Crypto Savings Accounts: A Beginner's Guide

15-09-2023

Crypto Savings Accounts: A Beginner's Guide

If you've explored ways to earn extra income on your cryptocurrency holdings, you've likely come across digital currency savings accounts. These accounts allow you to deposit or buy crypto and steadily accrue rewards. But how do they work, and are they trustworthy? In this article, we'll address common questions about cryptocurrency savings accounts and introduce you to Givearn - a beginner-friendly platform offering a reliable and safer avenue for passive income.

What are crypto savings accounts?

A crypto savings account works like regular savings accounts at banks, but instead of receiving interest on your US dollars or Euros, you are paid rewards for your crypto assets. The idea is that you’re generating passive income in the form of “crypto rewards” in exchange for keeping your funds on a platform.

Crypto savings accounts offer an easier way for you to earn money from your cryptocurrency. Some methods, like decentralized finance, lending protocols, and staking, can be complicated (see our article on crypto passive income). They might require you to deal with things called 'smart contracts' or ask you to commit your cryptocurrency for specific periods. In contrast, crypto savings accounts are straightforward, practical, and much easier for beginners to use.

Why consider crypto savings accounts?

Compared to other types of investment or saving, crypto savings accounts have a number of benefits. You may want to think about them for the following reasons:

High yields: Compared to conventional Euros savings accounts, cryptocurrency savings accounts often provide greater yield. You can earn an APR (annual percentage rate) on your crypto ranging from 1% to 7% depending on the platform and the cryptocurrency.

Simple and safe: Crypto savings accounts generally pose fewer risks than other methods of earning income on your cryptocurrency. When you choose a trustworthy provider, these accounts are not only easier to use but also more secure.

Passive income: Earn a passive income from your crypto portfolio without actively trading or managing it. You only need to make a single transfer or purchase; the platform will take care of the rest. Then you can relax and observe how your balance improves with time.

Flexibility: Compared to other crypto investment or savings methods, savings accounts provide you with more flexible withdrawal options.

How do crypto savings accounts work?

  1. Select a platform that provides cryptocurrency savings accounts. Although there are many platforms available, not all of them are trustworthy or appropriate for novices. Before making a choice, you should conduct some research and contrast the features, costs, return rates, and user ratings of other platforms.

  2. Create an account on the platform and, if necessary, provide identification. For the purpose of adhering to KYC (Know Your Customer) and AML (Anti-Money Laundering) requirements, some platforms may need you to submit some personal information and documentation. This is important as it proves the compliance of the platform with regulations.

  3. Transfer your funds to the platform. For this, you need to find out what are the supported currencies first.

  4. Check how frequently you will get your rewards, and whether you are able to withdraw your money at any time or if they are locked up for a specific period of time.

  5. On the dashboard of the platform, keep an eye on your balance and weekly profits. Depending on the terms of your savings plan, you can also withdraw your money or add additional funds to your account at any moment.

Are crypto savings accounts safe?

While most crypto savings accounts are secure, there are a few concerns you should be aware of. The major danger is that the platform holding your cryptocurrency can be compromised, go out of business, or abscond with your money. For this reason, it's crucial to pick a dependable provider with security precautions like insurance, audits, licenses, and custody solutions.

Another danger is that market volatility could cause your cryptocurrency's value to change. This implies that if the value of your cryptocurrency decreases, you could lose some of your initial investment. This danger, however, applies to all types of investments and is not exclusive to crypto. You can mitigate this risk by diversifying your portfolio and only investing what you can afford to lose.

Givearn: The Novice-Friendly Crypto Savings Account

Check out Givearn if you're seeking an easy, secure, and profitable way to earn rewards on your savings. Our platform provides cryptocurrency savings accounts with good returns and lower risk due to the use of stablecoins in the portfolio (crypto pegged to the value of one US dollar). Here are a few features that distinguish Givearn from its competitors:

  • Effortless use: Givearn is made to be simple to use and open to newcomers. You can quickly create an account, transfer your funds, and begin earning crypto rewards each week. There aren't any complex interfaces, “smart contracts”, or “protocols” that you have to deal with.
  • Safety: Givearn is dedicated to protecting your cryptocurrency. As a registered entity in the EU, we strictly adhere to the EU AML (Anti-Money Laundering) regulations. Beyond that, Givearn has been rigorously evaluated and passed a comprehensive cybersecurity audit, reinforcing our commitment to safeguarding your assets. For added security, we've put in place transfer restrictions and require human validation for all withdrawals, ensuring protection against fraudulent or suspicious activities.
  • High yields: Givearn provides a competitive return rate on your crypto portfolio. You can earn up to 5.2% APR, paid with 0.1% weekly rewards. This is more than most conventional savings accounts or other crypto platforms.
  • Social impact: Givearn also allows charitable donations. Through the app, you can give a portion of your crypto rewards to thousands of international and local charity organizations. You can pick from a variety of causes and groups, including Save the Children, Doctors Without Borders, Unicef, and even nearby charities. You may increase your cryptocurrency riches while changing the world for the better by using Givearn.

Conclusion

Crypto savings accounts are a fantastic method to maintain the safety and accessibility of your holdings while earning income on them. For anyone looking to save or invest in crypto, they provide great returns, lower risks, passive income, and flexibility.

With Givearn you can receive weekly crypto rewards on your savings, and make a positive impact on society by contributing a portion of your profits to hundreds of charity organizations worldwide.



Disclaimer and Risk Warning: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice. You should seek your own advice from appropriate professional advisors. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Givearn is not liable for any losses you may incur. For more information, see our Terms of Use.