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Do you have crypto lying about that you don’t know what to do with? HODLing is fine, but it seems to you that you are missing out on the market fluctuations? Or would you like to profit off your crypto without actually taking all the risks affiliated with its inherent volatility? Yield Accounts are the solution for you, and luckily, derivative trading platform PrimeXBT, through its copy trading platform Covesting, has launched their own Covesting Yield Accounts, which are already live.
What Are Covesting Yield Accounts?
If you’re a newcomer to the crypto space, or you simply haven’t paid much attention to the decentralized finance (DeFi) aspect of it, you may have missed the concept of staking. There are two types of staking that generate rewards.
In the first, users lock up a certain amount of funds within a blockchain ecosystem, which in theory lets them make decisions within that ecosystem and receive rewards in return. However, most ecosystems have a relatively high threshold for when you can become a validator (or decision maker), so you can stake your funds in someone else’s name, making them the validator and yourself the delegator. This will let you receive a part of the rewards without the same responsibilities.
Another type of staking is providing liquidity to decentralized exchange (DEX) protocols. The protocol issues rewards to users as a variable annual percentage yield (APY) based on any fees generated by the platform. The APY will depend on market conditions like demand, trading volume, and general market volatility. Covesting Yield Accounts partake in this type of staking. The highest rate Covesting Yield Accounts have achieved thus far is around 10.5%, but rates trend lower than that.
How Do I Participate?
Covesting Yield Accounts are very intuitive and easy to use. The platform now has a Yield Account tab on its dashboard, which automatically displays the current estimated rates, while users can prepare a more specific expected rate of return using the calculator tool. This tool is available to everyone, regardless of whether or not they already have an account on PrimeXBT. This can help potential users decide whether this opportunity is lucrative enough for their needs. Staking is offered on ether (ETH), Tether (USDT), or USD Coin (USDC).
Users who stake COV in addition to other coins can unlock extra perks, like an APY boost of up to double the existing one. Additionally, they will receive trading fee discounts, improved success fees, and more extras.
Important to note is that your funds are never completely locked away. You are free to withdraw your stake whenever you want to, but this means you will lose out on any future rewards. You can also have multiple stakings open at a single time, as long as you don’t exceed the limit, which is set at 4 ETH, 10,000 USDT, or 10,000 USDC. When you’re only starting out, you will need to stake a minimum of 0.4 ETH, 100 USDT, or 100 USDC. In other words, your initial investment can be as small as USD 100 in fiat.
To start staking, simply navigate to the Yield page, choose the token you want to stake, and click Stake now. The window also shows the current APY on each asset. All currently active or pending stakings are reflected in the Current Staking section. To learn more about boosting your APY through COV staking, read this page.
PrimeXBT has prepared a special offer for their new customers: they will get 50% of their first deposit credited to their account as a bonus that can be used as additional collateral to open positions!
Don’t forget to join PrimeXBT / Covesting telegram community to find more information about the Trading terminal, Copy trading module and how to save up to 25% of your commission with COV token and other token utilities!