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A crypto savings account is essentially a platform that allows you to earn interest on your crypto assets. The platform lends your cryptocurrency to borrowers and in exchange, you get to earn interest on your coins. This is similar to how savings accounts work in a traditional bank. You deposit money, and then the bank gives you interest. However, crypto savings accounts come with a lot of advantages. Let us take a look at the benefits of a crypto savings account.
Advantages of a Crypto Savings Account
- Earn Passive Income: The best advantage of a crypto savings account is being able to earn passive income when your assets remain secure. If you already have cryptocurrency sitting idle in your account then you can deposit it into a crypto savings account.
- Earn interest in Crypto: Traditional interest accounts pay interest in FIAT currency like USD and SGD. However, a crypto interest-earning account allows you to earn interest in crypto. For instance, if you deposit BTC in a crypto savings account then you can earn interest in BTC. Nevertheless, there are platforms like Hodlnaut that also allow you to earn interest in your preferred crypto.
- Higher Interest Rates: Crypto savings accounts offer a higher rate of return as compared to traditional bank savings accounts. The interest rates go as up as 12% APY which is way more as compared to 0.5% APY offered by traditional banks.
- A Safe Platform for Crypto Assets: Crypto savings account allows users to save their crypto assets securely and reduces the chances of hodlers losing their wallets. Some platforms also offer insurance covers to protect the assets of customers.
- Additional Incentives: There are crypto savings accounts that also offer a host of other benefits besides the interest earned on your crypto. This includes things like tokens, benefits, and additional features that help in growing the crypto of the hodler.
Thus, with a crypto savings account you can start your passive income journey fairly easily. Here are the factors that you need to consider while choosing the right savings account.
Factors to Consider Before Choosing a Crypto Savings Account
Crypto interest savings accounts offer lucrative interest rates and can perplex investors as to which platform is best suited for them.
Here is a run-down of some of the key features that you should look out for before depositing your funds on a crypto savings account.
- Tokens Supported: Each platform offers a different type of token and so you should check how many tokens a platform has before holding your crypto with it.
- Withdrawal Restrictions: Platforms have different lockup periods, fees, and restrictions which you need to be mindful of while choosing a crypto savings account. Besides, some platforms also have restrictions on countries from where the deposit can be made. Before you proceed with transferring your funds to a platform, check all these factors.
- Insurance Policy: The security of your digital assets is also very important while considering a certain crypto savings account. The platform should keep the client’s assets secure. Watch out for platforms that offer insurance to further secure your crypto assets.
Earn Passive Income with Hodlnaut
Looking for a platform that offers high-interest rates on your crypto? Hodl with Hodlnaut and earn up to 12.73% APY. Deposit your crypto and start earning interest weekly with Hodlnaut. Moreover, the platform also provides an optional Nexus Mutual Custody Cover that secures your fund from hacks. Hodlnaut supports six crypto assets namely, BTC, ETH, DAI, USDC, USDT, and WBTC.
To start earning interest on your crypto, sign up with Hodlnaut today.