Investing in cryptocurrency has proven to be very profitable but it is also a somewhat risky venture. Many cryptocurrencies experience a high level of price volatility which makes many investors fear HODLing crypto assets in the longer term. The introduction of crypto stablecoins such as USDC has helped even the odds but more importantly, you can earn interest on USDC coins as well.
Interest rates on bank deposits have drastically fallen due to the economic crisis the world is currently facing. Many people have had their credit scores adversely affected which makes it harder for them to get loans. This has created an opening for crypto lending and, consequently, an opportunity to earn interest from USDC and other cryptos.
If you are looking for ways to boost your USDC investment yield, you should consider opening a crypto savings account. However, you need to first understand how they work and which platforms offer the best rates. Here are the top considerations for choosing the best place to earn interest on USDC.
How Do You Earn Interest on USDC?
To earn USDC crypto interest, you have to first deposit your USDC coins in a crypto savings account. These accounts function in a similar way to bank savings accounts, meaning that the assets can be loaned out somewhere else in exchange for interest. You can deposit cryptocurrencies like Bitcoin, Ethereum, and several others but many investors prefer stablecoins like USDC because they pose less risk.
When choosing the best place to earn interest on USDC, you need a reputable platform that offers the best APY on USDC (like YouHodler). You can make a USDC deposit to your YouHodler account and earn a yearly interest of up to 12% compound interest. When you deposit USDC to YouHodler, your assets start to immediately earn interest which is paid out weekly. Here are other considerations for choosing the best place to earn interest on USDC.
All the funds deposited in traditional bank savings accounts are FDIC insured. This means that you cannot lose your deposited funds even if they are loaned out to another party. However, because of the huge price volatility experienced with cryptocurrencies, the funds deposited are not FDIC insured. If the platform you choose is hacked, you might lose everything.
Thus, you need to choose a platform that offers maximum asset security and a good USD stablecoin rate. Top platforms like YouHodler employ a combination of hot and cold wallets to ensure that their investors’ assets are protected and safe from any attacks.
Crypto savings platforms that are just starting out specialize in a few select coins. Remember that no crypto lending platform will allow you to earn interest on every crypto coin available. If you want to deposit USD coins to earn interest, ensure that you choose a platform that supports USDC and any other digital currency that might interest you. Many of the reputable crypto savings account platforms deal with several popular digital currencies and even have an option for crypto-to-crypto conversion.