Earn Interest on Your Savings Easily (More Than 10%+)

Sharing is caring!

Earn interest on your savings

Saving your money at the bank and earning interest from it is a good thing. But how much interest do you earn from the bank? Did you even know that you earn interest on your savings? Probably not! Because the interest rates offered by the banks are too low, close to 0%, that it makes no difference to your account balance.

Do you know you can earn more than 10% on your Crypto savings? This article explains how you can earn high interest using stablecoins.

Let’s see how you can earn interest on your savings more than 10%+ easily and effortlessly.

What is DeFi?

Cryptocurrencies like Bitcoin introduced the decentralization of money. DeFi takes this decentralization a notch higher as it attempts to decentralize the whole structure of traditional finance like lending, trading, payments, wealth management, and insurance services.

Decentralized Finance (DeFi) runs on decentralized apps (dApps), which are built on the blockchain (Ethereum is most preferred) to provide a peer-to-peer financial network. Smart contracts help facilitate the transactions, just like specified APIs would do in a traditional financial system.

The DeFi ecosystem is continuing to thrive and attract more investors because of the introduction of the fastest-growing assets in the crypto world. I’m talking about stablecoins. They have formed the bridge between the traditional way of conducting transactions and the crypto economy while bringing stability in the face of violent volatility.

What are Stablecoins?

A cryptocurrency such as Bitcoin and Ethereum experience high volatility and instability making it very difficult to predict future market movements. This instability is quite normal and always expected in a crypto market because they use blockchain technology, which is still new. Stable coins are designed as a solution to this problem.

A cryptocurrency is attached to a fiat (traditional) currency or commodity to achieve stability and credibility. This combination creates a stable coin. Therefore, we can comfortably state that a stablecoin is a cryptocurrency asset pegged to an external asset like a fiat currency to maintain stability in price by mimicking the parent currency’s price.

Fiat currencies such as USD and EUR and other assets such as Gold have a generally stable market price, and you can easily predict their performance, let’s say, by the end of the week. To attach a cryptocurrency to a fiat currency, a ‘reserve’ is set up and used to store the asset acting as the parent currency to the stablecoin. This stored money serves as ‘collateral’ for the stablecoin, and you can redeem one unit of a stablecoin for one unit of the parent currency.

There are both collateralized and non-collateralized stablecoins. Collateralized stablecoins use different types of assets as backing. They include:

  • Fiat currencies like the US Dollar and the Euro.
  • Precious metals like Silver and Gold.
  • Other Cryptocurrencies like ether, which is the native token of Ethereum.

The category of the non-collateralized stablecoins is known as Algorithmic. It uses an algorithm that automatically destroys extra coins or creates new coins to maintain the price of the stablecoins at the targeted price. For example, if the targeted price of a stablecoin is $1 and the price drops to $80, the algorithm burns out some coins to create scarcity and, in return push the price of the stablecoin up to the target price.

USD Coin (USDC)

The USD Coin ranks as the 2nd largest stablecoin. Coinbase and Circle cryptocurrency firms jointly manage the USDC through Centre Consortium.

USD Coin on Coinbase App

Many investors prefer the USD Coin to other stablecoins because:

  • It has a stable price, such that you can get 1 USDC Coin for US$1.
  • It gets backing from the US Dollar, a stable fiat currency that is held in a bank.
  • It can be stored securely in a wallet compatible with Ethereum. An example of an Ethereum-compatible wallet is the Coinbase Wallet.
  • You can comfortably transact globally with your USD Coin from your wallet.

Are Stablecoins Safe?

The stablecoins are considered safe because of their stability, but that doesn’t mean they are risk-proof.  Some of the risks you should be aware of are:

  • Stablecoins are subject to market volatility and fluctuations related to the backing asset. For example, a fiat-backed stablecoin like the USDC faces similar market movements as those of USD. This also means that they are restricted by the same regulations governing fiat currencies.
  • Fiat-backed stablecoins can crash in case the backing currency crashes in the face of a failing economy. It works the same for crypto-backed and commodity-backed stablecoins, such that, if the backing asset fails, the stablecoin fails too.
  • Commodity-backed stablecoins can be a little tedious to redeem, especially if they involve commodities like real estate.

