We’ve all heard the saying: nothing in life is free. However, that’s not quite true. People get free money all the time in the world of crypto. For instance, t’s now possible to safely earn valuable crypto for free with app programs like Simple Earn.
What is Simple Earn?
Back in 2009, when Bitcoin was founded, it was designed to be a peer-to-peer electronic currency system. It served to disrupt the financial system as an alternative to fiat money, but its features were limited. For example, investing in bitcoin at a financial institution does not yield you interest.
Meanwhile, these same financial institutions were controlled by insiders who received preferential treatment—making the process of investment opaque and unfair for average people.
Recognizing this injustice and the potential of blockchain technology, a team of developers hits on the idea of the Simple app.
The idea was to redefine what it means to invest, break down barriers to entry, and cut out complex fee structures that riddle the financial markets.
True to its name, ‘Simple’ is a highly intuitive financial solution that gives ordinary investors the ability to discover new possibilities for their money and to put their wealth to work. Best of all, these tools and innovations are contained within a single, straightforward application available for both Android and Apple users.
Additionally, Simple App, unlike sundry other crypto products, is under the full oversight of the Registers of the Republic of Lithuania.
This vital consumer protection also means that Simple has to comply with the KYC (know your customer) requirements, in order to guarantee that users’ rights and digital assets are protected and secure.
How to Earn Crypto on Simple
When it comes to getting free money, there are even easier ways than earning while learning. If you’ve ever wondered how to make an interest in cryptocurrency, the Simple app is a great place to start.
Unlike many people who try to turn a profit through merely trading cryptocurrency, with Simple Earn Program you’re able to earn crypto rewards on top of any profits (or losses) made from trading. And although these simple earns come easily, they far surpass the interest rate your money garners in a traditional savings account or even most stocks.
You can now earn up to 15% APY with Simple’s flagship feature, ‘Simple Earn’, which provides the opportunity for your cryptocurrency to work for you. Users may see their combined trade and earn balances, as well as the interest they’ve earned, on the Simple platform.
When it comes to coin earning there are other methods such as ‘learn and earn’, a concept popularized on cryptocurrency exchanges like Coinbase, wherein newcomers to crypto can be educated about everything from staking to the metaverse and get rewarded for their time, effort, and knowledge acquisition.
As a reward for viewing videos and doing questionnaires on crypto-assets whose coins are listed on that particular exchange, you may receive a tiny percentage of the token you’re watching or quizzing on.
For instance, you can earn crypto while learning about how a token like FTX works, or get several dollars worth of SOL tokens for correctly answering some questions about the Solana Protocol.
Earn interest with cryptocurrencies: What is the return?
Compared to the lowest or negative interest rates that you receive on your bank account, the return on the crypto market is still very attractive.
Depending on the cryptocurrency, interest rates for the largest proof of stakes coins range from 3.0 to 15 percent. Since the values fluctuate daily, you review the terms of whichever platform you are using to determine how much you’ll be paid.
When you use the services of crypto exchanges for staking, you give them a part of your earnings. However, there are no commissions or fees at Simple!
This is of course a high percentage. Without these blockchain-chain-based services, however, it would be impossible for most people to earn interest in cryptocurrencies.
There are numerous ways to achieve interest-bearing deposits that compensate the depositor in that particular digital currency, with the rate of return depending on the kind of digital asset chosen. What’s more, there are decentralized Ethereum-based applications that enable you to accrue interest on your cryptocurrency without the need to open an account.
- Find an interest-bearing app. You can start with an app like Simple, which is ideal for leveraging cryptocurrency for passive income.
- Deposit funds. Numerous interest-bearing apps make depositing money into your account straightforward. It’s possible to buy cryptocurrencies straight from your bank account with certain providers. This makes it easy to start getting exposure to cryptocurrency if you don’t already have any.
Note. Keep in mind that some platforms only allow cryptocurrency deposits. In many cases, you can top up your account by bank transfer, but in the case of Simple, you can do so easily and quickly with a credit and debit card.
