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Staking Tactics; Working Cointiply and Celsius Network to Maximise Leverage

The beginning of the week was a landmark moment for me when my Coin holdings on Cointiply hit 35,000. This is the moment when 5% interest kicks in on held Coins so long as the amount of coins doesn’t dip below the already mentioned 35,000.

Let’s quickly look at some important figures.

  • 10,000 Coins = $1USD which means I currently hold $3.50USD.
  • 5% interest will add 1750 Coins per year or $0.175USD*
  • I am currently earning about 700 Coins a day + Interest*.

* this is a daily rate of just under 5 Coins or almost 34 Coins a week. However this is an artificial figure as I continue to add coins through the faucet, daily advert and video viewing. In fact each day’s acquisition of 700 Coins will add about two thirds of a coin to my weekly interest gain or 3 more Coins a month.

Obviously we are dealing with micro-amounts here (although it is an ever growing pot) as I have described in a previous post; The Magical Money Tree.

So now I am fast approaching a junction; a tactical decision point if you like.

I need to consider the following:

  • According to the source I am using the minimum Coin withdrawal supported by Cointiply is 100,000 ($10USD) for BitCoin or 50,000 ($5USD) for DogeCoin. I do however remember reading elsewhere that it was 50,000 for BitCoin and 35,000 for DogeCoin. Please verify this information for yourself. Whatever the actual figures are the principles outlined here remain valid
  • The fact is that Cointiply is quite labour (and possibly battery power) intensive for a relatively low yield. So once I achieved 35,000 Coins it is in my own interest to keep the number of coins held at this level at a minimum to achieve the additional 5% yield. So I am looking at 35,000 Coins + Minimal Withdrawal
  • Interest only applies to Coins above 35,000 so I have to go substantially higher than that to make a withdrawal (85,000 Coins for DogeCoin or 135,000 for BitCoin)

The question is whether this is the right move or not and the question isn’t so straightforward to answer.

As it is a micro-amount I decided from the beginning to withdraw to my Celsius Wallet so that I can start staking it immediately. However, Cointiply’s business model is based on a monetary value rather than a crypto value.

With Cointiply there is a flat conversion rate of 10,000 coins = $1USD. On most platforms, including Publish0x the crypto value is most important. When I receive a tip of say 0.005 Eth on an article it remains as such irrelevant of the monetary value which of course fluctuates with the Ethereum price (and likewise for BAT and Loopring).

What is more Celsius Network offers a rate of return on BitCoin of 4.51% as opposed to 5% on Cointiply. We must remember at all times that this is a monetary value and not a crypto value. In other words retaining Cointiply Coins which is adding 5% monetary value per annum may create a greater yield than staking on Celsius – of course if the price drifts upward the opposite would also be true.

So it seems that the best way forward is to hodl (if I can use that phrase for faucet Coins) on Cointiply and transfer it when the BitCoin price is in a dip to maximise the amount of BitCoin you can get which should offset any percentage loss – especially on the bounce back.

Another alternative of course, once you get it onto the Celsius Network is to convert any BitCoin immediately to another high yield currency. For this consider a stable coin such as DAI, Tether or USDC; all of which offer higher interest rates while their base value, tied to the $USD, moves very little .   

Conclusion;

So this is what I am going to do, repeat and do again:

  • Get my Cointiply Coins up to 35,000 (done)
  • Drive the number of Cointiply Coins up to 135,000 before considering doing anything else (doing)
  • When BitCoin is in a dip and (as experienced throughout September) I hold at least 135,000 Cointiply Coins I will withdraw 100,000 ($10USD) to Celsius as BitCoin (while retaining 35,000 Cointiply Coins) and immediately change to it another higher yielding coin. Based on current rates I favour USDC which offers a return of 15.89%.

In the meantime please remember that ‘hodling’ on Cointiply may not be the worst option.

If you don’t have a Cointiply account please click here to sign up.

If you don't have a Celsius Account please sign up using the following promo-code for both of us to get a bonus.

16005665cc (copy and paste)

You can access information on Celsius from your computer, but will need the mobile app (downloadable from the website) to sign up and access their services..

 
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