Indian crypto users have a large number of venues for money-making. In addition to trading on one of many India-specific exchanges, it’s also possible to gain passive income from crypto fixed deposits (crypto FDs). Crypto FD in India is on the rise. It essentially means collecting interest on a sum of digital assets while doing nothing.
CoinDepo is the primary supplier of such services as of 2023. It’s possible to connect to them while being in India, as well. There are almost no limitations, although there are certain considerations for Indian users. That said, the experience isn’t any worse compared to the same activity performed in other countries.
Crypto Fixed Deposits in India
Crypto fixed deposits are a unique option to gain passive compound interest on crypto and stablecoins. It’s offered by CoinDepo and is available to Indian users as well as users almost across the world (barring the US). There are many different options for how to approach this, creating an incredible degree of flexibility. CoinDepo offers two main types of crypto fixed deposits in Compound Interest Accounts:
- Fixed deposits on regular crypto: Bitcoin, Ethereum, BNB, XRP, Litecoin, as well as several smaller cryptocurrencies, can earn up to 18% in returns annually plus compound interest.
- Fixed deposits on stablecoins: USDT, USDC, and DAI can earn up to 24% in returns annually plus compound interest.
Upon making a deposit, you can choose one of several interest payoff options: daily, weekly, monthly, quarterly, semi-annually, or annually. They correspond to 18%, 18.5%, 20%, 21%, 22%, and 24% APR + compound interest for stablecoins and 12%, 12.5%, 14%, 15%, 16%, and 18% APR + compound interest for regular crypto.
They change how often you’ll receive your interest payoffs, but also how large these payoffs will be. The percentage represents the annual returns, be it 12% or 24%. They are just split into several smaller periods if you decide to select more frequent payouts. This all depends on your personal approach, though.
Making a Deposit
Depositing crypto assets on CoinDepo is quite simple. To do it, follow these steps:
- Register a CoinDepo account and log in;
- Select a supported cryptocurrency or stablecoin and the amount to deposit;
- Pick the interest payout period;
- Deposit digital assets by transferring to the crypto wallet of your CoinDepo account.
The operation is usually instant and free of any charge. You can also directly deposit fiat money, including Indian Rupees, which is automatically converted into the cryptocurrency or stablecoins of your choice.
Receiving Interest Payouts
Compound interest will be automatically accrued and paid to your CoinDepo account at the end of each compounding period. You’ll then be able to withdraw them the same way you’ve deposited the funds. It’s possible to continue accumulating the sum, as well as renegotiate the specifics of a given deposit. Once more, there is a lot of flexibility.
It’s also possible to just reinvest the interest payouts to take advantage of the effect of compound interest and continue to increase your profits exponentially by continually updating the deposit with newer funds. The best way is to select the annual interest payouts and then deposit back all the received returns at the end of the yearly period for maximum profits.
Stablecoins vs. Crypto Coins
You can choose between regular crypto coins and stablecoins for fixed deposits in CoinDepo Compound Interest Accounts. Most can be bought on Indian exchanges, but big providers like Binance also supply them. There are certain differences between the two approaches, though.
With regular cryptocurrencies, you receive a smaller annual return rate (up to 18% APR + compound interest). At the same time, their whole idea is that they are susceptible to market risk. While they are stored away on CoinDepo, their price against USD constantly shifts. Thus, not only can you increase your BTC or other crypto savings, but they can also grow in value.
The coins available on CoinDepo include Bitcoin, Ethereum, BNB, XRP Ripple, Polygon, Litecoin, Bitcoin Cash, Avalanche, and Cosmos. Many of these are major cryptocurrencies, while others are lesser-known but still promising tokens.
With stablecoins, you receive a much bigger interest rate (up to 24% APR + compound interest). It’s actually one of the few reliable ways to make a profit with stablecoins. You see, their value does not change, at least against the US dollar, unlike regular crypto. In light of this, a service that can increase your stablecoin savings in a reliable, predictable manner is very welcome.
The stablecoins available on CoinDepo include USDT, USDC and DAI.
Which Option to Choose?
The decision here is between increased risk and potentially higher profit vs. a very safe, reliable choice. Even then you have to account for various individual crypto assets. There is a lot of flexibility, after all.
Regular crypto coins can both increase and decrease in value while you wait. Accordingly, creating a fixed deposit with BTC or ETH has a lot in common with regular trading. The big difference, though, is that you receive additional interest, which generates passive income for you.
Since you aren’t on the market, you can’t respond to trend changes as fast. Moreover, this strategy is about creating a long-term investment that won’t be disturbed for some time until it reaches its maximum effect. While you can receive some short-term interest, it’s not nearly as profitable.
When it comes to selecting a specific cryptocurrency, the choice is between the big coins (BTC, ETH, BNB) and smaller tokens or between established crypto assets and promising projects.
Stablecoins are different in that they provide an absolutely guaranteed and predictable type of profit. It’s easily calculated because, in most cases, the value won’t change a bit. Seeing how you assess cryptocurrencies based on their USD price, stablecoins will always be 1:1 to the US dollar.
As such, you’ll receive an increased interest at the cost of abandoning possible growth of market value. While it can potentially decrease your earnings, it’s absolutely certain that you’ll increase them over time. As such, you’re advised to at least make a small deposit in USDT, USDC, or DAI for a long time.
Residents of India can readily benefit from crypto fixed deposits offered by CoinDepo and enjoy most features that other users around the world also use. To do this, you just need to purchase digital assets and deposit them into CoinDepo Compound Interest Accounts.