The CoinDepo platform offers a wonderful compound interest feature that enables users to increase their cryptocurrency and stablecoin savings by earning passive guaranteed yearly income. All they need is to deposit digital assets into the platform and wait. Learn the details.
A savings account typically involves earning interest on deposited money in a financial institution. Traditionally linked to banks, this concept now extends to digital assets in financial services.
Crypto savings accounts, or compound interest accounts, gained traction post-2017 with the rise of decentralized finance (DeFi). Before that, the idea existed but lacked practicality until smart contracts emerged, enabling its realization.
Among the solutions that offer crypto compound interest, CoinDepo stands out as the latest step in the evolution of this technology.
Crypto compound interest explained
Compound interest involves earning passive income through interest on deposited funds. For instance, at a 5% annual rate on a $1000 deposit, you’d gain $50 in a year. If compounded annually, your balance of $1050 would then generate more interest, growing exponentially.
In the realm of crypto, rates can be much higher, with compounding periods as short as one day. For instance, CoinDepo offers up to 24% annual interest on major stablecoins (USDT, USDC, DAI). This substantial rate, driven by unique blockchain factors, can grow your stablecoin savings significantly each year, ensuring a steady revenue stream. Plus, you’re shielded from the volatility of regular cryptocurrencies – more details in the next section.
CoinDepo compound interest
The CoinDepo compound interest feature (crypto compound interest accounts) works with both stablecoins and major cryptos (like BTC, ETH, BNB, XRP, LTC, etc.).
The interest (or APR) is within the 12-18% range + compound interest with cryptocurrencies. It doesn’t account for the volatility or losses a given cryptocurrency might suffer within a year. Still, it does also mean that any bullish trends on the market will additionally increase your crypto holdings at CoinDepo.
With stablecoins, the APR is within the 18-24% range + compound interest, a much bigger and more lucrative number. This means your savings can increase by almost a quarter over a year. An undoubted benefit is that these savings don’t suffer from market change because stablecoins are pegged to fiat currency, USD in this case.
The exact APR depends on two main factors, which you can carefully manage based on your current preferences:
- Stablecoin vs. cryptocurrency: Deposit stablecoins for a higher 24% APR + compound interest (APY), ensuring predictable income but forfeiting potential market value increase.
- Interest payout periods: Vary payout frequency (daily, weekly, monthly, etc.) to affect the annual interest rate. Shorter compounding periods mean more frequent payouts but lower annual interest. Reinvesting in a compound interest account always boosts your actual APY due to compounding.
This flexibility isn’t just about maximizing profit; it lets you choose payout frequency and manage risk based on asset predictions. There’s much to consider, but it opens up more money-making opportunities.
How to start earning on CoinDepo?
The procedure is not exactly complex—to start, you’ll need to create an account, choose a compounding plan, and deposit some funds. After that, it’s about managing your returns and withdrawing the money.
Step 1 – CoinDepo registration
The first step is creating an account on coindepo.com, the official website. You only need to provide your email address and create a password. The KYC requirements for raising limits are also minimal, meaning that you’ll be able to make a deposit very soon and start earning interest.
Step 2 – Add a compound interest account
Upon registration, a current compound interest account is automatically created for you with a daily compounding period. The compound interest account is your crypto savings account, of which you can add several with different compounding periods. The details are selected – digital asset and interest payment period (weekly, monthly, quarterly, semi-annually, annually). You then confirm your choice and create an additional compound interest account.
You can deposit crypto assets there and withdraw them at any moment.
Step 3 – Deposit crypto to CoinDepo
Once you have created a compound interest account, you must deposit your digital assets from any external crypto wallet supporting the specified cryptocurrency. Submitting the public key will do the job, and you will soon receive the specified amount in your CoinDepo compound interest current account. You can fund any of them using the instant transfer feature between your compound interest accounts on the CoinDepo platform. After that, the interest payouts will start accumulating according to the selected plan.
You can withdraw the funds at any moment. It won’t change the conditions of your compounding plan—it will continue accumulating interest for you. However, leaving your funds in place for longer periods is better. It’s a long-term strategy that yields the best results over time.
Accordingly, the yearly interest payout plan will give you the best percentage.
Step 4 – Management
You can continue managing your compound interest account or several of them in a neat portfolio. You can switch your digital assets between them, create new compound interest accounts with different plans, move your funds there, or otherwise diversify your collection. There’s a lot of flexibility in managing your interest plans.
It can help you to be on top of risks, yield the most profits, and fill the most lucrative opportunities. It can result in huge hybrid profits if used in conjunction with actual crypto exchange trading. CoinDepo can offer long-term profits while providing a financial base for short-term opportunities on the market.
A crypto savings account is a good way to increase your profits with minimal risks. There is still a risk, but it’s considerably safer than crypto trading and infinitely better than using a margin account. It’s an incredibly profitable venture that fits both beginners and tested crypto enthusiasts.
Disclaimer: This article is sponsored content and is not financial advice. CryptoNewsZ does not endorse or guarantee the accuracy of the content. Readers should verify information independently and exercise caution when dealing with any mentioned company. Investing in cryptocurrencies is risky, and seeking advice from a qualified professional is recommended.