What is a Bitcoin Savings Account?
We can relate the Bitcoin Savings Account to the real world Fixed Deposit Account you would get from commercial banks where you deposit a particular amount of money and get a certain percentage monthly or yearly as the case may be. Bitcoin Savings Account acts the same way. They require you deposit a sum of Bitcoin and you get about 3% of deposited funds for a period and in some cases, for as long as you have your Bitcoin with them.
Advantages of Bitcoin Savings Accounts
- With Bitcoin Savings, you don’t need to wait until the end of the year to get your interest. Bitcoin Savings Account holders get their interests on daily, weekly, or monthly bases.
- It’s easy to get started. No paperwork, no waiting, it’s as easy as transferring some Bitcoins into your Savings Account Wallet, and you begin receiving interests immediately.
- You don’t just get interests on your actual deposit, you get interests on compounding investments as well.
- You deposit and withdraw at any time with no questions asked.
- Bitcoin Saving Account holders also have the option of trading with their money if they have good knowledge on to predict market movements. This opens another avenue to earn even more money.
How they generate their income
Since they work like the conventional banking institutions, they lend out your deposited funds to people who are willing to pay higher interest rates to what you are going to get on your deposit. This way, they can keep their business running and also secure your interest as well. Because they don’t promise your impossible interest rates like Bitcoin High Yield Programs does, this way, you are assured of always getting your interests on time.
Which Bitcoin Savings Account can I invest my money?
Based on trust and a good review from a good number of people, Magnr Savings and BSave IO are highly recommended. As at the time of writing, Magnr requires a minimum of 0.001 BTC (about $7) to start earning 1.28% annual interest rate. BSave is a bit higher with a minimum of 0.05 BTC (about $305) and gives a 2.67% yearly interest rate. Interests rates are calculated and paid on daily bases based on what you are to earn in one year.
The Bitcoin Savings Account is best for those who think Bitcoin value will rise over time and therefore want to get maximum gain from their coins. Though this is a great way to put your Bitcoin to extra use and earn more, we do not advice you invest all of your money in this. Always invest what you can afford to lose.
Image Source: CoinTelegraph