Categories: Stablecoins

A New Frontier in Stablecoin Staking

(Last Updated On: )

USDT TRC 20 has become popular over time due to its unique benefits derived from the Tron Network. As a result, stablecoin staking for USDT TRC 20 has also increased, as more investors are looking towards cheaper and faster stablecoin options. 

However, staking has its limitations, and new financial products have been introduced, such as earning interest on stablecoins. The above article will discuss the pros and cons of staking USDT TRC 20 and explore better alternatives.

Table of Contents

Can You Do Better Than Staking USDT?

If you have been in the cryptocurrency field, you will recognize how much the industry has grown. Today, the crypto space has witnessed the introduction of several financial products that aim to offer similar services to conventional financial products like saving and earning interests. 

Since investors are always on the lookout to use their finances to make more money, cryptocurrency staking has become one of the most popular methods of crypto investing. Based on the current trends, it is evident that cryptocurrency staking became more popular on platforms that allow the staking of asset-based crypto coins like ETH, BNB, and other altcoins.

However, there has been a new and more popular trend for risk-averse investors, known as stablecoin staking. Depending on the type of investors, the best crypto staking coins vary, and some investors undoubtedly prefer Tether staking to staking digital assets with higher volatility.  

Can I Stake Stablecoins?

Today, there are provisions to stake nearly any type of cryptocurrency, allowing for both stablecoin staking and other cryptocurrency staking. Cryptocurrency staking essentially refers to the act of locking up your crypto coins for a predefined period on a platform to earn interest on them. 

Staking itself is beneficial to both the platform and the crypto investor. The staking platforms often allow the staking of crypto coins, which are then used to validate and verify transactions within the blockchain networks. Transactions within the blockchain networks are validated through the proof of stake consensus algorithm. 

Proof of stake is a consensus algorithm that ensures all transactions initiated within a blockchain network are validated before execution. More often than not, these validations take time and delay transaction requests, depending on the network activity. However, when you stake your PoS coins, you allow the coins to be used in validating transactions faster, and in return, you get rewarded with more coins – in the form of interest. 

Here is a comparison of some platforms that offer stablecoin staking today. 

USDC USDT TRC20 USDT ERC20 BUSD DAI
Binance 3.49% 5.47% 5.47% 3.59%
Coinbase 0.15% 2%
OKEx 3.231% 13.93% 13.93% 4.12%

In more recent crypto advancements, stablecoin staking has become one of the most popular cryptocurrency stakings. 

What is USDT TRC20?

Tether staking has significantly increased, potentially due to its continued dominance in the stablecoin market. USDT TRC 20 is one of the most popular stablecoins alongside USDT ERC 20 and USDT OMNI. 

Most crypto investors ask, what is TRC 20? And what are some of the advantages of USDT TRC 20 over its counterparts? USDT TRC 20 is a Tether stablecoin offered through the Tron Network. 

USDT TRC 20 USDT OMNI USDT ERC 20
Network Tron Network Bitcoin (BTC) Network Ethereum Network
Fees Low Highest High
Transfer Speed Fast Slow Medium
Address Type Starts with uppercase T
E.g., T9zP14…
Begin with a number 1 or 3
E.g.183hmJGRu…
Begins with ‘0’ and  ‘x’
E.g., 0xbd7e…

USDT TRC 20 allows for smoother, cheaper, and faster transactions, making it a preferred coin for stablecoin staking.  

Is Staking USDT the Best Option?

Although cryptocurrency staking has become popular, the crypto industry never ceases to grow. Crypto lending platforms now provide newer products with better ways of earning interest than cryptocurrency staking. 

Generally, stablecoin staking is considered a relatively safer option compared to stalking other cryptocurrencies that are affected by market volatility. 

Crypto lending sites like CoinRabbit provide crypto investors with a chance to earn interest on their USDT TRC 20 and other stablecoins in a flexible manner. This option is often suitable for risk-averse investors looking to make yields through their stablecoin investments while avoiding the crazy volatility in the crypto market. 

Risks

Some level of risk accompanies nearly all investment opportunities. Staking is not an exception, as crypto investors are exposed to investment risks that may result in losses. Below are some of the risks of staking in general, including cryptocurrency and stablecoin staking.

  • Market volatility

Volatility implies that the value of crypto assets can fluctuate. When crypto assets depreciate significantly, the interests earned may not compensate for the lost value. 

  • Flexibility

Both cryptocurrency staking and stablecoin staking are not flexible. Therefore, most staking platforms require users to lock their savings for a long time, denying them access to their funds for a predefined period. 

Alternative Variant

After maximizing their investment opportunities, most crypto investors use their holdings to earn more interest. Essentially, staking provided an excellent solution to most investors. However, the risks mentioned above necessitated the introduction of a new product. 

The preferred alternative to cryptocurrency staking and stablecoin staking is earning interest on stablecoins. The products provide more flexibility and minimize risks while allowing crypto investors to make higher yields on their deposits. 

Earning interest on stablecoins triumphs stablecoin or cryptocurrency staking because of the following reasons;

  • Unlimited withdrawals
  • Daily payouts
  • High-interest rates – 10% on CoinRabbit
  • Flexible.

How to Earn on Your USDT TRC20 at CoinRabbit?

CoinRabbit provides a favorable stablecoin deposit program that earns higher interests. Below is a step-by-step guide to earning interest on Tether USDT TRC20 Stablecoin on CoinRabbit. 

  1. Navigate to CoinRabbit’s “Earn” page
  2. Enter the number of stablecoins you want to deposit and select the stablecoin type (Tether USDT TRC20)

  1. CoinRabbit provides a limited offer that allows you to earn 8% APY on your USDT TRC20 crypto savings. Click on “Start Earning”
  2. Click on the “Confirm” and verify your phone number to allow text notifications and tracking of your investments.

  1. You’ll be prompted to deposit your stablecoins, and the deposits will start earning interest right away.

Here’s a detailed video guide on how to open USDT ERC20 savings account on CoinRabbit

Final Thought

Ideally, both stablecoin staking and other forms of cryptocurrency staking provide lucrative investment opportunities. However, earning interest on stablecoins on platforms like CoinRabbit offers higher interest rates, flexible withdrawals and deposits, and instant transactions, which isn’t the case for cryptocurrency staking. 

Crypto investors are therefore advised to consider stablecoin staking such as USDT TRC 20 staking due to the benefits of USDT TRC 20 stablecoin discussed above, such as low transaction costs and faster settlement times.

Thomas Irving

I'm Tom and I am crazy about all the new IT technologies, including cryptocurrencies. Here, in the CoinRabbit blog, I am writing articles and bringing to you all the news of the crypto world :)

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