Simple Steps To Start Earning Interest on Crypto

Simple Steps To Start Earning Interest on Crypto

Daniel Hall 24/02/2021 8
Simple Steps To Start Earning Interest on Crypto

Earning money may seem like an uphill struggle sometimes, but rest assured there are still ways that you can earn money, and one of these is through investing in crypto.

If you need additional income then you should take a look at the cryptocurrency market. You can now grow your wealth by taking advantage of lending platforms that allow you to earn passive interest in crypto holdings. You will be able to hold onto your digital assets while still earning passive income, all without selling or liquidating your portfolio that you have built up.

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How To Make Money With Crypto & Start Earning Interest

To start earning interest in crypto stablecoins or bitcoins you just need to apply a few simple, easy to follow steps:

Firstly if you haven't done so already then you need to go ahead and register a new account with a crypto savings account such as on crypto.com. Once you have completed the account opening and verified your details you have to go to the deposit section, usually found in the top main menu. Now you are depositing funds you have to decide which currency to deposit, so will it be crypto or bitcoin, once you have decided you transfer the deposited monies to your wallet, and now you will begin to earn interest on the amount you have deposited. Remember that interest will be compounded.

When you are looking at which site to use it is always best to use a site that is trusted and safe, and one that has been around longer than a few days. At hedgewithcrypto you can find lots of information and helpful comparisons concerning everything crypto which is one of the first places you should visit before parting with your hard-earned crypto.

TOP TIP: Interest on holdings varies but you could be looking at up to 8%.

Tips For Investing in Crypto

Never invest more than you are prepared to lose or more than you can afford to lose. If things don't go your way you could quickly end up chasing losses.

Sign up for free investment tips through newsletters and trusted sites where you can. Getting inside information first can help you stay ahead of other traders. Always remember to do your due diligence to ensure that everything you are looking at is legal and above board. It can be easy to get swept away in things that promise huge returns even if they are not completely legitimate. So when you get offered a trade analyze it carefully and ask yourself if it is too good to be true. Indeed you can still make money investing with crypto and earning interest on crypto that is held in an account, but you also need to make sure you are not getting carried away by the crowds.

Tips For Improving Your Returns

Apply the law of Supply and demand. This affects crypto prices in the same way it affects offline real-world money and rates. So, if demand is low and supply is on the high side then the value of the coin will decrease, and so if the demand is high and the value of the coin will rise accordingly. When you begin trading with crypto you will quickly start to learn to watch the markets and to analyze them in the same way that you would with a real-world finance marketplace. When you begin to investigate what affects crypto prices and you get to apply your own rules for when to buy and when to sell, you can then start figuring out how improving your returns with crypto is possible. You could look at diversifying your portfolio, trends cannot be predicted so it is best not to put all of your eggs into one basket. Instead, keep your eyes and ears open and keep watching the markets and with just a little bit of time, effort and research you will hopefully see your returns increasing.

cryptocurrencies 2

Which Sites Can You Earn Interest On?

There are a few big players that offer competitive rates, which are Celsius Network, BlockFi, Crypto.com, Binance and Gemini. So what's the difference between all of them?

To start with there is Celsius this is an easy to use platform that offers users access to financial services and additional benefits that are not currently offered by traditional institutions and high street providers. Next up is BlockFi it is another top site to use and is a site that compounds monthly which will of course work in your favor, should you leave your crypto in their account, and leave it in for longer than one month. The compound interest provides another way for you to increase your investment and online wealth for little to no extra work on your part.

Crypto.com allows you to earn interest in both stablecoin and cryptocurrency. Crypto acts as your new bank account and allows you to deposit your digital-based assets via their app. Interest is accrued daily, and you only have to wait 7 days before you can cash out. The only downside is that you can only be paid out at the end of 7 days in the same currency that you deposited in. So if you trade in dollars this is all you can withdraw once it is added which is not the best if you want to take advantage of currency conversion rates.

Binance is one of the biggest and best out there and is ideal if you want to trade, invest or HODL (hold on for dear life). Easy and simple to use Binance allows a seamless switch between traditional (real world) money and crypto. Next up is Gemini, which provides legitimate cryptocurrency exchange and a platform that users can store assets on and earn passive income from. They look like ones to watch. Last but not least is Nexo they are an online loan service that provides financial benefits for storing crypto assets on their platform.

Now you have seen what the crypto market has to offer, what are you going to do? Are you going to investigate a little bit more or start dipping your toes in the water? Trading in crypto can be exciting, fast paced and it can potentially provide you with a nice little nest egg.

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  • Ashleigh Charles

    I'm glad I came across to this post. Lots of learnings from you.

  • William Hogan

    You are so smart Daniel...

  • Tori Elizabeth

    What is the best way to earn interest for long term?

  • Olly Ford

    Informative

  • Scott Andrews

    Great article

  • Gareth Hale

    Interesting....

  • Joe Evans

    Very informative

  • Felix

    Great investment strategies!

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Daniel Hall

Business Expert

Daniel Hall is an experienced digital marketer, author and world traveller. He spends a lot of his free time flipping through books and learning about a plethora of topics.

 

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