Lend your Bitcoin to institutional borrowers (Genesis, Galaxy Digital, Nexo). They pay interest monthly or quarterly. Risk: Lender insolvency (as happened in 2022 with Celsius). Benefit: Simple, passive income.
Wrap your Bitcoin on Ethereum or Solana (wBTC, tBTC) and stake it in DeFi protocols. Yields range 5–15% depending on protocol. Risk: Staking contract failure or depegging of wrapped BTC. Benefit: Higher yields than lending.
Use Bitcoin as collateral to borrow stablecoins on Aave or Compound, then earn yield on those stablecoins. Advanced traders use leverage loops. Risk: Liquidation if Bitcoin drops. Benefit: High yields, flexibility.
Companies now borrow against Bitcoin collateral to fund operations. As this trend grows, it creates demand for Bitcoin collateral, potentially supporting price and creating structural yield opportunities.
Lending = Low risk, 3–5% yield. DeFi/Staking = Higher risk, 8–20% yield. Choose based on your risk tolerance. In 2026, even 3–5% beats zero while you hodl. Pick a strategy that matches your goals.
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