4 Easy Steps to Earning High Interests

  1. Create a Coinbase Account.

Coinbase provides a platform for investors opting to transact with stablecoins like USDC. To create an account, you must be 18 years old and above, have a smartphone or computer with a stable and secure internet connection, a phone number, and a government ID for identity verification. Here’s a step by step process.

  1. Go to coinbase.com and click on the ‘Get Started’ icon.
  2. Enter your correct information on the application form. You’ll be required to verify this information later in the process.
  3. Check the box to agree to the policies and click on ‘Create Account.’
  4. Check your email for a verification link from Coinbase and click on it.
  5. You’ll be redirected to Coinbase.com, where you’ll have to sign in again using your email and password.
  6. After signing in, you’ll be required to add a phone number and verify it using a seven-digit code that Coinbase will send to your number as an SMS.
  7. Enter the code on the provided space and submit. You can resend the code if you fail to receive it on the first attempt.
  8. The next step is to enter your personal information as shown on your valid ID. This includes your first and last name, date of birth, and your address. You’ll also need to answer a questionnaire that enquires about your financial status and what you’ll use Coinbase to do.
  9. Click ‘Continue’ and wait for an email from Coinbase with further instructions.
  10. To make any transactions on your Coinbase account, you’ll first need to verify your identity by following the process from your Coinbase account.
  11. Link a payment method depending on the payment methods available for your specific country.

 

  1. Convert to USDC

You can convert your funds to USDC at a rate of 1 US Dollar for 1 USDC. This means that each USDC has a collateral back-up by a corresponding USD held in a bank account. As a Coinbase customer, you can easily buy USDC as long as you’re from an eligible region, and your USDC tokens will be displayed on your wallet.

 

  1. Create a Celsius Wallet

  2. Download the Celsius app on your phone and open it. Get $30 in Bitcoin with promo code WEB30
  3. Click on ‘Join Celsius’ and choose whether to sign up with Facebook, Google, Twitter, or Email. You’ll not have an option to change this later.
  4. Fill in the information required and check the box to agree to the policies and terms of use.
  5. Click on ‘Create Wallet.’
  6. You’ll be required to set a 6-digit pin that you’ll use in the future to access your account on the app.
  7. Verify your account to have full access to your wallet and earn interest. You’ll also be required to complete the KYC process so that you can easily make transfers and earn interest.
  8. Start by entering all your personal details and continue to fill in your residential address.
  9. Provide verification documents and proceed to enter your Social Security Number. Non-US residents can skip this and submit verification without SSN.
  10. The wallet is verified within minutes, and a notification is sent to you after the verification is completed.

 

  1. Send Your USDC to your Celsius Wallet

Celsius App

To make this transfer, the first step is to get an address from the Celsius account. Open your Celsius wallet and click on “deposit” on the app’s main screen. Choose USDC as the coin you want to deposit. Copy the deposit address and paste it on your Coinbase.

Before going to your Celsius wallet, start by accessing your Coinbase account, where you can see your balance of USDC and other available coins. Just below the USDC, click on “Send,” add the amount you want to transfer, and then you can now paste the Celsius deposit address. Take time to double-check this address, and once you’re comfortable that it’s the correct one, complete the transaction.

On the Celsius network, you get to earn high interests with no requirements for a minimum balance amount, no fees and penalties, and the rates are updated every week. As of the time of this writing, you can earn up to 10.51% interest on your USDC paid out weekly.

Even better, if you choose to get paid in the CEL token, you will earn 13.86% on your savings. It’s easy and effortlessly! The CEL token is actually one of the best performers in the whole cryptocurrency universe.

Earn 10 percent on your savings easily with Celsuis

Why Is The Interest Rate So Much Higher Than in My Bank?

Celsius’s interest earnings are much higher than in a traditional bank because the network puts its investors first and gives more returns to its users. Unlike a centralized banking system, the stable coins’ decentralized nature allows for higher returns, and therefore the interest rates keep rising.

Celsius Network is a great place to start for investors looking to earn more through high-interest rates and access low-cost loans on a mobile app.

Use the promo code WEB30 to get $30 in Bitcoin when you download the app.

Sharing is caring!