Bitcoin Finance
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.Â
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.
The latest news from our blog
What Is the RGB Protocol on Bitcoin?
RGB Protocol on Bitcoin (v0.11.1) is an open-source protocol for issuing and transferring digital assets directly on Bitcoin and the Lightning Network, without any change
The Bitcoin ColdCard Hack
A Bleak Day for Self-Custody — And What You Need to Do Right Now For years, the Bitcoin community’s answer to every custody question has
Is Orange Juice A Return To Practical Bitcoin Treasury?
Bitcoin treasury companies have become one of the strangest corners of public markets. What started as Michael Saylor’s straightforward thesis — store retained earnings and