Bitfinex lets users earn on their bitcoin with Celsius
Bitfinex, a digital tokens trading platform, and Celsius Network Limited (Celsius), a cryptocurrency reward-earning platform, are collaborating to offer customers of the exchange easy access to Celsius’s rates for earning rewards on their crypto holdings.
Together, Bitfinex and Celsius aim to empower the crypto community to stabilise the market by earning passive income simply by holding on to their coins. Bitfinex and Celsius have built an integration that will allow Bitfinex customers to create a wallet with Celsius and manage it through the Bitfinex platform. Through their Celsius account, customers will be able to earn a return of up to 6.2 per cent APY on bitcoin, while holders of ethereum will earn a rate of up to 9.65 per cent.
Cryptocurrency is stepping in where traditional banking has failed its customers for years. Today, banks give very little in terms of interest, dropping as low as 0 per cent in 2018 and rarely going above 1 per cent. Yet banks charge customers exorbitant interest rates on credit cards. The average in the US is 24.7 per cent on more than USD1.7 trillion of consumer debt outstanding. Meanwhile, in the UK sub prime lenders levy an APR in excess of 69 per cent on credit cards. Cryptocurrencies turn traditional banking on its head by eliminating banks as toll collectors and middlemen, and greatly reducing these high fees through decentralisation of traditional financial structures that act in the best interests of the depositors.
“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,” says Paolo Ardoino, CTO at Bitfinex. “Our collaboration with Celsius forms part of our mission to empower individuals and let them take control of their finances.”
“Our integration with Bitfinex extends the mission and focus of both companies to bring the next 100 million people into the crypto community and do it while we do good before we all do well. Celsius’s commitment to reward our users with 80 per cent of the value we create is now available to all Bitfinex customers,” says Alex Mashinsky, CEO of Celsius.
Bitfinex users who open a Celsius wallet are free to withdraw their crypto from Celsius at any time, with no lock-in periods and no fees on deposits or withdrawals. Rewards on Celsius are accrued daily, compounded and paid by Celsius at weekly intervals. This provides a major advantage over most reward-generating products which often come with withdrawal restrictions, fees and/or penalties.