An article on how to use cryptocurrencies to earn money by collecting interest.
Cryptocurrencies have created waves of opportunities for investors around the world, with many mainstream currencies rising by hundreds of times over the past few years. However, trading cryptocurrencies always gives people the impression of speculation, but in fact, apart from profiting from price fluctuations, investors can also make money on cryptocurrency interest collection platforms.Therefore, it is relatively stable without the need for frequent operation,suretytranslucentStabilized CurrencyEarn interestIt has become the operation of choice for many investors in recent years.
If you want to learn more about cryptocurrencies, you can click on the following article
The Complete Guide to Cryptocurrency Wallets "Hot & Cold Wallet Principles, Pros & Cons Analysis
Centralized exchanges: how to use stablecoins to collect interest?
As the cryptocurrency market matures, holding stablecoins can now yield decent annualized returns due to the increased demand for borrowing. Everyone can enjoy the live yield of Stablecoin on the major centralized exchanges in the cryptocurrency market.
What is a stablecoin?
Stablecoins are a type of cryptocurrency whose value is usually linked to a stable asset such as fiat currency or gold in order to maintain the stability of its value. The most common type of cryptocurrency is the "US Dollar Stablecoin", whose value is usually linked to a "stable" reserve asset such as fiat currency (e.g. US Dollar) or gold, so that its price can be maintained at a relatively stable level. Some of the better known stablecoins in the cryptocurrency market today include USDT, which is the most traded, and USDC, which is issued by Circle and Coinbase, the largest publicly traded exchange in the United States.
1. Binance
As the world's largest cryptocurrency exchange, "Earn Money"Currently, we offer the following products for stable money income (yields are subject to change at any time according to market conditions, subject to the announcement on the official website):
- USDT: Offers call rates from 2.85% to 2.3%.
- usdc: 1.38%
- DAI:5%~2.52%
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2. Bybit Exchange
The Bybit Exchange.Savings Products"Currently, we offer the following products for stable money income (yields are subject to change at any time according to market conditions, subject to the announcement on the official website):
- USDT offers up to 8.68% Callable APR (using a stepped annualized yield)
- USDC offers up to 7% Callable APR (using a laddered annualized rate of return)
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3. OKX Exchange
The OKX Exchange.Simply earn coinsThe "Products" currently offer the following rates for Stabilized Currency Receipts:
- USDT offers a call rate of up to 10% p.a.
- USDC offers a call rate of up to 10% per annum.
How do you get your stablecoin earnings?
Basically, the source of interest for stablecoin call products is mainly from the lending market, where interest is earned by lending stablecoins to users who engage in leveraged trading.Just like you pay interest when a bank lends you money.。
Basically, the interest source of the Stablecoin Call Product is mainly from the lending market, through the lending of Stablecoins. Therefore, the interest rate of the product is subject to market movements. When there is a large demand for stable money (e.g. when the currency price fluctuates significantly, in a bullish market, etc.), the annualized interest rate may exceed 10%; whereas when there is less demand, the interest rate may be as low as 1%.
In addition, platforms may also reward users with "subsidies" in order to attract funds to the platform, thereby increasing the number of user registrations. Therefore, when users see particularly high yields, they must evaluate them carefully and choose a suitable platform based on their own risk tolerance.
Points to note when using interest collection products
- Choosing a More Flexible Income Plan
Flexibility is an important consideration when choosing a cryptocurrency interest-bearing product. Apart from stable coins, cryptocurrency prices are very volatile. Unless you are very confident in the long-term trend of a particular currency, it is recommended to choose a call option with same-day redemption so as to better cope with market fluctuations. In addition, depending on your investment strategy, you may choose a product that pays daily or weekly dividends for greater flexibility in managing your capital and income. - Keeping an eye on the risks and costs of stabilized currencies
A stable currency deposit scheme with high interest rates may sound very attractive, but investors need to be aware of the risks and costs involved. Apart from the underlying inflation risk, there are costs such as capital access and transaction fees to consider, which may erode potential returns. For Hong Kong investors, repatriating profits back into Hong Kong dollars may further erode returns. Therefore, you need to have reasonable expectations and carefully assess the risks before investing. If using the P2P model to purchase stablecoins, it is necessary to check the transaction records of the seller in detail to ensure the security of the transaction. - Checking the reliability of the platform
When choosing a cryptocurrency interest collection platform, you need to consider the size of the platform, whether it holds a relevant license in Hong Kong or overseas, the number of users, the method of storing cryptocurrencies, the fund protection mechanism and compensation measures. The transparency of the platform's operation and whether it is audited by a third party are also important considerations. In addition, check whether the platform has been involved in any serious incidents in the past. Choosing a large and popular platform can relatively reduce the risk and ensure the safety of your investment.
Disclaimer
The content of this article is for reference only, investors should exercise independent judgment, invest prudently and at their own risk, this article does not provide or attempt to persuade the audience to do trading or investment basis, the content is for sharing purposes only, and should not be regarded as investment advice.It does not represent the views and position of Monsterblockhk.All information and opinions are current as of the date of the judgment. In addition, if a judgment is rendered on aIn this siteAny content related to virtual asset trading platforms that have not yet obtained a license to operate virtual asset trading platforms in Hong Kong, including but not limited to text introductions, pictures, offers, events, etc., are only available to users outside the Hong Kong Special Administrative Region.
According to the Hong Kong Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022, after June 1, 2023, all centralized virtual asset trading platforms operating in Hong Kong or actively promoting their services to Hong Kong investors will be licensed and regulated by the SFC, and any related unlicensed activities will be a criminal offence. For more information and details of the legislation, users may refer to the SFC website.