- Crypto investors can still add to the value of their assets even during crypto winter.
- What are the top strategies of earning interest on crypto?
- Example of a cryptocurrency that one can still earn interest from during crypto winter.
A growing number of investors are taking advantage of cryptocurrencies to increase their assets’ value. During the crypto market’s winter, investors who don’t want to sell their holdings can consider interest rates as an alternative.
Earning interest on your crypto holdings is one way to increase crypto assets’ value. You can earn interest on your crypto without doing any additional work by using various platforms and services. How does it work? Let’s find out!
Decentralized lending platforms
Decentralized lending platforms are a popular way to earn interest on your cryptocurrency. Using decentralized lending platforms, users can borrow or lend their cryptocurrencies at an annual percentage rate (APR).
Interest is based on the type of cryptocurrency that you hold, as well as how much you lend.
The disadvantage of decentralized lending platforms is that they are vulnerable to impermanent loss, platform hacks, flash loan attacks, and, more commonly called DeFi rug pulls.
Automated crypto trading
Automated crypto trading is a technology-driven method of trading digital currencies on crypto exchanges. Through the use of advanced algorithms, automated crypto trading allows traders to make informed investment decisions without having to spend a lot of time manually analyzing data and events.
In addition to simplifying operations and ensuring timely execution regardless of market conditions, automation removes much of the subjectivity from decision-making.
Investors can use crypto trading bots or automated crypto trading platforms to execute trades. The problem with crypto trading bots is that they cannot adapt to market news, which can lead to big losses.
One way to take advantage of automated cryptocurrency trading is to use platforms like Haru Invest. Algorithms on such platforms are constantly updated based on market conditions. Further information about Haru’s strategies and performance numbers can be found here.
Last but not least, many digital currencies offer staking rewards where holders can stake their coins to participate in consensus protocols.
Typically, stake rewards are paid out as newly minted coins or tokens, which can be sold or exchanged for other digital currencies. For instance, Cardano holders can stake their ADA tokens and earn rewards up to 4-5% annually.
You can increase the value of your crypto assets by earning interest on them without having to do any additional work, especially during crypto winter. You can easily add additional income streams to your crypto investments by utilizing specialized platforms like Haru Invest. It’s never too late to get started earning! You have a variety of options available to you.