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You’ve probably heard a lot about cryptocurrency lately, from massive fluctuations in value to media reports of Bitcoin volatility and speculation. But cryptocurrency is more than just a buzzword – it can be part of your financial strategy and help you build wealth for the future.
You don’t have to be a Wall Street genius or tech expert to make money in the crypto market. In fact, many ordinary, everyday investors use crypto as an important passive source of income. By buying crypto and keeping it on an interest-bearing platform, you can put your crypto assets in and get interest every month without lifting a finger.
These platforms often offer a higher rate of return than some traditional financial institutions. It’s an easy, safe, and convenient way to generate returns. But you might be wondering how it all works. Let’s take a closer look at the surprising ways crypto investing can add to your financial goals.
How do you get interest on interest?
Almost anyone can earn interest on their crypto assets. All you have to do is transfer your crypto holdings to a reliable interest-bearing institution or service provider. In some cases, interest rates go up so you will earn more month to month by keeping your wealth on this platform. It’s a convenient way for investors to passively earn more without making daily adjustments
But what if you don’t own crypto? No problem. Investors can usually transfer US dollars to their account and these funds are automatically used to buy the equivalent in stablecoins, which are crypto-assets tied to a traditional asset such as the US dollar, thereby creating they are relatively stable and low-risk. Of course, unlike US dollars, stablecoins can earn you a higher interest rate.
Depending on the service chosen, investors can also transfer more money to their accounts, make withdrawals, trade between different cryptocurrencies or even use their assets as collateral for a crypto-covered loan.
Why are the returns in the crypto market so high?
Because many of these platforms generate interest on assets by lending them to trusted institutional and corporate borrowers. If you are concerned about possible loan-related losses, find a platform that lends crypto on over-collateralized terms while employing thorough risk management processes, such as: B. An automated system that monitors positions around the clock and make sure the company is up and running. Reserve balances to facilitate customer withdrawals.
You should also look at the platform’s past performance as an indicator of how it is balancing risk factors. If the company has a perfect track record for clients and is backed by well-known investment partners, this is usually a sign that your assets are in good hands.
It’s safer than you think
If you are worried about cybersecurity when investing in crypto, you should know that the process is much more secure than you might think, especially if you are working with a trusted platform.
Risk and security management should be the standard operating model for the crypto platform you plan to invest in. It can also be useful to choose a platform that is US based, regulated, institutionally secured, and does not have a utility token. This is important – be sure to work with crypto companies who follow the rules.
What about personal data and data protection? Since crypto is a technology-based currency, most providers in this area take data protection very seriously. Platforms typically rely on strong encryption, such as modern ciphers, supported protocols, and multi-factor authentication. When transferring data, they assume that the underlying network has no trust and apply additional authentication, authorization and encryption at the application level.
In addition, a crypto network should have a minimal presence on the public internet and all internal networks should only be accessible to authorized users. Restricted areas or restricted services on the network must require further authentication, authorization and, in some cases, specially configured devices that have been subjected to additional security controls.
In other words, investing in crypto is a safe, convenient, and smart way to diversify your wealth and generate returns. If you’re interested in investing in one of the most reliable, secure, and easy-to-use platforms out there, this is the place to go BlockFi today. Registration for a BlockFi interest account is a quick and easy process. Plus, new customers can earn a bonus of up to $ 250 in BTC when they sign up. So there is no reason to leave potential revenue on the table.
Nothing in this announcement shall be construed as a solicitation of an offer to buy or an offer, or a recommendation to buy or sell any securities, goods, investments or to enter into any other transaction. The information provided in this release is not intended for distribution to or use by any natural or legal person in any jurisdiction or country in which such disclosure or use would violate any law or regulation. This announcement is not addressed to any person in any jurisdiction where publication or availability of the announcement is prohibited by nationality, place of residence, or any other reason.
Neither BlockFi nor its affiliates or agents offer legal, tax or accounting advice. You should consult your legal and / or tax advisor before making any financial decision.
The digital currency is not legal tender, is not supported by the government, and crypto interest accounts are not subject to FDIC or SIPC protection. Learn more at BlockFi.com.
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