21 January 2021, 19:01
2 min reading
What is a crypto savings account? How does it work? What it takes to open a deposit and how much you can make?
A crypto deposit is similar to a conventional savings account in a physical bank, but in this case, it is not your fiat money that brings interest, but your cryptocurrency assets. You take your digital assets to a trusted cryptocurrency institution, such as Crypterium crypto bank, where your electronic tokens start working and producing a profit.
The profit is generated when your crypto assets are borrowed by someone for a definite period and then returned with interest (meaning you lend less than you ultimately receive). The size of interest depends on many factors including the platform’s rules, a type of cryptocurrency, the current market situation, etc.
The interest will be elevated when a demand for virtual currency is high while its supply is somewhat limited, and vice versa. For example, Crypterium allows you to make up to 9.6% APR (annual percentage rate) on your digitalized funds.
Virtual currency is a relatively new financial phenomenon, and most people often underestimate its enormous earning potential. They just keep their digital cash in e-wallets, believing that one day they could resell their virtual coins more expensive than what they have paid when buying them. Digital coins stored in an electronic wallet do not make money, but a crypto deposit – indeed.
Staring enjoying passive income through a crypto deposit is very simple. For example, with Crypterium, your steps will look like the following:
With a properly chosen crypto custody provider, your risk to lose your virtual capital is reduced to zero. Crypterium is a fully licensed, well-regulated financial establishment in the EU. Clectronic deposits are safeguarded with 3-layer security, anti-fraud protocol, and insured by BitGo.
Crypterium offers five instruments to open a crypto account, including BTC, ETH, USDT, TON, and CRPT. The maximum annual interest depends on the type of asset you choose. For instance, you can consider a BTC deposit or a USDT deposit to boost your investment yield, as with their insane demand and somewhat restricted supply, these stablecoins promise the biggest interest rate at the crypto market.
The best thing behind Crypterium is that the platform offers increasing interests. Your profit margin depends on the duration of your savings account. It means the longer you keep your deposit, the greater interest you will get.
For new users, Crypterium offers the most lucrative rate on CRPT deposits (the platform’s proprietary token) – you can get 21% annually, which is an unprecedentedly generous measure, not to be found with other platforms.
Your virtual deposit earns similar to a traditional bank savings account. When you open an account in a bank, you allow your bank to lend your money to borrowers who will return the whole sum plus a surplus in future. A portion of this surplus goes to the client, but the bank also receives its share for acting as an intermediary between an account holder and a borrower.
Crypto savings accounts work in the same way. When you lodge your electronic coins, someone borrows them and then returns them with interest over time. A major part of this interest is given to you, and a platform just takes a smaller portion for its services.
Most deposits are credited nearly instantly or after a couple of minutes, still, it depends on the cryptocurrency type, the platform’s terms and conditions, the workload of the company’s servers, and other factors. For example, highly-sought-after BTC and ETH deposits may take more than an hour to be opened since the transactions must first be approved on the side of the corresponding network.
Interests land on the e-wallet of the savings account and are paid in the same currency as the currency of the opened account. For example, if you send one ETH to your savings account, you will receive the agreed interest on that ETH, and it will be paid in ETH on your account.
It is the supply-and-demand ratio that determines the limits. When many people are willing to lend crypto assets and only a few people are eager to borrow, interest rates will be minimal. When many people want to borrow, but just a few people are willing to lend, the interest rates will go up. Demand is now greater than the supply, so interest rates on crypto deposits are impressive.
Today, traditional banks are very reluctant to offer decent interest rates on savings accounts, so many people try to leverage the great interest proposed by the crypto market. With Crypterium, it is very simple to harness the potential of your crypto assets and put your coins to good use. All you need to do is register with the platform, launch a wallet, open a deposit in the preferred cryptocurrency, and start earning hefty interest right today.