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, as well as fiat currencies such as USD, GBP and EUR.
The earn programs have a lock-up with fixed interest rate of 6 months with the option to renew automatically at maturity. Interest is paid in 3 month intervals in USD or LBA and the Crypto Assets are returned at maturity too.
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 – 6%* (With LBA, 3% Non-LBA)
- Litecoin – LTC – 8%
- Bitcoin Cash – BCH – 10%
- LBA – 10%
- BAT – 6%
- Tron – TRX – 6%
- USD, EUR – 10%* (With LBA, 3% Non-LBA)
- GBP – 8% (With LBA, 3% Non-LBA)
- Gold – XAU – 8%
- Additional assets in the future
How often will I be investing?
Programs start on the 1st & 15th of the month, so I have my crypto committed at latest the day before those dates.
How does CredEarn make money and is it safe?
During a term you can’t 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. 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.