Like any tool, using Earnings has advantages as well as disadvantages compared to other similar mechanisms.
Let’s take a closer look:
Earnings offers yields on your crypto assets that are often higher than other traditional savings products. However, since Bitso is not a bank offering savings accounts, these crypto assets enrolled on Earnings are not insured or guaranteed. Traditional savings accounts tend to benefit from some regulatory limited insurance against the loss or theft of the funds and in turn, offer smaller yields. This risk-reward tradeoff is important for users to consider. For sourcing of yields, Bitso is partnering with internally audited third-party yield providers that offer sustainable risk-adjusted yields.
By having no lock-up periods, no minimum or maximum amounts, and no fees, Earnings is a very flexible product that allows you to quickly and easily deposit or withdraw funds. Additionally, the user experience is dynamic and customer support is just a click away.
One final but important point to consider is that any tax implications that may arise from yields generated through Earnings are the user’s sole responsibility to understand, collect, report and remit. Crypto assets yield products are still in their infancy and different countries have different approaches on how to govern them which may affect the availability or structure of Earnings.