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Earning passive income with crypto has always been an ambition, if not a dream, to many millions of traders. It’s not unattainable, but regular day trading strategies have limited capabilities for it. Earning true income requires either high-value staking or high-profile decentralized finance (DeFI solutions).
There is also a third, most preferred option, it is much simpler and more reliable - these are crypto savings accounts. With them, the customer can be sure that his income will not depend on market indicators or external factors. CoinDepo is an advanced solution for passive income from digital assets, offering you to earn interest on crypto through a system of crypto fixed deposits using Compound Interest Accounts.
So, how does it work and how can you put it to use?
Crypto Fixed Deposits Defined
A crypto fixed deposit is an amount of funds you entrust to CoinDepo with the expectation that you’ll be rewarded with regular returns. The interest rate is calculated on an annual basis, but the compounding periods can be adjusted.
It works like this:
- Deposit the digital assets of your choice - either a stablecoin (USDT, USDC, DAI) or a regular cryptocurrency (BTC, ETH, BNB, XRP, LTC, etc.) into a CoinDepo Compound Interest Account.
- Specify the compounding period - it can be daily, weekly, monthly, quarterly, semi-annual, or annual. The longer your period, the larger your payoffs. With annual, you can reach the maximum interest rate. By picking shorter compounding periods, you simply divide the sum into smaller pieces.
- Collect the returns at the turn of each payoff period.
It’s a good way to collect guaranteed, fixed returns without doing anything. With stablecoins, you can collect up to 24% of annual yield plus compound interest. For regular crypto coins, it’s up to 18% per annum plus compound interest. CoinDepo will put your assets to use, making sound investment decisions. Your returns don’t depend on their success, but they will reward you for your trust nonetheless.
So, how can you put this method to good use?
On its own, passive income offers a good, reliable source of funds. The good thing about receiving money passively is that you can do other things with your time. There is still a risk, but if your passive money-making plan works, it can greatly contribute to your income profile.
On its own, even a small amount of passive revenue can give you a great boost. It’s ultimately what you need to strive for - a constant stream of funds that enters your account on its own. If you overcome the initial difficulties of finding a proper provider (which you’ve found) and collecting the initial deposit, you’ll be able to start making money in no time, albeit gradually.
Having a constant stream of passive revenue enables you to reinvest your funds with more comfort and take advantage of the effects of compound interest.
Passive income can be an additional source of fuel for both your other financial opportunities or as extra reinforcement to the existing fixed deposit. You can readjust your fixed deposit to add more assets to it and receive even more funds at the end of the annual period.
As a result, you can continue to grow your livelihood exponentially using the same method of money-making, thanks to the effect of compound interest. It is an old tale of continuously placing new eggs into the same basket, and it can backfire. Diversifying is good (and more on that later), but continuous reinvesting is also a viable option.
A good investment portfolio should be diversified. It needs to include not only different assets but also different sources of income and multiple markets. In this case, interest-derived passive income can be a valuable addition to your portfolio.
If much of your crypto revenue is generated through day trading, you can dilute it with a fixed deposit in a CoinDepo Compound Interest Account to make your investment portfolio as a whole less susceptible to risk. The logic is, as mentioned, not to put all your eggs in the same basket. If one traded crypto asset fails, you’ll still have other assets, as well as your passive income.
It’s also worth mentioning that crypto fixed deposits themselves have a large degree of diversifying potential. While stablecoins are the most likely and reasonable bet, you can also include deposits of Bitcoin, Ethereum, and other cryptocurrencies in your collection. As a result, you’ll be insured in case of an asset-specific emergency.
Lending without a Collateral Account
Instant Credit Line in stablecoins and cryptocurrencies without a collateral account is an additional product offered by CoinDepo. The logic of this Instant Credit Line is that you won’t have to follow the restrictive and punitive rules behind regular collateralized lending. In the case of crypto, it often means margin trading - a very risky type of trading in which you borrow money from a broker/exchange and put a large sum of money as collateral.
As a result, the lender can eat up your entire collateral if something goes even slightly wrong. Moreover, the broker can demand your balance with them as compensation and even forbid you from trading with them ever again - just for making a poor decision on the market with their funds.
However, CoinDepo offers crypto loans without a collateral account. You’ll still first need to deposit digital assets into Compound Interest Accounts, and the sum of your loan will depend on the size of your CoinDepo crypto portfolio. However, you won’t be penalized, made to pay extra, or banned if something goes wrong. Part of the deposited assets will be used to repay the loan, and that’s it.
All that aside, crypto fixed deposits and loans without a collateral account work together swimmingly. You use the very same crypto deposits to both gain interest and receive loans. So, at any point, you can simply borrow based on the amount of assets deposited in the Compound Interest Accounts (if you’ve spotted a good investment opportunity, for instance) and still receive profit.
You’ll still have to pay interest of your own, mind you. These loans are not interest-free. But guess what? The interest you have to pay is lower than the interest you receive as FD rewards. Even as a debtor, you’ll still make money on CoinDepo. That’s why these two work together so well.
In short, you can use your crypto fixed deposit in several unique ways, like getting a small cheeky loan to cover an investment opportunity. There’s a lot of room for experiments.
As you can see, earning interest on your digital assets with CoinDepo can yield a lot of money-making opportunities in addition to the fact that you’re passively getting profit for doing nothing. It is a question of trust, of course. Fortunately, however, there are plenty of positive reviews from satisfied customers. Thus, it’s at least worth giving CoinDepo a chance.