What is the FiveWest Deposit box?
The Deposit Box offers investors an excellent opportunity to bypass the traditionally volatile crypto market, by yielding opportunities to capitalise further on their already existing crypto assets. Investors who buy and hold their cryptocurrency regardless of the price movements up or down are commonly referred to as ‘hodling’ their crypto investments in order to mitigate much of the volatility with trading this asset class. The Deposit Box allows those hodling investors to hold their crypto while earning a consistent and stable return on their assets, further limiting their risk to volatility.
This opportunity is not only for investors who currently hold crypto today, but can be for investors who would like to make use of the exceptional interest rates offered. With the crypto market being very volatile, there is a method to earn the additional interest, but without mitigating your exposure to cryptocurrency volatility. Stablecoins are a type of cryptocurrency whose value is tied to an outside asset such as the U.S. Dollar to stabilize the price.
Therefore, for investors who do not want to be exposed to any volatility with regards to crypto, purchasing a stablecoin means that it’s value is directly tied to the U.S. Dollar.
An example of this is the coin Tether (USDT), that is a stablecoin, meaning it is a stable currency in the crypto market. 10 U.S. Dollars will equate to 10 USDT. Therefore, investors who would like to purchase the stablecoins, such as USDT and various others, will be able to participate in the Deposit Box offering, as they will deposit their crypto assets into Fivewest’s Deposit Box and can earn up to 10% APY on that investment. This allows investors to hold large amounts of capital in the cryptosphere for extended periods, with no direct exposure to crypto prices and this further provides a great opportunity for South African individuals to hedge their currency risk further.
The Deposit Box offers exceptionally competitive interest rates on stablecoins and other crypto, making it a perfect loan product for investors who are looking to earn a stable return on their crypto holdings, or a great way for investors to enter the crypto market, while limiting their volatility and generating a stable returns on their crypto investment that will far surpass traditional bank deposits.
The minimum amount individuals can lend is an amount of $10,000, in terms of various crypto assets, this can be made up of stablecoins such as USDT, TUSD, BUSD, DAI, USDC, as well as the choice of other cryptocurrencies such as BTC and ETH. If you have other cryptocurrencies you are interested in staking, simply email us and we will assess each case individually.
The deposit of these assets to the Deposit Box will result in the return of highly competitive, fixed interest rates (compounded monthly and paid in-kind). Network and gas fees can, however, hamper potential returns. Thankfully, lenders can now send some stablecoins across cheaper and more efficient blockchains to Fivewest. These include the BSC, OMNI, SOL, TRX, and ALGO blockchains.
If you would like to find out more about the Deposit Box, click the create the account button on the right of this article.