Did you know that Bitcoin is worth $ 58,366 as of May 2021? Or that roughly 250,000 Bitcoin transactions take place every 24 hours? As you can see, this most popular cryptocurrency can be used to make money.
But is Bitcoin right for you? Doesn’t it come with a lot of volatility and few guarantees? While these traits may have described the currency early on, you will be happily surprised by the many compelling reasons you should be earning interest in Bitcoin today.
Here are five reasons you should consider making this crypto work for you in 2021 and beyond.
1. Saving Technology You Need
If you haven’t seen the “Bitcoin is Savings and Freedom Technology” meme, check it out. Why should such a message be spreading in pop culture right now? With many investors referring to Bitcoin as digital gold, this makes sense, considering that it is profitable to hold 92 percent of your existence.
And you will be amazed how much money you can make with interest just by putting your money in a crypto account. It may sound too good to be true, but you can easily earn anywhere from three to eight percent of the annual interest rates, depending on the platform on which you hold your Bitcoin.
If you compare this to a traditional savings account, where you are lucky enough to earn one percent of the annual interest, you will quickly see the appeal of cryptos. After all, traditional savings accounts actually lose money when you compare interest rates to inflation.
2. A long term game
Bitcoin’s volatility is undeniable. Since the fall of 2019, the price has risen from $ 20,000 to nearly $ 60,000, with some scary slumps along the way. For investors looking to make money quickly, Crypto could prove to be a great bet or a moody financial challenge.
However, if you look at Bitcoin as a long-term game, you will find greater opportunities to make steady money even if the market is winding its way down a little. For example, put your money in a crypto savings account and earn BIG.
Just leave your money in your wallet and start collecting interest. You get paid to allow other people to borrow your bitcoin.
But what if they default on the loan? With the vast majority of crypto platforms only offering secured loans, there are special safeguards in place to ensure that you are making money instead of losing it.
3. A gentle learning curve
Many consumers assume that they need to know everything about cryptos before they can get interested in them. However, we would like to let you know that Bitcoin platforms are now more user-friendly than ever.
If you’re looking for ways to make money from Bitcoin, you won’t find any other option with a gentler learning curve. There are numerous ways to earn interest on cryptocurrencies, including crypto lending services, credit cards, DeFi income agriculture (decentralized finance), and bitcoin rewards.
While some of these methods require more knowledge than others, beginners can start with simple options such as: B. Earn interest on a Bitcoin savings account.
4. Easy access to funds
How do cryptocurrency savings accounts compare to traditional accounts when it comes to liquidating assets? You can generally withdraw your crypto assets at any time with few restrictions. The same goes for any interest you’ve earned.
Most consumers will initially choose a central switch like Celsius or BlockFi, and both platforms offer fantastic options. They offer up to five or six percent interest on cryptos and around nine percent on stablecoins.
Some, like Crypto.com, may offer much higher returns, up to 12 percent for stable coin investments. Aside from Crypto.com, you should also consider Nexo.
Why? With the Nexo platform, users can earn up to 12 percent annual interest on their crypto, and you can start earning interest after just 24 hours. Of course, you must have the stomach for HODLing NEXO tokens to take full advantage of these rewards.
To start raking this dough, create an account and deposit some money. You can do this by transferring money from a bank account.
Simply put, platforms like those listed above offer many benefits of working with a traditional banking institution. However, you still get significantly higher returns than a traditional savings account.
5. Consumer protection
One of the most significant differences between crypto platforms and more traditional banking options has been the lack of consumer protection for digital currency holders. But centralized platforms such as BlockFi and Celsius Network have made great strides in this area too.
While you need to carefully vet every business, many offer insurance to help secure client funds. They also only trade in secured loans and go the extra mile when it comes to avoiding fraudulent activity such as losing money through hacking.
Look for platforms that rely on cold stores rather than hot purses to hold money. What is the difference between these two types of storage? Cold storage is the offline storage of money on a platform that is not connected to the internet.
This will protect your funds from vulnerabilities related to cyber attacks and hackers. That means more security for you as a consumer.
As you can see, cryptocurrency platforms have come a long way in the past couple of years, and the best have learned from past mistakes (even if they are not their own). In doing so, they have taken it to the next level by giving consumers the financial protection they need to have money with them.
Earn interest on bitcoin
What is the next step when you understand that Bitcoin is a technology for savings and freedom? Find the best way to earn it for you. For many consumers, entering the world of crypto begins with setting up a high yield savings account through a centralized platform.
If you choose a proven platform that puts consumer protection first, there are few better ways to generate interest in Bitcoin. Would you like to take a closer look at some of these crypto savings platforms? Here is a comprehensive list of the best crypto savings companies out there today.