Staking your money to earn interest is one of the best ways to get a good return on your investments, and if you choose an account that pays compound interest, the returns are even better. While bank interest rates have crashed recently, the same certainly cannot be said about crypto savings accounts. The best way your money can work for you is by opening a crypto savings account to earn compound interest.

Crypto savings accounts function on a similar principle to traditional savings accounts. There are options for both fixed and flexible savings accounts but, more importantly, you can earn a compound interest rate of up to 12% per year. Even if you start with a flexible savings account, some crypto platforms have an auto subscription feature that enables you to earn compound interest.

Earning compound interest on your investment is a concept that has been around for a long time. It has always been a great way for investors to achieve their financial goals. Now, bank interest rates might have plummeted but cryptocurrencies have stepped up to fill the void. Here is how you can earn compound interest on your cryptos.

Where to compound your crypto

There are several crypto trading platforms and wallets where you can deposit your crypto assets to earn interest. If you want to access your assets at any time you wish, you can opt to open a flexible savings account. On the other hand, if you do not have an immediate need for your assets you can opt for a fixed savings account which will earn you compound interest.

When choosing a platform to earn compound interest from crypto, it is important that you opt for a safe and reputable platform like YouHodler. At YouHodler, you are guaranteed security for your assets while the interest rate earned per year can go to as high as 12.4% plus compound interest. Once you deposit your funds with YouHodler, you immediately begin earning interest that is paid on a weekly basis.

How to compound your crypto?

Earning compound interest is the best way for any investor to generate good returns on their investment. For those who are trying out the concept of a crypto savings account, you can try the flexible savings first and once you get a grasp on how things work, you can HODL your crypto assets to earn compound interest.

After you have chosen a reputable platform like YouHodler to deposit your funds with, you will have to register and verify your identity to set up your account. Once this process is completed, you can deposit your crypto and begin earning compound interest.

How compound interest on crypto works

While crypto savings accounts borrowed the premise of the common savings accounts, the interest rate earned is much higher. In addition, interest payments are made weekly which can be withdrawn at your convenience or even restaked to earn compound interest. On average, crypto savings accounts pay an APY of 7.5%, but with YouHodler you can earn an interest rate of up to 12.4% per annum. Interest paid is usually in form of cryptocurrency but can be redeemed for cash easily at a small fee.

Depending on where or who your platform lends its crypto holdings to, your interest rate can be lower or higher. Any interest earned is generated from repayments by borrowers which is a key reason that you need to deposit your funds in top platforms such as YouHodler.