Stablecoin staking has continued to gain traction over the past few years due to its outstanding benefits over traditional interest accounts. However, the perceived benefits of staking appeared to be more reasonable to crypto holders with asset-based cryptocurrencies that are either native tokens or those cryptocurrencies with the potential of increasing or decreasing value.
Crypto volatility has played an important role in propelling the staking industry that has been popularised thanks to Ethereum blockchain’s ability to handle smart contracts. However, staking your crypto coins comes with numerous limitations and restrictions that resemble those imposed on conventional banking options.
Luckily, the crypto industry does not cease to grow, and new products are launched now and then. Crypto savings accounts are a relatively new concept that allows crypto holders to make low-risk investments through USDT Staking. Although one can stake USDT ERC 20, cryptocurrency staking is more popular with regular digital assets than stablecoins.
Table of Contents
- Cryptocurrency staking and how it works
- What is USDT ERC20?
- Is Stablecoin Staking An Option?
- Is Staking USDT Possible?
- How to Earn Interest on Your USDT ERC20 at CoinRabbit?
- Final Thought
Cryptocurrency staking and how it works
Cryptocurrency staking is a relatively new concept in the financial scene. It is arguably a more complex crypto investing avenue than the conventional holding techniques. As earlier described, cryptocurrency staking provides users with an opportunity to earn interest from their cryptocurrencies by allowing them to lock their coins up for a particular period.
Cryptocurrency staking works by allowing cryptocurrency holders to lock their coins for a predefined period. During this period, their coins will earn rewards.
But how exactly does cryptocurrency work? How does it earn interest?
Well, simply put, the staking process requires the cryptocurrency holder to give up their instant access to the crypto coins for some time. During this time, the coins are used to validate transactions within the blockchain through the consensus algorithm known as Proof-of-stake.
Since every blockchain requires transactions to be validated and verified, Those investors who participate in cryptocurrency staking are rewarded as they contribute to validating and verifying transactions within the blockchain network. This validation process is known as proof-of-stake and is crucial in ensuring secure and credible transactions within a blockchain network.
What is USDT ERC20?
Numerous concerns about the safety of stablecoins and whether stablecoins are in essence as stable as they are portrayed have sprung up within the cryptocurrency space. Many argue that most of these Stabecoins are not backed up as claimed. Although some of these allegations are considerably true, there is a wide range of Stablecoins to choose from, each one of them providing its own unique features.
The choice of a stablecoin is dependent on the preferences of the investors; although we have a broader variety today, three stablecoins have managed to stand out. The USDT TRC20, USDC, and USDT ERC20 are among some of the most popular Stablecoins in the currency crypto market, and all of them are supported on the CoinRabbit crypto lending and borrowing platform.
USDT TRC20 is an Ethereum based stablecoin that runs on the Tron Network and allows interoperability with Tron-based decentralized applications. On the other hand, USDT ERC20 is native to the Ethereum blockchain network and is arguably the most popular form of USDT. Finally, USDC is a stablecoin native to the crypto exchange platform, Coinbase.
|USDT ERC20||USDT TRC20|
|Network||Ethereum Network||Tron Network|
|Address Type||Begins with ‘0’ and ‘x’|
|Starts with uppercase T|
Although these Stablecoins provide nearly the same value, USDT ERC20 is the most popular. It offers more trading pairs across nearly all exchange platforms, making it the go-to Stablecoin for most crypto enthusiasts.
Is Stablecoin Staking An Option?
The cryptocurrency staking feature has evolved to allow stablecoin staking. Today, one can stake stablecoins. The concept of cryptocurrency staking was popularised among asset-based coins; however, the concept has grown to accommodate even stablecoins like USDT ERC-20.
Currently, several platforms offer stablecoin staking, including renowned crypto exchange platforms like Binance. Most of these stablecoin staking platforms hold the stablecoins in conjunction with other proof of stake coins to generate the desired interest rates.
Other cryptocurrency staking platforms that allow stablecoin staking include:
- Nexo – the world’s leading regulated institution for digital assets.
- Kucoin – a secure cryptocurrency exchange that makes it easier to buy, sell, and store cryptocurrencies like BTC, ETH, KCS, SHIB, DOGE, etc.
- Celsius – a platform to earn and borrow up over 30 different cryptocurrencies.
- BlockFi – another place to buy, sell, and earn crypto.
- CoinLoan – offers crypto-backed loans and interest-earning accounts.
Is Staking USDT Possible?
Although USDT staking is a viable option for investors, the financial industry is continuously evolving as it strives to provide better services to investors. Cryptocurrency staking has been known to impose restrictions on the access of funds for a specific period. And although this is common and acceptable by most crypto investors, there are better products with more lenient terms and conditions.
Here are some cons of Tether staking as witnessed by crypto investors.
- Inability to access your funds at any time.
- Hefty charges when withdrawing before the established period.
Cryptocurrency platforms like CoinRabbit today offer an alternative to cryptocurrency staking and stablecoin staking. The platform offers an opportunity for crypto investors to earn interest on Stablecoins like USDT ERC20. Here are some benefits of Earning interest on your savings accounts on CoinRabbit over cryptocurrency staking.
- Instant access to your funds
- Ability to top up and withdraw partially or in full.
- Free Withdrawals
- No KYC
- Fixed APY – ensuring profit with no risks.
How to Earn Interest on Your USDT ERC20 at CoinRabbit?
CoinRabbit has simplified stablecoin investing for higher interest rates. Below is a step-by-step guide to earning interest on Tether USDT ERC20 Stablecoin on CoinRabbit.
- Navigate to CoinRabbit’s “Earn” page
- Enter the amount of stablecoins you want to deposit and select the stablecoin type (Tether USDT ERC20)
- CoinRabbit provides a limited offer that allows you to earn 10% APY on your USDT ERC20 crypto savings. Click on “Start Earning Now”
- Click on the “Confirm” and verify your phone number to allow text notifications and tracking of your investments.
- 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:
Cryptocurrency staking is a viable option for many cryptocurrency users; however, the product seems to work well with volatile digital assets. Also, USDT staking often limits cryptocurrency investors. As a result, most crypto enthusiasts turn to platforms that offer flexible crypto saving opportunities with no restrictions, lucrative interest rates, and instant access to funds without any hidden charges like CoinRabbit.