How to Earn Interest on Bitcoin SV?
Bitcoin SV is a fork of Bitcoin Cash, which itself is a fork of Bitcoin. The SV in its name stands for Satoshi Vision. The maximum supply of Bitcoin SV is 21,000,000. Today, it has come a long way and is ranked among the 50 largest cryptocurrencies by market cap. The popularity of Bitcoin SV peaked in the latter half of 2020 when the number of unique Bitcoin SV addresses jumped from 110 thousand to 1.05 million, marking an 850% growth rate. If you, too, are one of the Bitcoin SV hodlers, you can multiply your profits by earning interest on Bitcoin SV. Follow the steps below to begin earning interest up to 4.5% on Bitcoin SV:
- Sign up for an Interest Account
Go to the website of your chosen interest account provider and visit their registration page. Enter your legal name and email address in the boxes provided there. Click on the submit button after you are done entering your name and email ID.
- Verify Your Email Address
Once you have completed the registration process, check for an email from the interest account provider. It will contain a verification link, which you must click to verify your email address. Your account is not yet ready to earn interest on Bitcoin SV. The KYC process is a must for it unless you are opting for a DeFi interest account provider.
There won't be any need for signup and KYC process if you opt for a DeFi interest account provider. The only things you need to earn interest on a DeFi platform are a wallet like Metamask or Trust Wallet and Bitcoin SV funds. Now, connect your wallet with the DeFi platform and transfer the funds to your interest account. In most cases, the interest accruals will begin almost immediately. The process is automatic.
To complete the KYC process, you will have to provide your personal information like address, nationality, among other things. During the process, you will also have to upload a government-issued identity card and a photo of you holding the same identity document. Once you have entered your personal information and uploaded the documents and the photograph, click on the submit button. Depending on the platform you choose, you will receive an email about KYC within a few days.
- Deposit Your Bitcoin SV
After your KYC is approved, it's time to deposit Bitcoin SV to your interest account. To do so, go to the page where all supported crypto deposit options are listed. Click on the Bitcoin SV option listed on the deposit page to receive a unique Bitcoin SV address.
Copy it and paste it into the withdrawal page of the wallet from where you are withdrawing Bitcoin SV to your interest account. Now, enter the amount of Bitcoin SV you wish to withdraw and click on the withdrawal button. Your interest account will soon receive Bitcoin SV funds.
- Start Earning Interest
In most cases, the interest accrual will begin within 24 hours after your interest account receives funds. The process is automatic, so you do not have to do anything else once you have transferred Bitcoin SV funds to your interest account.
Why Earn Interest on Bitcoin SV?
The first reason to earn interest on Bitcoin SV is to maximize your earning. If you keep your Bitcoin SV funds in a wallet, you will only benefit when there is an increase in the prices of Bitcoin SV. But by keeping Bitcoin SV in an interest account, you are also earning interest while hodling. Also, the interest that you will earn on Bitcoin SV is more than what many banks offer on fiat currencies. You can use Bitcompare Bitcoin SV Interest Calculator to calculate your interest earnings.
- Easy Process
Earning interest on Bitcoin SV requires you to complete a 3-step process: Signup for an Account, Complete KYC, and Deposit Bitcoin SV. The interest accrual will begin automatically within the platform's stipulated period. The process becomes even easier when a user opts for an interest account on DeFi platforms. The DeFi interest platforms do not ask a user to sign up for an interest account and nor do they mandate completing the KYC process.
- Low Risk
Though there are risks in earning interest on Bitcoin SV, the magnitude of it is comparatively lower. The interest that these platforms offer on crypto-assets comes from their income, which they generate by lending cryptocurrencies and fiat currencies to their borrowers at high interest. As lending is their main business, there is a risk. They manage it by making over-collateralization mandatory to borrow from them.
- Passive Income
If you begin earning interest on Bitcoin SV, you are essentially adding a high-paying passive income source. You will earn even while you are asleep.
