When most people think of Bitcoin, they think of its volatility, including both the potentially large profits and the potential losses. Bitcoin is a high-risk, high-reward investment, and many people mistakenly believe that the only way to profit off of it is to buy when the market is low then sell when the market is high. Similarly, many people think that if you want to hold onto Bitcoin or another cryptocurrency, you cannot earn interest.
In reality, there are a few different methods of earning interest on Bitcoin in 2020. If you are wondering, “Can I earn interest on Bitcoin?” the answer is likely even better than you expect.
Lending It Used to Be the Only Option
In the past, the only way to earn interest on Bitcoin was to lend it to someone and charge them interest for the loan. This comes with its own risks since you need to be confident that they will return the cryptocurrency to you. Depending on how you choose to loan crypto, you may need to filter out applicants yourself and require collateral. Now, there are more options, such as platforms like Haru that facilitate the lending of digital assets.
Another option for earning interest on Bitcoin is opening a savings account. This is actually the best option, as it requires no effort on your part other than opening the account and depositing the cryptocurrency.
What Is a Bitcoin Savings Account?
A Bitcoin savings account is exactly what it sounds like. It is an account where you can deposit an amount of Bitcoin that you choose, and you earn interest on the balance. This is among the simplest methods, provided you open your account with a platform that has a strong reputation and safeguards in place.
In most cases, the digital asset management platform offering the Bitcoin savings account will give you access to your funds when you need them, but it will use a portion of customers’ funds for loans or investments. This allows them to make enough money to pay out the promised interest rate. Platforms that offer this service have strategies in place to reduce the risk and hassle associated with the loans while maximizing the rewards, and they maintain enough liquidity to allow you to withdraw your Bitcoin when you want.
How You Can Earn Interest on Bitcoin
When you find the right crypto investment platform, learning how to earn Bitcoin is as simple as opening an account, investing, and sitting back and waiting.
With Haru, you just open an account in minutes and deposit your Bitcoin or another cryptocurrency of choice. Within a day, you will start earning interest, so you can watch your balance steadily grow.
Why Haru Is the Perfect Choice
Of the ways to earn interest on Bitcoin, why is Haru the perfect choice? It comes from a combination of factors, including high interest rates, protection and backing, simple account setup, and the option of daily or monthly deposits with daily compound interest.
Account Setup Is Simple
Setting up your account with Haru is incredibly simple and will only take a matter of minutes to complete. This helps make Haru accessible and lets you start earning interest quickly.
Earn crypto interest
More and more people are using Haru to keep their crypto asset smart. Give it a try!
Because of their volatility, cryptocurrency assets can be time-sensitive. Haru understands that and does not lock up your crypto assets. Instead, it makes sure that you can access your cryptocurrency at any time and from anywhere you want.
High Interest Rate
Not only can you earn interest on Bitcoin with Haru, but you also will get high interest rates. The interest rates are typically around 7 to 8 percent, a figure that is incredibly hard to find. To make it even more impressive, if you choose the monthly deposit option with a one-month lockup, the rate increases to around 10 to 11 percent. Keep in mind that the rates are subject to change, but they are consistently high due to Haru’s model.
Learn more about crypto interest accounts: What is a Crypto Interest Account (Guide)
Monthly Deposits Offer Even Higher Interest Rates
For those who know they will not need their cryptocurrency for a while, you can also opt for a monthly deposit instead of the standard deposit. With this deposit, you keep your cryptocurrency in the account for a month at a time, and in return, you receive a higher interest rate. There is no penalty for withdrawing your earned interest early.
To give you an idea of the types of rates you can expect, at the time of writing, Haru offers two digit interest for Bitcoin, Ethereum, USDT and Terra KRT. Use our interest calculator which exist in the homepage for make interest calculation.
This provides a good idea of how the already-impressive interest rates can get even better with monthly deposits. The higher rates do come with a lockup period for the month, but there is no lockup on your earned interest and you do not have to renew the rate the next month.
Daily Compound Interest
In addition to the high interest rates on crypto, the interest compounds daily. This helps you grow your account balance more quickly. It also means that you can withdraw your Bitcoin or another crypto at any time and still have earned interest, even if the funds were not in the account for a full month or a full year, which would be required for nondaily interest.
Protection and Backing
Furthermore, Haru is backed by Block Crafters Capital and has protection from BitGo. This adds to the peace of mind associated with using this platform to earn daily interest on Bitcoin. Block Crafters Capital is a blockchain investment firm based in Singapore, and it is the primary asset management partner of Haru.
To earn a profit and provide its high interest rates, Haru works with not only Block Crafters Capital but also six other global partners. All these partners annually trade at least 100 million USD, have managed assets for at least 18 months, and have a strong track record, along with other strict requirements. Together, they engage in asset management and institutional loans. They use a range of investment strategies, such as arbitrage trading and quant trading, along with investment diversification to help deliver the high, stable interest rates.
The best way to earn interest on Bitcoin in 2020 is to store it in a Bitcoin savings account from a trusted company. Haru offers competitive interest rates and the ability to save and earn interest on Ethereum, Bitcoin, Tether, and Terra KRT.