It is one of the main digital currencies that crypto enthusiasts are choosing to HODL They are “Holding On for Dear Life” waiting for a better price so that they can later sell it to make a healthy profit. It is a volatile digital currency just like other cryptocurrencies such as Bitcoin. One of the things you can do to mitigate this volatility is to lend your XRP to earn interest.
Investing in cryptocurrencies is very risky because of the volatility of their price moves. One day the prices can be soaring higher and the next day they hit a steep slump. The new concept of crypto lending to earn interest has helped crypto investors to mitigate this risk because lending XRP can earn you some interest.
HODLing your XRP and waiting for the price to increase is one of the ways you can benefit from investing in Ripple but this can take some time. Instead, you can make your otherwise idle XRP work for you and earn guaranteed returns which can be paid out weekly. In this post, we explore how you can lend XRP to earn interest.
How XRP lending for interest works
The XRP crypto lending concept has not been around for long but it is gaining popularity rapidly. This is because many crypto enthusiasts and investors have realized how beneficial it can be. Crypto lending has been motivated mainly by two key reasons; the slump in bank interest rates and many people being denied loans because of bad credit.
Several sites, such as YouHodler, enable crypto investors to borrow against XRP and you can lend your XRP as well to earn interest. There are no credit history checks conducted as long as you have crypto to back up your loan. These collateralized XRP loans are then paid back with interest and part of that interest is used to pay those investors who lent their XRP in the first place.
XRP lending platforms
There are several platforms where you can lend XRP and earn interest but each has different rates and fees. YouHodler is one of the best XRP lending platforms available in the market as you can earn up to 4.5% plus compound interest. With YouHodler, your XRP starts earning you interest (which can be withdrawn weekly) immediately.
When choosing an XRP lending platform, be sure to check the rates, fees, security, and means of access to your funds. YouHodler is one of the sites that meet these requirements. you can multiply your digital assets by earning interest when you lend your XRP.
XRP savings and fixed deposit accounts
When you lend your XRP to earn interest, you need to first open a crypto-savings account with one of the top platforms like YouHodler. You have two options for the type of account you can open — a fixed deposit account and a flexible savings account. Both of these accounts start earning you interest immediately but the terms are slightly different.
With a flexible savings account, you can access and withdraw your funds any time you want. However, the interest rate paid out is usually lower. The fixed deposit account on the other hand is the opposite. You cannot withdraw your assets until the maturity period chosen has expired but the interest rate is higher. Interest paid here is compounded too.