow you to earn interest or receive payments in Bitcoin so you can watch the sats roll in. These mainly fall in to two categories called Centralised Finance (CeFi) and Decentralised Finance (DeFi) both with their pros and cons.
CeFi services operate similarly to a bank in that you deposit your Bitcoin with them, they lend them out to vetted borrowers and pay you interest at regular intervals. However, the risks are that you’re giving custody of your tokens to a third party, remember not your keys, not your Bitcoin.
DeFi protocols do the same thing except you keep the keys to your Bitcoin with multi-sig wallets instead of having a centralised company doing it for you.
The risks here are complexities around setting up the lending contract and hacks that might occur on the protocol but you could argue the same for CeFi services.Ultimately, it’s up to you how you want to play it. If these sound too risky for you then you might want to look into cold wallets for ultimate safekeeping
Find out more about the different options in Bitcoin Finance below.