How to Earn Interest on 0x?
0x Coin or ZRX is a native token of 0x Protocol that some also call a Craigslist of cryptocurrencies. It facilitates the peer-to-peer exchange of cryptocurrencies on the Ethereum blockchain. 0x has established itself as one of the top 100 cryptocurrencies by market cap, and so far, 0x has delivered an ROI of 1840.08%.
If you are hodling 0x to benefit from further price rise, there is a better way of hodling. It consists of hodling and earning interest on your 0x hodling. You can earn interest up to 4.4% APY on 0x. Follow the steps below to start earning interest:
- Sign up for an Interest Account
You will need an interest account to begin earning interest on 0x. For that, enter your legal name and email address on the signup page of the interest account provider’s website.
- Verify Your Account
Once you have completed the signup process, you will receive a verification link in an email from the interest account provider. Click on the link to create your account. Now, you will have to go through a KYC process to activate your account.
The platform requires its users to submit their personal details along with any identification card issued by the government. It can be your passport, driving license, or any other relevant document. Click a photograph of yourself holding the ID card, as it will also be required to complete the KYC process.
These two steps that we have described above are only required when you create an interest account on a centralized interest account platform. If you are signing up on an interest account on a DeFi platform, you won't have to sign up for an account or go through a KYC process.
- Deposit Your 0x
After your KYC is approved, you should deposit 0x to your interest account. Depending upon the rules of interest account provider that you will choose, the interest accruals will usually begin within 24 hours after depositing 0x in your interest account.
To deposit 0x, go to the page that has a list of all supported deposit options. You will find 0x in the list. Click on the 0x option to receive a unique wallet address. Copy the unique wallet address and paste it in the wallet’s withdrawal section where you hold 0x. Enter the amount of 0x that you wish to withdraw into your interest account and click on "Withdraw." Soon, you will see the 0x amount in your interest account.
- Start Earning Interest
You will start earning interest on your 0x deposit almost immediately after you receive 0x in your interest account. But it is important to note that the time when the interest accruals will begin depends on the interest account provider. It usually begins within 24 hours or after 24 hours of receiving the funds in the interest account.
Why Earn Interest on 0x?
If you hold 0x in your wallet, you will only benefit from the price appreciation of 0x. But if you start earning interest on 0x, you can multiply your 0x holdings and earn more. In most cases, the interest you earn on 0x is far more than what any bank will offer you on USD.
- Easy and Straightforward
The process of earning interest on 0x is very easy. Sign up for an account, complete a KYC process and then deposit 0x to your interest account. If you are opting for a DeFi interest account, you won't even have to go through the signing up and KYC process. The interest accruals will begin within 24 hours or after 24 hours of depositing 0x to your interest account, depending upon the platform you choose.
- Low Risk
Compared to the other financial instruments that offer similar interest rates, earning interest on 0x is less risky. Crypto lending platforms share a part of their income they earn by lending cryptocurrencies and fiat currencies in the form of interest with their interest account holders. There's a risk, but most of the platforms manage it by making over-collateralization mandatory to borrow from them.
- Passive Income
Passive income is the best form of income, and if you begin earning interest on 0x, you will start seeing the wonders of it. Deposit 0x and see your income grow.
Where can I earn Interest on 0x?
Compared to the top 10 cryptocurrencies like Bitcoin, Ethereum, and stablecoins like Tether, there are a limited number of platforms that offer 0x interest accounts. The top ones offering 0x interest account are Celsius Network, Aave, and Bitfinex.
Celsius is one of the top-most names among interest account providers. You can earn up to 4.4% interest on 0x if you opt for an interest account with Celsius. But to earn 4.4% on 0x, you must agree to earn interest in CEL, Celsius Network's native token.
Another deciding criterion is your location, as US residents cannot earn in CEL tokens. Hence by default, US residents are ineligible to earn the highest rates offered by Celsius. If you are looking to earn the highest interest rates on 0x, then you should check out Celsius Network as they are the ones that offer the highest interest rates on 0x now.
One of the biggest names in the world of DeFi, Aave has established itself as a leading DeFi interest account provider. If you are interested in opting for a 0x DeFi interest account, you can check out Aave. The highest interest rate offered by Aave is 0.68% APY on 0x.
As Aave is a DeFi protocol, you do not have to sign up for an account or complete the KYC process to earn interest on 0x. Connect your wallet to Aave and deposit 0x to start earning interest on it.
With Bitfinex, you can earn interest on the 0x you hold in your Bitfinex wallet. Bitfinex offers interest up to 0.44% APY on 0x. The process is straightforward. Go to the "Lending Products" page after signing up or logging into your account on Bitfinex.
You will see a notice and content page after going to the lending products page. Read it and accept the notice. That's it, and now you can deposit 0x and earn interest on it. There is no lock-in period on Bitfinex for earning interest on 0x. Any interest that you earn on 0x can be easily withdrawn to the Bitfinex wallet.
Is it Risky Earning Interest on 0x?
Yes, there is an element of risk involved in earning interest on 0x. We must not downplay the risks, as knowing them beforehand can help us safeguard our investments. It will also help us choose the best platform to earn interest on 0x.
Crypto lending platforms share a part of their income with their interest account holders in the form of interest. Their income comes from their lending business. They lend cryptocurrencies and fiat currencies to borrowers at high-interest rates. To manage the risk involved, a majority of platforms require over-collateralization to borrow from them.
But some platforms do not follow the concept of over-collateralization to stand out from the rest. If you opt for an interest account with such platforms for higher interest rates, there is a risk to your deposit. If their users start defaulting on their loans, the platform will fail. Thus they won't be able to offer interest on deposits made by its users.
If a large number of borrowers start defaulting on their loans, the platform will go bankrupt. In case of bankruptcy, you will lose your funds, along with any interest that the platform was liable to pay you.
If you want to earn interest on 0x safely, do not automatically opt for the platform offering the highest interest rate. Instead, you must do your research and select a platform that has built a good reputation in the industry and offers reasonably higher interest rates. You can also read our honest reviews on almost every major interest account provider to know more about them.
What to Look for When Choosing a Platform?
When choosing a platform, the two most important factors are the interest rates offered and the platform’s industry standing. Do not fall for the highest interest rates alone. If a platform is new, the interest rates offered by them would be one of highest in the industry. But the risks involved will also be higher.
Another crucial factor that you must look into is if the platform has insured its user funds or not. It is also a crucial factor as, in the case of a platform losing its funds for any reasons like hacks, smart contract failure, bankruptcy, or any other, the insurance company will pay the insured amount to cover a part or entirety of losses.
Check for the criteria that interest account providers have to earn the highest interest rates offered by them. A few platforms mandate that you must agree to earn in the platform's own token to become eligible to earn the highest interest rates offered by them. Some platforms require that their interest account holders must hold a part of their investment portfolio in their native token to become eligible to earn the highest interest rates they offer.
If the amount of 0x that you are going to deposit in your interest account is in single or double digits, then you must also check if the platform has any minimum deposit requirements or not. Some platforms require their users to deposit a minimum amount of funds to earn interest.
Are you going to need your funds back anytime soon? If yes, you must also check if the platform has any mandatory lock-in period to become eligible to earn interest on 0x. If you want to withdraw your funds anytime you want, opt for a platform with no mandatory lock-in period to earn interest.