U.S. crypto lender Voyager Digital filed for bankruptcy in July 2022, becoming another casualty of the prolonged volatility and contagion in the cryptocurrency sector. Prior to the sector’s collapse, Voyager boomed during the COVID-19 pandemic, drawing depositors with lucrative interest rates and easy access loans rarely offered by traditional lenders.
Voyager’s Chapter 11 filing came a few days after Three Arrows Capital (3AC) defaulted on a loan provided by Voyager. Approximately $1.3 billion worth of crypto assets are held on the Voyager platform; however, Voyager only has $110 million in cash and crypto on hand. While Voyager plans to reorganize its debts and remain operational, it is imperative that alternative platforms are explored. The following article will investigate the best Voyager alternatives that allow cryptocurrency investors to earn interest on idle assets.
What is Voyager?
Voyager is a U.S.-regulated cryptocurrency broker that pays high interest rates on select cryptocurrencies. Voyager was founded in 2017 and is based in New York City. It trades on the U.S. OTC market under the ticker symbol VYGVF.
Voyager isn’t an exchange; instead, it connects with and routes orders to over a dozen exchanges where they’re executed. Users can access more than 50 tokens and coins. Moreover, Voyager supports a mobile platform.
Voyager Alternatives
Currently, Voyager plans to restructure its company to meet its obligation to customers. However, customers with assets at Voyager may not get all their assets back. Voyager is actively trying to offer tokens or other assets to pay off debts. Because of several red flags, Voyager is not recommended to readers. The following options, at the time of writing, are possible alternatives to Voyager.
Coinbase
Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.
Coinbase Global Inc. (NASDAQ: COIN) is a reputable, web-based crypto exchange platform that was founded in 2012 as a place to send and receive Bitcoin. The exchange allows users to buy, sell, trade and earn interest on an extensive suite of cryptocurrencies. Coinbase’s mission is to create an open financial system for the world and to be the leading global brand for helping people convert digital currency into and out of their local currency. With over 98 million users and $256 billion in assets on the platform, Coinbase is a trustworthy choice.
Compared to Voyager, Coinbase offers a wider range of cryptocurrencies, enabling users to trade over 100 different types of digital assets. Coinbase is a great choice for cryptocurrency beginners because of its straightforward interface. Coinbase also accommodates more advanced investors and traders. These users can take advantage of the additional features and order types offered through Coinbase Pro, available to any Coinbase user.
While Coinbase’s interest rates are lower than those boasted by Voyager, users have plenty of opportunities to earn cryptocurrency. Unlike Voyager, transaction fees are relatively expensive on the primary Coinbase platform. Users can earn up to 5.75% annual percentage yield (APY) on their crypto by putting it to work staking with Coinbase. You can start with as little as $1, with rewards appearing in your account periodically, depending on the asset. Lastly, Coinbase offers a unique way to earn cryptocurrency through its education platform called Coinbase Earn.
Crypto.com
Crypto.com is a popular U.S. cryptocurrency exchange that offers an extensive list of tradable assets and relatively low trading fees. Users can buy, sell, trade and earn interest on more than 250 cryptocurrencies with spot trading, futures and advanced order types. However, it is worth mentioning that Crypto.com users that only CRO currency holders can benefit from the significant discount on trading fees.
Crypto.com was founded in 2016 in Hong Kong. Today, it offers more than 250 cryptocurrencies to over 10 million customers across 90 different countries. While Crypto.com may not be as user friendly as Coinbase, it is still suitable for beginning traders, although some find the vast range of features intimidating.
Crypto.com employs a wide range of security measures, including multi-factor authentication (MFA) and whitelisting, to help keep customer accounts secure. Crypto.com uses robust compliance monitoring and stores customer deposits in cold storage to avoid hacks and losses.
Crypto.com offers interest-earning capabilities for 40+ cryptocurrencies and stablecoins. Users can earn up to 14.5% on their cryptocurrency and up to 10% for stablecoins. Rewards are generally paid weekly in the coin that you stake.
Gemini
Gemini is a stellar cryptocurrency exchange with industry-leading security features and a robust support center; it is a great choice for beginners and experienced traders alike. Gemini was founded in New York by the famous twin billionaires, Tyler and Cameron Winklevoss. It is regulated by the New York State Department of Financial Services (NYSDFS). The four key operational pillars of Gemini include licensing, product, security and compliance. Unlike some of its competitors, Gemini is available in all 50 U.S. states and offers digital asset insurance in the event of a hack or security breach.
Users can buy, sell and trade nearly 100 different digital assets. You can access several products and services, including the opportunity to earn interest on holdings and a cryptocurrency rewards credit card. However, to use all of Gemini’s trading features, account holders need to complete an identity verification process.
With Gemini Earn, you can receive up to 8.05% APY on your cryptocurrency. Gemini allows users to redeem and move their cryptocurrency back to their trading account (plus interest) at any time, with no minimums and no redemption or transfer fees.
Cryptocurrency Market Cycle
It is safe to say that the cryptocurrency market is in a severe bear market. Having lasted for eight months and counting, the current bear market can be attributed to a variety of factors. Experts point to concerns over tighter monetary policy, rising inflation rates and the war in Ukraine as the primary drivers for slumping prices for risk-on assets such as cryptocurrency. Moreover, the cryptomarket has been following the stock market in recent months, which makes it even more intertwined with macroeconomic factors. Nonetheless, based on previous bear markets such as the 2012 or 2018 bear markets, many crypto natives are expecting the current bear market to last until late 2022 or early 2023.
Where to Buy Cryptocurrency
Popular cryptocurrencies such as BTC and ETH can be traded on major exchanges such as Coinbase, Gemini, Crypto.com, KuCoin and Kraken. Many of these platforms allow you to purchase cryptocurrency using your credit card, through swapping features or through different trading pairs such as BTC/USDT.
Voyager Alternatives
Overall, these Voyager alternatives are great choices that you can start using today. The cryptocurrency sector offers a lot of growth and earnings potential. The number of cryptocurrency investors around the world has steadily increased, with recent growth being explosive. However, because of the high risk of cryptocurrencies and uncertainty regarding government regulation, investing in cryptocurrencies isn’t for the faint of heart. For the most up-to-date cryptocurrency prices, check out Benzinga’s table below.
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