How Interest can be Earned on Bitcoin and Other Cryptocurrencies?
Most of the cryptocurrencies such as Bitcoin are self-sovereign money which means they need to be held and taken care of by the owner by design. Because of this reason, most of the investors of crypto keep their Bitcoin along with other currencies in deep cold storage. While most of the people are careless, they keep their crypto on exchanges which are also prone to hacks. Whatever the case is, owning the cryptocurrencies will never increase your wealth. For instance, if you have 1 BTC which is bought for $2000, it might become $11,000 now, but that 1 BTC will remain the same, it will not become 1.5 or 1.25 BTC.
Earn interest on Crypto and Bitcoin
Just a few years back, it was not possible to earn interest in Bitcoins and altcoins, but now with the increase in recognition and liquidity from investors all over the world, it has become possible. The year is 2019 and lending of crypto has made it possible for the lenders to earn an extra amount in their idle crypto capital.
Also, this isn’t any new method. The wealthy millionaires are using this old technique of making the money work for them by lending some more capital that they own in some form or other. In the traditional world, borrowers or investors normally use stocks, real estate or bonds to get or issue loans and they could do more with their holdings.
Similar is the situation in a crypto sphere where any person who holds extra cryptocurrencies or bitcoins can give it to the borrowers so that they could earn some fixed rate of interest on their lendings. There is particularly designed borrowing services and lending of crypto that take care of this complicated process in a less risky way.
Open the savings account of Bitcoin with Nexo, BlockFi or Celsius
The best and easiest way to earn interest on your cryptocurrencies or BTC is by opening the savings account of Bitcoin/crypto with the lending services. Most of the lenders of crypto are spread all over the globe but all of them are not worth to notice. Some of them that are worth going for include:
Opening a savings or lending account with them will give you the rate of interest anywhere between 4-8% on your crypto holdings which is a lot that you would get from the banks.
No doubt, all these three lending services are best in what they do in the market and allowing the crypto holders and investors to do a lot with their crypto assets. But, no doubt, all three of them are different from each other. If you are going to compare in terms of the rate of interest, the Celsius wins from the other two brands.
However, if you are residing in Germany, it is recommended by the experts at Bitcoin Superstar to consider using BlockFi for your savings account.