Many efforts are being made to further develop the world of Decentralised Finance (Defi). Most of the platforms have started offering interest accounts for crypto. Many crypto interest accounts allow you to earn interest and stake coins for a short period just like traditional savings accounts. The only difference between them is that crypto interest rates are seen to be more than 10 percent every year. Then the BitIQ platform is reliable to use and provides a large percentage of interest each year.
If you are more interested in finance and economics, then you already know that we are all living in the crypto-fad. The same crypto prices have not been on average higher than they are today. It is not entirely clear whether your days of getting rich with $100 investments are over. The coin is not very expensive or difficult to mine, and there is little chance that it may see an increase in value in the coming years, just as it has seen in the last ten years.
The Basics
The number of crypto lovers is increasing day by day and the second and one of the most preferred crypto is bitcoin while talking about savings accounts, also known as interest accounts. In some parts of the crypto world, it’s easy to wrap your mind, as it’s equated to a traditional savings account and can even be opened at your local bank. You will find one bank or one provider and you can deposit bitcoins into your interest or savings account on the other hand. Leave it completely to the provider, you can collect interest. It may sound simple and a bit like opening savings account in a bank. It is, in a sense, somewhat similar. If we talk about it in the long run, some of the major differences are explained below.
- When you deposit bitcoin currency into your interest accounts, the provider has full rights over it. All these coins can be loaned to traders, investors, and brokers in the markets for leveraged trading, by doing so you can charge interest and thus make profits. Unlike traditional banks, dynamic interest is provided by the provider. Bitcoin is a volatile currency whose value changes rapidly. The dynamic rate is adjusted daily, weekly, monthly as well as in real-time. There are many different factors such as the price of bitcoin, profit from the account, and the amount in the account. You need to keep in mind that the interest payment is made virtually at the moment the transaction is processed.
Is there any risk involved
Many people believe that interest rates are liberal and there is no risk involved. The short answer is that there may be some degree of risk involved.
-
Withdrawal Restrictions
When you put your money in your bank account, there are many cases where you can easily get all your money without any penalty. On the other hand, with crypto interest accounts you will not be able to enjoy the freedom. There are many cases when deposits are set along with the limits and rules for the amount that you can easily withdraw.
There are many cases when deposits are set along with the limits and rules for the amount that you can easily withdraw. In most cases where this happens once every year, you will be well aware that this market has witnessed high volatility due to which the value of currencies can crash and rise at any time.
-
Compound Interest
The most important difference between these is that crypto savings accounts do not charge you any compound interest. This means you won’t be able to enjoy the benefits until you spend, therefore, you have to decide on the provider for which you need to check.
