Cryptocurrencies are becoming increasingly popular with each passing day. The number of people interested in investing in digital currencies is rising as more and more people seek to try and make profits from crypto trading. Investors make those profits from buying crypto, holding it for a period of time, and selling it when its value has risen to a particular level. Additionally, you can exchange one digital currency for another one that looks more promising so that you benefit when that one appreciates.
One of the newest ways you can benefit from digital currency investment is earning interest on your crypto. You can earn annual interest of up to 12% on your crypto when you invest in certain crypto savings accounts like YouHodler. The digital currency commonly used in this kind of investment is the USD Coin (USDC), the value of which is pegged to that of the US Dollar.
USDC is one of the most stable digital currencies and this is a reason why it is a perfect option when you are looking for a low-risk and huge return kind of investment. In this article, we are going to look in detail at how you can earn USDC.
What exactly is USDC?
There are several cryptocurrencies out there, but most of them experience extreme price volatility. However, USDC is a cryptocurrency that is very much different from most of the others. It is very stable, due to its parity with the US dollar. This means that when redeeming your USDC, you will receive a US dollar amount equivalent to the number of USDC you redeemed.
USDC can be stored in any Ethereum compatible wallet because it is a digital currency that is Ethereum based. It was initially created to help crypto investors quickly transfer dollars from crypto wallets to other exchanges or businesses globally. Now, you can also earn interest on USDC through crypto savings accounts.
How you can earn USDC from a crypto savings account
Crypto investments can be risky, especially if you are not sufficiently experienced in crypto dealings. Although you stand a chance of reaping huge rewards, you can also end up losing your money if the price falls. To avoid this, you can opt into low-risk but high and guaranteed yield investments.
You can achieve this by choosing a crypto savings account and invest in USDC, which will be earning you interest weekly, and you can choose to draw on this profit or let it accumulate for compounded interest. You can earn an interest of up to 12% interest per annum which is higher than the average bank savings rate.
Top crypto savings account you can use to earn USDC
While fiat currency keeps losing value due to inflation, cryptocurrencies tend to rise in value. As a result, many investors are choosing crypto savings as opposed to traditional bank savings. You can sign up for several crypto savings accounts and earn high yields from your investment at the end of the year. These include:
YouHodler
YouHodler offers high yields for crypto savings options and has prioritized protecting investor funds. It uses a mixture of hot and cold wallets to ensure that its investors’ funds are protected. At the same time, investors can withdraw their interest or savings at their convenience. The minimum amount you can invest in YouHodler is $100. You can earn up to 12% interest from stable coins such as USDC in YouHodler and 4.8% on unstable currencies like Bitcoin.
BlockFi
One thing that distinguishes BlockFi from other crypto savings accounts is that it has no limit on the minimum amount you can invest. This means that every investor stands a chance of earning interest from their savings. You can make 8.6% interest on USDC when you invest in BlockFi and 3.2-6% on bitcoin.
The takeaway
Investors open savings accounts when they are looking to generate profits from less risky investments. You can decide to open bank savings accounts, but the returns are far less than those generated from crypto savings. Investing in USDC can be the best way of earning interest while being protected from external market factors such as inflation.
