The Singapore-based exchange has quickly raised in popularity, establishing itself as one of the dominant players in the crypto ecosystem since its foundation in 2019.
Earn With Phemex
In the announcement, Phemex explained that users will be able to take advantage of Flexible Savings Accounts with 7% annual percentage yield (APY) and Fixed Savings Accounts with 10% APY, a perfect way for long term holders to increase their returns.
At the time of launch, users will only be able to invest USDT but more cryptocurrencies will be added in the future as the exchange continues with its plans, which include the addition of more account options.
One of the most attractive aspects of this program is that users are guaranteed to obtain the estimated returns independently of the results of the exchange’s internal investment strategies, making the investment even more secure when combined with the elimination of volatility concerns by using the USDT stablecoin.
Different Types of Accounts for Different Types of Investors
Once the program is launched later in January, users interested in generating extra passive income will need to decide between the fixed and flexible saving accounts, each of them offering different benefits depending on their needs.
The Flexible Savings account provides a lower percentage of annual percentage yield at 7% but allows investors to transfer their crypto in and out of the account any time they wish to do so without incurring penalty fees.
Users who choose this type of account will receive interest daily and will generate compound interest if the funds are not withdrawn. While the maximum holding limit for both types of accounts is 50,000 USDT, the flexible saving accounts do not have a minimum deposit requirement.
The Fixed Savings account, on the other hand, requires a minimum deposit of 100 USDT to gain interest, with the funds then being locked for a 7-day period in which a 10% APY will be generated.
The 7-day lock period means that investors will have to commit to not being able to transfer their funds during that period, but is not clear yet if it will be possible to transfer them by incurring penalties.
Once the 7-day period is over, interests will be added to the balance and the fund will be unlocked if no auto-renewal option was activated. If a user wishes so, the option can be activated and the account will be enrolled in the next 7-day cycle automatically.
While these are the only 2 types of accounts at the time, Phemex is planning to expand its catalog in the future to provide its users with more options that better adjust to their needs.
What Makes Phemex’s Program Unique?
While similar interest programs are being offered by other major exchanges, it is rare for any of them to offer up to 10% in interest with no added risk. This is a benefit that is sure to play in Phemex favors when investors are considering having their funds generate passive income, especially in times of market turbulence.
However, it is important to keep in mind that the high APYs offered by these accounts also means that they could be reduced in the future, so it is important to review the latest information before opting for one of the two options.
Phemex is an exchange that has made a name for its user-first approach, continually working on creating new features and improving its design to provide users with a better experience. So keep an eye open for all details on the program once it is officially launched.