Staking and lending have long proven to be effective ways to earn passive profit with cryptocurrency. But every rose has its thorn, these methods come with their own set of challenges. That’s why we created iFlux Daily Earn, an improved product designed to maximize returns while minimizing risks, offering users greater flexibility and security in their investments.
Let’s dive into how different iFlux Daily Earn stands out compared to traditional staking and lending methods.
What is staking?
Staking is the process of locking your digital assets on a specific network to earn rewards, typically a percentage of the staked tokens. This practice allows users to generate passive income while contributing to the network’s security and functionality.
For instance, a blockchain network provides a 4% reward for staking over a month. If you stake 200 tokens, you would receive 8 additional tokens as a reward after the month ends.
Staking is a major component of Proof of Stake (PoS) consensus mechanisms, where users lock their digital assets to validate transactions and maintain the network. Unlike Proof of Work, which relies on computational power, PoS allows participants to earn rewards based on the number of tokens they stake, thus promoting energy efficiency and greater accessibility.
The cons of crypto staking
Liquidity Constraints
- Staking your cryptocurrency for a fixed period, like a year, renders your assets inaccessible, resulting in limited or no liquidity during that time.
- The crypto market is known for being highly volatile, so there’s a good chance you may earn a profit or end up with fewer assets than you originally invested.
- When you stake assets, you must also accept that you may miss out on other profitable investment opportunities.
- Many networks impose a minimum staking requirement, such as 32 ETH for Ethereum, which can be a barrier for some. However, you can still participate by using staking pools to share rewards with others.
- Staking networks come with technical risks and fraud potential, so it’s vital to choose a reputable platform.
- Some validators may delay payments or withhold rewards, so always understand your platform’s staking rules and avoid sending funds directly to validators to prevent scams.
What is lending?
Take out the word “crypto”, lending is a common concept in which you borrow assets for a fee or interest. The only differences are you borrow digital assets ‒ often using blockchain technology, and the lending process is typically faster and more decentralized.
While ownership of the crypto used as collateral remains, trading or using it isn’t possible, and a drop in value might result in owing more than borrowed if default occurs.
The cons of crypto lending
- Cryptocurrencies can rapidly change in value, which may lead to financial losses for both lenders and borrowers.
- Crypto lending platforms can be targets for hackers, potentially resulting in the loss of funds for users.
- Borrowers often need to provide collateral worth more than the loan, making it a challenging adjustment for those used to traditional finance.
- Crypto loans are not insured like traditional bank loans, so if something goes wrong, borrowers might not get their assets back.
Finding a more effective way: iFlux Daily Earn
Everyone wants to earn passive income, which is why methods like lending or staking are popular choices. However, there are still many drawbacks that investors need to consider. So the question is, how can we find a method that minimizes these drawbacks as much as possible?
Introducing iFlux Daily Earn, the ideal choice for those looking to increase their cryptocurrency investments while retaining complete flexibility and control over their assets. Some distinguished features of iFlux Daily Earn include competitive interest rates, daily compounding, and more:
- 18% APR: The current interest rate is 18% APR per year, with interest paid in USDT based on the corresponding value.
- Daily average balance: Interest is calculated from the user’s daily average balance, converted to USD.
- Automatic daily interest payments: Earned interest is automatically credited to the user’s iFlux wallet daily, with notifications sent via email and in-app alerts.
- No lock-in period: Users have full access to their funds and can withdraw or trade at any time.
- Compound interest: Earned interest is added to the balance, so the next day’s interest is calculated on this updated amount, enhancing the compounding effect.
How is interest calculated?
Daily Interest = (Daily Average Balance) × (18% / 365)
Let’s assume you have a total asset value of 10,000 USDT. your interest for day 1 and 2 will look like below.
- Day 1:
Interest = 10,000 × (18% / 365) ≈ 4.93 USDT
- Day 2:
New balance = 10,000 + 4.93 = 10,004.93 USDT
Interest = 10,004.93 × (18% / 365) ≈ 4.94 USDT
⇒ Thus, the daily interest increases due to the power of compounding.
How to use iFlux Daily Earn
The procedure is simpler than you think. Follow these 3 steps:
- Sign up on iflux.global.
- Deposit the amount of crypto you want to earn interest on.
- Enjoy the 18% APR, plus compound interest everyday.
We know there are tons of methods to make your crypto work for you. But why go with the complex ones? With iFlux Daily Earn, you are completely stress-free, enjoying a simple and efficient way to grow your assets. Check out iFlux Global and let your crypto thrive effortlessly.
About iFlux Global
iFlux Global democratizes access to advanced financial services, enabling everyone to access sophisticated crypto investment tools anywhere, anytime. Our platform offers comprehensive solutions designed to help crypto investors maximize their profit potential.
