If you’re into crypto trading and investments, you are most certainly aware of the widely quoted statistic that “95% of traders lose money.” The number may vary in reality, but there is no denying that trading cryptocurrencies are a high-risk investment option primarily suitable for risk capital.
While day trading is one of the most preferred crypto trading techniques, it is risky. Besides, not everyone prefers to actively trade across marketplaces, which is another hassle in itself. Take, for instance, the massive community of long-term HODLers demanding alternative options that allow them to put existing assets to work, with lower risks, of course. As such, the introduction of decentralized finance (DeFi) emerged as a much-needed solution to support crypto investors’ entrance into the world of yield generating opportunities, both active and passive.
The year 2021 stands witness to the launch of hundreds of promising DeFi projects and crypto trading exchanges specially designed to promote financial inclusivity and crypto awareness. That said, here are our picks for three promising decentralized solutions that allow you to generate yields from your cryptos while minimizing overall risks.
Building A Fully Inclusive Global Economy
First up on our list is CoinZoom, one of the world’s most highly regulated cryptocurrency exchanges. Since its launch, CoinZoom has established itself as one of the primary contributors towards constructing a decentralized economy where everyone can access financial services without any controlling authority.
CoinZoom already offers many crypto-centric features that allow its users to use their digital assets in the real world, including its zero-fee crypto and fiat remittance service ZoomMe, CoinZoom Visa cards accepted at 53 million global merchant stores, and a crypto exchange operating across 192 countries.
Adding to this impressive list, CoinZoom has now launched its CoinZoom Earn feature. With CoinZoom Earn, ordinary users can earn up to 10% APY, while CoinZoom Pro users can earn an additional 20% bonus on deposits of over 40 different cryptocurrencies and USD. This ‘opt-in’ feature is accompanied by long-term commitments, allowing you to redeem your earnings any time, reinvest them, or spend them through your CoinZoom Visa card. Additionally, interest on assets is accrued daily and credited on the 7th day of each month.
Next up on our list is Gluwa, a San Francisco-based borderless financial platform that aims to build a future financial inclusion using blockchain technology. Gluwa allows anyone in the world to access currency, credit, and investment opportunities. At present, Gluwa has partnered with companies like Jenfi and Aella to connect investors globally to higher yields and provide growth opportunities in emerging markets with little capital.
Gluwa recently launched the first social-impact venture debt fund on the Ethereum blockchain network to further its mission, offering retail investors a fixed APY of 12%. Investors from different countries can open a Gluwa account and stake Bitcoin (BTC) in the account by exchanging it for sUSDC-G, the Gluwa stablecoin.
Beyond these efforts, Gluwa also offers several other yield generating opportunities lined up for launch over the coming months, including its Savings Account that will go live later this year or early 2022. Per sources, the Gluwa Savings Account will pay 5% APY, and there is no fixed-term for deposits. Another promising Gluwa product set to go live soon is the Prize-linked Savings Account. Participants can stake funds for entries into a pool of collective lottery to earn a share of 4% collective interest from the liquidity pool.
The third project on our list is Drops, which provides loans for NFT and DeFi assets. If you already have an NFT and DeFi portfolio, you can leverage them on the Drops platform for borrowing or lending purposes at attractive yields. The platform allows anyone to borrow against their DeFi and NFT tokens, and use NFTs as collateral to access instant and low-cost loans via Drops’ permissionless NFT Lending Pools, thus extending the use cases of NFTs as yield generating instruments.
Additionally, Drops users can expand their digital portfolios’ reach by supplying stable coins and governance tokens to non-fungible and fungible lending pools in exchange for returns and other rewards. Drops features prominent backing from firms including AU21 Capital, GENBLOCK Capital, x21, bitscale Capital, Blocksync Ventures, and investors like Richard Ma (CEO, Quantstamp), Joseph Delong (CEO, Sushi), and Nick Sawinyh (CEO, Defiprime and DexGuru), among others.