You’ve likely heard of a new trend in the crypto space where users can earn money from storing their crypto assets in certain wallets on specialized platforms. These are called Crypto Earn programs, and while they vary from platform to platform, they generally harbor the same process: you put funds into a crypto earn account, and you earn interest. Generating passive income of this nature might help you to reach your financial goals more quickly.
What is a crypto interest account?
In light of many traders losing money through uneducated or ill-advised attempts to trade crypto, the notion of hodling (holding funds for an extended period of time) has become an equally successful strategy. Working off this, fintech platforms have recently started offering crypto traders access to Earn programs that reward users for depositing their crypto holdings into a specific wallet with regularly paid interest. These types of financial products can often be found on a crypto exchange.
These accounts, commonly known as crypto interest accounts, work in a similar way to regular bank accounts or savings accounts, in that users can earn interest proportionate to the amount of money they hold in their account.
Not only can crypto traders earn money through the increasing value of a digital asset, but now they can also earn interest while they wait for these rises in value. The crypto company providing this service should have adequate licenses in place and the correct authorizations from regulatory bodies.
What is the difference between crypto staking & crypto earn?
While we’ve covered what Crypto Earn is, let’s explore staking for a moment. Staking is the process of locking your funds in a blockchain network in order to assist in the network’s operations. This is only relevant to Proof of Stake networks such as Cardano (ADA), Polkadot (DOT), Polygon (MATIC), recently Ethereum (ETH), and several more.
Through staking users can earn rewards when they are selected to confirm transactions. It's worth noting that these typically come with a long lock up period, depending on the platform.
The bigger the stake you made, the more chance you have of being chosen to validate a new block and earning rewards. Similar to the Proof of Work mining process, validators get rewarded with the network’s cryptocurrency when they add a new block to the blockchain.
The main difference between the two is that through Crypto Earn you can earn interest on your crypto (particularly on otherwise stagnant assets that are not from PoS networks) while staking involves users in the operating of the network. While staking rewards are typically higher, there are a number of other factors that make them less flexible.
What to look out for in crypto earn programs
The beauty of these programs is that you don’t need to invest more than you already have. You can use your pre-existing portfolio and simply transfer the funds to a platform that allows you to earn interest on your crypto.
When choosing a reliable Earn program, there are a few things to consider:
- Fees
Some platforms will charge you fees to deposit and withdraw funds, be sure to research this prior to engaging in the program.
- Lock up period / Flexible Term
Lock-up period is a predetermined amounts of time that the funds need to remain in the account in order for you to earn interest on your digital assets. Typically, the longer that the funds remain in the account the more interest you will make. Some platforms might also offer higher interest rates for longer time periods. Ideally, a flexible plan is best, giving you access to your funds at all times.
- Varying Interest Rates
Some platforms will offer varying interest rates that remain relative to the market, meaning that when a coin's price increases so too does the interest rate. When the crypto markets go through a slump, the interest rates will decrease proportionately. Be sure to check the interest rate relevant to the crypto you wish to use, as these typically vary from currency to currency.
- Minimum Amounts, Limits and Supported Coins
Be sure to check what the minimum and maximum amounts are that you can transfer into your Earn wallet. Staking typically requires a high minimum amount in order to participate so be sure to check this beforehand. You'll also want to check what coins the platform supports, for instance, if the platform only provides interest on stable coins and you only have Bitcoin this might not be the platform for you.
- Choose The Right Platform
Ensure that you place your digital assets in a reputable company, ideally regulated with the correct licenses. You’ll also want to read the fine print in order to get a full understanding of all the rules when engaging in the activity. Let the recent demise of the Celsius Network be the warning you need when it comes to investigating a platform before moving your funds there.
How to earn yield from crypto assets
If you’re ready to start putting your crypto assets to work, then it might be time to find a reliable crypto earn program through which to do this. Let’s explore how to earn passive income through the Tap Earn program and increase your total earnings.
1. Set Up an Account
You will first need to download the Tap mobile app and create an account. The process is highly intuitive and will lead you through each step with proper instruction.
2. Get Verified
You will then need to get your account verified by following the necessary steps. This will require documents that prove you are who you say you are. The process is quick and necessary by law.
3. Load your Wallets
You will then need to either transfer your existing cryptocurrency (or fiat currencies) to your Tap wallet, or buy the supported cryptocurrencies directly through the platform.
To do this, select the cryptocurrency you wish to purchase from the Crypto wallet on the homepage. You can then complete the process by following the steps. Be sure to check the yield rate of each currency so you are familiar with what you will be earning.
4. Move your funds into the Earn Wallet
From the homepage of the app, select the Earn wallet and move the relevant funds into the wallets of your choice. Currently, the Tap Earn program supports Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Euros (EUR), and British pounds (GBP).
How is yield rate is calculated
The platform has also created different yield rates for each currency based on the users’ tier level. Tap offers three options when it comes to account levels, each with its own benefits. These are the Standard, Black, and Titanium options, which each have a prepaid crypto card associated with them.
See the table below for the yield rate applicable at the time of writing to each level and currency:
The Tap Earn program also has no fees to deposit and withdraw, and no lock-up periods. The funds only need to remain in the relevant wallet for 24 hours in order to start generating yield. There is also no minimum daily balance required, or limits, on the number of funds you can transfer in and out of the wallet.
Once the funds are removed, however, they will not generate any more yield. Payments are deposited into the relevant wallet weekly, and earned funds will be paid in the same currency. I.e. Weekly yield accumulated from Bitcoin will be paid in Bitcoin.
Similar to earning cashback rewards on your Visa card or interest from a savings account, earning yield on your crypto need not be complicated, start earning yield with Tap today and create a new passive income stream.
Disclaimer: This article is intended for communication purposes only, you should not consider any such information, opinions, or other material as financial advice.
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