With the emerging technology and growth in the finance sector, numerous possibilities are hitting the crowd quite often. Allowing normal people to make a decent amount of profit via different mediums, the cryptocurrency market is one of those popular options currently.
Fusing with the banking and finance industries, the cryptos are completely changing the economy at a much larger scale than you think. Bringing new earning opportunities in the market, you can generate a decent profit for sure if you have enough knowledge. Thankfully we are going to discuss some proven methods that you can use to earn interest on your crypto investments without dealing with the same risk as crypto trading!
How Earning Interest On Crypto Works? Is It Better Than Savings Account?
Understanding how earning interest on crypto works is mandatory for any beginner investor. Because there are tons of people who are still confused between the different methods to make money with crypto. Hence, it is difficult for them to entrust their savings on an investment option related to cryptocurrencies. As the crypto markets are highly volatile you should be willing to take the risks.
Now talking about how earning interest on crypto works, there are many aspects within this concept that decide your overall profit margin. Whether it is choosing the method or deciding how much money you are going to invest. All of these factors affect your investment outcome in a long run. In simple words, you will receive interest for allowing others to use your assets in form of investments. Below are some of the most popular methods that are useful for earning interest with crypto.
You may have already heard of crypto lending if you are following the recent market trends regularly. Crypto lending is a process where people with crypto lend their assets to others in exchange for a fixed interest amount. Allowing the other party to use your crypto with the private keys you provide to them, the borrower will compensate you with some interest for using your assets. It is one of the best ways to earn interest in crypto.
2. Crypto Savings Account
Normal banks pay usually around 3% interest for your savings. That you deposit in the bank account. As you are depositing stable coins or crypto tokens in form of savings. The interest rates are much higher when compared to normal saving accounts. Giving an equal chance of generating profit to everyone who is willing to entrust their investments to the crypto saving accounts.
3. Joining A Liquidity Pool
They are a collection of smart contracts. That execute automatically whenever a certain condition is met. For earning interest by joining a liquidity pool, you need to participate in the liquidity pool for providing liquidity to others. Not to mention the crypto rates are rather stable within liquidity pools. So you don’t have to worry about whether your order will execute on time or not. You will receive interest based on the amount of money you have locked in order to offer liquidity.
Best Platforms To Earn Interest On Crypto
The idea of earning interest in your Crypto sounds great but it is not that easy as it seems. Because the concept still needs additional exposure to investors around the globe. Whereas making the wrong platform choice can cost you everything! So make sure to go through the list of best platforms to earn interest on crypto below.
Being one of the most popular yieldings and earning platforms, NEXO often boasts about its profit potential in comparison to other alternatives out there. Offering a massive 12% interest on stable coins, NEXO is successful in gaining the attention of some of the top investors in the market at the moment.
Not to mention you can earn a decent 8% of interest if you are willing to lock up your Bitcoins on the platform. Providing its robust services for more than three years now the NEXO is continuously trying to improve the user experience and service performance to its best.
Introducing new concepts and solutions within the finance field is essential to attract a large number of consumers quickly. BlockFi did the same by launching the first-ever Bitcoin credit card into the market. Not to mention the yielding rates are much better if you compare them with other platforms in the market. Whether you own stable coins or Alttokens, you can earn interest on both of them. Even opening a new savings account on BlockFi is a rather simple process. Paying up to 8.6% interest on your holdings, choosing BlockFi won’t disappoint you for sure.
Gemini is one of the platforms to stay around the market for a long time till now. Despite the fact that they introduced the “Gemini Earn” feature a little late in the market. Not to mention they started as a crypto exchange in 2014 and Gemini is one of the best crypto trading platforms to the due date. Therefore, choosing Gemini for investing your crypto assets and earning a stable interest with them is completely safe in terms of asset security and related information. However, the Gemini earn program is only available to U.S residents only, so better to choose an alternative if you are not from the U.S.
With a weekly payout system that is paid every Monday, Hodlnaut is one of the most popular platforms out there. Offering decent returns on cryptos like ETH, BTC, USDT, and two others. Effectively operating from Singapore, Hodlnaut offers the highest APY on BTC in the industry 6.2%. As it has stable connections with well-known industries, it is capable of providing these significant amounts of interest rates to its users. Additionally, it offers a real-time cryptocurrency price list for accurate tracking of market changes. Therefore you can choose this platform without further ado.
It goes without saying that choosing traditional banking methods for earning interest on your money is the best option. Especially when you compare them to new and upgraded alternatives, it is no doubt a safe option. However, the amount of profit you gain from normal banks is not even close to what you will get by investing in crypto platforms.
In conclusion, earning interest in crypto is an outrageous alternative for those who have enough investment on hand. But the most important part is choosing a trustworthy platform and deciding whether to invest and how much to invest? you can go through the platforms we discussed earlier and decide how much amount you should invest in this field. Do share this information with others if you found it useful and feel free to ask any questions in the comments section below.