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Ways to make money from stablecoins

Ways to make money from stablecoins

  • 27 August 2022
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One of the best ways to make money from digital currencies is trading. Have you ever heard about making money through stablecoins? Stablecoins are fixed-rate digital currencies backed by expensive assets such as dollars or gold. There are different types of stablecoins, such as gold-backed stablecoins or decentralized stablecoins, and there is a lot of reliability about these tokens. If your currency portfolio has some of these tokens, monetizing stablecoins like Metaverse can become a reliable source of passive income. Investors can make money from stablecoins through different and simple processes that we will mention in this article.

Ways to make money from stablecoins

One of the ways to avoid volatility in the digital currency market is to focus on stablecoins. They are not subject to value fluctuations like Bitcoin or altcoins, which represents a smart choice for profitable strategies.

For this reason, the issue of generating income from stablecoins has become a hot topic today. To make money from stablecoins, you can open digital currency savings account on related platforms and earn profit.

In the following, we intend to introduce solutions and methods of making money from stable coins and platforms related to them.

Loan

One of the ways to make money from stablecoins is to lend tokens. In this way, you can lend your stablecoins to others. In digital currency lending platforms, different interest rates are considered for this purpose. By lending stablecoins for a certain period, you can get a profit.

Introducing the best platform for lending stablecoins

The Celsius platform was founded in the United States in 2017 as a lending platform. The profit rate of this platform is 8.5% and it pays the profits every week. The big advantage of this platform is that it is free and will not charge any transaction or withdrawal fees.

This platform has a native token called Cel and based on your holdings of this token, it places you in four levels: bronze, silver, gold, and platinum. If you have 5-10% of this token, you will be placed at the bronze level and your reward will be 5%. With 10-15% CEL token assets you will be silver level and your reward will be 10%. You will receive a 15% and 20% bonus at gold and platinum levels, respectively.

 Yield Farming

One of the most common methods of learning how to make money from stablecoins is yield farming. Yield farming or liquidity mining, that is, receiving rewards for adding liquidity to liquidity pools in DeFi protocols. In this method, farmers compete with each other to earn more profit.

Introducing the best platform for yield farming stablecoins

BlockFI is one of the most well-known platforms for making money from stablecoins by yield farming. BlockFi services are popular with traders. Also, BlockFi has a wide range of coins to invest in and does not impose a minimum deposit requirement; This feature makes it a good platform for earning from yield farming. This platform has security, simplicity, and very user-friendly categories. Accounts with interest have made BlockFi recently recognized as the leading digital currency and stablecoin monetization platform.

Arguably, one of the main advantages of BlockFi is that you don’t need to buy shares or coins to unlock the full features of the site. Blockchain Interest Accounts (BIA) support various stablecoins such as USDC, USDT, GUSD, USDP, and BUSD. However, its efficiency is different in different conditions. You can earn between 8 and 25.9% profit from this platform and this profit is added to your monthly profit daily. One of the disadvantages of this platform is that you can only withdraw once a month for free, and you have to pay for the subsequent times.

Staking

Staking means locking currencies in a pool or smart contract to earn profits and rewards, which will be for successful transactions. This method is a very popular and well-known method in the space of cryptocurrencies and to earn profit from stablecoins. You can lock your desired stablecoin as a transaction confirmation right for Node or another user and earn rewards and profits in return.

Introducing the best platform for staking stablecoins

Nexo is a popular option among investors trying to make money from Stablecoins by staking. Using this platform is an opportunity to grow assets through investing in cryptocurrencies and staking them, and it supports 38 different digital currencies, including stablecoins such as USDC, USDT, UST, DAI, USDP, and TUSD. Nexo was launched in 2018 and has more than four million users. Unsurprisingly, Nexo has become one of the most popular platforms for staking stablecoins, given that it pays dividends daily.

Nexo pays daily profit in NEXO tokens. Also, if you receive NEXO tokens as your profit, up to 2% additional profit will be applied to all your holdings.

The dynamics of earning rates on Nexo.io also depend on the level of loyalty. For example, to get Nexo’s highest interest rate, you need to reach a platinum loyalty level, which means 10% of your portfolio balance must be NEXO tokens. The platform’s high profitability, estimated at up to 12%, and daily payouts make it the most popular platform among stablecoin staking enthusiasts.

Which stablecoins are suitable for generating income?

Now that you know the ways to make money from stablecoins, we are going to introduce some of the best stablecoins for making money. These stablecoins are:

  • Dai (DAI) stable coin: This token is one of the decentralized stable coins and is very popular in the field of yield farming.
  • TUSD Stablecoin: Today, investors prefer this stablecoin to the best-centralized stablecoin, namely Tether, due to the high transparency of its transactions. The recent economic recession due to the spread of the Coronavirus has been one of the reasons for the growth of this stablecoin due to its price stability.
  • USDN stablecoin: This stablecoin is based on the Waves blockchain and is one of the most profitable types of stablecoins for earning money through staking.
  • USDC stablecoin: Most lending platforms support this stablecoin and it brings great profit in this area; For this reason, it is considered one of the best stablecoins for making money through lending.
  • Tether Stablecoin (USDT): Tether is the best-centralized stablecoin to earn money from stablecoins and is considered the best and most widely used digital currency with a fixed rate.

Pros and cons of making money from stablecoins

Investing and making money from stablecoins has advantages and disadvantages, some of which are mentioned below:

 Advantages of making money from stablecoins

  • Low-cost transactions
  • High transaction security
  • Transparency and traceability
  • low risk
  • High stability

 Disadvantages of making money from stablecoins

  • Low-profit margin
  • Difficulty finding reliable platforms

FAQ

What are the methods of making money from stablecoins?

Ways to earn money from stablecoins include lending, yield farming, and staking.

 What are the best platforms to make money from stablecoins?

Celsius, BlockFi, and Nexo can be mentioned among the best platforms for generating income from stablecoins.

Which stablecoins are suitable for generating income?

Among the best stablecoins for generating income are stablecoin Dai, stablecoin TUSD, stablecoin USDN, stablecoin USDC, and stablecoin Tether (USDT).

 Final Word

Making money from stablecoins is one of the profitable methods of financial markets, which will be associated with lower risks compared to other methods. Investing in stablecoins and learning how to make money from them is a safe space to profit in the financial markets. Don’t forget that you can use stablecoins to keep your assets safe during a period when the cryptocurrency market is going through a tough downtrend. Besides that, make the most of the mentioned methods to earn a profit, even if it is small.


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