Bitcoin prices have seen a large spike in price since March 2020. This sudden price spike is primarily because of excess liquidity in the market. The Federal Reserve has agreed to higher inflation in 2021. The crazy amount of money being printed to meet stimulus requirements for U.S citizens has never been seen before.
S&P and the crypto market have risen to their all-time high and continue to increase. As a trader, I maintain my exposure to crypto assets while keeping some USD assets to take opportunities from time to time. The question often comes of putting USD assets to use to counter the new challenge of hyperinflation. Here my experience with Decentralized finance platforms such as Aave and Compound has not been great due to the sudden rise in Ethereum protocol fees, nor a 10%-12% APY excites me. The other alternative that has come is a Centralized platform such as FTX -
FTX has constantly been providing 50% to 100% APY for USD assets lending. Lending on FTX comes at a risk of funds being lost in case of a hack. It is a boon for the traders willing to take that risk.
I am sharing my experience with lending on FTX exchange with a capital of $1426 only.
[ Screenshot of My Lending history from FTX ]
Hourly APY is fluctuating between 30%-100%
This represents the effect of the crypto bull market in the interest rate markets. This APY is never seen in traditional financial markets.
Note: FTX is a centralized crypto exchange prone to hack. The Crypto market has seen large hacks from mtgox to bitfinex to recent binance hack. If you are OK with losing money deposited in the FTX exchange, you can deposit funds there. I am OK with losing $1426 and consider my decision to lend money as a calculated risk. You should think and make decisions based on your risk appetite.
THIS IS NOT A FINANCIAL ADVICE.