Earn 20% interest on your bitcoin with total return swaps at Bitfinex.

You can earn 20% interest on your bitcoin by loaning out your bitcoin to margin traders at Bitfinex.

If the idea interests you first visit Bitfinex:

Earn 20% Interest On Your Bitcoin

You will need to open an account. Do not open a deposit account, open a trading or exchange account. I suggest a trading account:

Bitfinex Trader Account

Make sure to check $Dollar for default currency for fees. You will be loaning USD to traders rather than bitcoin because the rate of return is much higher loaning USD see bfxdata.com for rates.

Once you have an account at Bitfinex deposit bitcoin to your exchange wallet:

Bitfinex Exchange Wallet

Once you have bitcoin in your exhange wallet sell bitcoin for USD at market:

Sell Bitcoin for USD

Next transfer USD from your exchange wallet to your deposit wallet:

Bitfinex Wallet Transfer

Once you have USD in your deposit wallet click on the tab Total Return Swaps on your account dashboard:

Select Total Return Swap

If you want Bitfinex to automatically give you the highest interest rate or FRR (Flash Return Rate) and auto renew your swap here are the settings you would use (click offer all button to loan out all USD in your deposit wallet):

Bitfinex Total Return Swaps Settings

You also need to visit the AutoRenew tab and select the following settings:

AutoRenew Total Retun Swaps

Once you are satisfied with your settings go back to the offer swap tab and click the green OFFER SWAP button to proceed.

The only problem with using this approach is you may not get your offer filled in a reasonable period of time. After a few hours have passed if no one accepts your offer you will have to increase the time period to longer than 2 days. Click on the receive swap tab to see what the traders are willing to receive:

Adjust time period Total Return Swaps

You can see that traders are demanding a period of 30 days if you want to earn the highest interest rate. In that case just realize that you will have to loan out your USD for 30 days. Go back to the offer swap tab and change your offer as shown:

30 Day Total Return Swap

Click the Offer Swap button to loan our your USD for 30 days at the highest interest rate. A rate of 0.06720 works out to 24.5% annually. You do need to monitor your account because the trader who took your loan may pay you back before the 30 days is up to save interest. If that happens just check the USD Swaps demand for highest interest rate and offer another swap.

The risk of losing the USD you have loaned to a trader is low. If a trader’s position is showing a loss he will be expected to cover the loss with USD in his trading wallet that serve as collateral for the loan. Bitfinex will liquidate a trader’s position if the net value of his account falls below the maintenance margin.

Loaning your USD to traders at Bitfinex is a low risk way to earn greater than 20% interest per year on dollars in your wallet at Bitfinex. The rate of return is much greater than the 6-16% you could earn from an interest bearing wallet at HaoBTC or the 12-14% you would earn investing in PACMiC v2 contracts at Hashnest.