In light of the recent boom of the decentralized finance (DeFi) realm, many fintech platforms are following suit, providing users the opportunity to earn interest on digital assets, however, with much more security. While DeFi platforms offer users (sometimes unachievable) high yields, fintech platforms are providing a more realistic and transparent service.
Programs called crypto earn allow users to invest their cryptocurrencies in a specific wallet on the platform and earn interest rates applicable to that specific currency. Similar to crypto staking where users lock their funds in a wallet or smart contract for a certain period of time.
Typically, each cryptocurrency will have a different interest rate, which is subject to fluctuations with market volatility. When prices rise, the APYs will rise and decrease alongside the price as well.
These programs might be available on a crypto exchange and might be accompanied by fees and a lock-up period, so be sure to read the fine print before parting ways with your funds.
How do these crypto earn platforms provide these returns?
This is an important question to ask before using a new platform. In light of the recent demise of the Celsius network, it became evident that the platform was making risky bets with investors’ money, which all came crashing down after TerraUSD collapsed.
Be sure to read the fine print and understand how these platforms are providing your returns. If it’s through a string of risky investments, walk the other way.
Who can participate in these yield programs?
Similar to a savings account, these crypto earn programs are available to anyone. However, most fintech platforms will require a KYC (Know Your Customer) verification. This is due to regulations in the industry and simply means that the platform is more reputable and reliable.
How can one earn interest on crypto assets?
As mentioned above, you will need to find a reputable platform that offers these services. Look for a company that holds the right regulatory compliance, and ideally insurance to ensure that the platform is legitimate.
How to open a crypto interest account
If you're interested in opening a crypto yield account you will first need to find a reputable platform on which to do so. As mentioned above, ensure that you read the fine print carefully, and that you only work with platforms that hold the neccesary licences. You will likely then need to create an account by entering the necessary information and completing a KYC verification process.
Disclaimer: This article is intended for communication purposes only, you should not consider any such information, opinions, or other material as financial advice.
This article is for general information purposes only and is not intended to constitute legal or other professional advice or a recommendation of any kind whatsoever and should not be relied upon or treated as a substitute for specific advice relevant to particular circumstances. We make no warranties, representations or undertakings about any of the content of this article (including, without limitation, as to the quality, accuracy, completeness or fitness for any particular purpose of such content), or any content of any other material referred to or accessed by hyperlinks through this article. We make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up-to-date.
