The beginner guide: who actually holds your coins when the yield starts flowing.
Type 1 holds YOUR keys (Trust Wallet, Phantom, Keplr). Type 2 is really an account (Coinbase, Binance) — the company holds the keys. Same word, completely different product.
Phantom stakes SOL (~6-7% APY), Keplr covers Cosmos chains (5-15%). The chain pays you; coins stay in your wallet. Catch: unbonding periods lock your coins for days to weeks.
Coinbase, Binance, Kraken pay you from their own operations — and take a cut first. One tap, decent rates. Tradeoff: rates can be cut quietly, and you carry the platform risk.
Nexo-style platforms advertise the highest rates on stablecoins. Read the mechanism: you are lending to a private company. Celsius, BlockFi, Voyager — all versions of this story.
Before chasing a rate, find the sentence that says who holds the coins. A boring 5% where you keep your keys beats an exciting 12% where you don't.
Every wallet type with honest pros and cons, the risks nobody headlines, 4 FAQs, and my splitting strategy — in the free guide.
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