CEX.IO Crypto Savings Accounts

CEX.IO Crypto Savings Accounts

In the earliest days of cryptocurrency, people used to invest in this new asset class hoping that its price would skyrocket someday.

Alternatively, you could also make money by trading coins but trading requires a lot of hard work and experience.

Today, cryptocurrency could give you a continuous stream of income with crypto savings accounts. CEX.IO offers crypto savings accounts where you earn interest in return for depositing your crypto holdings. The process is akin to savings accounts in traditional banks, albeit with significantly higher interest rates.

What is crypto savings?

What is crypto savings?

Unlike stocks, crypto tokens do not generate cash flows and thus do not pay dividends to their investors. Considering that, cryptocurrencies are more like commodities which means unless a token earns interest, the value of the token is determined entirely by demand. Although the demand for crypto has grown at an exponential rate during the last decade, there is no guarantee that this highly speculative asset class will keep growing in the future.

Crypto savings ensure that the underlying value of a cryptocurrency continues to grow over time. For example, if you deposit one bitcoin to CEX.IO Savings, it will be 1.04 bitcoins a year later. By earning interest at a crypto savings account, you increase the underlying value of your investment regardless of its fiat currency price.

What is a crypto savings account?

What is a crypto savings account?

A crypto savings account is an interest account offered by a cryptocurrency exchange. It allows you to earn interest on your cryptocurrency holdings.

Earning interest from cryptocurrency is becoming more and more common in recent years as investors are looking for alternative places to generate income due to negligible savings rates in traditional bank accounts.

Although crypto interest accounts function pretty similarly to traditional bank savings accounts, there are some important differences as well:

Higher asset risks

Stablecoins carry regulatory risks, which is why you earn much higher interest rates on them with a cryptocurrency exchange. After all, it is a virtual representation of the U.S. Dollar without any legal backing or license. In other words, you get those lucrative stablecoin interest rates in return for this legal risk.

It’s not only stablecoins that have regulatory risks; any cryptocurrency is faced with the same risk including Bitcoin and Ethereum. Possible regulations in the future are posing access risks for the cryptocurrency market.

Regulatory risks

The market has been highly fearful of regulations since the inception of this asset class. This situation is often abused to create FUD (fear, uncertainty, and depression) in the market to shake out the weak hands during market sell-offs.

However, regulations are indeed materializing. The Securities and Exchange Commission (SEC) in the U.S. recently banned the crypto interest accounts of several major cryptocurrency platforms.

Please note that CEX.IO crypto savings accounts are currently not available in the U.S.

Higher interest rates

The rates offered on CEX.IO crypto savings accounts are typically higher compared to the fiat-currency interest rates at banks. This especially includes the U.S. dollar-pegged stablecoins.

On CEX.IO, you could earn up to a whopping 12% interest rate per annum for stablecoins, which is astronomical considering the average 1% savings interest rate for the U.S. Dollar.

It is a common practice for investors around the world to convert their fiat U.S. dollars to stablecoins and benefit from the high interest rates offered on cryptocurrency exchanges. CEX.IO offers the highest interest rate for the Tether (USDT) stablecoin at 12% if you use a Locked Savings interest account , which blocks your funds for a period of your choice (30, 60, 90 days).

This mechanism is similar to a traditional time deposit, like a CD, where you lock up your funds in return for a higher interest rate. If you would generally prefer the highest return rates possible, you can also opt for CEX.IO Staking.

Other than stablecoins, you can earn 4% yearly interest rate for Bitcoin and 6% for Ethereum on a CEX.IO crypto savings account.


What are the crypto savings
accounts on CEX.IO?

On CEX.IO, there are two types of crypto savings accounts:
  • 1
    Flexible Savings
    These accounts are located under CEX.IO Savings. To go to CEX.IO Savings, click on the Spot Trading button on the top left corner of your homepage, right next to the CEX.IO logo. In the dropdown menu that pops out, click on Earn under the For Everyone list:
  • 2
    Locked Savings

Locked Savings

A Locked Savings account on the other hand locks your coins for a specific period just like a traditional time deposit account, like a CD. This means you cannot remove your funds from the savings wallet until maturity. There are three available lockup maturity periods – 30, 60, or 90 days.

