Today I will talk to you about crypto banks or banks where you can hold cryptocurrencies for a certain period to use them in loans or investments that yield interesting and safe interests.
Is there a Crypto Bank?
A cryptocurrency bank is like a normal bank, except that in addition to holding fiat money, it is possible to deposit cryptocurrencies and carry out classic banking operations such as: mortgages, loans and investments. Some also offer credit cards linked to the cryptocurrency account that are very convenient to use both for paying in shops and for withdrawing from ATMs.
What are Crypto Banks?
But if Crypto Banks do the same operations as normal banks, what is the point of opening them? Many will therefore wonder what cryptocurrency banks really are for. The cryptocurrency market on exchanges has increased more and more in recent times and to support trading, many exchanges need digital currencies that they do not actually have to meet the demands. Operations, unlike normal banks, are strangely real, because cryptocurrencies are not a number in a computer like normal banks are. The coins must actually be in the wallets for each operation. Furthermore, given the expanding sector, more and more people carry out large financial transactions and need plenty of cryptocurrencies. For this reason crypto banks were born: to meet the need for immediate liquidity of cryptocurrencies for individuals, institutions and companies.
Why deposit cryptocurrencies in crypto banks and which strategies to adopt
If you do not intend to trade, the percentages of crypto banks are very interesting and can reach up to 12% or even more per year in interest. But be careful what you choose. If you choose cryptocurrencies that are subject to fluctuation, you will only be profitable if the cryptocurrency chosen will have a value equal to or greater at the time of the deposit. Therefore, for those who do not want to risk finding themselves less than what they have deposited, I recommend depositing stable coins such as: USDT, USDC, BUSD or DAI. In order to obtain the desired percentages of profit while keeping the initial capital still.
List of the best cryptocurrency banks on the web
Obviously the cryptocurrency banks are all present only on the web as they are digital financial operations and I will list the most famous, safe and reliable:
NEXO is one of the most famous crypto banks. It allows a cycle of earnings on the deposit of 12% per year on stable coins and on EURO and Sterling and 8% on the most famous cryptocurrencies. It is also possible to make loans with revenues of 5.9%. Also you can participate in its NEXO utility token where you can participate in the bank’s earnings up to 30% of dividends. The NEXO credit card connected to your NEXU wallet is also very useful, which allows 2% cashback on your purchases.
YouHodler is among the best known crypto banks in Europe and resides in Switzerland. It allows for really interesting loans and earnings. For investments with stable coins we are at 12% per year of earnings, while for other cryptocurrencies we are around 4-5% per year of earnings. It professes to be the best crypto bank on the market and does not disdain to make actual comparisons with other digital banks.
Pool Cake is not a crypto bank but a pool where it is possible to do farming, liquidity mining and staking using CAKE DEFI technology. The earning possibilities are many, there is an embarrassment of choice and can even reach up to 202% profit per year. Registration is free and with the first deposit of at least $ 50 of any cryptocurrency it is possible to receive a free $ 10 stakes via this registration link.
BlockFI is one of the most well-known crypto banks in the sector, promoted with flying colors by American business newspapers. It allows a profit of 8.6% per year or interest on loans of 4.5% per year. It is possible to activate a convenient credit card on your account that allows you to have 1.5% cashback on purchases.
LEDN is a lesser-known crypto bank but allows for interest on the deposit of 12.25% on the USDC stable coin and 6.25% on Bitcoin per year. It is also possible to make and obtain loans.
Crypto.com is a well-known wallet that has many services including the banking license to be able to pay interest on stable coins of 12% and on other cryptocurrencies of 3% per year. On the first staked deposit you receive $ 25 as a gift in one of its digital currency, the associated CRO to obtain privileges with its premium credit cards in pure colored metal.
Binance well-known cryptocurrency exchange allows you to make loans and interest but with lower earnings. Currently we are at a percentage of about 6% for stable with, while for other currencies there are higher interests, but a high risk.
Conclusions about Crypto Banks
Currently, no traditional bank is able to give these net interest rates so high (we are around 1-2 gross for traditional banks) with such security that crypto banks seem almost a daydream. So if you are a saver and do not want to trade, using cryptocurrency banks is an excellent solution.