Image link: https://drive.google.com/drive/folders/1np6V3dl-1CJVlvYeR48KsGiLshKgFUP4
A cryptocurrency savings account is essentially a platform that allows you to earn interest from your cryptocurrency assets. The platform lends your cryptocurrency to borrowers and, as an exchange, you get interest on the coins. This is similar to how savings accounts work in a traditional bank. You deposit money, and then the bank pays you interest. However, a cryptocurrency savings account has many advantages. Let's take a look at the benefits of a cryptocurrency savings account.
Advantages of Cryptocurrency Savings Accounts
- Earn passive income: The biggest advantage of a cryptocurrency savings account is the ability to earn passive income while your assets remain safe. If you already have idle cryptocurrency in your account, then you can deposit it into a cryptocurrency savings account.
- Earn cryptocurrency interest: Traditional interest accounts pay interest in legal tender such as US dollars and Singapore dollars. However, a cryptocurrency interest-bearing account allows you to earn interest on cryptocurrencies. For example, if you deposit BTC into a cryptocurrency savings account, then you can earn interest on BTC. Nonetheless, there are platforms like Hodlnaut that also allow you to take interest in your favorite cryptocurrencies.
- Higher interest rates: Cryptocurrency savings accounts offer higher rates of return compared to traditional bank savings accounts. Interest rates are as high as 12% APY, which is much higher compared to the 0.5% APY offered by traditional banks.
- Secure platforms for cryptocurrency assets: Cryptocurrency savings accounts allow users to keep their cryptocurrency assets securely and reduce the chances of hodlers losing their wallets. Some platforms also offer insurance to protect customers’ assets.
- Bonus: In addition to the interest earned from your cryptocurrency, there are a number of cryptocurrency savings accounts that offer many other benefits. This includes things like tokens, benefits and other features that help increase hodler cryptocurrency.
Therefore, with a cryptocurrency savings account, you can start your passive income journey fairly easily. Here are the factors you need to consider when choosing the right savings account
Factors to consider before choosing a cryptocurrency savings account
Cryptocurrency interest savings accounts offer lucrative rates and can leave investors confused about which platform is best for them.
Here is a brief description of some of the key features you should be aware of before depositing funds into a cryptocurrency savings account.
- Supported tokens: Each platform offers different types of tokens, so you should check how many tokens the platform has before holding a cryptocurrency.
- Withdrawal restrictions: Platforms have different lock-in periods, fees and restrictions that you need to be aware of when choosing a cryptocurrency savings account. In addition, some platforms have restrictions on the countries/regions where deposits can be made. Check all these factors before proceeding to transfer funds to the platform.
- Insurance policies: The security of your digital assets is also very important when considering using a particular cryptocurrency savings account. The platform should ensure the security of its customers’ assets. Pay attention to platforms that offer insurance to further protect your cryptocurrency assets.
Earn Passive Income with Hodlnaut Looking for a platform that offers high interest rates for your cryptocurrency? Hodl earns up to 12.73% APY with Hodlnaut. Deposit your cryptocurrency and start earning interest weekly with Hodlnaut. In addition, the platform offers the optional Nexus Mutual Custody Cover to protect your funds from hackers. Hodlnaut supports six cryptocurrency assets, namely BTC, ETH, DAI, USDC, USDT and WBTC. To start getting interested in your cryptocurrency, sign up for Hodlnaut today.