A crypto savings account functions like a regular bank account. People are drawn to crypto savings accounts instead of fiat savings accounts due to the 1% interest rate. The companies that run the accounts make money like a bank. Three firms have been on a high this year, with their holdings having risen by 734%.
With crypto savings accounts, you must grant access to the crypto you own; cryptocurrency stored in the account must be accessible for lending to investors. This is how they differ from crypto wallets. In crypto wallets, users always have access to private keys.
BlockFi:
This is a privately held crypto savings account platform in the US. This platform is a typical cryptocurrency account. BlockFi, unlike some of its competitors, does not have its native crypto coin. Instead, its goal is to offer a basic product with simple terms.
BlockFi will also allow you to buy and sell crypto at competitive prices, gaining interest once the transaction is made. In January 2021, they broke a record of $28 million in interest to their customers.
Celsius Network:
Celsius Network was launched in 2018. It is a UK-based banking and financial platform for crypto investors. This platform connects lenders to borrowers. One of celsius’s features is lending money to others while paying interest to the customer (lender). In addition, they offer CelPay, which is a product that lets customers send and receive crypto with no fee.
Nexo:
Nexo is a European base loan and savings platform for crypto users. They offer customers a crypto bank account. Users may earn up to 10% interest on their cryptocurrency holdings. Interest is automatically deposited into the account holder’s savings wallet. Nexo is among the first crypto savings accounts to provide a cryptocurrency debit card supported by Mastercard.
Binance:
The Binance savings account is suitable for traders looking for high interest. Binance is offering interest on deposits made in a number of supported digital currencies over 100% annually. Those who want to diversify their cryptocurrency portfolio will appreciate this savings account.
Coinbase:
Coinbase is known to have the best crypto accounts. They offer high security as well as a user-friendly platform. The downside, however, is that they have higher fees than the average platform. Coinbase supports interest-earning opportunities for the following assets; Ethereum, Cosmos, Algorand, DAI, USDC, and Tezos.
Crypto.com:
For those of you interested in earning interest from stablecoins, this platform is the place for you. Since these digital currencies are linked to fiat currencies, such as the US dollar or the euro, volatility is almost nonexistent. This implies that, theoretically, you can calculate your approximate profit by putting your stablecoins in a Crypto.com savings account. Other than stablecoins, the platform also offers saving accounts for several different assets.
Conclusion:
There are many options for choosing a crypto savings account that suits your needs. The choice comes down to what you’re looking for. We hope this article helped break down your choices and give you a clearer mind of the options you can choose from.
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