Where to Earn Interest on Bitcoin SV?
Though Bitcoin SV is one of the most popular cryptocurrencies and is among the 50 largest cryptocurrencies by market cap, there are limited options to earn interest on Bitcoin SV. The two best interest account providers offering interest on Bitcoin SV are Celsius Network and Nexo.
You can earn interest up to 2.53% on Bitcoin SV. But to earn this rate, you must agree to receive interest payout in CEL tokens, the native token of Celsius Network. But to receive interest payout in CEL tokens, you must not be from the United States and its territories. The reason behind it is that Celsius Network mandates that US residents cannot earn interest in CEL tokens. Thus, the US residents can only earn 2.02%, which is the current in-reward rate on Bitcoin SV. Anyone outside the US, who does not want to be paid interest in CEL tokens, will also receive 2.02% interest on Bitcoin SV.
With YouHodler, you can earn 4.5% interest APY on Bitcoin SV, which is the highest interest rate available on Bitcoin SV now. They do not require any minimum deposit of Bitcoin SV to become eligible for earning interest. Also, YouHolder has no extensive requirements for deciding who is eligible for earning the highest interest rates. As for interest payout, YouHolder follows a week schedule for it.
Is it Risky Earning Interest on Bitcoin SV?
Yes, there are risks in earning interest on Bitcoin SV. Though, the intensity of risk is lower than many other financial instruments out there. The interest account providers pay interest-earning to their account holders from their income, which they generate by lending cryptocurrencies and fiat currencies. As they also use the user funds to lend, there are risks. But most of them have made over-collateralization mandatory to manage the risks.
Yet, a few platforms are trying to create a separate path for themselves by not making over-collateralization mandatory. They are doing so to stand out in the industry where over-collateralization is a norm. They may also offer higher than average interest as they charge comparatively higher interest from their borrowers. But remember that your funds will be at higher risk if you opt for such a platform.
If their borrowers start defaulting on their loans, the platform will not have enough funds to pay interest to their interest account holders. In case the loan default numbers grow beyond their control, the platform can even go bankrupt. Once bankruptcy strikes, the platform will fail to pay the user funds back to their interest account holders.
There is no doubt that most crypto interest account providers have insured their user funds today. But the question is if the insurance amount will be enough to cover the entire loss. If the insurance amount is lower than the losses that the platform endured, then the interest amount won't be enough to repay user funds in full. Thus, it is crucial to choose a platform only after due diligence. In-depth research is a must to earn interest safely on Bitcoin SV. Read in-depth reviews from Bitcompare on major interest account providers to know more about each of them.
What to Look for When Choosing a Platform?
You must make sure that a platform you choose to earn interest on Bitcoin SV meet some crucial criteria. The two most important factors that you should look for while choosing a platform are interest rate and credibility. Remember, both these factors are equally important. Do not decide on interest rates alone.
To check how credible the platform is, you must read reviews on sites like Bitcompare, go through the user reviews on Trust Pilot, and check user comments on Social media platforms. Also, check how long the interest account provider has been in the business. Longevity is also an indicator of credibility.
Next, check if the platform has insurance for its user funds. It is a crucial factor as if a platform has no insurance for its user funds, the platform won't get funds to pay back its interest account holders if the platform goes bankrupt or gets hacked. Depending on the insurance amount and the funds lost by the platform, interest account holders will receive their funds back in full or only a part of it.
Another thing that you must check is the eligibility criteria to earn the highest interest rates on the platform. Many crypto interest account providers demand that interest account holders agree to receive interest payout in their native tokens. Some may ask you to lock your funds for a couple of months or weeks. Some platforms have no requirements to become eligible for earning the highest interest rates.
Also, check if the platform has any minimum deposit requirements. If the platform has such a requirement for Bitcoin SV, you will have to deposit equal to or more than the minimum amount. Otherwise, you won't earn interest on Bitcoin SV until you deposit at least the minimum amount.