How to Earn Interest on Huobi Token?
Huobi token is a native token of Huobi, which is one of the leading cryptocurrency exchanges globally. It has delivered an ROI of over 500% so far. Thus, the Huobi Token hodlers have found investing in Huobi Token a rewarding experience. But what if we tell you that there is a better way to hodl Huobi Token. If you keep your Huobi Tokens in an interest account, you will benefit from their price appreciation. At the same time, you will also earn interest on them. Follow the steps below to begin earning up to 3% interest APY on Huobi Token:
- Sign up for an Interest account
The first thing that you will need to begin earning interest on Huobi Token is an interest account. Visit the website of a Huobi interest account provider and go to their registration page. Enter your name & email address and click on the submit button.
- Verify Your Account
After you have submitted your name and email address on the registration page of the interest account provider's website, you will receive an email from them. Now, open the email and click on the link given in it. Clicking it will verify your email address. Next, you must complete KYC to activate your account.
You will have to share your personal details, a government-issued identity document like a driving license, passport, among other things, to complete the KYC process. During the KYC process, you will also have to upload a photograph of yourself holding the ID card. Once you have provided all the details, uploaded the documents and the photograph, click on the submit button. In most cases, you will receive a successful KYC verification email within the next few days.
There won't be any signup and KYC processes on a DeFi platform. All you need is a wallet such as Trust Wallet & Metamask. Connect your wallet with the platform of the DeFi interest account provider and deposit your Huobi Token into your account. That's it! You don't have to do anything else. The interest accrual will begin automatically.
- Deposit Your Huobi Token
You should deposit your Huobi Tokens into your interest account after your KYC is approved. To deposit, you will need a unique Huobi Token wallet address. Visit the page on the interest account provider's website listing all available crypto deposit options. Click on the Huobi Token mentioned in the list to receive a unique wallet address. Copy the address and paste it into the Huobi Token withdrawal page of the wallet where you are hodling Huobi Tokens. Now, enter the amount of Huobi Tokens you wish to withdraw. Once you have entered the amount, click on the withdrawal button. You will soon see Huobi Token funds in your interest account.
- Start Earning Interest
After completing all the three steps shown above, it's time to start earning interest. You don't have to do anything else now as the interest accrual will begin within a couple of hours to 48 hours, depending on the interest account provider you choose.
Why Earn Interest on Huobi Token?
By earning interest on Huobi Token, you are maximizing your income potential. It is also better to earn interest on Huobi Token, rather than to keep it idle in your wallet.
- Easy Process
Earning interest on Huobi Token is easy. Signup for an interest account, complete KYC, and deposit Huobi Token into your interest account. If you opt for a DeFi interest account, the process becomes even easier. To earn interest from a DeFi platform, you have to connect your wallet with the platform and deposit tokens into your account. There is no signup and KYC process to complete in the DeFi space.
- Low Risk
When it comes to risk, earning interest on Huobi Token is comparatively safer than many other similarly high-paying financial instruments available today. The interest that you will earn on your Huobi Tokens will come from the lending business of the interest account provider. They lend cryptocurrencies to generate income, a part of which goes to the interest account holders in the form of interest. Most of these platforms manage the risks by making over-collateralization mandatory to borrow from them.
- Passive Income
Earning interest on Huobi Token is an excellent Passive income source. You can earn interest up to 3% APY on Huobi Token. The interest accrual process will continue round the clock, even while you are asleep. So, deposit Huobi Token in your interest account and let your wealth grow. You can use Bitcompare Huobi Token interest calculator to calculate your interest earnings.
Where can I earn Interest on Huobi Token?
Though Huobi Token is among the 50 largest cryptocurrencies by market cap, there are limited options to earn interest on it. Among all the available Huobi interest account providers, YouHolder is the best one.
With YouHodler, you can earn interest up to 3% on your Huobi Token funds. But you will have to deposit Huobi Tokens worth a minimum of $500 to earn interest. If you deposit less than the minimum amount of Huobi Tokens, you won't begin earning interest. YouHodler has no lock-in periods for earning interest. Hence, you can withdraw your Huobi Tokens from your YouHodler interest account whenever you wish. Also, there are no charges on withdrawal. To earn more, you can also use YouHodler's Turbocharge and Multi HODL features.
Is it Risky Earning Interest on Huobi Token?
Yes, it can be risky. Thus, you must know the risks involved in earning interest on Huobi Token to do it safely. As we said in the beginning, these platforms generate income by lending cryptocurrencies and fiat currencies to borrowers. They charge high interest from their borrowers and pay a small part of their income in form of interest to their account holders. As lending is their main business, there are risks. Most of these platforms have mandatory over-collateralization to tackle the risks involved.
But some platforms have no such requirements. If you choose these platforms to open an interest account, your funds will be at higher risk. After all, the interest account providers also lend user funds to generate income. They attract users by offering them higher interest rates but remember that your funds will be at higher risk if you opt for these platforms.
If borrowers of such a platform start defaulting on their loans, the platform will not have enough funds to pay interest to its interest account holders. They may even get bankrupt if the number of loan defaults grows beyond manageable. Once the platform is bankrupted, its users won't be able to withdraw their funds.
It is a good thing that most of the crypto interest account providers have insured user funds. But whether the interest account holders will receive all of their funds or a part of it will depend on the insurance amount and the amount of losses that platform faced. If the insurance amount is more than the losses, the interest account holders will receive their entire funds. Otherwise, they may only receive back a part of their funds.
It is crucial to research in-depth to choose a platform to earn interest on Huobi Token safely. You can also read Bitcompare reviews on interest account providers to pick the most credible option.
What to Look for When Choosing a Platform?
When choosing a platform to earn interest on Huobi Token, you must ensure that the platform meets some crucial criteria. There is no doubt that the two most crucial criteria are interest rates and the platform's credibility. Do not downplay the importance of credibility, as choosing a platform based on the interest rates alone can backfire later.
You can read Bitcompare reviews on crypto interest account providers to know how credible the platforms are. Also, read user reviews on Trustpilot and similar websites. You can also visit their social media pages on Facebook, Instagram, among others, to read user comments on their posts. It will help you decipher if the platform is credible or not.
The next thing you should check is if the platform has insurance for its user funds or not. Having insurance for its user funds shows that the platform cares about its interest account holders and wants to protect their funds. If it goes bankrupt or loses funds due to hacks, the insurance company will pay the insurance amount to the platform. These funds will then be used to repay interest account holders.
Also, check the eligibility criteria that the platform for earning the highest interest rates they offer. Many platforms have made it mandatory for interest account holders to receive interest payout in the platform's native token to become eligible for earning the highest interest rates. Some will ask you to hold a specific percentage of your investment portfolio on their platform in their native token to become eligible for the highest interest rates. A few will require its interest account holders to lock their funds for a specific period like a couple of months.
Don't forget to check if the platform has any minimum deposit requirements. If they do, you must deposit equal to or more than the minimum requirement to begin earning interest on Huobi Token. Overall, researching and choosing a platform is the most crucial part for earning interest on Huobi Token safely.