Crypto's Answer to a Yield-Starved World

Steve's note: The stimulus and money printing we're seeing today could have surprising side effects. My colleague Eric Wade says it's setting up a handful of cryptocurrencies to absolutely soar. I'm no crypto expert... So today, we're handing Eric the mic again to share his third tip for making money in this space – even before the big gains start...

When the bull market begins, crypto's userbase will grow by 10 times or more... the industry's entire market cap will explode into the trillions... and many cryptos could soar thousands of percent.

That time is coming. But as I shared yesterday, you can still grow your wealth while we wait for the next crypto bull market.

These days, you can actually use cryptocurrency to generate income. We've already walked through how to do this easily by "staking," as well as lending out cryptos.

Today, I'll share one more yield-generating idea you should know about...

In today's zero-interest-rate world, decent yields are hard to find.

For example, dividend yields on the S&P 500 Index have rarely been above 2% for the past 20 years. Take a look...

Meanwhile, bond yields are at historic lows. As you can see below, 10-year U.S. Treasury yields are down to less than 1%...

Over the past few years, savings and money market accounts had been rising, but now they've fallen off a cliff. The chart below shows the yield on "non-jumbo" money market accounts (deposits of less than $100,000)...

In short, if you're looking for yield today, you have to look beyond traditional assets.

Yesterday, I explained that investors can deposit their cryptos in a platform to earn yields. But not all investors like holding something as volatile as bitcoin (BTC), Ethereum (ETH), or the thousands of other cryptos out there.

That's where lending stablecoins comes in. You can convert your dollars to stablecoins directly on platforms like and begin earning double-digit yields on them without getting exposure to the volatility of cryptos like bitcoin.

Now it's important to note, there are regulatory, fraud, and operational risks with stablecoins. We don't recommend putting all of your assets into them.

For example, lending platforms could misappropriate or lose their funds. The parent company of Tether (USDT) is the subject of at least two lawsuits in New York. Decentralized stablecoins like Maker's DAI have also been undercollateralized at times – in other words, they haven't held safe amounts in reserve.

But by and large, the industry has rapidly upped its game. Stablecoins like USD Coin (USDC), Paxos Standard (PAX), and the Gemini dollar (GUSD) have taken regulation-first approaches. Not only do they meet regulations from the state or federal agencies required by their jurisdictions, but they're also externally audited so you know they're holding the reserves they say they do.

The table below shows the maximum yields you can earn on various platforms for stablecoins...

Please note that while interest rates on the Celsius,, and BlockFi platforms are fixed for specific time periods, rates on the other platforms are free-floating – meaning they can change every few seconds based on supply and demand.

The broader market hasn't recognized this amazing opportunity yet. But with shrinking yields in virtually every other major asset class, they will. Until then, stablecoins are a compelling way to grow your wealth. Take advantage of it while you can.

There are three primary ways to earn yield in the crypto industry – by lending cryptos, staking them, or lending stablecoins. Each comes with unique advantages and risks, but they can all generate income for you today.

If that income comes in the form of more crypto, it could boost your overall returns dramatically. For example, if you hold 1 BTC today and you earn a compounding 8.2% on it over the next four years, you would have nearly 1.4 BTC. If bitcoin surges to, say, $100,000 over the next four years, your holdings would be worth $140,000 instead of the $100,000 they would have been worth otherwise.

It's a great way to generate yield in a yield-starved world. So put your crypto to work today while we wait for the inevitable crypto bull market.

Good investing,

Eric Wade

Editor's note: Bitcoin is above $11,000 today, up more than 180% from its mid-March bottom. But Eric predicts that it could reach $1 million in our lifetimes. That's part of why he joined our founder Porter Stansberry to give a special briefing last week. To learn how cryptos will change the world over the next decade – and how current events are paving the way – watch the full replay here.

Further Reading

Merely buying cryptos isn't the only way to make money in this new sector. If you missed the first half of Eric's essay on the best ways to maximize your success in cryptos, be sure to revisit it here: How to Maximize Your Returns as Crypto Goes Mainstream.

Still not convinced that bitcoin has any practical use in everyday life? You're not alone... But several major uses for it already exist. And the most exciting possibilities may still be ahead... Read more here: Three Ways to Use Bitcoin Before the Blockchain Revolution.

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One of the most crucial things to understand in the crypto market is how to protect your crypto assets. The first step is setting up the crypto wallet that best suits your needs...

Market Notes


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