In the earliest days of cryptocurrency, people used to invest in this new assetclass hoping that its price would skyrocket someday.
Alternatively, you could also make money by trading coins but trading requires a lotof hard work and experience.
Today, cryptocurrency could give you a continuous stream of rewards with cryptosavings accounts. CEX.IO offers crypto savings accounts where you earn rewards inreturn for depositing your crypto holdings. The process is akin to savings accountsin traditional banks, albeit with significantly higher rewards.
Unlike stocks, crypto tokens do not generate cash flows and thus do not paydividends to their investors. Considering that, cryptocurrencies are more likecommodities which means unless a token earns rewards, the value of the token isdetermined entirely by demand. Although the demand for crypto has grown at anexponential rate during the last decade, there is no guarantee that this highlyspeculative asset class will keep growing in the future.
Crypto savings ensure that the underlying value of a cryptocurrency continues togrow over time. For example, if you deposit 10,000 USDT to CEX.IO Savings, it willbe 10,300 USDT a year later. By earning rewards through a crypto savings account,you could potentially increase the underlying value of your account, regardless offiat currency price.
A crypto savings account is a rewards account offered by a cryptocurrency exchange.It allows you to earn rewards on your cryptocurrency holdings.
Earning rewards from cryptocurrency is becoming more and more common in recent yearsas investors are looking for alternative places to generate reward due to negligiblesavings rates in traditional bank accounts.
Although crypto reward accounts function pretty similarly to traditional banksavings accounts, there are some important differences as well:
Higher asset risks
Stablecoins carry regulatory risks, which is why you earn much higher reward on themwith a cryptocurrency exchange. After all, it is a virtual representation of the U.S.Dollar without any legal backing or license. In other words, you get those lucrativestablecoin reward in return for this legal risk.
It’s not only stablecoins that have regulatory risks; any cryptocurrency is faced withthe same risk including Bitcoin and Ethereum. Possible regulations in the future areposing access risks for the cryptocurrency market.
Regulatory risks
The market has been highly fearful of regulations since the inception of this assetclass. This situation is often abused to create FUD (fear, uncertainty, anddepression) in the market to shake out the weak hands during market sell-offs.
However, regulations are indeed materializing. The Securities and Exchange Commission(SEC) in the U.S. recently banned the crypto reward accounts of several majorcryptocurrency platforms.
Please note that CEX.IO crypto savings accounts are currently not available in theU.S.
Higher reward rates
The rates offered on CEX.IO crypto savings accounts are typically higher compared tothe fiat-currency reward at banks. This especially includes the U.S. dollar-peggedstablecoins.
On CEX.IO, you could earn up to a whopping 12% reward per annum for stablecoins, whichis astronomical considering the average 1% savings reward for the U.S. Dollar.
It is a common practice for investors around the world to convert their fiat U.S.dollars to stablecoins and benefit from the high reward offered on cryptocurrencyexchanges.CEX.IO offers the highest reward for the Tether (USDT) stablecoin at 12% if you usea Locked Savings rewards account, which blocks your funds for a period of your choice (30, 60, 90 days).
This mechanism is similar to a traditional time deposit, like a CD, where you lock upyour funds in return for a higher reward. If you would generally prefer the highestreward rates possible, you can also opt forCEX.IO Staking.
Other than stablecoins, you can earn 4% yearly reward for Bitcoin and 6% for Ethereumon a CEX.IO crypto savings account.
On CEX.IO, there are two types of crypto savings accounts:
1
Flexible Savings
These accounts are located under CEX.IO Savings. To go to CEX.IO Savings, click on the Spot Trading button on the top left corner of your homepage, right next to the CEX.IO logo. In the dropdown menu that pops out, click on Earn under the For Everyone list:
2
Locked Savings
There is no minimum transfer requirement for either savings account type.
Locked Savings
A Locked Savings account on the other hand locks your coins for a specific period justlike a traditional time deposit account, like a CD. This means you cannot remove yourfunds from the savings wallet until maturity. There are three available lockupmaturity periods – 30, 60, or 90 days.
