Let’s face it. Cryptocurrency is flooding the masses. This year, over 36 million US citizens owned digital currency, equalling nearly 10 percent of the nation.
We’re discovering that not only is crypto a safer and more efficient way of making transactions, but it’s becoming lucrative too. People are making money simply by holding on to Bitcoin or Ethereum. And others are finding wild success using their investment proactively.
If you think you want to invest long-term, keep reading to learn how to earn interest on crypto.
Decentralized Finance (DeFi) Platforms
DeFi is a term referencing the outer reaches of blockchain functionality. It invests in further development of technology in the pursuit of decentralizing our financial system. Companies working with DeFi take greater risks to help create a trade society that is safer and more efficient.
For cryptocurrency investors looking to maximize their return on investment, one of the best ways to earn interest on crypto is through a DeFi platform. These companies help you develop a portfolio and manage your trades for high crypto interest. Many DeFi platforms suggest average returns of 5% annually, with some claiming returns as high as 25%.
However, because DeFi is more unregulated than other trading units, your money is susceptible to lose or theft. To safeguard against these risks, it is wise to work with companies that offer protection measures. Organizations like Haru Invest work with third-party security companies to regulate their actions and uses two-factor authentication for further safety.
Centralized Finance (CeFi) Platforms
With the uncertainty revolving around emerging technology, some investors may want more built-in security. CeFi platforms offer similar investment opportunities as DeFi with more of the security of traditional financial systems. These companies offer something of a crypto savings account that earns interest over time, only with higher output.
These platforms offer increased safety on your investment, so your returns won’t result in as much as DeFi. Also, these companies are centralized exchanges. This means you won’t have as much control over your crypto.
Crypto Staking
A much safer practice than investing in DeFi is staking your crypto. A blockchain security measure includes proof of stake, where people stake their crypto in a blockchain for a chance to validate them. Validators have the opportunity to mine new blocks, earning them a portion of the tokens as a reward.
While you can stake crypto as an individual, there are other options. Investing your digital currency in a staking company gives you a much higher chance of yield.
These companies compile their investors’ coins for large stakes. When they mine a block, they send returns to their investors. This is an effective way of earning interest on crypto.
Purchase Stablecoins
Even with the security of these companies, there is no way to protect from the volatile nature of crypto. You may see high yields in your investment, but sudden drops in value will have you lose it all. To protect from this, think about swapping your crypto into stablecoins.
Unlike typical crypto, stablecoins such as USDC are pegged to traditional currency. They represent a digital version of standard money. For the opportunity to hold your stablecoins, many platforms even offer strong APY as a benefit.
Earn Interest on Crypto
Working with the right company is critical to earning interest on crypto. The arena of digital currency is new, and you want a partner you can trust.
Check out how Haru Invest uses its experience to help you earn the highest returns.