To buy cryptocurrency, you just need to select a coin in the application and exchange fiat for these tokens. Everything is as simple as possible
- Generate Interest. You’ll begin making after you’ve contributed some bitcoin or altcoins to your coin earning account. From that point, you can start making money in your sleep. Generating dividends with digital assets is especially attractive for those with a longer time horizon who expect the value of Bitcoin and other cryptos to rise.
Ethereum, Solana, Shiba Inu, and Dogecoin are the top ten assets in the crypto market where investors can earn a yield. The returns generated for these accounts are in the type of virtual currency in your interest-bearing account, allowing you to maintain your exposure to the asset class in whichever cryptocurrency you’re investing in.
Certain interest-bearing cryptocurrency investments may appeal to risk-averse investors. Apps like Simple also provide opportunities to earn interest on stablecoins—cryptocurrencies that are tied to another asset, most often the US dollar.
Tether is the most famous stablecoin that investors use to invest in cryptocurrency with minimal risk. Interest rates for crypto loans may vary based on particular stablecoins, which fluctuate based on market forces.
Despite fluctuations in the rate, coins with larger market capitalization maintain a reasonably steady rate of return.
What Is the Process of Compound Interest?
Most virtual currency savings accounts pay out interest on a weekly or biweekly basis. Compounding interest increases your account quicker than basic interest, which is ideal for investors.
For example, if you invest $1,000 and get 10% interest compounded yearly for two years, you will earn interest on your original deposit plus interest on the previous years in the second year.
Because of the way compounded interest works, time is on your side. The longer you keep your money invested, the faster it will grow, a snowball effect, known as compound interest. Simple interest, on the other hand, does not pay interest on already earned interest.
Upsides and Downsides Yield-Bearing Cryptocurrency
The ability to earn interest with cryptocurrencies is an excellent alternative to merely holding, since investors manage to protect the value of their capital by having access to use it at all times, while enhancing any returns on investments. And compared to traditional banks, a savings account generating 15% interest is unbelievable, but cryptocurrency platforms are able to offer greater interest rates by lowering administrative expenses by using blockchain technology.
Below is a rundown on the fundamental benefits as well as drawbacks of earning yield on cryptocurrency:
- In the case of apps like Simple, users have the possibility of withdrawing their cryptocurrencies whenever they want
- Rates of return rise as the value of your cryptocurrencies rises.
- There is no minimum balance necessary to start an interest-bearing account.
However, one potential downside users should take into account is that by not having a capital lock-up period, the rate of return may vary throughout the year.
Certain programs may require you to maintain your cryptocurrency in your deposit account for a certain amount of time. As a result, you’re more vulnerable to the possibility of declining cryptocurrency values. Although you would receive returns, the value of your underlying asset would be reduced if it fell in value on the spot market.
Is Cryptocurrency Interest Taxable?
In the United States, all cryptocurrency revenue, including earned interest, is taxed in the same way as interest on a savings account or other holdings. Any cryptocurrency interest revenue must be reported on your tax filing.
In conclusion, the earning interest on cryptocurrencies is an interesting investment. However, this is a longer-term investment. Investors must therefore be patient in any case.
It is equally important to correctly assess the risk. The higher the return, the higher the risk of a total loss. This happens, for example, when a cryptocurrency fizzles out on the market, and it disappears. Then all purchased and deposited coins—no matter how many there are—are worthless.
In addition, all crypto interest providers warn in their terms and conditions that there is no guarantee that interest will be paid out permanently. This warning is for your own security and actually exists in a modified form at most banks.
Despite what we’ve all heard, there is such a thing as free money, and it happens all the time. You just need to know where to look within the burgeoning world of cryptocurrency, where you have opportunities to learn and earn crypto and receive eye-popping rates of return on your cryptocurrency deposits. The only trick is to put time on your side by starting sooner, rather than later.