Misc

Can You Earn Interest on Crypto?

There are many different ways to generate income working with digital assets. Some of them imply daily trading, others – long-term investments, and there is also an option to earn interest on crypto. That is, in fact, a passive income opportunity. So let’s discuss it today.

Earn Interest Crypto

Many large crypto platforms offer an option of staking cryptocurrency. Staking works similarly to a traditional deposit in a bank – you put your assets and receive interest in return. Staking is available for different periods – it may last 10 days or even a year, depending on the platform.

See how it works in practice:

  • You register on one of the large crypto exchanges, for example, WhiteBIT.
  • Move crypto coins to the main account.
  • Pick a staking plan.
  • Generate income by locking your digital assets in staking.

The locking period on WhiteBIT varies from 10 to 360 days, and your crypto earn interest depends on the coin you pick and the locking period.  The longer you keep your assets locked, the bigger your yield.

When picking an asset for staking, you should consider the most stable digital assets. That are coins with the biggest liquidity. Check out the Coinmarketcap ranking and you will see – these are the leading cryptos – BTC, SOL, ETH, etc. 

Once your coins are locked on the exchange, you cannot use them. But if you wish to withdraw funds back, you can do it, but you should know that, in that case, interest will not be accrued. Some crypto platforms impose penalties for those stakers who withdraw coins before the staking plan expires. So when deciding to put your assets in staking, make sure you understand all the risks.

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On the WhiteBIT Blog, you can read more information on staking cryptocurrency with additional guides on how to make your first steps in crypto trading.

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