How You Can Get Up to 17% Annually Holding Digital Assets – Finance Bitcoin News
The general public has become aware of the benefits of cryptocurrencies such as Bitcoin and Ether, but many people are unaware of the passive income that users of cryptocurrencies also receive. While Treasury officials give people with savings accounts between 0.35% and 0.60%, digital currencies can give people between 1% and 17%, or even more if they use certain tactics.
Crypto makes what stands for thesavings account
You may have heard of the expression make your money work for you, and that’s exactly what savings accounts do when they earn interest over time. Sure, you can be a little riskier and invest in stocks and such, but with a savings account the money stays there and accumulates returns over a period of time. The more money you have in your account, the more interest you get on it, but these days banks don’t like to give interest. We see that some of the world’s best banks only offer a return of 0.35% to 0.60%, according to the best savings account rate on bankrate.com.
The current bank rate offers someone holding digital assets a high return, no bank offers even 1%.
Now you can do the same with cryptocurrencies and get a much better annual percentage yield (APY). Several centralized exchanges offer between 1% and 12% of total interest to invest or hold a digital asset for a specified period. For example, on the Coinbase trading platform, you can earn 1.25% APY by holding USDC. Coinbase’s aso offers allow you to earn rewards for bets on algorands (ALGO), space (ATOM) and thesos (XTZ). These three coins offer payments either daily (ALGO), every three days (XTZ) or weekly (ATOM).
People can also take advantage of the Crypto.com exchange, which offers customers 2% to 6.5% per year (PA) for a wide range of cryptocurrencies and up to 12% for storage at some stalls. Crypto.com users can choose their interest rate by selecting a term, which can be flexible, one month or three months.
Flexibility means you can withdraw and use cryptocurrencies at any time, and you can get 2% for supported cryptocurrencies and 8% for stable cryptocurrencies. A 30-day expiration on Crypto.com earns someone 4.5 percent on an average crypto asset, while stables get up to 10 percent. A 90-day maturity at 6.5% for coins like ETH and BTC, while stablecoins like USDC can reach 12%.
The San Francisco Coin Exchange has started offering savings bonuses on certain coins, as well as price premiums.
Coinbase and Crypto.com are not the only exchange or custody solutions that offer interest-bearing accounts. Other interesting products are offered by Blockfi, Linus, Outlet Finance, Gemini, Kraken, Youhodler, Coinloan, Nexo and Celsius Network. Each has different terms and interest rates depending on the crypto assets stored.
Most of these platforms offer higher interest rates on stablecoins because more profit can be made on crypto assets backed by currencies. Coin storage solutions obviously involve coins held by a third party, and those who choose to do so should be aware that there are more risks involved. A custodial platform can manipulate reserves, hack or even lead a company to make bad business decisions. As the old saying goes, not your keys, not your coins, so holding money in a stock market means you trust them.
Acceptance token, Ethereum 2.0 Price
Those looking to earn passive income can also do so through non-traditional betting platforms and concepts. Bets use a cryptographic asset that authenticates (PoS), and a person needs a wallet that performs this function (transaction authentication) to receive a share. Like a savings account, betting simply means you own an asset and receive a cash reward for the amount you own. The higher the number of chips held during the bet, the more interested the user is.
Some people are currently betting on Ethereum (ETH) using the new ETH 2.0 betting feature. However, to earn ETH in this way, the user needs a total of 32 ETH to participate. However, a person can gain between 5% and 17% PA. In addition, people can follow ETH as a watchdog on exchanges like Kraken and Coinbase. San Francisco Coin Exchange Base offers between 3 and 7.5% reward for every ETH you bid.
Ethereum, Bitcoin Cash, Polkadot and Tron based applications challenge
In addition to courses, people who want to generate income from their crypto assets can do so through a decentralized (end) funding app. There are many defi applications, such as Compound, Aave, Nuo Network, Ddex and Dydx, that can ensure an individual’s profitability by simply providing money or credit. Many of these non-custodial defibrillator applications today also provide higher yields for abrasion.
With decentralized financial apps, also known as defi, you can earn an income without being tied to a job.
This type of application allows people to earn income with many ERC20 tokens such as TUSD, LINK, DAI, ETH, WBTC and USDC depending on the period. In addition, other blockchains are getting closer to the Defi ecosystem, including networks like Tron, Bitcoin Cash, EOS and Polkadot.
An example in the BCH network is the Anyhedge protocol, developed by the General Protocols team, a concept that allows the BCH to be used with a non-casting Detoken application.
The first product available on Detoken is the Anyhedge BCH-USD futures contract, the team said at the launch of the app. It is a smart contract that allows users to cover or renew their BCH while receiving a financing premium. Users also keep control of their money throughout the process.
Make your money work for you
With all the platforms and tools mentioned above, people can make their money work for them. Individuals can benefit by doing something they were probably doing before they knew they could earn interest – just stick with it. This decentralized form of liquidity will continue to grow as long as demand for crypto assets remains high.
If mass adoption continues, liquidity and potential returns can only improve over time. Once the general public reaches these much higher interest rates than bank rates of 0.35% to 0.60%, they will want to quickly shift their funds to something that will eventually earn them real interest.
How about all the platforms and services that allow people to earn passive income simply by holding their crypto assets? Let us know what you think in the comments below.
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