Many cryptos are themselves valuable assets, bringing their owners additional income by simply growing in price over time. However, an even more effective way to build wealth is by putting crypto into practice, and that’s not trading we are talking about.
The crypto expansion is significantly driven by the increased inflation experienced by fiat currencies, resulting in low interest rates globally. Countries with healthy economies target a 2% annual inflation rate, although it’s been way higher during turbulent times. For example, the inflation rate in the US reached 8.5% in the midst of the COVID-19 pandemic in 2022.
So, traditional investors are seeking new ways to grow their capital, and the crypto arena offers more of them every year. Let’s consider the most popular ways to multiply the digital assets one already owns and figure out the best place to earn interest on crypto.
Best Ways to Earn Interest on Crypto
Today’s range of options will suit both crypto beginners and pros, starting from the familiar concept of savings accounts and ending with yield-farming, which requires specific skills but may result in lucrative profits.
Growth Accounts
Crypto growth accounts are one of the easiest ways of how to earn interest on crypto. They work similarly to traditional savings accounts, where one deposits money and waits for it to accrue interest over a given period. In the case of crypto, a person provides their assets to centralized companies that pay interest for holding their crypto on the platform. Such companies may use the deposit in multiple ways, for example, lend it further to receive profit.
Interest rates may vary depending on the platform and the coin deposited. For instance, YouHodler offers up to 8% per year + compounding interest. Before you start to earn interest on your crypto, it is essential to research various coins and choose the ones with solid growth potential or try stablecoins to avoid possible losses.
Staking
Staking, in the usual sense, involves locking up one’s assets in a blockchain to help maintain a specific network. The investors receive rewards for helping validate blocks and ensuring transactions occur on the chain. Blockchain networks supporting staking operate based on the Proof-of-Stake (PoS) consensus mechanism, like Ethereum 2.0, Solana, Polkadot, and the like.
However, the term “staking” has acquired a far greater meaning recently, with some platforms offering rewards for simply locking funds on the platform for a definite time. For example, the blockchain-based Fairspin casino allows its users to earn daily interest on crypto and receive up to 500% APR from staking its native TFS Token within the Hold to Earn program. Such generous returns make the answer to the question: “What is the best crypto to earn interest?” quite obvious, especially as far as iGaming tokens are concerned.
As Ethan, the TFS community manager, states, “Users can choose among 8-hour, 1-day, or 3-day staking options, with the reward amount depending on the deposit size and the platform’s general profit for the holding period.” Apart from lucrative interest, this option is risk-free, as stakers get their deposits back even if the platform’s income for the given time is at zero. Moreover, Fairspin has added an extension to the program discussed below, making it one of the best places to earn interest on crypto.
DeFi and Yield Farming
Decentralized applications (dApps) are programs running on a peer-to-peer computer network outside the control of a single authority. They are based on smart contracts – pre-defined rules self-executing when specific conditions are met.
Yield farmers are welcome to invest in DeFi protocols, providing liquidity to various token pairs. Crypto is locked in a pool for a certain period, acting as liquidity for lending, borrowing, and trading. As a result, investors get a part of the transaction fees or some other investment incentive.
Fairspin has used the “liquidity pool” concept to create another way for its users to earn interest with crypto – Liquidity Staking . Again, users can stake their crypto to receive a part of the general platform’s income. Here, however, they stake TFS against USDT in the TFS/USDT pool. This option allows indefinite staking and any amount can be withdrawn anytime.
Top Crypto Narratives 2024
Multiple factors influence crypto prices, and keeping up with the trends is crucial for making the right investment decision. Let’s consider some of the top crypto narratives likely to shape the market in the current year.
BTC Surge Amid Halving Expected
The buzz surrounding cryptocurrencies grows even stronger with the recent news of BTC climbing above $50,000. Investors are showing interest not only in the first cryptocurrency amid its price surge but also in the leading cryptos traded in the green zone. For example, as of February 13, 2023, ETH is traded above the $2,600 level and SOL above $113.
Bitcoin’s price rally is undoubtedly reflected in the global crypto market cap, hovering around $1.97 trillion at the moment of writing. The interest in BTC is expected to remain and rise even higher in the coming months, generally heating the interest in crypto. Such speculations are made regarding the halving to take place in April 2024.
Halving is designated for preventing inflation and happens every four years, reducing the reward for mining new blocks by half. The event effectively slows down the creation of new Bitcoins, and the scarcity factor usually results in a price increase. It is unclear at the moment how the halving will affect the market. However, the tension in the market is very likely to grow, as well as the interest in BTC and the industry overall.
GameFi to Keep on Track
The GameFi sector, which originated at the crossroads of blockchain, games, and decentralized finances, is likely to continue expanding in 2024. The growth is constantly driven by the emergence of new public blockchains, game releases, and players’ proper desire to make substantial profits while enjoying their favorite games.
Some of the top GameFi tokens to watch out for are Immutable X (IMX), Ronin (RON), and Axie Infinity (AXS). For instance, IMX has been showing steady growth recently, with its market cap well above $3 billion. One of the factors attributing to the price surge can be the announcement that the immutable zkEVM mainnet early access is live.
Meme Coins Making Waves
Originating from jokes and as a parody of the crypto surge, meme coins have transformed into valid digital assets, although mostly volatile. Meme coins were among one of the crypto narratives in 2023 and are likely to remain a trend throughout 2024.
It all started with Dogecoin (DOGE), the biggest meme coin with a market cap of over $11 billion. The crypto has a proven value, allowing anyone to send money anywhere globally in no time and with extremely low costs. The first meme coin has shown the ability to stay relevant for years and is expected to retain its position.
Other meme coins creating buzz are Shiba Inu (SHIB), Pepe (PEPE), Bonk (BONK), and FLOKI (FLOKI). The list goes on, with more and more coins appearing on the market, becoming a true cultural force that dictates market attention.
Final Thoughts
Earning interest from crypto has never been that accessible. From savings accounts to yield farming, everybody can find something suiting their level of crypto-savviness and current preferences. Fairspin platform’s TFS staking program is excellent proof that making passive income can be advanced and hassle-free at the same time.
The market is currently filled with earning opportunities in multiple digital assets, and crypto narratives can be handy insights into where the market may go. Stay on top of crypto trends and benefit from the opportunities presenting themselves!
Also published on Medium.
