You might be surprised to learn that you can earn scheduled interest on your bitcoin holdings, increasing your bitcoin portfolio at very low risk.

This is an in-depth guide that will help you make a consistent, but modest income from your Bitcoin investments over time.

You don’t have to keep your entire Bitcoin portfolio in cold storage, especially if it is long-term. Trades with yours are common, but you can reduce risk by lending it to financial institutions or trading platforms through a trusted Defi portal.

Many financial platforms permit users to earn interest from their cryptocurrency holdings. These platforms employ unique mechanisms to guarantee the highest returns for all investments.

How to Earn Interest from Bitcoin Holdings

Crypto Account Opening

This is the easiest and fastest way to start earning interest from your crypto holdings.

Some cryptocurrency lending platforms ask investors to open savings accounts. BlockFi, Nexo.io, or Celsius are all highly recommended.

These interest-earning accounts can be used to save money, but they offer higher returns than traditional banks that only give investors a 2% rate of return.

If you are unable or unwilling to open a crypto-account, you might consider wrapping bitcoin (WBTC), which can be found on ethereum’s blockchain. This method does require no new account. To get started you only need to link an ETH wallet to a Defi service like Save.

Compare Interest rates

There is no common standard for interest rate across all platforms. The platform you use determines what annual interest rate is offered. Most platforms offer an APY between 5-10%, although some go up to 10%.

There is no limit to the amount you can deposit in Bitcoin to your savings, but platforms have a limit on what interest rate they can offer. Sign-up on the most popular platforms to get started with bitcoin trading.

Market demand, supply and interest rates have an impact on the rate of change. This means they are subject to fluctuation. Check to make sure you are receiving the best rates for Bitcoin before you send it.

Make a Bitcoin withdrawal to your account

Bitcoin can be transferred to or deposited from a wallet if it is already yours.

Beginners can purchase bitcoins from banks by making wire transfers. To do this, first link your bank number and its routing numbers from the newly created account. Once your banking information is linked to the account and verified, you can start earning Bitcoin.

Another option is to open an account with a cryptocurrency exchange in order to buy bitcoin with a bank account. It’s very easy because most exchanges provide easy-to use mobile apps.

WBTC can now be purchased via the Coinbase trading platform. You then need to transfer the WBTC to your ETH account. Metamask and Coinbase offer the most beginner-friendly ETH software wallets. To start earning interest, connect your wallet and the Aave program.

Now, it’s time to get started!

Earn interest immediately you deposit your Bitcoin into your Crypto Savings Account. Your earnings are determined by how much Bitcoin has been deposited and the interest rates provided by the platform.

For significant interest, it is best to keep your savings in the savings wallet at least six months.

Important Pointers To Note

Bitcoin savings accounts may be risky. You can’t guarantee that your assets will return, regardless of what the platforms offer. However, it’s less risky then other crypto-earning techniques.

Before you pick a platform to use, make sure that you do your homework. There is nothing worse than being unable to access your money at the worst possible time. Before you make a decision, ensure that you read through all the terms and policies of the company.

As with all crypto investments, it is best not to invest more than you can afford in your savings.

Bottom Line

Do you really need your assets? They could earn you more money than their actual value. Due to the constant volatility in Bitcoin’s market, earning interest can be a low-risk way of increasing your crypto holdings. Set up a Bitcoin savings fund to experience a serene investment experience.