Once you transfer funds from your CEX.IO exchange wallet to a Locked Savings wallet, you cannot go back and remove your funds until the unlock date, but in return, you are rewarded with much higher interest rates. For example, with Locked Savings, you could be able to earn 12% APY for the Tether stablecoin, compared to 3% with Flexible Savings.

Funds you transfer to a Locked Savings account are deposited to a locked savings wallet from your exchange wallet, and your interest payouts are disbursed to this locked wallet. You receive your interest payout on the unlock date.

Currently, there are three available lock periods on CEX.IO Savings – 30, 60, or 90 days. Your accrued interest is credited to your savings wallet at the end of the lock period.

During the lock period, you can monitor your accrued interest by clicking on the “Earned” column on the Savings page. The information is updated every day at 6:00 am UTC.

Best APY flexible savings accounts

CEX.IO Savings is the best place to earn interest on crypto. With flexible savings accounts, you earn a highly competitive rate of 3% annual percentage yield (APY) for your stablecoins, compared to an average of 1% APY on traditional USD savings accounts. Stablecoins on which you can earn interest with CEX.IO include Tether (USDT), USD Coin (USDC), TrueUSD (TUSD), and DAI.

Flexible Savings

A Flexible Savings account on CEX.IO does not lock your funds so you can withdraw or sell the tokens in your savings wallet any time you like.

However, you should note that if you move funds out of your Flexible Savings account, you will not be able to receive full interest for the payout period.

Interest payouts in Flexible Savings accounts are credited daily to your savings wallet.

Cryptocurrency tokens that you transfer to a Flexible Savings account remain in an unlocked savings wallet,where your interest payouts are also credited.

You can withdraw or sell the cryptocurrency tokens that you have initially transferred any time you like, in addition to the interest payments thus far.

When you withdraw or sell funds, the system starts with your earned interest. If you want to transfer out a larger amount than your accrued interest, then it withdraws or sells from your principal amount as well.

Highest crypto interest rates with locked savings accounts

If you don’t need the cash flow from daily flexible savings payouts, you can receive better rates with our locked savings product. CEX.IO offers the highest APY for its USDT locked savings account at 12%.

Lucrative rates with locked savings do not end with stablecoins. CEX.IO offers the highest interest rates in the industry for both Bitcoin and Ethereum, at 4% and 6% respectively.


How do I transfer funds to CEX.IO Savings?

How do I transfer funds to CEX.IO Savings?

On the CEX.IO Savings page, click on the green Transfer button to the right of the cryptocurrency logo that you want to deposit.

CEX.IO offers an auto-transfer function that continues transferring the available balance on your exchange wallet for that cryptocurrency, to your savings wallet. If you activate auto-transfer and then make a new deposit, that deposit will automatically be transferred to your savings wallet at the end of each day.

How do I deposit funds to CEX.IO?

If you do not have assets on your CEX.IO exchange account now, you can deposit your crypto holdings from your wallet or other exchange account(s) to start earning interest on CEX.IO Savings. Just follow the three simple steps below:
  • 1
    Go to the Deposit page
    Click on the green Deposit button at the right top corner of your CEX.IO homepage,
  • 2
    Select the currency menu
  • 3
    Select an asset
  • 4
    Transfer funds to the wallet

How do I buy crypto on CEX.IO?

If you do not have any cryptocurrency, you can instantly buy crypto on CEX.IO using the Instant Buy Service.

First, you need to link a credit/debit card under your name to your CEX.IO account by clicking on the Cards button at the top of your CEX.IO homepage.

On the next page, enter the number, the expiry date, and the CVV code for your card. After you click on the Proceed button down below, your card gets linked to your account immediately. CEX.IO accepts Visa and Mastercard credit/debit cards.

With the Instant Buy Service on CEX.IO, you can instantly buy crypto by following the simple steps below:

  • 1
    Go to the Buy/Sell page"
    Click the Products menu right next to the CEX.IO logo. In the dropdown menu that pops out, click on Instant Buy under the For Everyone list.
  • 2
    Choose a crypto to purchase
  • 3
    Choose the purchase amount
  • 4
    Confirm the transaction