As of this posting, there are currently 12,967 different cryptocurrencies in circulation as of now. This is according to CoinMarketCap. Many of these will go nowhere, more will but a certain amount as time goes on will prevail. There are currently 3 I would like to discuss in this post and I will make it as short as possible.
The reason I chose these three differ but they all have one main thing in common. They pay out an Annual Percentage Yield based on the amount of tokens you have as well as the price of the tokens. These rewards are compounded daily, and if you are using Coinbase, you can actually view in real time your rewards stacking every second (or slower depending on how many tokens you hold).
First up: Algorand
Launched in June of 2019 but started as far back as 2017, by Silvio Micali, Algorand is used to help solve the problem of being quick, secured as well as decentralized altogether. Without getting into the technical stuff, Algorand is currently sitting at 19th in terms of ranking and has a current market cap of: $10,918,000,000. This is also according to CoinMarketCap. Right now, for one token of Algo, you’d be looking around the $1.78 range. As you can see below, the highest points occurred on September 12th with a subsequent fall afterwards. But the trend seems to be up.
Currently, Algo pays out 4.00% APY on the amount of tokens that you hold. You can also get additional points based on sending/receiving as well as staking your Algo. But that gets more technical. As of now, I hold approximately 720 Algo tokens, which yields me around 14 cents daily. This may not seem like much, but as I buy into this token on a weekly basis, this amount will grow and grow. Remember: The % yield is also based on the PRICE of Algo. So if the price falls, the amount yielded could fall, there have been days where I yielded 15 cents, only to have it be 12 cents for a few days in a row since the price fell. However, it has been steadily above 12 cents daily for over a week now.
Disclaimer: ANY crypto is a risky asset and IS NOT FDIC insured. So if you want to stick all of your savings into a crypto to earn interest, BY ALL MEANS, considering in a bank, we are all basically earning 0% at this point. But just remember, past gains are not indicative of a future result.
Algo has a great platform going, check out their website here.
Second up: COSMOS (ATOM)
As of now, Cosmos is currently sitting at 25th in terms of ranking on CoinMarketCap with a market cap of: $7,800,000.00. This crypto is very interesting to me and the price is much higher right now than Algorand. From what I gather, there all these platforms and blockchains now, running simultaneously, but not always together. Cosmos wants to integrate them all and act as a “hub” for all the blockchains. An internet with an internet. Very interesting indeed. Currently, Cosmos pays out 5.00% APY. I hold around 14 ATOM’s (the name of the token), which doesn’t get me much in terms of yield, but hey, better than being in a bank doing nothing.
Check out the charts below:
Considering the ATOM token launched in March of 2019, it has come a long way. If only I had bought back then… But you never know. Look at Bitcoin hitting $60,000+ now.
And lastly… Tezos
Tezos is an interesting token that yields 4.63% APY (at the time of this writing). The purpose of Tezos (XTZ) is to run self executing smart contracts. These types of contracts are very useful for what is called DeFi or (Decentralized Finance). A smart contract is simple: Basically, think of an agreement. If Person A does this job and finishes correctly, Person B then pays them. Simple. However, contracts typically included a lawyer, banker, blah blah blah. But a smart contract is when Person A agrees to do a job, runs it through code and once the job is then completed they are paid by Person B who already has put up their money beforehand. This way, Person A is protected and knows they will receive their funds once a job is completed and person B knows that their funds will not get released until all stipulations of a contract have been completed. Both parties win (or multiple parties).
Tezos currently sits at 35 on CoinMarketCap in terms of ranking and as of this writing has a market cap of: $5,800,000,000.
Here are the charts below:
As you can see, there was a huge run up but a massive fall which led to the price almost essentially making it worthless. Literally in the 20-50 cent range. It has since rallied back up, but is still far off its highs. I currently hold around 130 tokens, but have since cut off my investment into the token for the time being.
There are a couple others cryptocurrencies that offer APY, which is different than a crypto savings account, which is a story for another day.
There is USD Coin which is offered on Coinbase. That is .15% APY (still better than checking or savings AND the price doesn’t fluctuate).
There is also DAI which earns 2% APY and the price is steady at $1.00 as well. So basically, just parking your funds somewhere and still getting some interest.
Finally, the APY is paid out in the tokens that are bought, but when you are ready to convert to cash (or send them to someone else), those rewards will then be eligible to be used as currency. Sometimes there is a hold time, like a certain amount of days you need to hold a token to receive all the funds, but most of the time, they are readily available.
Invest wisely and thank you for reading.