Interest-bearing cryptocurrency-accounts, how they work
Firstly, A crypto interest-earning account works the same way as regular savings account in theory. Withdrawal for cryptocurrency or altcoins is possible at any time.
You will be paid interest at market rates using the same cryptocurrency that you used to place it. As well as the withdrawal fee, the conditions on the blockchain are regularly adjust.
Unlike traditional markets, crypto markets offer incomparable interest rates. It is a tradeoff between reward and risk.
You can earn a 0.70% annual percentage yield (APY) from a nationally available savings account or at Digital Yuan. Crypto interest-earning platforms offer up to 10.5% interest on altcoins, as compare to leading crypto interest-earning accounts. Every month, the interest compounds on all deposits at the best rate.
Simple Steps to Get Started
Step 1
Sign up for a crypto account.
Savings accounts linked to cryptocurrency lending platforms at Yuan Pay group are the most common way to earn interest on crypto.
BlockFi, Celsius, and Nexo.io are some popular cryptocurrency accounts that let you earn interest on crypto. With an 8% APY, Nexo.io offers the best interest rate.
The easiest way to earn interest in your cryptocurrency is by lending it to a cryptocurrency lending platform. After you’ve funded your account, you can start earning interest on your account.
Step 2
Comparison of interest rates.
The interest rate you receive in your crypto savings account varies based on the platform you choose. Crypto interest rates typically range between 3% to 8%. But some media including BlockFi, offer different rates base on how much you invest.
Interest rates are more often than not floating rates. It means they fluctuate as market conditions change.
Inflation fluctuates from time to time, but it’s not too extreme. Keeping a close eye on your interest earnings is a good idea to ensure you earn the best rate.
Step 3
Your portfolio should include crypto.
You can buy cryptocurrency directly from your bank. However, To do this, you need your bank account number and routing number.
On some platforms, you can only deposit cryptocurrencies. Nexo.io is one of them. For anyone who doesn’t own crypto, they require cryptocurrency exchange account .
We can purchase Crypto with a bank account with exchanges like eToro and Coinbase.
Step 4
Gain interest.
The moment your money is deposited into an interest-bearing account, you should be able to earn interest immediately.
Therefore, Depending on the platform you use, and how much crypto you deposit, you’ll receive a different interest rate from your savings account.
If you want to earn any significant interest in crypto, you should consider keeping your funds in savings accounts for a long time. Interest rates can range anywhere from 3% to 10%.
Pros and Cons of Earning Interest in cryptocurrency
Lastly, and most importantly, you can earn high interest rates which is one of the significant advantages.
The volatility of the cryptocurrency price represents the most significant risk.
The value of your crypto account will remain the same after a year of investing, even if the price of crypto falls by just 6%. For more information, visit YuanPay Group.
