The cryptocurrency sell-off has been swift and brutal. The two largest tokens by market capitalization, Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) have suffered a 43% and 36% drawdown, respectively, from their all-time highs in less than two months. Yet even with that decline, both cryptocurrencies are handily outperforming the S&P 500 so far in 2021.
Bitcoin and Ethereum routinely swing 5% to 10% or more in a day. And unlike the U.S. stock market, which is open less than 40 hours a week, cryptocurrency markets are open 24/7, which only adds fuel to the volatility fire. As with any asset, earning interest would add stability by giving investors income no matter how crazy the price action is. Here’s how you can earn 8% interest on Bitcoin and Ethereum, but why you may not want to.
Leading interest rate offerings
Just like a savings account, the interest rate provided on a token varies based on the custodian you choose to safeguard your investment. Below are estimates of the interest rates and other metrics by some of the top