Trading may be one of the most well-known ways to profit from cryptocurrencies, but stablecoin staking is another option. You may take advantage of reasonable interest rates if you know which crypto platforms to invest in. Earning interest on stablecoins in your portfolio could develop into a dependable passive income source.
The argument for the cryptocurrency business upending traditional finance has only strengthened since the DeFi gold rush got underway early last year. Because of its huge returns, many are now flocking to cryptocurrency. However, the tremendous volatility of cryptocurrencies has, however, put the allure of large profits in jeopardy.
Stablecoins are here. Stablecoins are cryptocurrencies that are linked to tangible assets like the US dollar in the real world (USD). Therefore, stablecoins are less volatile (at least in theory).
You can start generating interest with stablecoin holdings through a number of easy procedures, regardless of whether you hold Tether, the Gemini Dollar, or the USD Coin. We’ll outline the top 5 platforms where stablecoins can generate passive income with little to no work on your part.
Staking Stablecoins: A Quick Overview
Digital tokens described as “stablecoins” are pegged to real assets like the US dollar, euro, or gold. As the name suggests, Stablecoins’ price can be fixed thanks to this peg. Additionally, there is less danger because such currencies are backed by an outside asset.
The USDC, a well-known stablecoin by Coinbase, for instance, experiences very little fluctuation. If kept in accounts with US-licensed financial institutions, the value of a USDC is always equal to one USD. Unlike Bitcoin, Ethereum, Ripple, and other cryptocurrencies, you do not have to worry about a stablecoin’s value dropping.
In the present state of low interest rates, staking stablecoins is a fantastic way to keep your money invested and earn yields while minimising market volatility. As of March 2022, these are the most recent stablecoin yields across some of the main exchanges:
- USDC: 2.79% in Binance, 0.15% in Coinbase, 2.5% in ByBit
- BUSD: 3.21% in Binance, 4.5% in ByBit
- DAI: 3.78% in Binance, 0.15% in Coinbase, 5% in ByBit
- USDT: 3.12% in Binance, 3% in ByBit
To get you started, check out this simple step to stablecoins passive income earnings:
- Join a cryptocurrency platform.
- Fill out the registration form on the official website.
- Make sure to finish any account information verification that is necessary.
- Top up your cryptocurrency savings account.
- Select a method under the deposit section.
- Open an interest-bearing account for stablecoins. Your stablecoins will earn you more interest the longer you stake them.
The idea is simple to grasp and executes perfectly. To choose any random crypto lending site and invest would be risky, though. Instead, if you use the top platforms to create the best stablecoin interest rate, you will get the best outcomes.
Where to Stake Stablecoin for Best Returns
Popular cryptocurrency websites offer interest rates on different crypto assets, but this time our focus is on stablecoins. Here are the top five cryptocurrency interest accounts that could provide investors with the highest annual percentage yields for their digital assets if you’re looking to earn high interest rates on your stablecoin holdings:
Although AQRU is still a young company in the market, it is quickly becoming the best crypto staking platform available. You might anticipate earning up to 12 percent APY with AQRU by “restricting” your staking chances to stablecoins only. The website accepts DAI, USDT, and USDC. Therefore, you have the option of selecting the most popular stablecoin or a different one and earning interest that is competitive with that offered for Tether.
Daily interest payments and real-time tracking are some advantages of AQRU. Additionally, because you can withdraw at any time, your earnings are always visible and accessible. Most staking systems have lock-up times, but AQRU has chosen to provide its customers flexibility and control over their digital assets instead. Furthermore, there are no tier limits in the system, and the minimum deposit criteria are very low.
One of the platform’s most alluring yield alternatives is the stablecoin product, which offers annual payouts of 12% APY. By installing the specific software and transferring money to the stablecoin pool, you can even start AQRUing on your mobile device.
Global traders are familiar with BlockFi’s digital currency services. There is no minimum deposit requirement and a wide selection of coins to choose from at BlockFi. The platform offers convenience, security, and appealing layouts in a variety of categories. BlockFi is currently referred to as a top cryptocurrency platform due to its interest-bearing accounts.
The fact that you don’t need to acquire or stake coins to access all of BlockFi’s services could be considered one of its key advantages. Numerous stablecoins, including USDC, USDT, GUSD, USDP, and BUSD, are supported by BlockFi Interest Accounts (BIA). Yields are nevertheless tier-dependent. For instance, you can earn an 8% APY at Tier 1 with a balance of 0–20,000 USDT.
For the first time, Crypto.com discloses some of the highest interest rates available. On this site, however, passive revenue is governed by specific rules. There are lock-up times and levels with the Crypto.com service, but interest is paid on a variety of stablecoins. USDT, USDC, DAI, PAX, TUSD, TAUD, TCAD, and TGBP are recognized stablecoins.
With Tier 1 paying full rewards rate and Tier 2 paying 0.5x rewards rate, the Crypto Earn system has participation restrictions and a tiered rewards structure. Interest rates for flexible and 1-month holding terms are significantly lower than those for 3-month fixed durations. Overall, because that’s when the most advantageous rates start boosting yields, investors with larger sums may be a better fit for Crypto.com.
Since the beginning of 2020, Curve has been in operation. It was created as an exchange liquidity pool on Ethereum for effective stablecoin trading. Curve is typically used by crypto investors to swap stablecoins or offer liquidity to Curve pools in exchange for commissions. The platform is an important component of the DeFi ecosystem and leverages the CRV token as a governance mechanism.
Simple stablecoins like DAI, USDC, USDT, TUSD, BUSD, or sUSD can be deposited to Curve and will automatically be converted into Tokens for the compound pool by the system. As a liquidity provider on Curve, you can profit in addition to the compound interest.
Although Curve may be a little complicated for the typical trader, it is worth mentioning because it provides a stablecoin interest rate of up to 6.5 percent. The market’s demand determines how the APYs change.
Another well-liked option for individuals looking to invest their money for the best return is Nexo. Through cryptocurrency investments, which support 38 distinct digital assets, there is a prospect for asset growth. 2018 saw the birth of Nexo, which now has over 4 million users. Given that Nexo offers daily crypto holdings interest payments similar to AQRU, it’s not surprising. However, Nexo uses NEXO tokens to distribute accumulated interest.
On Nexo, the automated lending process makes use of Ethereum smart contracts and an Oracle. The website supports a number of stablecoins, including, among others, USDC, USDT, UST, DAI, USDP, and TUSD.
Users have the option of receiving interest payments in NEXO or the money they are earning on. The platform rewards users who get interest in NEXO with up to 2% extra interest on all of their holdings, favouring its native coin. If you prefer to get payment in kind, Nexo provides 10% APY on DAI and Tether.
The loyalty tier affects the dynamics of earning rates at Nexo.io as well. For instance, in order to receive Nexo’s maximum interest rate, you must reach the Platinum Loyalty Tier, which requires that 10% of your portfolio balance be made up of NEXO tokens.
With stablecoins, you can make passive income through a number of different options. So that you may start looking for the best returns on your idle stablecoins right away, we have provided a narrowed-down choice for you.
However, there are a few risks to be aware of, including exchanges being hacked, so it’s not entirely safe. Stablecoins like USDC, USDT, and BUSD are fantastic choices for starting to generate income on your crypto assets if you can handle the risks. The terms and conditions, interest rates, minimum deposits, types of cryptocurrencies required, and lock-up periods of each company and crypto bank should be carefully studied because they differ greatly from account to account.
Learn more about Stablecoin here