CredEarn is a product that pays people interest to lend their Crypto Assets to CRED. It’s available for Uphold members and can earn them up to 10% annual interest on Bitcoin, XRP (ripple) and Ethereum.
The minimum earn period is 6 months with the option to renew at term end. Interest is paid in 3 month intervals in USD or stablecoin and the Crypto Assets are returned at the end of term.
Say I commit XRP worth $1000 on March 1st at 9% annual interest, I will get $22.50 on June 1st. Then on September 1st I will get $22.50 plus my XRP. That is $45 or 4.5% in 6 months (9% annual). Plus if the price of XRP rises during the term I get all the benefit, but of course there is a risk the price could fall too. I’m a long term holder so it’s perfect for me!
What Crypto Assets are included?
- Bitcoin – BTC – 10%* (With LBA, 8% Non-LBA)
- Universal Bitcoin – UPBTC – 10%
- Universal Dollar – UPUSD – 10%* (With LBA, 7% Non-LBA)
- ripple – XRP – 9%* (With LBA, 5% Non-LBA)
- Universal Euro – UPEUR – 8%* (With LBA, 5% Non-LBA)
- Ethereum – ETH – 7%* (With LBA, 5% Non-LBA)
- USD, EUR, GBP – 8%* (With LBA, 3% Non-LBA)
- Gold – XAU – 3%
- Additional assets in the future
How often will I be investing?
Participation is typically bi-monthly with strike dates of 1st & 15th of the month, so I will have my crypto committed before those dates.
How does CredEarn make money and is it safe?
During a term you can not access your crypto assets which might make some people feel uncomfortable. CRED states that it acts as an intermediary between borrowers and lenders and manages risk by hedging the assets with collateral agents. This ensures they can return your crypto at maturity.
In special cases you can contact support for early withdrawal but there may be a penalty, just like with traditional fixed term saver accounts.
Is CredEarn FDIC insured?
No. CRED is not a bank and CredEarn is not FDIC insured. I am seeking clarity on this point and will update as and when I get it. I will also find out information relevant to the UK, where I am based. It is my hope that we will get something similar to BitGo’s recent announcement.
EDIT: As of March 6th 2019 CRED are partnered with BitGo for crypto custody insurance.
To me CredEarn strikes a good risk/reward balance but others may not have the same risk appetite. I suggest you do your own research and due diligence. In the meantime CredEarn Expert will be your guinea pig so you don’t have to risk any of your cash to see how it works 😉
What should you do now?
Make sure to follow CredEarn Expert on Twitter @Credearn as I will be releasing regular updates. Check out my First Investment write up and look out for my explanation of the Lend Borrow Asset (LBA). If you want to learn more about me, see CredEarn Expert – Who Am I?
To learn more about CredEarn please look at CRED’s FAQ Page.