Users of Bitfinex can now earn passive income besides major income sources from trading as the exchange has introduced an annual interest on three cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), and XRP.
Highest APY in the Market
Holders of these coins can earn up to 6.2% interest on an annual basis. Bitfinex has partnered with Celsius Network to offer a 6.2% annual percentage yield (APY) on Bitcoin and Ethereum, while 4.91% APY on XRP. Having up to 150,000 users over its platform, Bitfinex will allow all its users to gain rewards on daily basis, while they will be able to claim these rewards on weekly intervals. Bitfinex CTO Paolo Ardoino said:
“We expect this offering to appeal to customers that have bought Bitcoin as a long-term store of value, and who also want to earn on their assets while they hold.”
According to the company, the APY rate is very highest in the crypto market, but it also surpasses even traditional institutions such as banks. However, investors prefer banks over crypto companies due to the risky nature of crypto ventures. The interest rate of fiat savings accounts rarely goes up to 2%.
15.89% APY on Stablecoins
According to Celsius CEO Alex Mashinsky, the major goal of the lending company is to “bring 100 million new people into crypto.” The API rates on Stablecoins are even high as the company offers 15.89% APY on 12 different stablecoins for using the platform.
Recently, the US crypto exchange Coinbase announced to offer 0.15% APY on USD coin and 2% APY Dai (DAI) holdings for site users.
In today’s announcement, Bitfinex also launches margin trading of UNI token. UNI is an ERC20-based token of the decentralized exchange Uniswap. Margin trading “enables traders to borrow funds to increase leverage, offering the potential for greater profits than in traditional trading. Still, the potential for greater rewards also comes with higher levels of risk, particularly given the volatility of digital assets.”
According to the exchange, UNI pairs “can be traded with a maximum leverage of 3.3x, an initial equity of 30% and a maintenance margin of 15%.”