Do you know you can multiply your bitcoin holdings at very low risk by earning scheduled interest on them?
This is an in-depth guide to earning a consistent and modest income from your existing Bitcoin holdings over time.
There is no excuse for having all your Bitcoin holdings sitting idle in a cold wallet (especially if you’re in the game long-term). While many choose to trade with theirs, you can minimize this risk by lending it out to financial institutions or trading exchanges through a trusted Defi platform.
Many financial platforms allow users to earn interest in their cryptocurrency holdings. These platforms implement unique mechanisms and policies to guarantee returns on all investments.
This is the easiest method to begin earning interest on your crypto holdings.
Some cryptocurrency lending platforms require investors to open a savings account. Highly recommended platforms you can open an account with include BlockFi, Nexo.io, and Celsius.
These interest-earning crypto accounts are similar to traditional saving accounts, only that the platforms promise higher interest returns than banks, which only give investors less than 2% interest rates.
If you are unable to open a crypto account, you can consider using wrapped bitcoin (WBTC) on ethereum’s blockchain. This method does not require a new account to get started. You only need to link your ETH wallet to a Defi platform like Save to get started.
There is no general standard for interest rates across all platforms. The annual interest rate offered is determined by the platform you use. Most offer between 5 and 10% APY, while a few go higher than 10%.
There’s no limit to the amount of Bitcoin that you can deposit in your savings account; however, platforms have a limit to the interest rate that can be offered. Sign up now on popular platforms to start bitcoin trading.
Interest rates are influenced by market demand and supply. This means that they fluctuate. Before you deposit your Bitcoin, make sure you’re getting the best rates possible.
If you already own Bitcoin, you can transfer or deposit it from your wallet.
Beginners can purchase their bitcoins through wire transfers from the bank. To do this, you have to first link your bank account number and its routing number from the newly created account. As soon as your banking information has been added to the account, you can go ahead and buy Bitcoin to start earning.
Another way to do this is to make an account with the cryptocurrency exchange to buy bitcoin with your bank account. This is quite easy to do because most exchanges have mobile-friendly apps that are easy to navigate through.
For wrapped Bitcoin, you can purchase WBTC on the Coinbase exchange. Then, you transfer it to your ETH wallet. The best ETH software wallets for beginners are Coinbase and Metamask. When this is done, connect your wallet to the Aave program to begin earning interest.
As soon as you deposit your bitcoin into your crypto savings account, you begin earning interest. Your earnings are determined by the amount of Bitcoin deposited in the account, as well as the interest rates offered by the chosen platform.
Like with traditional savings accounts, it is best to leave your assets locked up in the savings wallet for at least six months to earn significant interest.
Before you go ahead and create your Bitcoin savings account, it is important to point out that Bitcoin savings accounts are still a risky option. Despite the teasing rates offered by various platforms, there are no guarantees that you will always get your assets back. However, it is less risky than other crypto-earning methods.
Always do your homework (research) before you select a platform to use. The last thing anyone wants is to be unable to access their wallets at dire moments. Read through the company’s terms and agreement policies before you settle. If you are an amature and struggling to get the profit you desire for then you may look for an efficient bot like CoinRule to get the success faster.
As with all crypto-related investments, it is best only to invest what you can afford to lose in your savings account.
Why keep your assets when they could be earning you more money regardless of their value? With the never-ending volatility in the Bitcoin market, earning interest is a significantly lower-risk method of increasing your crypto holdings. Get yourself a tranquil investing experience by creating a Bitcoin savings account.