Ripple, or its code, XRP, is one of the top cryptocurrencies by market capitalization and, therefore, a well-known project in the crypto space. With a market capitalization of $99.86 billion and a 24-hour trading volume of $2.29 billion, the cryptocurrency is gaining more and more traction and, by so doing, attracting more buyers. The name “ripple” would make you think that the price should explode in seconds, but that’s not the case for this coin, whose all-time high is $3.40 and is currently trading at less than a dollar at bitcoin-profitapp.com. There’s, however, a better way to multiply your profits as a ripple holder apart from the general price appreciation.
How to earn interest on ripple (XRP)
The procedure for earning interest on ripple using a crypto interest-earning account is outlined below.
1. Sign up for an interest account.
An interest account is generally a platform that lets you earn interest on digital assets that you have bought. The premise of an interest account is the same as that of a regular savings account. You can deposit your XRP and earn compound interest. The only difference is that the interest rate is significantly higher, which is a great thing. Before choosing an interest account, note the credibility of the account by user reviews and how active it has been in the industry. Check to see if their user funds are insured, and if the platform has any minimum requirements you must meet before you can start earning interest. Some crypto interest-earning accounts offer interest of up to 7.5% APY (Annual Percentage Yield). There are multiple interest account providers offering interest on XRP deposits. The best among them are Celcius, Nexo, BlockFi, Gemini, and YouHolder. You can go to the website of an XRP interest account provider and visit their registration page. You will need to provide your name and a working email address to sign up.
2. Verify your interest account
After the signup has been completed, you will receive an email from the interest account provider, requesting that you verify your email ID. This is why it is necessary that you input a working email address. After the email verification, you would need to complete a “Know-your-customer” or “client” (KYC) process to enable the activation of the account. The KYC process is a standard identity verification that major exchanges require for anyone who wants to trade crypto. The KYC process might be different amongst interest account providers, but basically, you would need to provide a date of birth, social security number, and a photo of a valid government-issued identification, which can be a driver’s license, state ID card, or a passport. The process can take anywhere from minutes to several business days to be approved, depending on the exchange and how busy it is.
If you use a decentralised finance (DeFi) platform, there is no need for a KYC process. To start earning interest on XRP with a DeFi platform, connect your wallet to the platform and deposit XRP into your DeFi interest account. The XRP interest accruals will begin immediately. Personal identifier data does not need to be transferred to or stored by a DeFi platform, app, or VASP using innovative technology like the KYC-Chain. KYC-Chain can perform end-to-end KYC checks on potential customers without their data ever entering a DeFi provider’s own database.
3. Deposit your XRP
The interest account provider will send you an email informing you that the KYC process was successful and that your account is now ready to be funded. To deposit ripple, go to the page that lists all of the platform’s deposit options. When you click on ripple/XRP, you will be given a unique wallet address and a tag, which you should copy and paste into the withdrawal page of the wallet where you keep your XRP, enter the amount of XRP you want to withdraw, and then click on the withdrawal button. Your interest account will be funded with ripples in no time.
Interest accrual will begin immediately after your interest account is funded with XRP. On Nexo, you can earn up to 8% APY on XRP deposits.
Earning interest on XRP is an excellent way to build your crypto wealth. All it really takes is three steps: sign-up, verify and deposit. With DeFi platforms, you only have to sign-up and deposit, making that a two-step process, after which you just sit back and watch your passive income grow.