Interest Rewarding Investor Accounts Are Leading The Cryptocurrency Use Case Charge This Year

Interest Rewarding Crypto Accounts: This Year’s Major Prospectus

The beginning of 2019 has seen a better future for people who had bought cryptocurrencies; for now, they will get compound interests on their invested cryptocurrencies. There has been an upward trend of crypto companies providing interest schemes to its investors. Those who had previously invested in cryptocurrencies can now finally relax as they will benefit from the interests which they will receive annually. Gone are the times when investors had to hold on and hope that their cryptocurrencies will rise in dollar so as to earn passively. Thanks to the rewarding savings schemes which will reward investors for locking their digital assets.

Following the footsteps of the many crypto companies like Blockfi, Ledgerx and Compound, which provide savings schemes, Nexo has become the latest crypto company to introduce interest to its customers, With provisions of up to 6.5% annually on stablecoins like DAI, PAX, USDC, USDT, and TUSD, Nexo has joined this race. The interests are compounded annually and custodial insurance protects the digital assets.

Nexo enables its clients to withdraw any amount of cryptocurrency at any time. This makes their crypto account essentially a checking account, stocked with tokens. This has ushered the promise of annual interests that are higher and flexible than regular savings schemes.

Other companies like Blockfi are providing clients who store ETH or BTC deposits, 6% annual return of interest. Ledgerx has also been providing interest schemes for BTC investors since last year. Compound also has a 4.2% annual scheme for DAI assets. In this year March, Universal Protocol Alliance has announced a stablecoin which would pay interest up to 10% annually.

This has been a boon for all the crypto investors as they have more options with their digital assets in the current times. Long term investors now have ample attractive schemes to explore and get promising rewards. Many third parties are also coming up with rewarding interest schemes for the cryptocurrency owners. However, many who fear the risk for a 6% return or those who seek privacy for storing their amounts in a noncustodial wallet, are facing the dilemma of choosing these lucrative interest offers and full custody cover.

Customers are always advised to read thoroughly the terms and conditions of these interest schemes. For example, Blockfi doesn’t provide insurance of the assets against losses. However, Nexo and Coinbase Custody provide full-time insurance. Hence it is always at the discretion of the investor to go through the small printed texts before committing anything. Coinbase doesn’t provide return interests as of now and is a staking service which obliges hodlers to lock up qualifying Proof of Stake coins such as tezos (XTZ). The end result to clients is almost the same as receiving interest however, by the time Coinbase has taken its 2%, stakers will be left with an annual yield of around 6%.

Industry commenters like Meltem Demirors stress that staking and interests are different. For the end user, be it an institutional client who doesn’t want to acknowledge with the technical side of staking, or the retail client who doesn’t want to assume custody for their cryptocurrency, the outcome appears indistinguishable. Zane Pocock on 29th March through Medium post commented:

“Financialized structures allow for much better liquidity, debt structures, and other benefits that mean institutional custody and lending can be good for Bitcoin.”

It is repeatedly advised to the investors to do their own research in the interest savings scheme offered by the crypto companies before taking any decision. The number of crypto companies offering inclining interest schemes is predicted to grow in the coming months and years. As pointed out by leading industry experts, when the inflationary nature of the central bank’s financial schemes are counted in, crypto interest accounts will become significantly more appealing than their popular counterparts.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide