Earning interest is one of the easiest and most affordable ways of making passive income on cryptocurrencies. From this article, you’ll get to know how to make the most of it.
Earning an interest rate is one of the most popular and affordable ways of making passive income on cryptocurrencies. From this article, you’ll get to know how to do it with minimum effort and maximum gains.
What are the interest rates in crypto?
This method can be compared to a savings account in a conventional bank. You open an interest-earning account on a profile platform and you transfer your crypto savings there. You let other users borrow your funds and you get rewards for it. To calculate these rewards, the APY indicator is used (annual percentage yield).
The more money you have on your interest-earning account, the more you’ll be able to earn. Such platforms offer more flexible conditions than traditional banks. They might pay your rate every week or every month. You might be allowed to withdraw your funds at any moment without any penalties.
Basically, this method of receiving passive income resembles hodling because you don’t need to do anything with your savings. However, if you hodl, the sum in your crypto wallet won’t increase over time.
Top 3 Savings Accounts to Earn Crypto Interest
On the Internet, you might find dozens of platforms that enable their users to earn an interest rate on crypto. Unfortunately, there are many scams in this sphere, so you should be very careful. Here, we’d like to recommend to you three legit and credible platforms that you can entirely trust.
This platform was founded in 2017 to let its users create and manage crypto passive income streams without hassle and FOMO. Midas.Investments focuses on producing passive income on the core assets, such as BTC, ETH, USDT, BNB, and DeFi market. Its team gathers the best yields from the market, making them accessible to anyone. Over 15K investors from all over the world trust Midas.Investments and have deposited over $21M+ there.
This trustful ecosystem offers exceptionally high yields to its clients. Here, you can earn up to 17% APY on BTC, BNB and USDT. ETH might bring you as much as up to 23% APY. In total, you’ll be able to choose from over 40 assets. When you open the list of coins, you’ll be able to buy most of them right from the table that shows their overall rating, APY and other parameters. If a certain coin is not available currently, you’ll be able to request to buy it with BTC.
Besides, the platform will offer you lucrative investment packages. For instance, thanks to the SYAP (Stable Yield Automated Portfolio) offer, you can get up to 21% APY for making investments with rewards and rebalancing. You should invest in the combination of the best crypto coins (BTC+ETH+MIDAS+USDT) handpicked by the Midas team. Thanks to the Lock-in Basic offer, you won’t need to pay fees for using the platform — you just need to hodl the native Midas coins. On the Midas.Investments site, you’ll discover more offers.
This platform was founded in 2017 to provide credit services to markets with limited access to simple products like a savings account. Its administration states that with an interest account, your APY might reach 8.6% and there will be no hidden fees.
On Blockfi, you can earn interest on the following assets:
When you open the Interest page, you’ll find a handy calculator that enables you to estimate your gains. For instance, if you deposit 2 BTC for 1 year, you’ll get 0.06 BTC as a reward. If you deposit 1 ETH for 1 year, you’ll earn 0.09 ETH and if you deposit 1 USDT, you’ll get 0.19 USDT.
Interest accrues daily and is paid monthly. There is no minimum limit for topping up your balance — you’ll get your APY even for the smallest sum.
This project was founded in 2016 and claims to be the world’s fastest-growing crypto app. It counts over 10 million users, has over 30 local communities and is available in over 90 countries.
Crypto.com enables you to earn up to 8.5% on your crypto and up to 14% on stablecoins. With BTC, you’ll earn up to 8.5% per year, with ETH — up to 7.5% per year, with USDT — up to 14% per year. In total, you can deposit over 30 assets to your interest-earning accounts, including Bitcoin Cash, Litecoin, Cardano, EOS, DogeCoin, Binance Coin and many others. The lowest maximum interest rate is 3%.
Your interest rate might vary depending on how much you deposit and for how long. To secure the highest rate, it’s enough to store your funds on your savings account without withdrawing them for just 3 months.
Pros and Cons of Earning Interest on Cryptocurrency
This method of making passive income has both strong and weak sides.
It is a very simple way of earning money. You can use it even if you have no experience in crypto and no profound knowledge in the financial sphere.
You can open an interest-earning account even if you don’t owe a lot of crypto. Feel free to get started with minimal sums, just to check how it works.
With crypto, you might get much higher yields if compared to what you can expect from a savings account in a conventional bank.
You’ll need to give the keys for your crypto to third parties. Of course, the platform will guarantee that your funds won’t be stolen. Yet you might feel not too comfortable about this idea.
If the platform gets hacked, you might lose your savings. Fortunately, that would be an extremely rare occasion. If you keep your crypto in a cold wallet, you’ll be the only person responsible for its security.
Interest rates might fluctuate over time. You might get a decent income in the first few months — and then, it might drop.
Earning interest is a simple and efficient way of making passive income on crypto. Find a reliable platform, check its rates and get rewards for letting others borrow your assets!
Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.
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