Once you transfer funds from your CEX.IO exchange wallet to a Locked Savings wallet,you cannot go back and remove your funds until the unlock date, but in return, you arerewarded with much higher reward. For example, with Locked Savings, you could be ableto earn 12% annual reward rate for the Tether stablecoin, compared to 3% with FlexibleSavings.
Funds you transfer to a Locked Savings account are deposited to a locked savingswallet from your exchange wallet, and your reward payouts are disbursed to this lockedwallet. You receive your reward payout on the unlock date.
Currently, there are three available lock periods on CEX.IO Savings – 30, 60, or 90days. Your accrued reward is credited to your savings wallet at the end of the lockperiod.
During the lock period, you can monitor your accrued rewards by clicking on the“Earned” column on the Savings page. The information is updated every day at 6:00 amUTC.
Best rewarded flexible savings accounts
CEX.IO Savings is the best place to earn rewards on crypto. With flexible savingsaccounts, you earn a highly competitive rate of 3% annual rewards percentage for yourstablecoins, compared to an average of 1% rewards on traditional USD savings accounts.Stablecoins on which you can earn rewards with CEX.IO include Tether (USDT), USD Coin(USDC), TrueUSD (TUSD), and DAI.
Flexible Savings
A Flexible Savings account on CEX.IO does not lock your funds so you can withdraw orsell the tokens in your savings wallet any time you like.
However, you should note that if you move funds out of your Flexible Savings account,you will not be able to receive full rewards for the payout period.
Reward payouts in Flexible Savings accounts are credited daily to your savingswallet.
Cryptocurrency tokens that you transfer to a Flexible Savings account remain in anunlocked savings wallet,where your reward payouts are also credited.
You can withdraw or sell the cryptocurrency tokens that you have initially transferredany time you like, in addition to the reward payments thus far.
When you withdraw or sell funds, the system starts with your earned rewards. If youwant to transfer out a larger amount than your accrued rewards, then it withdraws orsells from your principal amount as well.
Highest crypto reward rates with locked savings accounts
If you don’t need the cash flow from daily flexible savings payouts, you can receivebetter rates with our locked savings product. CEX.IO offers the highest reward for itsUSDT locked savings account at 12%.
Lucrative rates with locked savings do not end with stablecoins. CEX.IO offers thehighest reward rates in the industry for both Bitcoin and Ethereum, at 4% and 6%respectively.
On the CEX.IO Savings page, click on the green Transfer button to the right of thecryptocurrency logo that you want to deposit.
CEX.IO offers an auto-transfer function that continues transferring the availablebalance on your exchange wallet for that cryptocurrency, to your savings wallet. Ifyou activate auto-transfer and then make a new deposit, that deposit willautomatically be transferred to your savings wallet at the end of each day.
If you do not have assets on your CEX.IO exchange account now, you can deposit yourcrypto holdings from your wallet or other exchange account(s) to start earning rewardson CEX.IO Savings. Just follow the three simple steps below:
1
Go to the Deposit page
Click on the green Deposit button at the right top corner of your CEX.IO homepage,
2
Select the currency menu
3
Select an asset
4
Transfer funds to the wallet
Once your deposit is complete, you can go back to the CEX.IO Savings page andtransfer
your balance to the savings wallet.
If you do not have a CEX.IO account, you canregister for one now.
After your account is generated and your identity is verified (within a few minutes),you can immediately deposit crypto tokens to start earning rewards.
If you do not have any cryptocurrency, you caninstantly buy cryptoon CEX.IO using the Instant Buy Service.
First, you need to link a credit/debit card under your name to your CEX.IO account byclicking on theCardsbutton at the top of your CEX.IO homepage.
On the next page, enter the number, the expiry date, and the CVV code for your card.After you click on the Proceed button down below, your card gets linked to youraccount immediately. CEX.IO accepts Visa and Mastercard credit/debit cards.
With the Instant Buy Service on CEX.IO, you can instantly buy crypto by following thesimple steps below:
1
Go to the Buy/Sell page"
Click the Products menu right next to the CEX.IO logo. In the dropdown menu that pops out, click on Instant Buy under the For Everyone list.
2
Choose a crypto to purchase
3
Choose the purchase amount
4
Confirm the transaction
