USDT (Tether) is one of the most popular cryptocurrency stablecoins currently in circulation. Stablecoins are digital currencies that have a value that is linked to the value of fiat currencies. For instance, 1 USDT is equivalent to 1 US dollar. This means that crypto stablecoins are not volatile in the same way as normal cryptocurrencies.
Since stablecoins are not as volatile as other digital currencies, they are the best option for HODLing and earning interest. Recently, the world’s economy has been significantly affected by global events, causing interest rates on bank deposit accounts to plummet. Right now, you can earn as little interest as 0.5% on bank deposits as opposed to USDT interest, which can earn a USDT APR of up to 12.3%.
This is why many investors are converting fiat currencies to USDT to earn interest on Tether. With the right approach, you could have a consistent revenue stream from investing in USDT. In this article, we share some tips on how you can get the most from the USDT interest rate.
Find the best platform to earn a good USDT interest rate
The concept of earning interest rates from cryptocurrencies has not been around for long, but several platforms now offer these services. However, each of these platforms has different terms and rates, so check these out first. Others may be susceptible to attacks or even be themselves fraudulent. You, therefore, need to choose a reputable crypto exchange like YouHodler.
YouHodler is one of the best interest-earning and crypto lending platforms in the market. Here you are guaranteed that your crypto portfolio will be kept secure, and you will get the best USDT APY in the market. At YouHodler, you can earn compound USDT interest of up to 12.3% per year. YouHodler allows you to earn interest on USDT and several other cryptocurrencies. When you deposit your coins, including USDT, with YouHodler, your crypto immediately begins to accumulate interest.
Select how you want your returns to be paid
When you lend USDT to reputable platforms like YouHodler, you have the option of choosing how you want your returns to be paid. You can choose to be paid weekly returns, which you can withdraw or decide to HODL your USDT for several years so that you can earn compound USDT interest.
The interest rate can be lower when you select the weekly payout option, but the revenue flow is consistent. On the other hand, if you HODL your crypto for a long time, you earn high and compounded interest. Your choice will depend on your goals or priorities.
Is saving with USDT risky?
As an investor, you cannot blindly enter into any investment without considering how risky it is. With USDT, the common risk investors face is creating accounts with non-reputable platforms. If you create an account with a reputable platform like YouHodler, you can leave your USDT coins to sit in your account because USDT is not volatile.
The only other risk investors can face when using interest-earning platforms is that part of their portfolio is used in crypto lending, meaning that if many people default, the project can collapse. This is the main reason why we insist on investing in a reputable and well-established platform.