We bet you’ve been thinking about how to get more crypto on the crypto you already have. That’s quite a healthy desire in our capitalistic matrix. How do you grow your income legally and with a real return on investment? What strategies do you use? Hodling? We are going to cover how to get interest rates and grow your funds with minimal efforts from your side.
What Are Crypto Interests?
The mechanism of an interest-earning crypto account is almost the same as a traditional savings account. You’ll earn compound interest on your assets by depositing your Bitcoin or any altcoin of your choice.
One crucial difference is that the return rate is substantially higher than traditional savings account rates. Also, get weekly payouts to your wallets and withdraw the funds whenever you want.
Generally, crypto interest-earning accounts offer interests up to 7.5% APY. Some platforms provide you even with a higher interest, up to 12.73% APY on your cryptocurrencies, with no lock-up or deposit restrictions. You may need to pay a withdrawal fee regularly established by a particular blockchain you’re using.
The platform can offer a higher interest because it lends your assets to individuals, corporations, or organizations that use it depending on their business functions. Then, borrowers return the assets with some interest, and the platform you’re using takes a small amount of the interest and sends the rest directly to you. It can be Coinbase, BlockFi, Binance or Crypto.com.
How to Start Earning Interest on Crypto?
The whole process is rather simple and comprehensive. First, you must open a crypto account within a platform that supports earning interest on your crypto holdings.
Coinbase's validators earn interest by staking Ethereum on its new proof of stake network in a way miners earn crypto for power proof of work blockchains.
Coinbase takes a 25% commission of the rewards generated by your ETH but allows you to stake any quantity of Ethereum on the network.
As for BlockFi, you can connect your BlockFi account with your bank account, making it possible to buy crypto with cash. The platform currently offers an 8.6% annual interest rate compounded monthly, depending on which cryptocurrency you use.
There are some benefits of having an account we need to take into consideration before going ahead:
- You earn a substantial interest in your crypto assets.
- You access your funds easily and quickly.
- You keep your assets safe and secure in a custodial service.
- You store your assets in one place.
- You get access to a wide range of features and benefits, such as swaps or other crypto services.
Of course, there are way more options on the market, but it’s better to dive into this article to DYOR.
Once you've created an account, you need to make the most important decision — compare interest rates, as they can drastically vary. The interest rate is constantly changing thanks to the supply and demand for crypto loans. If you get 6% to 9% on your cryptos, it is considered a good interest, but sometimes it's much higher –– even over 100%. So, how to seize the best option? You can find the interest rate on the platform's website, but that's time-consuming and, let's face that, irritating. Just imagine looking through loads of platforms and comparing all those percentage indexes manually.
Another option is to use a special platform tailored for comparing rates over various yield farming crypto venues. They make it much easier and faster to pick up the best rates and drive your income up without leaping between myriads of platforms. There are various options, but we’ll focus on one of the best in its field — Coin Interest Rate.
Once you've decided on who's going to be in charge of your interest rates, you need to add cryptocurrency to your portfolio. Some platforms, like BlockFi and Coinbase, allow you to buy crypto straight with your bank account. It makes it easier to earn interest in cryptocurrencies if you don't already have some. Some popular currencies to invest in are Ethereum ($ETH), Bitcoin ($BTC), and stablecoins such as USDC, USDT, DAI, and BUSD. Find out which crypto earns the most interest in the following article.
Actually, you’re ready to become a crypto whale or at least a successful crypto holder who’s earning on their crypto by doing nothing. But if you want this option really work, you need to make smart decisions about the currencies and platforms you’re going to use. That’s a pivotal point that can open you a way to a carefree income.
Where to Compare Crypto Interests?
So, let’s come back to your future helpers. You just can’t seriously think of getting high interest without proper analyses. Coin Interest Rate is a leading website and resource for finding the highest crypto interest rates across the best crypto interest accounts and lending platforms.
It ranks and tracks crypto interest rates across crypto interest and lending platforms. You can find and compare rates for Bitcoin, Ethereum, Litecoin, Solana, Dogecoin, and stablecoins like Circle and Tether across 50+ platforms.
The platform also provides you with an opportunity to learn more about some popular yield farming platforms and their compare tool is perfect and impossible to replace when you need to compare two platforms side by side.