The concept of cold storage predates the rise of cryptocurrencies. For investors, retaining assets in a secure environment is absolutely necessary for future-proof funds. As far as digital assets are concerned, extracting your wealth from cryptocurrency exchanges and custodial wallets to place them in cold storage is a wise course of action.
The proliferation of lending protocols has made crypto cold storage even more tempting. Now, you can happily hoard your digital assets while earning generous dividends. All you have to do is open an interest-bearing account with a reputable crypto lender who will put your tokens to work; specifically by loaning them out to others, such as retail borrowers and money managers. The best of these platforms assure the security of funds, handsome interest rates, and the ability to access your funds with ease. Let’s take a closer look at them:
|Blockfi||6% (up to 5 BTC) /
|Crypto.com||8% (min 3-month stake) /
|8% (min 3-month stake) /
|Celsius||6.2% (up to 1 BTC) /
|6.2% (up to 100 ETH) /
BlockFi supports interest payments on a range of cryptos including Bitcoin, Ethereum, Litecoin, and stable coins such as USDC and GUSD. Like others, the interest can be paid in the user’s particular choice of cryptocurrency. In the interests of making direct comparisons, we’ll consider BlockFi’s interest rate for the two largest cryptocurrencies by market cap, namely bitcoin, and ether: Currently, their rates are 4.5% for ETH and 6% for BTC.
Formerly known as Monaco Coin, Crypto.com is a platform that professes to be on a mission to accelerate the world’s transition to cryptocurrency. As far as crypto cold storage is concerned, their rates are broadly similar to BlockFi: 6% interest on pledged ETH and 6% on BTC, with higher rates for longer staking periods and supported stable coins.
Celsius provides a mobile wallet that can be used to store crypto, earn interest on it, and borrow against it too. The company was established in 2017 with the goal of creating a fairer, community-oriented alternative to the banking system. If you want to turn your cold storage into hot profit, Celsius Network offers rates of 4.03% for BTC and 3.82% for ETH.
Cred is one of the best options for commoditizing your crypto cold storage, not least because they’ve recently raised their interest rates – and not just on crypto, but also on gold, if that’s your thing. Having partnered with some of the biggest names in the cryptosphere (Binance, Bitcoin.com, TRON), Cred offers 8% on your ETH and up to 10% on BTC. Interest is paid out every three months in dollars, stable coins, or the crypto of your choice, and after six months, it’s possible to auto-enroll for additional three-month period. Holders of the LBA utility token, meanwhile, can access premium interest rates.
HODL and Earn
If you’re keen to earn cryptocurrency dividends on your cold storage assets, the options at your disposal are plentiful. Just remember to read each lender’s terms and conditions: you don’t want to be locked in for a fixed term you’re unhappy with. Take your time, weigh up the pros and cons, and start making your savings work for you.