Cryptocurrency earnings and savings accounts: how you can get up to 17% per annum by storing digital assets
The mainstream has caught the flavor of cryptocurrencies like Bitcoin and Ethereum, but many people are unaware of the passive income that cryptocurrency users receive. While financial operators give people with savings accounts a measly 0.35-0.60%, digital currencies can give people 1-17%, or even more if certain tactics are used.
Cryptocurrency income in excess of a savings account
You may have heard the term making your money work for you in the past, and this is what savings accounts do if they generate interest over time. Sure, a person can be a little more risky and invest in stocks and the like, but with a savings account, money just stays in it and generates income for a certain period of time. The more money is kept, the more interest the account will receive, but these days banks don’t like to give interest. We can see that some of the top banks in the world will only generate 0.35-0.60% returns in line with the best savings account rates at bankrate.com.
Now you can do the same with cryptocurrencies and get much better Annual Percentage Yield (APY). Many centralized exchanges offer between 1% and 12% interest for placing or holding a digital asset on a trading platform for a specified period of time. For example, on the Coinbase trading platform, you can earn 1.25% per annum for holding USDC. Coinbase aso offers rewards for using Betting Algorithms (ALGO), Space (ATOM) and Tezos (XTZ). These three coins see payout rates either daily (ALGO), every three days (XTZ), or once a week (ATOM).
People can also use the Crypto.com exchange, which gives customers anywhere from 2% to 6.5% per annum (PA) for a variety of cryptocurrencies, and up to 12% for holding certain stablecoins. Crypto.com users can choose the interest rate by choosing a term that can be flexible, one month or three months.
Flexibility means that you can withdraw and use cryptocurrency at any time, and you can get 2% for supported crypto assets and 8% for stablecoins. A 30-day term with Crypto.com gives a person 4.5% of the average cryptoasset, while stablecoins get up to 10%. 90-day terms give 6.5% for coins like ETH and BTC, while stablecoins like USDC can receive up to 12%.
Use of Proof-of-Stake tokens, Ethereum 2.0 staking
Individuals looking to generate passive income can also do so using non-custodial platforms and betting concepts. A stake involves the use of Proof of Stake (PoS) cryptoassets, and a person needs a staking wallet to perform this function (verifying transactions) in order to receive a stake. Like a savings account, a bet simply means holding the asset and rewarding coins for the amount the user is holding. The more tokens are held during staking, the more interest the user will have.