Cryptocurrency investors usually went through so many emotional rollercoaster rides because of the existence of volatility in the cryptocurrency market. This volatility usually brings a lot of risk for the investors where they may earn or lose the value of their holdings upto maximum extents.
But you are not limited to earning on your digital assets by managing its sales or purchases when the price fluctuates. Because today we have found some best ways with which you can simply earn compound interest on your cryptocurrencies. Let’s see:
#1. You Can Deposit Your Digital Assets Into Some Fixed Earnings Account:
When you deposit your cash with banks or other financial institutions then you literally earn some amount of interest on your deposits whether it is recurring in nature or the fixed ones. So, here in the same manner, you can also park your funds with your newly created crypto interest accounts. This opportunity will let you earn compound interest even on your cryptocurrency holdings on a consistent basis.
Here you might be wondering what kind of crypto platforms you can adopt to realize compound interest on your cryptocurrency account balance. So, there are actually a number of options that really work on such a mechanism. These platforms are simply engaged in providing services for cryptocurrency marketplace investors where they can literally earn additional income on their digital currency holdings.
Some of the platforms easily offer you to earn upto 12% APY on any acceptable digital currencies at their operational centres. Apart from this, you can certainly take advantage of this platform where you can conveniently hedge your digital currencies against the risk of market decline along with earning a fair rate of compound interest on your crypto assets. Further, you can realize the fact that these platforms are literally offering you high interest rates in comparison to interns rates offered by traditional banks.
#2. You Can Act As Official Associate:
This is another creative way to add this interest element in the cryptocurrency ecosystem. Here either you might have deposited your digital assets with crypto interest accounts or may have parked your cryptocurrencies with different lending platforms. Both these platforms absolutely offer some affiliate programs which you can easily join simply by performing as an active user on their portal by parking your funds with them.
After you have officially joined their affiliate program, then next you are going to receive a unique referral link. With this, you can further start adding the products and services of the portal on your personal website or other social media accounts to encourage users to create an account. And for every addition of a new account at their portal with your reference, you will surely receive a certain amount of commission on that. Now the amount of commission that you are going to receive generally varies from portal to portal with which you have engaged with.
Here the best part is you are not bound to become an affiliate partner with a single platform as you literally diversify your digital assets portfolio and then deposit them with different platforms to enjoy the benefit of joining multiple affiliate programs.
#3. You Can Consider Lending Or Staking:
Staking is basically a process where cryptocurrency payment transactions are validated on Proof-of-Stake (PoS) networks. With these blockchain networks, if you really have the minimum required balance of a particular cryptocurrency then you can certainly help to validate the transactions and gain staking rewards as well.
Here, staking your crypto coins at some specific platforms doesn’t define that you have spent them, rather they will be safely locked in some digital wallet where they can be used as Proof-of-Stake (PoS) for fulfilling the purpose of validating transactions. During the process of validating crypto transactions, a significant integrated and secured network is used. Further, in this mechanism, you have lent out your digital coins to the network so you become eligible to gain rewards by the same network.
While choosing the random transaction validator, here usually a Proof-of-Stake (PoS) algorithm is followed by the network that will be simple based on the number of coins each user has staked. Apart from this, there are already so many cryptocurrency exchanges that absolutely allow their investors to stake their crypto coins with them.
Here in this content, we have provided you with some really smart and practical options which you can certainly adopt to earn well on your digital currency holdings. So, rather than just waiting for the prices to increase on those crypto coins that you hold and you can make profits, you can also try other ways as well to ensure your regular earning on your crypto assets. Thus, go through these given options one by one and then create your crypto assets portfolio once again in a well strategized and diversified manner.