Back in the day, crypto owners depended on trading alone to make profits. Most owners bought crypto coins during the dip and sold them when the prices shot up. These days, there are plenty of options that crypto owners can use to boost their portfolio.
One of the simplest ways crypto owners can boost their portfolio is by earning interest on Ethereum. The interest earned is deposited directly into your crypto wallet. The interest rate is compounded, meaning that you will be earning more interest as your assets grow.
In this guide, we will share with you how you can passively build your crypto portfolio. We will highlight some of the best crypto pro-saving accounts on the market. The article will also share factors to consider when looking for a crypto pro-savings account.
What is a Pro-Savings Account?
Crypto savings accounts work like traditional bank savings accounts. In this case, you deposit your crypto coins and earn interest over time. Most platforms that provide pro-savings accounts offer interest rates of up to 16%. These saving accounts offer crypto investors with simpler and risk-free methods of building their crypto portfolios.
Most crypto platforms that offer savings account services offer other products on the side to help generate revenue. Some of the services offered include crypto-backed loans. The loans are often paid back with a small interest fee on top.
The main goal of crypto pro savings accounts is to help investors hold their crypto assets for as long as they can. In the end, crypto platforms can use the funds to offer loans to other investors and earn revenue from it.
You can either save crypto coins or stable coins. Crypto coin prices always fluctuate, meaning that your investment can lose value should the crypto asset depreciate in the markets. However, stablecoin prices are quite stable as they are tied to fiat currencies. They allow you to leverage the blockchain platform without risking your assets.
Factors to Consider When Looking for a Crypto Savings Account
Crypto coins are quite volatile. Though you will earn free Ethereum coins, you also need to be aware that their value will still depend on its performance in the crypto market. If the crypto coin drops in value, so will your savings.
Some crypto platforms will require you to give up the private keys to your wallet. Since most crypto savings platforms also offer loans, your crypto needs to be made available so that it can be loaned out to other investors on the platform.
Another factor you need to consider is the terms and conditions on withdrawals. Some crypto savings platforms may not allow you to withdraw or use your coins until after a specific period of time. Some may also limit the number of times you can make a withdrawal.
The online platform has been around for a while. It offers various crypto services with the main ones being crypto exchange, pro savings accounts, and crypto-backed loans. If you already have a few Ethereum coins in your pro-savings account, you can earn free Ethereum coins.
Ideally, online platforms help crypto investors hold their coins for a long period. Investors can apply for crypto-backed loans, which can be used to purchase other coins or build up their portfolio. The crypto-backed loans can be in the form of crypto coins or fiat currency.
Loan processing is quite fast and smooth and users get same day deposits. The loan is typically awarded against your savings, so more savings translate to bigger loan amounts. Your savings are also used as loan security.
One of the major services offered by YouHodler is their incredible pro-savings account. Unlike other crypto savings platforms, this one offers compounded interest over time. This means that even the free coins you earn over time will earn you some interest.
Are Crypto Savings Accounts Any Good?
If you have been around crypto for a while, then you are aware that some investments involve risks. Crypto savings accounts have their own fair share of risks. However, if you’re willing to take the risks, then it can be a worthwhile investment opportunity.
Crypto savings accounts that offer an APY of more than 8% are worth looking into. If you do the math, you stand a chance of getting some pretty decent returns without breaking a sweat. Your assets could also grow in value if the value of the crypto goes up during that period.
Most crypto savings accounts pay out the interest at the end of the week. If you have bigger investments, then the compounded interest over time may turn into some good profits. Some crypto platforms have limits on the amount of savings you need before you can earn any interest from your account.
If you’re wary of the risks involved with crypto coins, you can invest in stablecoins. Stablecoins are special virtual currencies whose value is pegged to that of fiat currencies such as the Euro or USD. You can put these stablecoins into your crypto savings accounts and earn interest from it.
You can start earning interest on Ethereum by placing your coins in crypto savings accounts. However, you need to make sure you do proper research beforehand. Some of the things you should consider include the amount of deposit required, withdrawal terms and fees, and also the security of the platform. Also, check if the platform offers compounded interest as this is more profitable, especially over a long period.
If you’re interested in holding your crypto assets while earning from them, then you should probably look into crypto savings. However, keep in mind that most of these services work best if you’re in it for the long-term. Weigh the risks, and if they are worth it, you can go all-in and invest in it.
You can also look out for reviews and expert opinions from crypto social sites. There you will meet with like-minded crypto investors. You can either place crypto coins or stablecoins in your savings account. The good thing about stablecoins is that they are not volatile. As such, you don’t have to worry about price dips, if you’re hodling them for a long period.