How to Earn Interest on Kyber Network?
Kyber Network makes it possible for crypto users to exchange their tokens without relying on a crypto exchange. Their native token is Kyber Network Crystal (KNC), which is among the 250 largest cryptocurrencies by market cap. It has delivered over 300% ROI so far. Thus, Kyber Network hodlers have found hodling Kyber Network Crystal (KNC) rewarding. Are you holding KNC? Do you know that you could multiply your profits by keeping your Kyber Network Crystal tokens in an interest account? Follow the steps below to earn up to 3.17% APY on Kyber Network:
- Sign up for an Interest Account
The first step to begin earning interest on Kyber Network is to sign up for an interest account. For that, you will have to open the website of an interest account provider and go to their registration page. You will see two boxes there, one is for entering your name and the second one is for entering your email address. Click on the submit button after you are done entering the details.
- Verify Your Account
Check for an email from the interest account provider after you have completed the signup process. The email will have a link, which you must click to verify your email address. Once your email verification is complete, you must begin the KYC process.
To complete the KYC, you will have to provide some more personal details like your nationality, address, among other things. You will also have to provide a government-issued ID card like a voting card, driving license, etc. Also, click a photograph of yourself holding the same card, as you will have to upload it to complete the KYC process.
Click on the submit button after you have provided all the information and uploaded the documents and the photograph. Within a few days, you will receive an email about successful KYC verification from the interest account provider. Now, it's time to move on to the third step.
It is to be noted that if you want to earn interest on Kyber Network from a DeFi platform, you won't have to sign up for an interest account and nor would you have to complete any KYC. Thus, the process becomes even easier.
- Deposit Your Kyber Network
To deposit Kyber Network into your interest account, go to the page that has the list of all available deposit options, including cryptocurrencies. Click on Kyber Network to receive a unique wallet address, which you must copy.
Now, paste the KNC wallet address on the KNC withdrawal page of the wallet from where you are withdrawing KNC into your interest account. After that, enter the amount of Kyber Network you wish to withdraw and click on the withdrawal button.
- Start Earning Interest
Once you receive Kyber Network Crystal tokens in your interest account, the interest accruals will begin within 48 hours, depending on the platform you choose. You don't have to do anything else now, as the interest accrual process will start automatically. Use Bitcompare Kyber Network Interest Calculator to calculate your interest earnings.
Why Earn Interest on Kyber Network?
There are multiple reasons why you should earn interest on the Kyber Network. First, you are putting your Kyber Network Crystal tokens to better use by earning interest on Kyber Network. It is far better than keeping it idle in a wallet. It also allows you to maximize your earnings as you benefit from its price appreciation and earn interest on it at the same time.
- Easy Process
All it takes you to begin earning interest on Kyber Network is a 3-step process. Sign up for an interest account, complete KYC, and deposit KNC to your interest account. DeFi platforms make it even easier, as they have no signup process. Also, you don't have to complete any KYC process to begin earning interest from a DeFi platform. Just connect your web3 wallet like Metamask with the DeFi platform and deposit KNC into your interest account.
- Low Risk
There is a risk in earning interest on Kyber Network, but it is low compared to many other financial instruments. The interest that these crypto interest account providers offer comes from their lending business. They charge high interest from their borrowers in return for lending cryptocurrencies and fiat currencies. As their main business includes lending, there is a risk. But most of them manage it by making over-collateralization mandatory to obtain loans from them.
- Earn Passive Income
By signing up for an interest account and depositing your KNC tokens into it, you are adding a high-paying passive income stream. The interest accrual will continue 24×7, even while you are asleep. So, deposit KNC into your interest account and see your crypto wealth grow.
Where to Earn Interest on Kyber Network?
There are limited options to earn interest on Kyber Network Crystal. Among available options, the best are Celsius Network & Gemini.
Celsius Network offers up to 3.17% interest on Kyber Network, but you must not be from the United States and its territories. It's because the residents of the US & its territories cannot earn interest in CEL tokens. Any international user who wants to earn the highest interest rates Celsius offers will have to agree to receive an interest payout in CEL tokens. If they want to receive interest payout in Kyber Network Crystal tokens only, then they will only earn 2.53% interest APY on their KNC funds.
With Gemini, you can earn 1.77% interest APY on your Kyber Network Crystal tokens. As of now, this option is available in the United States and Singapore only. They may expand to other countries in near future, depending on their plans. If you prefer receiving interest payout in stablecoins like GUSD, that is also an option on Gemini. You are also free to withdraw your KNC funds at any time, and Gemini does not charge anything from its interest account holders to withdraw. The interest compounding happens daily on Gemini.
Is it Risky Earning Interest on Kyber Network?
Yes, there are risks, and to earn interest safely on Kyber Network, you must know them. The main business of interest account providers is to lend cryptocurrencies and fiat currencies at a high-interest rate. A part of the income they generate by lending goes to pay interest to their interest account holders. As a major share of their income comes from their lending business, there are risks. Most of these platforms have made over-collateralization mandatory to manage the risks.
There are a few platforms that haven't made over-collateralization mandatory. They charge higher than average interest from their borrowers. It is also very likely they will offer higher interest than the industry average considering the higher risk to user funds. But you must remember that if you opt for such a platform to earn higher interest rates, your funds will be at a higher risk as well. If their borrowers start defaulting on loans, they may fail to pay full interest earnings to their account holders. If the number of loan defaults grows beyond their control, the platform will go bankrupt. In that case, the platform will fail to refund user funds to their interest account holders.
Most of the platforms have indeed insured their user funds now. But will it be enough? It will depend on the insurance amount and the amount of losses the platform faced. Let's assume that a platform has insurance worth $200 million for its user funds. This platform went bankrupt, and they lost user funds worth $400 million. In this case, their interest account holders will receive only half of their funds. As you see, there are risks in earning interest on Kyber Network. Hence, you must do in-depth research to choose a platform. Bitcompare is one of the most credible platforms to offer in-depth reviews on almost every cryptocurrency interest account provider. Reading reviews on Bitcompare will help you understand more about these platforms.
How to Choose a Platform to Earn Interest?
To earn interest on Kyber Network safely, you must look for a few specific criteria while choosing a platform. There is no doubt that the interest rate is a crucial factor. But the credibility of a platform is equally crucial. Choosing a platform based on interest rates can backfire later. Check Bitcompare reviews to know how credible the platform is and also read user reviews on Trustpilot. You must also read comments and reviews of the platform on their social media pages.
The next thing you should check is whether the platform has insured its user funds or not. Insuring user funds means the platform wants to make sure that its user funds will remain safe. If the platform loses the funds due to hacking or if the interest account provider goes bankrupt, the insurance company will pay the insured amount. The insurance funds will go towards refunding the user funds of the platform's interest account holders.
Now check the criteria that a platform has for becoming eligible for earning the highest interest rates. If the platform has its native token, they will ask you to receive an interest payout in their native token to become eligible for earning the highest rates they offer. Some will ask you to lock your funds for a specific duration. Some will also ask you to hold your investment portfolio on the platform in their native token.
Next, you should check if the platform requires its users to deposit a minimum amount of Kyber Network tokens to earn interest. It is important as if you deposit less than the minimum amount, you won't earn interest on it. Also, check if the platform has any lock-in period to become earning interest. If they do, you won't be able to access your funds during this period. Overall, spend some time doing research to choose a credible platform to earn interest on Kyber Network.