Numerous people are wondering how to make an interest in crypto; if you are one of them, this is for you. You must have heard of this saying, “There are many ways to the market” Yeah, it is true, but there are only two ways out -Win or lose.
How to Make Interest in Crypto?
There are different ways to make interest in crypto. While many would come into the market with different intentions, there are only two possibilities to their outcomes, or maybe three; the first is that you earn, the second is that you lose, the third, which is like the second – you neither earn nor lose money, it is like the second because you also lose something – your time, and you know time is money, so? It’s still a loss. It is like that in cryptocurrency, earn or lose.
If you trade long-term on crypto or you desire to, then you can sure make some interest on the side. There are various crypto platforms that give interest-bearing accounts to their traders, depending on their trading currencies. To unlock this opportunity, follow these steps;
Step 1: Get The Right Crypto Account
There are many crypto platforms you can trade, but not all of them offer interest-bearing accounts. So you need to find a platform that allows you to earn interest on the side. BlockFi is a very good example. They currently offer an annual compound interest of over 8% rate, a sum up of your monthly interest, so you can open an account with them.
For crypto Hodlers, you can open an account with BlockFi; they give about 7% – 13% annual interest rate on stablecoins. What if you already have a Coinbase account? You can apply for an upgrade to the Eth 2.0, where you can stake Etherium; the downside is that Coinbase takes a 25% slash of your Etherium reward, although you can stake any amount.
Step 2: Make Findings On Various Interest Rates
Like buying stocks, many people buy cryptocurrencies and seek to make interest from crypto. One good thing about trading is that it’s not some shady secret. All information you need is on the website of the platform or company you would like to deal with. That means you can browse the websites of various platforms to compare their interest rates and pick the one that suits you, depending on the cuts of these companies on your earnings.
Another factor that affects the cut of these companies is demand and supply for crypto loans, it’s a general factor that cuts across all companies, and its effect on the interest rate results in a term referred to as “floating rate.” This simply means that the interest floats or varies depending on the demand and supply in the crypto market. These crypto loans are majorly based on the demands of giant investors and exchangers that offer leverage on their platform.
However, regardless of the state of things or the market, a fairly considerable rate to invest in stablecoins (a stable coin is a cryptocurrency affixed to another asset, usually the U.S dollars) is roughly between 5-10%. So if you are getting an offer higher, you know it’s a good deal. Holdnaut, for example, offers a minimum of 12% annual interest rate on stablecoins. Surprisingly or rather strangely, some companies offer a 100% interest rate, although these high-interest offers are markers to show that there is market inflation and that some heavy investors are leveraging positions. A friendly piece of advice is that: you become suspicious when an interest rate is getting higher than 25%.
Another company that offers a good interest rate is Nexo; Nexo offers a fairly high-interest rate on stablecoins, even Bitcoins and altcoins. In fact, at the moment, they are giving free crypto to new traders on their platform, a sum of $10 in every $100 investment.
So, doing thorough research would help you determine a suitable company to invest in.
Step 3: Fund Your Crypto Account
After finding your suitable company, the next step is that you fund your account, that is, add money to the account to start investing. Usually, you can connect your crypto account to your bank account to buy coins with cash. Most of the interest offering companies make It pretty simple for you to fund your account. For example, Coinbase and BlockFi let you fund your account directly from their website, using your bank account.
However, if you are investing with a company that doesn’t accept cash but crypto deposits, you will have to create an account with a crypto exchange. They are a number of them, including Coinbase and Gemini. With them, you can use your cash to exchange for cryptos, then deposit the crypto to your account on your account with the company you are investing in.
Step 4: Start Making Interest
If you have succeeded in the three first steps, then you’ve done your part; you can now sit and watch your account earn money for you; it is that simple. If you trade very reliable coins like Bitcoin and Etherium, then you can leverage their reliability for a long-term trade. For example, if you traded bitcoin in January this year, by now, your investment would have doubled, and then you would still get the opportunity of your interest depending on the rate.
Other cryptocurrency interest options
1. Buy and HODL
One of the common ways to trade the Crypto market is to Buy and Hodl. Making interest from crypto by buying and hodling is seen as the easiest method of making returns through cryptocurrency. To implement this strategy, you will have to identify more stable and volatile assets that can swap rapidly, resulting in regular profits. To “buy” simply means you are purchasing a coin or token, while “Hodl” is the crypto term for “hold,” meaning stalking a particular coin till its value rises. Investors buy coins such as Bitcoin, Hi, Litecoin, Ethereum, Ripple, and more and wait until their value rises so that they can sell them when the value appreciates.
2. Earning from Cryptocurrency Dividends
Many individuals are unaware that coins can be purchased and held for a dividend. You can earn money by purchasing and holding digital assets of certain coins. The intriguing part is that you don’t have to keep these coins in your wallet in order to receive dividends. HI, COSS, CEFF, NEO, KUCOIN, and other coins that pay dividends are examples.
3. Staking Cryptos
Making interest in cryptocurrency is considered as a risk mitigated way of making money on the blockchain. Staking cryptocurrency is a second approach to profit from cryptocurrencies. This method provides a double earning potential through price increases and dividend payouts from specific coins in exchange for staking their digital assets. Staking requires you to keep your coins in a live wallet, allowing you to earn more coins in exchange for securing that currency. If there are coins, for example, NAV Coin, PIVX, Neblio, Decred, and so on.
4. Day Trading
Being a day trader necessitates more than just holding an asset until its value rises; it also necessitates effective analytical and technical skills. You’ll need to monitor market charts to see how particular assets are performing; this approach of making money on crypto is the most time-consuming, but it’s also the most rewarding.
5. Crypto Arbitrage
Because the cryptocurrency market is unregulated, there are many variances or differences in terms of asset valuation, product pricing, and so on, depending on the buyer and seller’s agreement. The majority of exchanges set their own pricing for their assets, resulting in disparities in asset volatility and liquidity.
However, you can profit from these price fluctuations by purchasing from lower-cost sources and selling on pricier exchanges. Arbitrage is the term used to describe this process.
How to earn interest with HI
Hi.com is a good place to start your staking. The platform uses a proof-of-stake consensus process that allows users to stake their coins. Hi.com offers stakes with a variety of payout options, including 7, 180, and 365-day payouts. Users that keep their crypto assets on Hi.com can earn up to 40% annual percentage yield (APY), which is undoubtedly the highest in the blockchain industry today.
Therefore, to enjoy the full benefit of the crypto market, you need to start making interest in your crypto investment, and the good thing is that: the more your investment grows, the more you make money from your interest also, so that your interest is the side attraction to your investment.