5 practical methods to gain interest on stablecoins

One of the most popular methods and possibly convenient methods of earning passive income nowadays is by crypto trading. So while talking about cryptocurrencies and crypto investment, how can we skip the money-making potential of stablecoins? 

If you have knowledge about stablecoins and own the right coin, then without much effort, you can easily earn a significant interest rate without even spending much time analyzing the market and without volatility.

So in today’s guide, we will discuss the easiest ways to earn decent stable coin interest.

 

What are Stablecoins?

Stablecoins are cryptocurrency tokens (just like Bitcoin, Ethereum, etc.). The original value of the tokens is tied to another currency (for example, the US dollar), any financial instrument, or commodity. Just like the name, stablecoins offer stability to the volatile cryptocurrency market. They are one of the popular payment choices due to their stability.

The first ever stablecoin introduced in the Crypto market was Tether(USDT), and the token’s value is directly linked to the US dollar. Simply speaking, the value of 1 USDT is approximately equal to the value of $1.

 

How is the stability maintained?

Different stable coins have different mechanisms to maintain price stability in the crypto market. The standard mechanism includes the following:

  •       Fiat (which is directly tied to a currency like EUR, USD, YEN, or CNY)
  •       Directly tied to a commodity like gold (for example, PAXG, which tracks the value of gold)
  •       Non-collateral backed algorithm coins that follow a specific code. The code follows the supply and demand for the coin, thereby adjusting the price on the go.

 

A Quick Guide to Earn Passive Income using Stablecoins

  • Step 1: First, you must sign up with any Crypto platform. So visit their official website and complete the registration form.
  • Step 2: Make sure that you complete all the verification procedures.
  • Step 3: You need to add funds to your savings account. Click on the deposit section and select any method to add funds. Some standard methods include bank transfer, credit card, UPI, and Crypto to Crypto payment.
  • Step 4: Now, establish a stable coin interest account. You will be earning more interest the longer you stake your stablecoins.

 

Gaining interest in stablecoins

The process of earning passive income using stable coins is easy. However, selecting any method or a random Crypto lending website might be harmful, and you might lose money. So here is a list of trustable platforms where you can open an account to generate the best interest on stablecoins.

1. Aqru

It is one of the best platforms for staking Crypto and offers the best interest on stablecoins. Aqru supports DAI, USDC, and USDT, and the platform offers a maximum daily interest payout of 12%.

Immediately after opening an account with this platform, you will get a free $10 bonus in USDT. Your account will automatically start accumulating interest without any extra input from the user as the interest is calculated daily. In simple words, you will be earning compound interest on the assets.

The minimum deposit is 100 US dollars; however, there is no minimum lock period.

2. BlockFi

This trading platform follows the rules and regulations of the SEC and functions under it. Therefore you can rest assured that the platform is safe.

Even though the company was established in 2017, it has earned quite a name. BlockFi also offers crypto loans; however, the average user earning on the staking program will depend on the tiers.

For example, if you invest $10000 in stable coin, you will be earning $2.19 a day.

3. Nexo

Nexo is another popular Crypto platform where you can earn significant interest on stablecoins. They offer higher APY both for Crypto tokens and stablecoins. Any user can earn approximately 12% on stablecoins that earn interest, like USDC, USDT, DAI, TrueUSD, and many more.

But there is a catch. You can only get higher returns if you own at least 10% NEXO tokens in your portfolio. Another essential condition for earning higher interest on your stablecoins is that you need to receive the interest earned in NEXO tokens.

You can always transfer these tokens to other coins or other exchanges.

4. Crypto.com

The official title sponsor of the UFC, crypto.com has recently revealed some of the highest interest in the Crypto market. 

However, there are certain conditions. Crypto.com usually pays the interest rate on different stablecoins, but the lock-up periods and tiers may vary. The accepted stable coins are USDT, USDC, TGBP, DAI, PAX, etc.

The trading platform is a good choice for all investors who own a considerable amount of stablecoins.

5. Curve

Curve has been working since 2020 and has designed itself as an exchange liquidity pool on Ethereum for the best stablecoin trading experience. Most crypto investors use this platform to get liquidity to Curve pools to swap their stablecoins.

Curve uses the CRV token as the governance mechanism. So if you deposit stablecoins like DAI, USDC, USDT, and TUSD, the trading platform will automatically convert them into cTokens for the compound pool. So now you can earn a return on top investment earned from the pool.

 

Conclusion

In your investing journey, you’re bound to come across multiple crypto savings accounts offering lucrative interest on stablecoins. 

However, it’s almost important to peek into the history and developments of such platforms before putting your money into them.

Moreover, most investors prefer investing in stablecoins to get higher returns compared to the returns received from savings accounts in a traditional bank. Start taking control of your money and your crypto taxes as well. And what better way to get started than right here at KoinX and gathering all the necessary information and updates in one place?

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