How to Earn Interest on EOS?
EOS is among the 30 largest cryptocurrencies by market cap. It also had one of the most successful ICOs of all time, raising $185 million within five days after the launch of its ICO. Thus, many EOS hodlers are long on it due to its potential. If you are one of the EOS hodlers and keep your EOS in a crypto wallet, you should know that there is a better way of hodling. Instead of hodling EOS in your wallet, you can multiply your profits by depositing your EOS in an interest account. Follow the steps below to earn interest up to 6% APY on EOS:
- Signup for an Interest Account
To earn interest on EOS, you will need an interest account. Visit the website of an EOS interest account provider and go to their registration page. You will see blank boxes there asking you to enter your name and email address. Enter your name and email ID in respective boxes and click on submit.
- Verify Your Account
After you click on the submit button on the registration page, you will receive a verification email from the interest account provider. Now, go to your email app and check for the email from the interest account provider. The email will have a link, which you must click or copy and paste in a web browser. Once you click the link, your email verification process will be complete. Now, it's time to activate your account, and for that, you will have to complete a KYC process.
To complete the KYC process, you will have to provide your personal details, a government-issued ID card like a voting card or driving license or other relevant ID cards, and a photo of yourself holding the identity document. Click on the submit button after adding your personal details, the ID card & the photograph. If you have done everything correctly, you will receive an email about KYC approval within a few days.
When it comes to DeFi interest accounts, the process of earning interest on EOS becomes even easier. You don't have to sign up for an interest account on DeFi platforms. They don't ask its interest account holders to complete a KYC process either. All you need is a wallet like Metamask and EOS funds. Then, connect your wallet with the DeFi interest platform and deposit your EOS into your account. The interest accrual process will begin automatically.
- Deposit Your EOS
Now, your interest account is ready to receive EOS. Go to the page where all the available crypto deposit options are listed and click on the EOS option. Click on the EOS option to receive a unique wallet address. Copy the wallet address and paste it on the EOS withdrawal page of the wallet where you are holding EOS. Now, enter the amount of EOS you wish you withdraw and click on the withdrawal button. Check your interest account as you will soon receive EOS.
- Start Earning Interest
You don't have to do anything after you receive EOS in your interest account. You will begin earning interest on your EOS funds soon, depending upon the rules of the interest account provider you chose. Usually, the interest accrual begins within a few hours, but some platforms begin offering interest after 24 hours.
Why Earn Interest on EOS?
By earning interest on EOS, you are putting your EOS funds to good use instead of keeping them idle in your wallet. After all, keeping your EOS in an interest account is far better than keeping it idle in a wallet, as it enables you to multiply your profits. You will benefit by price appreciation of EOS and earn interest up to 6% APY on EOS at the same time.
- Easy Process
Earning interest on EOS is easy. Choose a platform, sign up for an interest account, complete the KYC process, and deposit EOS. Depending on the platform you choose, the interest accrual will begin within 24 hours usually. But some platforms may also begin offering interest after 24 hours of depositing EOS.
If you are planning to choose a DeFi interest platform to earn interest on EOS, you won't have to sign up for an account and nor will you have to complete the KYC process. Thus, the process is even easier.
- Low Risk
The risk involved in earning interest on EOS is less compared to the other high-interest-paying financial instruments in the crypto space. You must know that the interest which account holders receive comes from the income that the platform earns by lending cryptocurrencies and fiat currencies. As their main business involves lending cryptocurrencies and fiat currencies, there is a risk. But most of them manage it well by making over-collateralization mandatory to obtain loans from them.
- Passive Income
By earning interest on EOS, you are adding a high-paying passive income source. It means that You will keep earning even while you are asleep. Keep EOS in your interest account and see your crypto wealth grow. You can use the Bitcompare EOS interest calculator to calculate your interest earnings on EOS.
Where can I Earn Interest on EOS?
Among multiple EOS interest account providers, the leading ones are Celsius Network and Nexo.
With Celsius Network, you can earn up to 5.60% interest on EOS. But you must meet their criteria to earn the highest advertised interest rates. First, you must agree to accept interest income in Celsius Network's native token CEL. If you don't want to receive your interest payout in CEL tokens, you will only receive 4.45% interest on EOS, which is the current in-kind reward rate on EOS.
Another crucial criterion is that you should be from a country other than the United States. The US residents cannot earn interest in CEL tokens, which automatically disqualifies them from earning 5.6% interest on EOS. It means that US residents can only earn 4.45% interest on their EOS deposits.
Nexo offers interest up to 6% APY on EOS, but you will have to meet multiple criteria to earn this rate. First, you must agree to receive interest earnings in NEXO tokens. Next, NEXO tokens must at least consist of 10% of your investment portfolio on Nexo. Then, you must opt for a fixed account on Nexo, meaning you will have to lock your funds for one or three months. You will earn 6% interest on your EOS funds if you meet all three criteria.
Is it Risky Earning Interest on EOS?
There are risks, and you must know them to earn interest on EOS safety. As we said above, the interest that these platforms offer comes from their lending business. Therefore, there are risks as their main business consists of lending cryptocurrencies & fiat currencies to their borrowers.
Most of them have made over-collateralization mandatory to manage the risks. But there are a few outliers that have not made over-collateralization mandatory. If you opt for an interest account with such a platform, there will be a higher risk to your funds. These platforms usually offer higher interest, but you must remember that your funds will be at a higher risk with such platforms.
If some of their borrowers begin defaulting on their loans and the collateralized assets lose value, the platform will lose funds. In this case, the platform will fail to pay interest to its interest account holders. If the number of loan defaults keeps growing, the platform will go bankrupt. Once the platform goes bankrupt, they won't have funds to repay their interest account holders.
Most of the interest account providers have insured their user funds. That is correct, but if the insurance amount will be enough to cover the losses or not will depend on the amount of losses. If the insurance amount is more than the losses, the platform will receive enough funds to repay the entire user funds to their interest account holders. Thus, you must research well to choose a platform to earn interest on EOS. You can also read reviews on almost every interest account provider on Bitcompare to know more about them.
What to Look for When Choosing a Platform?
As Choosing a platform is a crucial part of earning interest on EOS safety, you must research and only choose a platform that meets some important criteria. There is no doubt that interest rate is an important factor, but we must not neglect the credibility of the platform while choosing a platform to earn interest. Remember that choosing a platform solely based on interest rates can backfire at a later stage. Read user reviews about the platform and also check how long it has been in the industry. Also, read the Bitcompare reviews on the interest account providers.
Next, check if the platform has insured its user funds or not. Let's say a platform gets hacked or faces bankruptcy. If the platform had insured its user funds, the insurance company will step in and pay an insurance amount to the platform. The interest account provider will use the insurance amount to pay back the user funds. The amount that the interest account holders will receive will depend on the difference between the amount of losses and the insurance amount.
Now, you must check the criteria a platform has for its interest account holders to earn the highest interest rates available. Many demand its users to accept interest payout in the platform's native token to become eligible for the highest interest rates. Some will ask you to lock your funds for a specific duration to earn the highest rates they offer. A few may ask you to meet both of these criteria, along with a few more, like holding a small part of their investment portfolio in the platform's native token.
Another criteria that you should check is if the platform requires any minimum deposit to earn interest. If they have such a requirement, you must deposit equal to or more than the minimum deposit to earn interest. Depositing any less than that will result in you not earning interest until you deposit more to meet the minimum deposit amount.