How to Earn Interest on Dash?
Dash is among the top 50 largest cryptocurrencies by market cap. It has built quite a following in the crypto space and is in circulation since 2014. Currently, Dash has a market cap of over $2.5 billion. Hundreds of thousands of crypto traders hold Dash to benefit from its price appreciation. Many of them are long on Dash.
If you are one of the Dash hodlers, there is one excellent way you can maximize your profits while hodling Dash. You can start earning interest on Dash, which is far better than keeping it idle in your wallet or an exchange. Follow the steps below to earn up to 6.92% APY on Dash:
- Signup for an Interest Account
To begin earning interest on Dash, you will need an interest account. Visit a website of an interest account provider and go to their registration page. Provide your name and email address there and click on the signup button to complete the signup process.
- Verify Your Account
Once you complete the signup process, you will receive an email from the platform. Click on the verification link in the email to verify your email address. Now, you must go through a KYC process to activate your account.
To activate your interest account, you will have to share your personal details along with a government-issued identity card. Click a photograph of yourself holding the ID card as you will need it during the KYC process.
Once you have entered your personal details, uploaded your ID card, and your photograph holding the ID card, click on the submit button. It will take a few days to verify your KYC. After you receive an email from the platform regarding the successful verification of your KYC, it is time to deposit Dash into your account.
It is important to note that there are no signup and KYC processes in the DeFi space. Hence, you won't have to sign up for an account or go through a KYC process in a DeFi interest account provider. You will only have to connect your wallet to the DeFi platform and deposit Dash to begin earning interest.
- Deposit Your Dash
To deposit Dash, go to the page showing all the supported deposit options available on the platform. Click on the Dash option shown there to receive a unique wallet address. Copy the unique wallet address.
Now, paste the wallet address in the withdrawal section of your wallet or the exchange where you hodl Dash currently. Enter the amount of Dash that you wish to withdraw into your interest account and click on withdraw. You will soon receive Dash in your account.
- Start Earning Interest
After you receive Dash in your interest account, you don't have to do anything. The interest accruals will begin automatically. You will soon see your crypto wealth grow.
Why Earn Interest on Dash?
If you start earning interest on Dash, you will earn more. You will effectively multiply your Dash holdings by earning interest on it. At the same time, you will also be profiting from its price appreciation. Keeping Dash in your interest account is also better than hodling it in a wallet.
- Easy Process
Earning interest on Dash is basically a three-step process. It starts with signing up for a crypto savings account and then going through a KYC process. Once KYC is approved, you will be depositing Dash into your account. That's all, and now, you will begin earning interest on your Dash holdings.
- Low Risk
Earning interest on Dash has risks but is comparatively less than what you will face in other financial instruments offering similarly high returns.
Interest account providers lend cryptocurrencies and fiat currencies for income, which is their main source of revenue. They share a part of their income in the form of interest with their account holders. But most of these platforms require over-collateralization to borrow from them. It helps them manage the risks.
- Passive Income
Earning interest as high as 6.92% APY on Dash will be an excellent addition to your passive income. Deposit Dash into your interest account and see your crypto wealth grow.
Where can I earn Interest on Dash?
There's no doubt that Dash is one of the most popular cryptocurrencies today. Yet, when it comes to Dash interest account providers, there are only a few options available. Among the ones that offer interest on Dash, Celsius Network and YouHodler are your best options.
With Celsius Network, you can earn up to 6.92% APY on Dash. But for that, Celsius Network mandates that interest account holders must meet a few criteria.
You must agree to earn interest in the CEL tokens. It is a native token of Celsius Network. You can only earn in CEL tokens if you are from a country other than the United States.
The residents of the United States and its territories are barred from earning in CEL tokens. It automatically disqualifies them from earning the highest interest rates. If you want to earn interest in Dash and not in CEL tokens, you will only receive 5.5% on your Dash deposits. The US residents can only earn the in-kind reward. Currently, the in-kind reward rate is 5.5% APY on Dash.
YouHodler offers 5.5% APY on Dash. There is no lock-in period on YouHodler, which means you are free to access and withdraw your Dash anytime you want to. As for interest payment duration, YouHolder pays interest payout every week without any deductions.
Is it Risky Earning Interest on Dash?
Yes, it is risky. Though the degree of risk is lower, there is a risk nonetheless. It is crucial to know about these risks to keep your Dash funds safe while earning interest on them.
The interest that you receive on your Dash is from the income that the interest account providers earn by lending cryptocurrencies and fiat currencies. As their main business is lending, it involves some risk. Most of them have made over-collateralized loans mandatory to manage the risks. But a few platforms offer loans without over-collateralization.
If you open an interest account with such platforms, your funds are at a higher risk. In case of defaults, they won't have the funds to offer interest on your deposits. If the number of loan defaults increases, the platform is likely to go bankrupt. In this case, the interest account holders stand to lose their funds along with any interest payout they were to receive from the platform.
Many platforms have insurance coverage for their user funds today. But in some specific circumstances, insurance cover may not be enough to return the entire user funds of the platform. For instance, if a platform has gone bankrupt and is unable to refund $200 million of user funds.
Let's say they have insurance cover for such situations. But the issue is that the insurance cover is only $100 million. In this case, the insurance amount will only cover half of the user funds. It means that the interest account holders will receive back only half of the funds. It proves that insurance plays a crucial role. But it does not mean that it will always be enough to cover the entire loss.
You must research well to choose a platform. Choosing a platform is an integral part of earning interest safely. You can read our in-depth reviews on almost every major interest account provider in the industry.
What to Look for When Choosing a Platform?
There are few criteria that a platform must meet to prove that they are the safer options to earn interest on Dash. Both interest rates and the credibility of a platform are the two most important factors.
You must not neglect the credibility part as a new platform is likely to offer comparatively higher rates to its interest account holders. But the risk will also be comparatively higher with new platforms. Look for a platform that offers better interest rates and has been in the industry for a considerable period.
Go through reviews of platforms that you have zeroed in on. To know more about each platform, you can also trust Bitcompare reviews. You will find in-depth and honest reviews on almost every crypto savings account provider on Bitcompare. Going through the reviews will help you know if the platform is credible or not.
A crypto savings platform must have insurance coverage for its user funds. If a platform goes bankrupt or loses its funds because of any black-swan events like hacking, the insurance company will cover the losses. Thus, you will receive your funds back even if the platform goes bankrupt or loses funds because of any other events. Depending upon the insurance coverage amount and the total amount of user funds lost, either you will receive your full funds back or a part of it.
Another thing that you must check while choosing a platform is the criteria that the platforms have to become eligible for earning the highest interest rates on Dash. Many interest account providers will offer the highest interest rates to their account holders if they opt for earning interest in the platform's native tokens. Some will only offer the highest interest rates if they hold a specific part of their investment portfolio in their native token. A few will demand that you meet both of these criteria to receive the highest interest rates from them.
You must also go through the platform's eligibility page for the highest interest rates in detail. If a platform has any minimum deposit requirements, you won't earn any interest from them until you deposit at least the minimum amount of Dash.
Also, check if the platform has any mandatory lock-in period to earn interest on Dash. If they do, you won't be able to withdraw your funds during the lock-in period. Look for a platform that does not have a mandatory lock-in period or offers a flexible account to users looking for such a type of crypto savings account.