Fixed Crypto Returns! Tread With Caution

It's not possible to generate guaranteed returns from such a volatile asset class. Most such products are marketing ploys.

- AVNEET KAUR

INVESTORS have a natural attraction for 'fixed returns', especially when the promised yields are high. But when they come from a notoriously volatile asset class, cryptocurrencies, they are the icing on the cake. Several crypto platforms are offering fixed returns from cryptocurrencies-ranging from 1% to as much as 250%-to attract investors. Bitbns and ZebPay, for instance, offer a bank fixed deposit-like product. Investors can lend their cryptos for a given number of days and earn guaranteed returns. The interest rate depends upon the token and the time period. Cashaa, which calls itself a banking platform for managing fiat and crypto deposits, offers a savings account-like product that promises up to 24% interest on cryptocurrencies. On UniFarm, a slightly sophisticated platform, projects come together to create a reward pool. It guarantees annual percentage yield (APY) of between 36% and 250%. APY is real rate of return by taking compound interest into account. There is no market exposure.

So, how do crypto platforms pay fixed returns from such a volatile asset? What is fixed in these fixed returns? Should you invest?

What's On Offer