Are you curious about the scope of investing in Bitcoin? Do you want to know which savings accounts offer you the best savings rates? Do you want to know what risks are involved in investing in Bitcoin? If your answer to all these questions is yes, then you have come to the right place. In this article, you will find an answer to all of your queries related to bitcoin savings accounts and rates.
Let’s start from the basics.
How Do Bitcoin Savings Accounts Work?
Bitcoin is a cryptocurrency which allows the users to gain an access to different services and products which permit the transactions based on digital currency. Users can also send bitcoins to other people through digital wallets. This leads to the creation of a blockchain which is the public listing of transactions carried out by bitcoin users.
Keeping your bitcoins in savings accounts offers you with great investment potential. However, as is the case with each and every investment, there is some risk involved. But, first things first! There are various bitcoin savings accounts providers which offer to pay you the interest in return for using your bitcoin. So, what happens is that when you deposit your cryptocurrency, you allow the account provider to control your private keys. Your account provider then lends out your bitcoins to other users and in return, give you the profits earned in the form of interest.
This type of investment is known as passive bitcoin investment as there is very little involvement on your part. All you have to do is to deposit your bitcoins in the savings account.
As mentioned before, the risks involved in this type of investment are of contentious nature. This is because cryptocurrency experts disagree on the possible risks involved in investing in bitcoin. However, a few things should be kept in mind. The returns of profits in the form of interest are not always guaranteed. Moreover, the failure of crypto-bank can be a fatal blow to your investment. Last but not the least, you can also be a victim of electronic theft.
Which Bitcoin Savings Account Providers Offer the Best Saving Rates?
The companies which offer high saving rates are based on dynamic interest model. This means that they adjust the interest rates daily, monthly or yearly depending on the profits generation, price of bitcoin and the number of bitcoins that you have invested with them.
Following are the top companies which offer you the best Bitcoin interest rates.
With Nexo, you can earn around the 5% interest rate on your bitcoin deposits. Moreover, Nexo has no maximum deposit limit which means that you can increase your profits substantially. Nexo compounds interest rate on daily basis
BlockFi offers up to 6% interest rate with maximum deposit limit of 5 BTC. It compounds the interest rate on monthly basis.
Nebeus offers an interest rate of 6.45% to 8.45% with monthly compounding.
Celsius network offers profits on weekly basis. The interest rate is lower for borrowers as compared to lenders. In addition to it, you can withdraw your money anytime. The interest rate of Celsius Network is 4.41%.
Please, remember that the interest rates offered by the savings accounts providers for bitcoin holders are subject to change depending on various factors which have been mentioned above.