By EWN • 22 October 2021 • 15:14
One of the main motivators for consumers in both the US and Great Britain when it comes to owning cryptocurrency is the growth prospects. Many cryptocurrencies increased in price significantly during 2021. Bitcoin was the most well publicized, but others such as Etherium and Ripple also showed substantial growth over this period. One of the reasons for this may be the preferable interest cryptocurrency savings accounts provide when compared to more traditional bank savings accounts. Banks tend to have low interest rates on their savings accounts resulting in low interest stimulus. Banks also tend to have higher interest rates on loan accounts than those provided by cryptocurrency platforms, making borrowing money through cryptocurrency both more financially attractive and more secure.
Generally there has been slow to no integration of cryptocurrency accounts into traditional banking systems. Luckily there are various crypto interest account options available. While these are unlikely to replace traditional financing systems, they do provide an alternative system that is cheaper, safer and faster. Furthermore, cryptocurrency may provide the only financial system to those who do not have traditional bank accounts. Currently this accounts for approximately 30% of individuals worldwide.
How Cryptocurrency Interest Accounts Work
A cryptocurrency interest account operates similarly to a savings account at a bank, in that it provides a place to deposit cryptocurrency and keep the coins safe, while gaining interest on them, thereby allowing you to earn passive income.
Cryptocurrency Lending Platforms
Much like different banks provide different interest rates and other additional benefits, so do different cryptocurrency platforms. It is therefore very important that potential investors consider which platform provides the most attractive investment options.
One of the highest interest rates to be found is through a Hodlnautcrypto interest account where investors can earn up to 12.73% annual percentage yield (APY) on their investment depending on which of the six cryptocurrencies Hodlnaut accepts that the investor chooses to deposit.
Hodlnaut allows investors to deposit various different cryptocurrency assets into an interest account. This currency is then loaned to approved institutions, on which loan the investor earns interest.
Forms of Cryptocurrency
Investors should be aware that not all platforms accept the same forms of cryptocurrency. A larger number of allowable cryptocurrencies will allow investors to diversify and protect their investments.
Many traditional bank savings accounts have restrictions on how funds are withdrawn, such as requiring notice to be given a certain amount of time before any money can be withdrawn from the account. Investors should make sure that either there are no restrictions or less strict restrictions on withdrawals from their cryptocurrency interest account. One such restriction is withdrawal fees. Cryptocurrency accounts with lower withdrawal fees will probably be preferable to investors looking for a flexible investment option. Another benefit investors should look for is the freedom to determine how and when interest payments are received, and the ability to withdraw funds from the account at will.
One advantage that traditional banks provide is that customers have access to a wide variety of services in one place. What investors may not know is that cryptocurrency platforms can similarly offer a wide range of services. For example, in addition to its interest account, Hodlnaut can provide credit lines to clients using their cryptocurrency assets, held by Hodlnaut, as collateral. For clients looking not only to accrue passive income but obtain funding for a new business venture, being able to do both of these using one app is a significant benefit.
Dealing with banking institutions is usually a fairly standardised procedure void of personal considerations or passion. Many cryptocurrency platforms operate in a similar fashion, while others are based on a passion for cryptocurrency, crytpotrading, and the many innovations and opportunities it can provide.
Where to Find Cryptocurrency Platforms
Most cryptocurrency investment platforms can be used through an app on both desktop and mobile devices. Anyone looking to invest in a cryptocurrency interest account should consider the available platforms carefully. Other cryptocurrency platforms investors can consider include BlockFi, Celsius, Nexo and many others. One suggested option is to sign up for a Hodlnaut account.
While traditional banking accounts and services will continue to be useful and relevant to many individuals looking to save and invest, cryptocurrency platforms provide additional benefits such as higher interest rates on investments, lower interest rates on loans, lower transaction costs, flexibility in investments and withdrawals and many others. Investors should therefore consider investing in cryptocurrency platforms and interest accounts. They should also ensure to conduct research beforehand to determine which platform has the most favourable services available.
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