Where to earn the highest interest for your stablecoins now

As the crypto economy grows and evolves, there are more ways than ever to earn rewards for holding crypto, learning about crypto, or interacting with decentralized finance (or DeFi) apps.

To boost investment yield, long-term crypto traders are using one more way to make money off their investment — crypto interest accounts. In theory, a crypto interest-earning account works just like a regular savings account.

Most banks offer annual interest rates that do not exceed 1% whereas stablecoins interest rates go as high as 4% to 12% annually. Many lending platforms even offer daily interest payouts, enabling investors to earn on compound interest.

What are stablecoins?

Stablecoins are the answer to the calls from early crypto investors looking for a crypto-equivalent to fiat currencies like the dollar or the rupee. It needed to be something that could reliably hold value over time without volatility and allow them to easily transfer that value.

Because of the current financial system, the most used stablecoins are those that ‘peg’ their value to the US dollar.

Top 6 stablecoins in the crypto market — what are they, how they work and why they have governments worried (read here)

Note: All six are pegged at 1:1 to the US Dollar, and reside as tokens on blockchains that support smart contracts, such as Ethereum, Binance Smart Chain etc.


This post is primarily looking across the various online platforms that allow one to earn interest in the 6 best stablecoins (by market value as of Dec 2021), namely:

1) Tether (USDT)

2) USD Coin (USDC)

3) Binance USD (BUSD)

4) Dai (DAI)

5) TerraUSD (UST)

6) TrueUSD (TUSD)

Some of the popular and often mentioned platforms are:

1) Hodlnaut (Click here to see the latest rates)

2) Celsius (Click here to see the latest rates)

3) Crypto.com (Click here to see the latest rates)

4) BlockFi (Click here to see the latest rates)

5) Vauld (Click here to see the latest rates)

6) Nexo (Click here to see the latest rates)

7) YouHodler (Click here to see the latest rates)

However, before using the platforms, please do your own due diligence. Some of these platforms are relatively new. Do note that trading in cryptocurrencies is risky, please DYODD.

In general, the catch for the high yield is that there is no Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) insurance. There are not as many regulations. In addition, there is the uncertainty of the firm itself getting into risky lending practices and going belly up. The interest rate isn’t high because the exchange is feeling generous. Rather, it is high because the exchange believes it can earn a higher return by using that cash for other lending practices.

Please refer to the below table (Information updated as of 25 Jan 2022) for the various interest rates offered. The highest rates are highlighted in red.


StocksCafe

FYI I find StocksCafe useful for the tracking of my own portfolio, and especially like to use it to track my portfolio stock dividend / bond interest payouts (projected and due). You can use my referral code: apenquotes. Just click here. Upon signing up using the referral code, you will get to enjoy being a Friend of StocksCafe and test out all features for free for two months!

Please follow me at StocksCafe, via my StocksCafe profile page.

Tiger Brokers

For the Singapore market, Tiger Brokers currently waive the minimum fee and only charge a 0.08% trading fee. This drastically reduces your cost as the minimum fee from other brokers (ranging from SGD 8 such as FSMOne and SCB, to SGD 25 for local brokerages) does add up and can eat into your returns.

Tiger Broker Referral Code:: GPE59H

Sign up here.

Use the above referral code to enjoy the below benefits.

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FSMOne.com

Typically I use FSMOne.com to invest in funds & ETFs (including money market funds).

If you do not have an account, you can sign up here. Please use my FSMOne referral code: P0031127, when you sign up.

Gemini

As stated by MoneySmart on Jan 22, if you’re looking to optimise trading your crypto with relatively low fees, simple-to-grasp expert UI and ease of purchase with Singapore dollars. then the best crypto exchange in Singapore is Gemini,

If you do not have an account, you can sign up here using my referral link. After you have signed up, once you buy or sell US$100 or more (or 100 USD equivalent of your domestic currency) within 30 days of creating your account, your account will be credited US$10 (or 10 USD equivalent of your domestic currency) worth of bitcoin.

Hodlnaut

Hodlnaut is a crypto-borrowing and lending platform that helps investors improve the return on their assets.

If you do not have an account, you can sign up here using my referral link. After you have signed up, you will receive a US$20 sign-up bonus after making a deposit equivalent of US$1,000 in a single transaction on any supported assets within 1 week. Bonus payouts are paid in the same asset deposited. You may make a test deposit of any amount. The deposit equivalent of US$1,000 or more must be completed within one week of the first test deposit.

Shopee

I have been using Shopee for a while and think you will like it as much as I do.

Get $10.00 off your first purchase using my code DARREB52.
Download Shopee now and enjoy hot deals at the best prices! Click here.

Happy shopping!

About apenquotes

Born in 1976. Married with 2 kids (a boy and a girl). A typical Singaporean living in a 4 room HDB flat. Check out my Facebook Page: https://www.facebook.com/apenquotes.tte.9?ref=bookmarks
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