A cryptocurrency interest account is a service provided by the DeFi platform that allows you to earn interest on digital assets that you have deposited and agreed to lend in exchange for a refund.
Given the volatility of the crypto industry, the key to getting the best crypto interest rates is to keep an eye on the market and find the best deals as they become available. Here are some tips for you:
- Invest in stablecoins. The leading stablecoins — USDT, USDC, and BUSD.
- Stick to one platform. To get a higher interest rate in the long run, it is better to choose a reliable platform where you will place and store your cryptocurrencies, instead of moving your assets.
- Simple Interest vs. Compound Interest. The key difference is that APR is a simple interest rate calculation that does not account for complex accrual. On the other hand, APY is based on interest addition. All other things being equal, an APY-based investment will give you a higher total return than an APR product with exactly the same numeric interest rate. More information about you can find in our article “What is the difference between APR, APY and MIDAS Boost“.
Crypto High Yield Savings
Crypto platforms are constantly developing new alternatives to traditional financial products. In addition to trading and staking, “savings accounts” in crypto are gradually becoming more widespread. The essence is simple: if you hold a cryptocurrency in anticipation of a long-term growth in the rate, you can get additional passive income by putting it on a similar deposit. In turn, it’s divided into locked savings and flexible savings.
Locked Savings
Funds are placed for a fixed period of 7 to 90 days. The interest rate in this case is higher than in the flexible savings option. In addition, the rate is fixed, so you know how much you will earn in the chosen crypto: the total amount in dollars will, of course, be affected by fluctuations in the asset’s price.
Flexible Savings
The assets in the flexible savings account can be withdrawn to the main trading balance without fine at any time. The list of supported cryptocurrencies is much longer here than it is for the fixed rate option. But the yield is floating and changes on a daily basis: in a week, an asset can bring you 5%, or maybe 0.5%. Obviously, if the crypto exchange rate falls sharply against the dollar, the real profitability (even 5% per week) may turn out to be negative.
Earn Money Lending Crypto
Lending is a kind of leasing digital assets. In other words, the process can be described as lending with cryptocurrencies at a certain percentage.
Lending is one of the ways to make the cryptocurrency “work”. This is an opportunity to get real money, without having to sell your coins, but by lending them to someone. Earnings on lending pages are considered high-risk, but in a good scenario, a promising high income can fully compensate for the degree of risk.
Cryptocurrency Investment Platform
As the world of decentralized finance (DeFi) evolves, more and more platforms offer interest-bearing accounts for cryptocurrencies. Crypto interest accounts enable you to stake your coins for a period of time to earn interest similar to traditional savings accounts. The difference is that crypto interest rates can be well over 10% per year. Let’s take a look at Midas.Investments platform.
If You still have an issues look our guide How To Earn Interest On Crypto
Midas.Investments
Midas.Investments is a custodial “CeDeFi” investment platform offering market-leading yields on an array of cryptocurrencies, including BTC, ETH, and USDC. Midas’ mission is to bridge the ease of CeFi with the transparency of DeFi strategies, fueled by algorithmic infrastructures and 24/7 portfolio monitoring. These strategies allow Midas to offer premium yields while hedging against downside risk, thereby allowing investors to build sustainable, passive income. In the four years since our launch, we’ve attracted more than 10,000 active investors and over $300 million in assets under management.
