You can earn 6% APR (APY) on Algorand (ALGO) via Coinbase.
This beats many UK high street banks who only offer 0.01%-0.2% APR at the moment on your savings.
Yes, ALGO is a Crypto currency, so the Crypto price vs Fiat currency will always fluctuate. But the 6% APR is based on ALGO payouts on the total amount of ALGO you have in your account.
What is Algorand?
Algorand is a cryptocurrency and blockchain protocol that aims to be simultaneously scalable, secure, and decentralized. It was founded by Silvio Micali, an MIT professor.
Algorand uses a consensus algorithm called pure proof-of-stake. It builds technology that accelerates the convergence between decentralized and traditional finance by enabling the simple creation of next generation financial products, protocols and exchange of value.
The chart below shows the trading price of Algorand over the last year.
How often are the Algorand payouts?
Using Coinbase, when you hold Algorand in your account you can earn c. 6.00% The exact amount is based on the Algorand rewards generated by the protocol.
To get started just add a minimum of 1 Algorand to your Coinbase account. n.b. 1 Algorand is currently £0.96 - so it doesn't have to be a big investment at all! Your first Algorand reward should then appear in your account within a couple of days. After that the rewards will be added daily.
And I can certainly vouch that it does. I have about 6.73 ALGO (£6.50) and it pays me 0.001 ALGO daily. Yes, this is only a fraction of a pence per day but it's only on a £6.50 investment. I also like to see it being added daily - it feels tangible should I ever wish to move it to a different wallet for safe keeping.
Should I buy ALGO?
If you are a trader, you are probably not interested in a 6% APR (APY) return. You would be able to make much more by trading.
However, if you are a HODL'er then it may be worth thinking about having some in your portfolio. As well as hoping that the Crypto price will rise over time, you will also receive ALGO over the time period too.
As this is my first foray into Crypto, you can see that I only put a small bit into ALGO - mainly to see how and if the rewards would be paid. As I drip feed my investments over the coming months I will most likely be putting some of my money into ALGO too.
Note : All of my articles are my own work and relate to my own personal experience. Investing is always at your own risk.
