In the past, one of the main issues with holding cryptocurrencies was that other than a price increase, there was no additional value from yields. If you buy stocks with dividends, you make gains throughout the year. But, with digital assets, if the price goes down, any value gained is lost. You could hold onto cryptocurrencies for years and fail to make significant increases.
At the moment, you likely store your cryptocurrencies in a secure wallet with established online exchanges such as Coinbase, Kraken, or Binance. You might also be practicing self-custody with hardware wallets or mobile wallets. The main problem with just holding your cryptos is that they don’t provide any fixed returns.
But that’s all changing.
Now, it’s possible to earn from your cryptocurrency holdings and, compared to traditional savings accounts with fiat currency, the interest rate for crypto savings accounts are generous and compounded.
And no matter what the price of your crypto asset, you earn interest regardless.