How To Buy/Earn Bitcoin Without Spending Your Money

Yes, the clickbait on the title might be off the charts, I get that, but what I am about to tell you is still true. It can be done, but it is not without its risks which I will guide you through shortly. I think the biggest issue with owning Bitcoin by trading your fiat money for it is the idea of losing value.

No one likes to lose, but everyone wants to win, go figure, right? Not everyone is okay with the idea of losing 80% of their investment or purchasing power in a single day and waiting for it to recover.

As I seasoned Bitcoiner, I think I’ve become numb to it, but for many, it’s a scary thought. So how do we overcome this and still get people to own a piece of the Bitcoin upside? Through some clever use of representative currency, some “De-Fi” that’s not actual De-Fi.

So enough chit chat, let’s get into it.

Earn or buy BTC without spending your Fiat money

1. Acquire a stable coin

Regardless of where in the world you live being a no-coiner, you would have to appreciate the fact that the US dollar is king. It’s smart for any investor to have some US dollar exposure in their portfolio, especially those in developed nations.

Sure you may prefer your local currency, but in some cases, it might be a problem getting a representative version of it. The first step to earning Bitcoin with your fiat is to acquire a stable coin.

A stable coin is a digital version of fiat currency, and it comes in various forms from USDT and USDC for US Dollars or purchasing some TGBP or TCAD or TAUD for you Brits, Canadians and Aussies.

All these digital currencies are 1–1 backed with your local currency or US Dollars, so all you’re doing is essentially swapping your fiat for a digital version of fiat that lives on a blockchain.

The value remains the same, and nothing changes in terms of the purchasing power.

2. Earning interest

Now that you have your digital currency its time to find a place to store it and earn interest on your money. If you’re in a developed nation like the US, UK, Canada, Australia or the Euro-zone you’re probably getting minimal interest, no interest or negative interest on your money.

Hardly seems worth keeping in a bank, would it? Instead, you can find applications that allow you to bank with them and earn interest on your crypto stable coins.

Remember these are similar to banks in that they are 3rd party services that hold your funds for you in exchange for this they pay you interest and skim a little profit off the transaction. Many of these companies have massive backing and insurance should anything happen to funds, as would bank.

Still think its important to warn users they don’t own their currency with these services and why I consider them faux-de-fi services.

Sites like:

Are all custodial services that offer interest on your stable coins, you can earn anywhere between 6% and as high as 11% interest on your stable coins depending on the currency and service you plan on using.

Rates are subject to change so check out each service before deciding which one to use and with which stable coin you plan to deposit.

3. Converting interest to BTC

Sweet, you’ve deposited your funds, and you’re starting to earn some interest on your capital. If you’re using Celsius or, you’re getting weekly payments, and you’ll have access to the funds, while BlockFi pays you once a month.

As you start collecting your interest payments, simply convert them into BTC/Satoshis and boom you’re in the Bitcoin game ready to collect on that potential upside without ever risking your principal investment.

Your purchasing power remains the same; you’re getting a better return on your capital than you would otherwise get at a traditional bank and you now have BTC exposure for their potential upside.

If BTC does go on a run, you can always convert your BTC back to your stable coin at the new effective rate and cash out your interest. If it doesn’t increase in price, then you never lost a single cent on your principle amount, giving you assurance and safety with no worries on the volatility of the BTC price.

About the Author

Che Kohler is the co-founder of nichemarket, a South African Business Directory and digital marketing agency. He is an avid blogger who specialises in writing about marketing tech and cryptocurrency.

Co-founder of nichemarket, a South African Business Directory and digital marketing agency —