Bitcoin Savings Account
Easy Bitcoin Interest
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What is a Bitcoin Savings Account?
The smart alternative of normal banks
Bitcoin Savings Account Overview
BTC Savings Accounts play a big part of the Bitcoin Banking Eco-System. They can be metaphorically viewed as the air our lungs require or as the oil all machines need.
Why are Bitcoin Savings Account that important?
The money supplied through btc saving accounts fuels the hole money lending system. Without money lending, for example most of the cryptocurrency short trading would be impossible.
How do Bitcoin Savings Accounts work?
Bitcoin savings account are more or less like normal banking accounts. You deposit a freely chosen amount of Bitcoin to your savings account (like a Bitcoin Wallet) and you start earning interest on your Bitcoins. The interest depends where you put your Bitcoins at, usually it is about 3% (14.05.2016). Annual 3% Bitcoin Interest translates into 0.0082% daily return, without the risk like in bitcoin hyips.
Why Bitcoin Savings Accounts?
Here are some of the benefits of Bitcoin Saving Accounts in comparison to normal banking accounts. The order doesn’t show the importance of each benefit.
- Shorter Lending Period – To get a good Bitcoin interest, you don’t need to let your money sit in the bank for 5 years.
- Flexibility – you can access your Bitcoin without having any penalty like in the normal financial banking.
- Bitcoin is immune to inflation – There is no monetary inflation since there will never be more than 21 million Bitcoins.
- Trading – With the savings account you also receive a bitcoin trading account. Simply transfer some balance and start trading cryptocurrencies.
- Frequent Payments – Your Bitcoin Interest is getting paid daily or monthly. Banks normally pay yearly.
- Compound Interest – Because of the frequent payments, you get interest on your earned interest.
- Easy – You simply transfer some balance to your wallet and you start earning interest.
- Secure – Higher venture capital than normal financial institutes. Ordinary banks lend more money than they have as they posses risk-capital.
If you know any more pros on bitcoin saving accounts, feel free to comment below.
How do they guarantee us the Bitcoin Interest Rate?
In some cases the Bitcoin Interest Rate is fixed for a period of time, in others they offer you a daily/monthly continually changing btc interest rate. Since they work like banks, your bitcoin is getting lent to people paying higher interest rate (i.e. 5%). This way, they can assure winnings, which makes your money very safe.
Calculation of the Bitcoin Interest Rate
The most simple way of calculating the interest rate is: Interest Rate to Lenders – Margin for Winnings = Guaranteed Savings Interest Rate.
For Example 5% – 2% = 3%.
5%…Lenders need to pay back.
2%…Operational Winnings for the Bitcoin Bank
3%…Rate for Savings Accounts.
Summary: Bitcoin Savings
Using a Bitcoin Savings Account is ideal for people who already think, that bitcoin will raise in value. This way, you gain even more from holding the precious cryptocurrency! Also, we from CoinStaker think, that saving accounts are more secure than normal wallets, because those Bitcoin Banks have a venture capital to cover our losses, if something terrible happens.
This is why we recommend using a bitcoin savings account like we do, or if you don’t want to keep your Bitcoin, than we suggest to convert Bitcoin into PayPal or Bitcoin to Amazon. Why? Because it’s important not to keep everything in one spot.
Let your Bitcoins work for you – earn easy Bitcoin interest!