With so many people holding Bitcoin in today’s world, it is no surprise that there is a growing demand for more Bitcoin-related services, such as savings accounts. There are multiple Bitcoin savings accounts to choose from, some of which are better than others, but most of which let you earn Bitcoin interest.
The more you learn about Bitcoin savings account with interest, you will likely want to open one. While this is a great choice, there are some things you should know before you do.
Using Bitcoin as a Savings Account
It is common to wonder how you use Bitcoin as a savings account. After all, the traditional method of holding onto your Bitcoin is to store it in a wallet. This can lead to profits, but only if the value of Bitcoin overall goes up. Bitcoin savings accounts offer an alternative for the cryptocurrency that you do not plan to use in the near future, giving you the ability to earn Bitcoin interest.
Advantages of Bitcoin Savings Accounts
Compared to just storing Bitcoin in a regular crypto wallet and even with some traditional financial investments, a Bitcoin savings account offers plenty of benefits that attract new account holders.
The best accounts are set up, so you earn interest regularly, such as daily or weekly. Even better, they have this interest compounding, meaning the interest gets added to your balance, so you earn interest on the new balance in the future. A daily-compounding account like this can have a significant increase in your profits over time.
Another factor people love about savings accounts for Bitcoin is the relative ease with which you can open them. Most traditional financial accounts require paperwork and potentially a long set-up time. This is not usually the case with Bitcoin accounts. Instead, you can typically open them with minimal documentation and quickly. You will still need to provide some information as part of AML and KYC policies, but these policies also protect you.
Depending on where you choose to store your funds, you may limit what you can withdraw. This is particularly true for trading accounts. By contrast, the best Bitcoin savings accounts do not have any lockup periods and will let you start the withdrawal process at any time.
Bitcoin Savings Wallet
If your goal is to have your Bitcoin earn interest, you may also wonder whether a Bitcoin savings wallet is a better alternative for you than a savings account. The advantage is that you could still potentially earn Bitcoin daily but would still spend the Bitcoin you have stored in the wallet.
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However, there are a few caveats to keep in mind, which mean Bitcoin savings account with interest still has the advantage.
First of all, Bitcoin savings wallets are still incredibly new, and there is only a small handful available. This lack of competition means that the companies can offer poor terms if they want, and they do not have much experience handling Bitcoin. By contrast, Bitcoin savings accounts have already been around a bit longer, and many of the best companies offering them already have strong histories and excellent reputations.
The other consideration is the interest rates. Although interest rates fluctuate, they tend to be lower for Bitcoin savings wallets than for crypto savings accounts. If your goal is to have your Bitcoin earn interest, this is particularly important. Remember that even a percentage or two can make a big difference, especially if it is compounded daily and has a medium to large balance.
Some people may even prefer that you cannot directly pay using your Bitcoin savings account, as it can help them with spending. With a wallet, you may find yourself spending more than you planned, and there go your savings. Since there is one more step in place to use Bitcoin in a savings account, this can prevent frivolous spending. At the same time, the best accounts let you withdraw 24/7 and process those withdrawals quickly, so your money is still accessible.
Best Bitcoin Savings Account
Once you have decided to open an account to earn Bitcoin interest, you will need to figure out which company to open an account with. The best Bitcoin savings account will have good interest rates, a strong reputation, no or minimal lockup period, 24/7 withdrawals, and excellent customer support. It’s a bonus if they support savings accounts for other cryptos than just Bitcoin.
Haru fits all of those requirements, making it the top choice for Bitcoin savings account with interest.
Haru Earn Plus
If you want to waive the ability to withdraw your Bitcoin at any time, you can also opt for a Haru Earn Plus account instead. You get to pick your lockup period, and in exchange, you get a higher interest rate.
Get more information about Haru Earn Plus product.
Daily Compounding Interest
With Haru, you earn interest daily on Bitcoin, and that interest compounds. This lets you grow your profits more quickly.
Not only does Haru let you withdraw your Bitcoin 24/7, but you can also withdraw any amount you want. This is particularly important as many companies with good interest rates have lockup periods.
Multiple Cryptocurrencies to Choose From
In addition to the Bitcoin savings account, you can open similar accounts for Ethereum, Terra KRT, and Tether USD with Haru. This makes it simple to open multiple accounts and watch your balance of various cryptos grow.
Some companies offering accounts to earn Bitcoin interest will use your funds in high-risk investments to make money or continue to store them in hot wallets where they are vulnerable to security threats. Neither of these is a concern with Haru. Your Bitcoin gets transferred to a cold wallet that Black Crafters securely manages.
In terms of making a profit to pay you interest, Haru has an experienced in-house management team that uses Market Neutral Trading, risk-free Arbitrage Trading, and an extremely low-risk Trading Strategy. This combination produces enough profits for your earned interest without the levels of risk associated with many other companies.