For investors all around the world who are interested in cryptocurrency as an alternative, which is an increasingly growing group, the hunt for entry ways that mitigate the associated risk of the virtual assets. And Haru Bank comes forward with a system that seemingly allows for great returns from reduced risks for investments, but how can they offer this with such volatile assets?
Time Is Of The Essence
When you are dealing with cryptocurrency, time should always be the most important factor in your mind since the value of an asset could change drastically in the span mere hours. Having sufficient knowledge to understand the tendencies and indicators in order to be prepared for potential climbs and drops can make or break an entire investment portfolio.
Haru Bank, a subsidiary of the Singapore firm Block Crafters, is proposing a deposit system that generates positive interests on the most important cryptocurrency tokens and offers their service to the clients without any lock-up periods, meaning that a user has entire access to their deposits and is able to withdraw them whenever they feel like, which combats the concept of illiquidity that is constantly associated with this kind of services.
Their ultimate intention is to reduce the associated risks that come with investing in cryptocurrency, sacrificing the least revenue possible. Their platform offers high interest rates for Bitcoin, Ethereum, Tether and Terra KRT, all of them above 8% per year, and allowing immediate withdrawals gives the user an amount of agency that is unprecedented for similar platforms and that has drawn a lot of attention towards them, while also creating a system that becomes many times more profitable than the most common type of asset in the world: cash (average of 15% compared to the 2.25% calculated for USD)
Big Leaps, Great Distances
On top of their basic program, Haru Bank offers two additional levels for their users to achieve potentially two-digit returns: the Monthly Deposit and the Daily Compound.
The Monthly Deposit is a mechanism in which users have to keep depositing a certain amount of currency every month, and this grants them with better interest rates, but comes with a 1-month lock-up period. For some, this might be risking too much, since a month can be quite detrimental for cryptocurrency, much like it happened with BTC during March 2020, dropping nearly 25%, for example. But for others, the increase in yield from month to month becomes a better choice, as they can reduce the effort they need to place in trading with cryptocurrency.
Once the user renews their Monthly Deposit, they gain the benefit of daily compound interests for an unlimited amount of time, with the ability to cancel and withdraw their accumulated interests at any time, without any penalties, driving their interest rates up by 2% to 3%, depending on the asset. This makes for a model that, compared to the traditional interest rates of the dollar, seems to be many times more profitable and gives a certain degree of freedom to its users.
With this sort of multi-layered investment plan, Haru Bank is able to build a healthy ecosystem that replicates the model of real-life banks and deposits to the cryptocurrency market, by taking advantage of the risks to achieve great return rates for their clients.