Investments always involves risks. There is not a single risk free investment.

So, the important thing is to make a risk versus reward calculation.

To do this, the risks should be known because it´s always hard to make calculations with unknown parameters. It´s here it becomes difficult since the risks are known but not the probability of them to come true.

Lets calculate an example.

Alice has 1 Bitcoin and she wants to earn interest on them. She want to diversify and uses 10 different platforms to earn interest on. For simplicity, we imagine each one of these platforms pay 10% interest rate.

Also, we assume that over a 10 year period, 1 one of those 10 will fail for any reason (They might got hacked or bankrupt for any other reason).

What do Alice have after 10 years.

Each account is generating 10% yield on yearly basis.

• Account 1: failed and Alice lost 0.1 BTC
• Account 2-10: Alice started with 0.1 BTC and after 10 years she had 0.259 BTC on each account (0.1*1.1^10)

End result: After a ten years period Alice has 0.259*9BTC= 2.33 BTC

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.cryptocoinzone.com/passive-income/best-polkadot-dot-interest-rates-get-highest-apy/