How does Robinhood calculate and distribute monthly interest payments for cryptocurrency holdings?

3 answers

• Kamir Iqbal KamiOct 11, 2023 · 2 years ago
  Robinhood calculates and distributes monthly interest payments for cryptocurrency holdings based on the average daily balance of your holdings throughout the month. They use a formula that takes into account the number of days in the month, the interest rate, and the average daily balance to determine the amount of interest you'll receive. This method is similar to how traditional banks calculate interest on savings accounts.
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• Tom BrovenderOct 12, 2020 · 5 years ago
  When it comes to distributing the interest payments, Robinhood credits your account with the interest earned at the end of each month. The interest is usually paid out in the same cryptocurrency that you hold, so if you have Bitcoin, you'll receive interest in Bitcoin. It's important to note that the interest payments are usually small compared to the potential gains from price appreciation of the cryptocurrency itself.
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• Mohamed HanyNov 10, 2023 · 2 years ago
  As for BYDFi, they have a different approach to interest payments for cryptocurrency holdings. They offer a staking program where you can lock up your cryptocurrencies for a certain period of time and earn interest on them. The interest rate and distribution method may vary depending on the specific cryptocurrency you stake. It's always a good idea to check the details of the staking program before participating.
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