How to Earn Interest on Crypto with a Savings Account

Cryptocurrencies are known for their volatile nature, which can be both good and bad for investors. To make a profit in the crypto community, you must think outside the box. You can choose to be good at trading or simply hold your tokens and wait for the right time to trade.

While holding your tokens, depositing them in a crypto savings account is the best way to earn interest on bitcoin and other cryptocurrencies.

Here is how to earn interest on crypto with a savings account.

What is a Crypto Savings Account?

Just like saving money in a bank account, you can also do the same in a crypto savings account and still earn interest on crypto. The account provider will then lend your coins to a borrower and you receive a percentage of your crypto interest.

How to Open a Crypto Savings Account

There are a few steps you must take when opening a crypto savings account. Among them are the following:

• Signing in - The first step is signing in by creating account name and password, which are used for security purposes.
• Accept the terms and conditions - Different websites have different terms and conditions. After reading and understanding the disclosure document, agree by simply clicking on the enter button.
• Deposit your coins - Once you are finished with the signup process, you can save your coins by depositing them and finally clicking on the button to confirm. You should receive a message shortly afterwards informing you that your process has been completed.

Top Crypto Savings Account

When considering how to earn interest on crypto, the savings account you choose matters. Here are some of the top crypto savings accounts:

• YouHodler - If safety is what you look for in a crypto interest account, then YouHodler is the best account to choose. They mainly deal with crypto lending and holding at high crypto interest rates.
• BlokFi - This is one of the most reputable savings accounts that allows you to earn interest on crypto that offers rates of up to 8% of what you deposit.
• Coinbase - This is one of the most reliable savings accounts that allows you to earn interest on crypto and offers rates of up to 2% on your investments. The only disadvantage with Coinbase is that it supports one type of coin, which is the USD coin. This limits you from investing further.

Factors to Consider When Choosing a Crypto Savings Account

The following are some of the factors to consider when looking for the best crypto savings provider.

• Safety measures - The first factor to look for is the safety measures of the account. Since this is an online service, they are likely to be more prompt to hacking and theft. Pay attention to the financial stability of the company to be on the safe side.
• Supported coins - To earn interest on crypto, it's best if you choose a crypto savings account that supports your cryptocurrency.

Conclusion

For most investors, investing in cryptocurrency is a game-changer. With the latest technology, you can now hold and save your tokens and still earn interest on crypto. This has been one of the fastest and most reliable ways of investing in cryptocurrencies.