What is a crypto account?
A cryptocurrency savings account is designated for crypto deposits where after some time, just like with other savings accounts, you can earn a standard return rate. To help you understand this currency better, we’ll try to explain what crypto is in the most mundane terms we can. As the name suggests, cryptocurrency is a form of currency that you can exchange solely online for goods and services. In line with the expansion of crypto use, many companies developed their currencies (tokens) that they trade for their services.
You can think of these tokens as you think of casino chips or arcade tokens. However, you have to exchange real currency for cryptocurrency to get a good or service. This type of currency works through blockchain – a special kind of technology. The technology is decentralized and can spread across numerous computers and manage all transactions and crypto records. Blockchain enables security and safety and is a vital part of making cryptocurrency possible. A crypto account is simply a savings account where you can keep this currency.
Here’s a list of the different types of crypto accounts and their specifications.
- BlockFI. This crypto savings account offers many conveniences to crypto investors. There’s a high yield for those who invest less than 0.10 Bitcoin. Those who invest more than 0.35 Bitcoin will have only a 10% yield. Yes, the more you invest, the less you will earn, unfortunately.
- Outlet Finance. For Outlet Finance, you don’t need expert knowledge about cryptocurrencies. This account will only pay you interest in USD. However, we list this savings account in the group of crypto accounts because you can buy Ethereum and numerous other cryptocurrencies with US dollars on this account.
- Gemini. Gemini is a high-ranked crypto account for investing in cryptocurrencies. The Gemini platform acted as a backbone for many other crypto platforms. The interest you can get at Gemini is 7.4% when you transfer crypto into Gemini Earn, along with a 2.05% interest on BTC.
- Crypto.com. Crypto has among the highest interest rates on the crypto market. However, the terms to get them are specific. Those with smaller amounts may want to choose something other than Crypto.com. Each yield at Crypto.com bases everything on daily interest. The platform covers 15 different cryptocurrencies and eight different stable coins. If you are interested in getting the highest yields, you should keep investing for at least three months.
- YouHolder. Investors can rest assured that they’ll have the best protection at YouHolder. They’re not available in Canada but are available in Eastern Europe, UK, EU, Japan, Korea, and China. The minimum you can invest is $100, but you can withdraw your cash at any time.
- Coinbase. As one of the most famous digital wallets, Coinbase is a digital crypto account for eligible customers. To qualify for Coinbase, you have to earn no less than 4% APY on Coins of US Dollars. As opposed to other crypto accounts, Coinbase won’t lend you its USDC.