How to Earn Interest on Augur?
Augur is an Ethereum-based peer-to-peer exchange. It is among the 150 largest cryptocurrencies by market cap. It has delivered over 1600% ROI so far. Thus, Augur hodlers have benefited by hodling onto Augur for the long term. But to maximize profits, Augur hodlers should earn interest on their Augur tokens. Follow the steps below to earn up to 2.5% interest on Augur:
- Sign up for an Interest Account
Visit the website of an interest provider and go to their registration page. Enter your name and email address. Click on the submit button after you have entered the details.
- Verify Your Account
After you have completed the registration process, you will receive an email from the interest account provider. There will be a link within the email, which you must click to verify your email address. Now, it's time to complete the KYC process to activate your account.
For the KYC process, you will have to provide a government-issued ID card and a photo of yourself holding the same card. First, enter your personal details like address, nationality, among other things. Then, upload the documents and the photograph, and click on the submit button. Depending on the platform you chose, you will receive an email congratulating you for successful KYC verification within a couple of days.
If you want to earn interest on Augur from a DeFi interest account provider, you won't have to sign up for an account, and nor would you have to complete any KYC process. Thus, earning interest from a DeFi platform is even easier than a centralized platform like Nexo, YouHolder, etc.
- Deposit Your Augur
To deposit Augur to your interest account, visit the page listing all the available crypto deposit options on the platform. You will find Augur in the list, which you must click to receive a unique wallet address.
Now, Copy the Augur wallet address and paste it into the Augur withdrawal page of the wallet where you are hodling your Augur funds. Enter the amount of Augur you want to earn interest on and click on the withdrawal button. You should receive the Augur deposit in your interest account within a few minutes.
- Start Earning Interest
After completing the three steps above, you don't have to do anything else. In most platforms, the interest accruals will begin automatically within the stipulated period of the platform. In most cases, the interest accrual will begin within a few hours to 24 hours.
Why Earn Interest on Augur?
If you begin earning interest on Augur, you are effectively maximizing your returns. After all, you will benefit from the price gain of Augur and also earn interest on it. Thus, earning interest is far better than keeping Augur idle in your wallet.
- Easy Process
Earning interest on Augur is easy. Once you have signed up for an interest account, completed KYC, and deposited Augur to your interest account, you won't have to do anything else. Relax and watch your Augur funds grow. Earning interest on Augur from a DeFi platform is even easier than earning interest from centralized platforms as you don't have to sign up for an account. You don't even have to complete the KYC process. To begin earning interest on a DeFi platform, connect your web3 wallet like Metamask with the DeFi platform and deposit your Augur funds to your DeFi interest account. The interest accrual will begin automatically.
- Low Risk
Though there are risks, the magnitude of it is lower in earning interest on Augur. These platforms generate revenue by lending cryptocurrencies and fiat currencies. It is their main business, and as it involves lending, there is an element of risk involved. But most of the crypto lending platforms, which also offer interest accounts, manage the risks by demanding over-collateralization from their borrowers. It helps them manage the risks. Overall, earning interest on Augur has low risk.
- Passive Income
Once you deposit Augur to your interest account, you will keep earning interest 24×7, even while you are asleep. Isn't that great? Thus, earning interest on Augur is the best way to generate a passive income. Use Bitcompare Augur Interest Calculator to calculate your interest earnings.
Where to Earn Interest on Augur?
Augur is among the top 150 cryptocurrencies by market cap. It is also rising the popularity chart slowly. But as of now, there are very few platforms offering Augur interest accounts. The best Augur interest account provider is YouHodler.
On the YouHodler account, you will earn 2.5% interest APY on Augur. There are multiple benefits of signing up for a YouHodler Augur interest account. First, there are no minimum deposit requirements on YouHodler for Augur. Next, there is no lock-in period. The platform has no native token, and hence, there are no specific eligibility criteria to earn the highest interest rates on Augur as everyone will receive the same rates. You are free to withdraw Augur from your account at any time.
Is it Risky Earning Interest on Augur?
Yes, there is a risk in earning on Augur. As we discussed, interest account providers lend cryptocurrencies and fiat currencies to generate income. From this income, they pay interest to their account holders. You must know that they also use their user funds in lending. Thus, there is a risk. Though most of them have mandatory requirements of over-collateralization to borrow from them, some of them are trying to walk in a different direction. They do not ask for over-collateralization to stand out in the competitive industry.
If you opt for an interest account with a platform having no over-collateralization requirement, your funds will be at a higher risk. Let's say a platform offers the highest rate of returns to its users as they generate more income through lending. As they do not have mandatory over-collateralization, the borrowers agree to pay higher interest to them. All is well for some time, and soon, their borrowers start defaulting on their loans. In this case, the platform will begin facing losses and may not even have enough funds to pay interest to their account holders. If the number of loan defaults gets bigger, the platform can also go bankrupt. After bankruptcy, the platform will fail to return user funds to their interest account holders.
Most of the interest account providers have insured their user funds. But if it will be enough or not depends on the amount of losses that platform faced. If the interest account provider has lost user funds worth more than the insurance amount, the interest account providers will only receive back a part of their funds. Thus, it is crucial to choose a platform only after in-depth research. Also, read Bitcompare reviews to know more about the interest account provider.
What to Look for When Choosing a Platform?
This step is crucial for earning interest on Augur safely. You must check and ensure that a platform meets some specific criteria. Both interest rates and credibility are crucial factors that you must check at the beginning itself. Don't choose a platform solely based on the interest rates they offer. Consider both interest rate and credibility equally important.
To check credibility, you can read Bitcompare reviews on the interest account providers, as it will help you understand them better. Next, you can check out sites like TrustPilot and read user reviews about the platform. Go to their social media pages on Facebook, Twitter, Instagram, and more. Read comments and reviews their users have left on their pages and posts. Also, check how long the platform has been active in the industry. All these factors will help you understand whether the platform is credible or not.
Now, check if the platform has insurance for its user funds or not. It is crucial because the interest account providers also use their user funds for lending. If the platform loses funds due to hacking or goes bankrupt, the insurance company will step in and pay funds to the platform. It will then be processed to their interest account holders. If the insurance amount is equal to or more than the losses, the interest account holders will receive their full funds back. Otherwise, they will receive a partial amount.
The next thing that you should check is if the platform has any specific requirements for earning the highest interest rates it offers. Many of them only offer the highest interest rates to interest account holders if they agree to receive interest payout in the platform's native token. Some may demand its interest account holders to hold a specific percentage of their portfolio in the platform's native token. Some have multiple requirements. For instance, they will demand that their interest account holders agree to receive interest payout in the platform's token and also lock funds for some period like a month or so.
You must also check if there are any minimum deposit requirements to begin earning interest. It is also a crucial factor because if you deposit less than the minimum amount, you will not begin earning interest on it or may earn a low interest rate. Some platforms have different requirements for different tokens.