Since the spectacular price increases in 2017 and 2020, cryptocurrencies have attracted more attention as prospective investment options. When it comes to crypto investment, the buy-and-hold approach, which entails holding assets for a longer period of time in order to profit from long-term gain, is far safer for investors.
Investors may avoid short-term volatility and the possibility of selling assets cheaply after prices have increased by holding onto their assets while benefiting from high-interest rates. Investors holding crypto for the long-term may earn interest on assets such as Ethereum, Bitcoin, and USDT through crypto interest accounts.
What is a Crypto Interest Account?
A crypto interest account is one of the most effective means for investors to earn interest on their crypto assets. A crypto savings account is established by a centralized firm that pays you interest for storing your cryptocurrency on its platform. The corporation may then utilize the funds to reimburse the lenders, who will return the principal amount plus interest or use that fund for automated crypto trading.
How Does It Work?
In exchange for interest, investors create an account and deposit funds. This is comparable to how bank savings accounts operate, in which an investor deposits funds, which are subsequently lent out and repaid with interest. Funds can also be used to generate earnings via algorithmic trading. Investors can withdraw their funds at any time.
At Haru Invest, investors have options for their funds. Investors can choose to lock up their assets for higher returns with Haru Earn Plus products or just deposit their assets in Haru Wallet that allows unlimited withdrawals for lower returns. There’s no minimum deposit limit for crypto savings accounts.
What are the Pros and Cons?
Crypto interest accounts are an excellent way to earn interest on the assets that you want to hodl long-term. They can deliver interest rates of up to 15% per year and provide investors with customer incentives earned via greater usage of a platform’s services.
Crypto interest accounts, like other means of producing revenue, are not without risk. The volatility of the cryptocurrencies may have an impact on the degree of return you achieve. It depends on the market conditions whether this is good or bad for the returns, since interest is paid in crypto.
What is the Best Platform for Opening a Crypto Savings Account?
Haru Invest is a digital asset investment platform that offers an interest-bearing crypto deposit service and fund service.
Haru Invest supports three crypto assets.
- Bitcoin (BTC)
- Ether (ETH)
- Tether (USDT)
Unlike most crypto custody/depository services who operate in the lending/loan business model, Haru Invest uses high frequency algorithmic trading to generate high returns with minimized risk. Since the launch in 2019, Haru Invest had zero failed withdrawal and zero late earnings payout.
Some of the strategies that Haru Invest work with include:
- Arbitrage Trading that leverages BTC and ETH price gap between crypto exchanges
- Market Neutral Strategy based on the price stability mechanism at futures exchange
- Spread Trading that focuses on the volatility of BTC/ ETH futures contract
Investors can receive up to 7% by simply keeping their crypto in Haru Wallet (that allows withdrawal anytime) or earn up to 15% interest with a lockup period via Haru Earn Plus.
Preparing for the Future
Haru Invest makes crypto investment accessible to nearly anyone. The minimum investment amount is just $10, compared to the tens of thousands you would need for similar services from other platforms. There is also no investor requirement, so you can get started quickly. You don’t have to take time to learn about finances, coding, or even crypto trading.