Phemex Announces Earn Crypto: Crypto Asset Management Products Offering up to 10% APY
All crypto traders are intimately familiar with the risks and the volatility associated with these assets. To protect themselves from drastic price swings, they often seek refuge through stablecoins such as USDT. For periods in between trades, when funds sit unused, Phemex will soon offer a way for these cryptos to passively generate some income as well. The official release date is on January 18, 2021.
These crypto asset management products will allow users to park their crypto assets for a certain duration, providing liquidity to a Phemex investment fund and in return, will earn a certain percentage as interest on their deposits.
With these crypto asset management solutions, users will earn some guaranteed income, without the need to trade or monitor the market. Given these advantages, such solutions are increasingly in more demand.
Phemex Enters the Crypto Fund Management Space
Phemex, the fastest crypto and futures trading platform, is announcing the launch of its own crypto asset management products. The Earn Crypto program is designed with the industry’s needs in mind, offering two solutions – Flexible Savings Account and Fixed Savings Account. With these products, the platform joins industry giants like Binance, except it will offer much better rates for a promotional period. The platform intends to create more accounts and rates in the future as well.
Flexible Savings Account
The first of many products to come, the Flexible Savings Account offers a risk-free investment option capable of generating an estimated APY of 7%. This account type allows investors to deposit and withdraw their funds at any time without any penalties, thereby ensuring they always have access to liquidity if needed.
Investors can deposit up to 50,000 USDT into the flexible savings account. The interest earnings are credited to the account by the end of each day. If the user wishes to continue investing, the daily interest will be added to the initial principal for compounded interest. The user can repeat this cycle as long as they want.
Fixed Savings Account
The Fixed Savings Account has a one-week lock-up period. This option accepts deposits ranging from 100 USDT to 50,000 USDT. It offers an estimated APY of 10%. Once funds are deposited into the Fixed Savings Account, investors will have to wait for a minimum of 7 days before the accumulated interest will be paid out. After the completion of the lock-up period, users can withdraw their deposits along with the credited interest. It also comes with an auto-renewal option for those willing to continue over a much longer period, in which case, the weekly payout would be added to the initial principal and compound interest will be calculated based on the updated amount.
The crypto asset management products offered by Phemex are risk-free and the platform guarantees returns up to 10%. By using various advanced internal investment strategies, the platform aims to maintain consistent returns. Even in the case that such strategies yield a lower percentage, the platform would still cover the loss and still pay out the promised amounts to the customers.
Phemex maintains high levels of transparency and ensures the security of all assets held on the platform with the help of real-time monitoring, regular third-party audits, and more. The company employs a variety of professional risk control mechanisms that thoroughly test and monitor all revenue strategies to eliminate risk exposure.