Ethereum (ETH) is the second-largest cryptocurrency by market cap. Besides its functionality, it’s also a great passive income generator. From staking, lending to yield farming, there are no shortages of ideas for earning passive returns on your ETH holdings.
This article considers how to earn interest on Ethereum and the best platform to use.
How to Earn Interest on Ethereum – Quick Guides
The following steps will take you quickly through how to earn interest on Ethereum. We’ll consider using Aqru since it is currently the best interest-earning service for ETH investors.
Step 1: Choose An Ethereum Interest Account
If you’re looking for where to earn interest on Ethereum, we recommend using Aqru.
Aqru is a crypto finance solution that launched in December 2021. The platform is a subsidiary of Aqru Finance Ltd – an organisation based in the United States and registered in the UK. The platform is also registered in Lithuania as a virtual asset service provider (VASP).
Aqru operates by taking deposits – in fiat and crypto – from customers. The funds deposited are invested to earn interests.
The platform generates returns by lending these funds to individual and institutional borrowers. Aqru also funds decentralised finance (DeFi) protocols and earns liquidity provider fees. These earnings and fees are then used to pay the customers their annual interests, paid daily.
The Ethereum interest rate on Aqru stands at 7% annually. The platform pays crypto interests daily, which can be tracked on the dashboard on the site. Besides Ethereum, you can earn interest on Bitcoin, DAI, USDT and USDC. The interest rate on Bitcoin on Aqru is 7% annually, while dollar-pegged stablecoins like USDT generate a 12% interest rate.
The accepted funding methods on Aqru are credit cards, bank transfers, and crypto transfers. The platform processes crypto withdrawals instantly.
Aqru works with top wallet services provider Fireblocks to ensure the safety of all users’ wallets. Fireblocks is the most popular crypto custody solution in the market, and it serves companies like eToro, Bank of New York Mellon, and BlockFi. The platform also operates a $30 million insurance policy in the event of any theft.
As for fees, Aqru is quite competitive. The service charges no fees for fiat withdrawals, although it charges $20 for crypto withdrawals – which are charged to the withdrawn asset. There’s also a low minimum deposit of $100.
Step 2: Sign Up
Aqru is a popular new option for those curious about how to earn interest on Ethereum. To use Aqru, simply follow these steps:
Visit the Aqru homepage and click on “Sign Up.” Enter your email and password, and choose your preferred currency.
Verify Your Identity
You will need to complete ID verification to make fund deposits. So, click on the prompt on your home page and verify your identity by answering the questions and presenting a government-issued ID.
Make A Deposit
Aqru allows you to deposit funds using bank transfers, cards, and supported cryptocurrencies. Choose your preferred payment channel and proceed.
Simply go to the ‘Buy” section and choose Ethereum among the accepted currencies.
Once your purchase has been completed, you’re read to earn interest on Ethereum with Aqru. Compound interest is applied to your account balance daily.
How Does Ethereum Interest Work?
Primarily, there are two ways to earn interest on Ethereum. They are:
Crypto staking is one of the most popular activities right now for cryptocurrency investors. It involves committing funds to a staking protocol and supporting a proof-of-stake (PoS) blockchain.
PoS is seen by many as an improvement over proof-of-work (PoS). Instead of competing with other miners on the network and trying to solve a complex mathematical equation, staking simply involves locking your funds in a wallet on the PoS blockchain. Wallets are chosen at random to verify transactions, and the wallets end up getting mining rewards in return.
Ethereum is currently in the transitory phase from PoW to PoS, and one of the first steps to bring that to life was staking. Today, you can stake Ethereum 2.0 on different networks. You can check out the best Ethereum interest rates for staking based on the platforms and choose which works best for you.
You could also give out crypto loans. Ethereum lending allows investors who plan to HODL, otherwise known as Hold On for Dear Life, to earn interest on their idle crypto assets. It’s a simple and secure way for these investors to earn passive income with Ethereum holdings with little or no input from them.
The internet is filled with many options when it comes to crypto lending platforms. However, we recommend Aqru as our preferred lending option for earning interest on ETH. Aqru allows investors to earn interest on their crypto assets. The platform offers as much as 7% on cryptocurrencies like Ethereum.
Yield farming is a strategy that became popular thanks to the growth of decentralised finance (DeFi). You lend Ethereum to different platforms and earn interest, focusing primarily on strategies that will help you optimise your returns.
With yield farming, the goal is to maximise your yield by investing in different DeFi protocols. Yield farmers provide liquidity to various token pairs, and they earn rewards via crypto. There are different yield farming strategies and types. They include borrowing, staking, providing liquidity, and lending.
Since different platforms focus on different strategies, you can compare the different investment and interest terms and invest in the platforms that can guarantee the highest yields.
These methods of generating passive income are more stable than trying to day trade the swings in the Ethereum price on a crypto exchange. All cryptocurrencies and altcoins, even large cap ones like ETH are highly volatile and most traders lose money.
Is Interest on Ethereum Taxed?
Cryptocurrencies are taxable in the United States. The Internal Revenue Service (IRS) expects you to pay taxes on the returns generated from platforms like Aqru and other interest-earning services. You will be taxed at the fair market value of the ETH you receive. This would be taxed at your normal income tax rate.
In the United Kingdom, you’re expected to report earnings generated from crypto as income. So if you earn an extra £15,000 as interest on your Ethereum holdings with Aqru, you’d report these earnings to Her Majesty’s Revenue and Customs (HMRC) to be taxed at the normal income tax rate.
Since tax regulations vary from country to country, you should speak with a tax consultant for more advice on how to report your crypto earnings.
With rising inflation and a possible bull run in 2022 for the Ethereum price, it’s quite normal for investors to search for how to earn interest on Ethereum. Like most investors who believe in Ethereum, you probably see your investment as a long-term game.
Rather than trade the asset, you can loan your funds to lending platforms in exchange for returns. If you’re unsure where to earn the highest Ethereum interest rate, we recommend using Aqru.
Aqru is easy to use, and it offers one of the best Ethereum interest rates on the market. Furthermore, you don’t even have to transfer ETH to earn interest on Aqru. You can simply buy Ethereum on the platform at zero fees. Setting up an account is easy and swift. Aqru offers the best opportunity for you to earn with your ETH balance.
Sign up for an AQRU account at the link below to get started. All users also receive a free $10 USDT when they join to test out the platform.
Cryptocurrency markets are highly volatile and your investments are at risk.
The above content is non-editorial, and BCCL hereby disclaims any and all warranties, expressed or implied, relating to it, and does not guarantee, vouch for or necessarily endorse any of the content.
Disclaimer: Content Produced by CryptoPR
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