How to Earn Interest on OMG Network?
Formerly known as OmiseGo, OMG Network is a Layer 2 Blockchain solution aimed at solving the scalability woes of Ethereum blockchain. Many OMG Network hodlers are long on it and have already benefited quite a lot by hodling onto OMG Network tokens. So far, it has delivered an ROI of over 700%. If you are one of the OMG Network hodlers, you can multiply your profits by earning interest on OMG Network tokens. Follow the steps below to begin earning interest up to 3%:
- Sign up for an Interest Account
To earn interest on OMG Network, you will need an interest account, and for that, you must visit the website of the interest account provider. Go to their registration page and enter your name & email ID. Then, click on the submit button.
- Verify Your Account
After you click on the submit button on the registration page, you will receive an email from the interest account provider. It contains a link, which you must click to verify your email address. Now, it's time to complete the KYC process to activate your account.
To complete the KYC verification, you will have to provide some personal details like address, nationality, among other things. You will also have to upload a government-issued identity card and a photo of yourself holding the card to complete the KYC process. Once you have entered the personal information and uploaded the ID card and the photograph, click on the submit button. You should receive an email about successful KYC verification within the next few days.
Both signup and KYC processes are not required on a DeFi platform. Thus, it is easier to earn interest from a DeFi interest account provider.
- Deposit Your OMG Network
It's time to deposit OMG Network tokens to your interest account. For that, visit the page listing all supported deposit methods available on the platform. You will find OMG Network mentioned in the list. Click on it to receive a unique OMG Network wallet address. Copy it and paste the unique OMG Network wallet address on the withdrawal page of the wallet from where you are transferring OMG Network tokens into your interest account. Enter the amount of OMG Network you want to transfer to your interest account and click on the submit button.
- Start Earning Interest
You don't have to do anything once you receive OMG Network tokens in your interest account. The interest accrual process will begin automatically. So, deposit OMG Network tokens in your interest account and see your crypto wealth grow. You can also use Bitcompare OMG Network Interest Calculator to calculate your interest earnings.
Why Earn Interest on OMG Network?
Earning interest on OMG Network is better than keeping it idle in a wallet. It also maximizes your profit potential by hodling onto OMG Network tokens as you earn interest and also benefit from the price appreciation at the same time. Also, the interest that you earn on OMG Network is more than what many banks offer on fiat currencies.
- Easy Process
Earning interest on OMG Network is easy. Choose a platform, visit the registration page and complete the signup process, complete KYC, and deposit your OMG Network funds into your interest account. That's it! If you want to earn interest from a DeFi platform, the process becomes even easier as there is no signup and KYC process on a DeFi platform.
- Low Risk
Are you worried about risks in earning interest on OMG Network? Yes, there are risks. But it is far lower than many other similarly high-paying financial instruments. Most of these platforms have made over-collateralization mandatory for borrowers to obtain loans from them. It helps them manage the risks.
- Passive Income
If you start earning interest on OMG Network, you will continue earning even while you are asleep. That's the beauty of passive income. So, deposit OMG Network and let your passive income grow.
Where to Earn Interest on OMG Network?
A limited number of platforms offer OMG Network interest accounts today. Among them, the best are YouHodler and Celsius Network.
With YouHodler, you can earn 3% interest APY on OMG Network deposit. They also pay interest every week, and you can withdraw your OMG Network funds from YouHodler anytime you wish without paying any withdrawal fees. Also, they have no minimum deposit requirements to start earning interest on OMG Network tokens, and you can leverage their Multi HODL feature to increase your earning potential.
Celsius Network is among the top interest account providers today. It offers up to 2.53% interest APY on OMG Network, depending upon your location. US residents cannot earn interest payout in CEL tokens. Thus, they are automatically disqualified from earning the highest interest rates on OMG Network that Celsius Network offers. They can only earn 2.02% interest on OMG Network, which is the current in-reward rate for OMG Network. International residents will also earn the same interest rate on OMG Network if they do not agree to receive interest payout in CEL tokens.
Is it Risky Earning Interest on OMG Network?
Yes, earning interest on OMG Network has its share of risks, which we will discuss here. Almost every cryptocurrency interest account providers' major revenue source is their lending business. They lend cryptocurrencies and fiat currencies to borrowers and charge high interest from them. A part of the income goes to their interest account holders in the form of interest. As their main source of income is lending, it can turn out to be risky. But most of them manage the risks through over-collateralization.
Yet, there are a few platforms that do not follow the norm. They do not ask for over-collateralization from their borrowers to carve out a niche for themselves within the crypto lending space. It is very likely for them to offer higher than average interest rates, as they charge comparatively higher interest from their borrowers. Borrowers, too, do not mind paying higher interest to these platforms, as they do not have to over-collateralize for obtaining loans.
If you are planning to open an interest account with such a platform, you should know that the magnitude of risks is higher on these platforms. Additionally, you must remember that crypto lending platforms offering interest accounts also lend user funds to their borrowers to generate income. If their borrowers begin defaulting on loans, the platform will find it difficult to pay interest to their interest account holders. If the number of loan defaults gets bigger, the platform may even get bankrupt. If that happens, the platform will fail to return user funds to its interest account holders.
Most of the interest account providers have insured their user funds today. Whether it will be enough or not depends on the amount of losses the platform faced. If the losses are more than the insurance amount, their interest account holders will receive back only a part of their funds. Thus, it is a must to do in-depth research before choosing a platform. You can read Bitcompare reviews on crypto interest account providers to know their pros/cons, features, and more.
What to Look for When Choosing a Platform?
As choosing a platform is a crucial part of earning interest on OMG Network safely, you must make sure that the interest account providers you are shortlisting meet some specific criteria. Without a doubt, interest rates and the credibility of a platform are the two most crucial factors. But do not consider the interest rates as the only factor that matters, as choosing a platform solely based on interest rates can be counterproductive.
To know how credible the platform is, you must read reviews from sites like Bitcompare. It will help you understand the features, pros/cons, among other things, about the platform. Next, you can go to TrustPilot and read user reviews about them. You can also visit the social media pages of these platforms to read what their users are commenting about them.
Now, it is crucial to check if the platform has insurance for its user funds or not. Imagine if the platform loses its funds due to bankruptcy or any other reason, and they have insurance for their user funds. In this case, the insurance company will pay the insurance amount to the platform. Now, the platform will use these funds to repay user funds to their interest account holders. Depending on the insurance amount and the losses that the platform faced, their interest account holders will receive back either a part of their funds or the full amount.
Next, check if the platform has any specific requirements to earn the highest interest rates that it offers. Many of them require their interest account holders to agree to receive interest payout in the platform's native token. If they do not agree, they will not earn the highest interest rates the platform offers. Some may ask its interest account holders to lock their funds for a specific period to earn the highest interest rate. The lock-in period is usually one to three months. Some platforms may have multiple requirements that an interest account holder must meet to earn the highest interest rate it offers.
Also, check if the platform mandates depositing any minimum amount of OMG Network tokens to earn interest. If they have such a requirement, you will have to deposit equal to or more than the minimum deposit requirement. If you deposit less than the minimum deposit required, you won't earn interest.