How to hodl and earn dividends on crypto assets in cold storage
2 min readTable of Contents
For investors, keeping funds in a safe environment is absolutely essential for future investments. When it comes to digital assets, one of the wise practices is to move your assets from crypto exchanges and custodial wallets to cold storage.
How to earn dividends on funds in cold storage?
The extension of lending protocols has made crypto cold storage even more attractive. Now you can accumulate your digital assets while earning dividends. All you have to do is open an account with a crypto lender that will get your tokens up and running. Specifically by lending them to others. Let’s take a closer look at them:
BLOCKFI
BlockFi has support for interest payments on a variety of cryptocurrencies, including Bitcoins, Ethereum, Litecoins, and stablecoins such as USDC and GUSD. As with others, interest can be paid at the specific choice of the user. For direct comparison, we take into account the company’s interest rate for the two largest cryptocurrencies by market cap: currently their rates are 4.5% for ETH and 6% for BTC.
CRYPTO.COM
Crypto.com, formerly known as the Monaco coin, is a platform that claims to have a mission to accelerate the global adoption of cryptocurrencies. As for crypto cold storage, their rates are roughly similar to BlokFi: 6% interest on ETH and 6% on BTC, with higher interest rates for longer staking periods and supported stable coins.
CELSIUS
Celsius provides a mobile wallet that can be used to deposit a crypto, earn interest on it and also borrow against it. The company was founded in 2017 with the aim of creating a fairer, community-oriented alternative to the banking system. In terms of the profit of your offline storage, Celsius Network offers BTC rates of 4.03% and ETH 3.82%.
CRED
Cred is one of the best options for valuing your crypto in cold storage, not least because they have recently raised interest rates – not only for the crypto, but also for gold. The company has partnered with some of the biggest names in the crypt world (Binance, Bitcoin.com, TRON) and offers 8% from ETH and up to 10% from BTC. Interest is paid every three months in dollars, stablecoins or cryptocurrencies of your choice, and after six months it is possible to automatically register for another three-month period. LBA token holders have premium interest rates.
Conclusion
If you want to earn dividends on your funds in cold storages, you have a lot of options. Be sure to read the terms and conditions of each lender. Take the time to consider the pros and cons before spending your savings.
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