Crypto Secure Savings
Cryptocurrency Secure Savings
As an investor in the crypto industry, holding on to your assets can be a tricky affair.
The crypto space is notoriously volatile and price fluctuations make it such that trading or investing in most digital assets comes with a certain level of risk. Additionally, due to the lack of regulation, not all crypto platforms have a customer support system in place and this means users often have to bear the risks themselves.
However, there are ways to securely store your digital assets and make profits from passive income on your savings. The framework for decentralized finance is built chiefly on blockchain technology and over time, new developments that cater to the needs of various DeFi users have emerged. A prime example of this is a crypto savings account.
Crypto Savings Account
With crypto savings accounts, users can earn interest on their crypto holdings, thus profiting from digital assets without active involvement in the crypto space. An account on one of these platforms functions similarly to an account beneath a traditional financial institution.
To start with, a user opens an account on the platform, and following this they transfer their assets into a crypto wallet that is controlled by their chosen service providers. By doing this they are giving the platform the rights to loan out their funds to external parties, in return for this they earn a specified commission on the total amount.
The platform essentially functions as a passive source of income that is sustainable in the long run, a safe alternative for users who would prefer to evade risky investments but still want access to the crypto market. The interest rate varies from platform to platform and is also affected by the current market prices. However, profits are usually significantly higher than the returns gotten from a traditional savings account.
Another major difference is that while conventional institutions such as banks deal exclusively with fiat currencies, crypto savings accounts can be used to hold a diverse range of digital assets. Furthermore, some providers limit access to deposited funds for a specific time frame, by withdrawing before the due date the user may incur certain fees.
These accounts are a good way for beginners to enter the crypto space as the platform is responsible for managing the wallet, because of this they typically establish an extra layer of security to keep assets safe. Two-factor authentication and cold wallet storage are popular choices.
Crypto savings have their benefits and drawbacks, however, these features are different with each provider. It’s important to compare the characteristics of all platforms before selecting one that meets your requirements. Things like security, coin offering, return rates, and ownership are essential. Popular platforms include; BitcoinzTech, BlockFi, Gemini, Linus, Nexo, and Coinbase.