How to select a trusted crypto savings platform
Inflation is running rampant across the globe as central banks continue to print money to fund projects to combat the COVID-19 pandemic.
According to the latest data, US inflation recently hit its highest level in 31 years. Europe isn’t doing any better. Euro zone inflation soared to its highest rate on record this month on surging energy costs, likely peaking before a slow decline that will keep it uncomfortably high for much of the next year, data from Eurostat showed on Tuesday.
With inflation devaluing your money, it is critical as an investor to find a safe, compliant and secure cryptocurrency savings platform to allow you to use your idle digital assets to generate high-yield passive income. This not only enables you to beat inflation, but to also make a profit too.
But there are many different crypto savings platforms out there, many have different futures and products. So the question comes down too; how do you select a secure, legal and safe crypto savings platform?
Watch out for native tokens
Watch out if you are forced to lock in a platform’s native token for a long time, as you simply don’t know how that currency will perform since they are all still new and experimental.
Some of these cryptocurrency savings platforms want you to buy and stake their tokens, putting you at market risk when these platform token’s value tanks. Some of these cryptocurrency native platform tokens are down over 15% with no way of getting out without breaking the smart contract, which will incur extensive fees.
Cabital is able to help you earn 12% a year on your USDT without having to stake a native token. That is because Cabital doesn’t have a native token. The company helps our customers generate high yield income through strategic investments, always in a safe, secure and compliant fashion.
Is the team experienced and trustworthy?
Similar to when you plan to invest in any business, when you look at placing your digital assets with a cryptocurrency savings platform, always evaluate the leadership.
Ask questions such as the ones below, just to list a few:
- Do they have the right management to ensure that the cryptocurrency savings platform succeeds?
- Do they have a strong track record of people doing good work for society?
- Do they have the right skills and talents to ensure that they follow the law, earn income on my assets and keep the project running?
- Is this project growing or dying?
- How seriously do they take compliance? Do they have a head of compliance running KYC and AML for its customers?
Cabital benchmarks itself against leading financial institutions such as global banks, and its internal policies and standards on KYC/CDD are modelled against such established institutions. Where implementation is concerned, Cabital has engaged leading Compliance solutions providers such as SumSub, Refinitiv and Chainalysis to facilitate a robust anti-money laundering programme that is in line with global financial institutions.
Cabital was founded by Raymond Hsu in 2020. Prior to establishing Cabital, Raymond worked for over a decade, holding leadership positions in fintech companies such as Airwallex and global banks including Citibank. Cabital’s leadership team has extensive experience working in leading traditional financial institutions, including JPMorgan Chase & Co, Nomura Securities, UBS and AIA Group.
Are their assets insured?
While earning 5-8% a year on your cryptocurrency may sound great, you should know what will happen to your assets if the worst possible outcome occurred – a hacking resulting in loss of funds. Many platforms out there are not insured, so if something happens to your funds, it may be difficult, and sometimes impossible, for the cryptocurrency savings platform to recover your digital assets.
There are countless times where cryptocurrency companies have been hacked that have made headlines across newspapers, so make sure that the company that you are evaluating has some kind of insurance in case something goes wrong. I am a supporter of FireBlocks software and APIs to custody, manage treasury and insure digital assets. If a cryptocurrency savings platform is using FireBlocks software, you can be rest assured that you are in good hands.
Cabital uses FireBlocks to protect our customer’s assets.
Look for hidden fees
Always look for hidden fees as they are almost always there if you look hard enough. If you have a traditional savings account with a bank, you can withdraw all your money and close your account whenever you please – typically with no fees. But this isn’t the case with many cryptocurrency savings accounts.
For example, some cryptocurrency savings accents have withdrawal limits that cap the amount you can take from your account over a period of time. These withdrawal limits can put your money out of reach when you may need it desperately, such as during an emergency or being laid-off from work.
In addition, many cryptocurrency savings platforms make their customers pay fees when they withdraw their money. These fees can add up quickly if you are an active investor who makes a lot of transfers and transactions each day. So always read the fine print when you are seeking a place to deposit your cryptocurrency.
At Cabital, we are proud to say that we don’t have any hidden fees – not in depositing and not with withdrawing. None.
Are they compliant?
European regulators are taking regulation for the cryptocurrency industry more seriously than ever before. Right now they are open to having the industry grow in the region, but they want cryptocurrency firms to follow the law of their land, or there are severe consequences to pay.
To be able to legally take in euro deposits, a cryptocurrency savings platform must be able to prove that it is secure, reliable, reputable and compliant. In fact, a major cryptocurrency wealth management and savings platform had to “temporarily suspend” the European Union’s Single Euro Payments Area (SEPA) network because of increased scrutiny from European regulators. SEPA allows customers to make cashless euro payments – via debit transfer and direct debit – to anywhere in the European Union, as well as a number of non-EU countries, in a quick, safe and efficient way, just like national payments.
You have worked hard to acquire your Bitcoin, Etherium, and stablecoins. Don’t throw them away on a cryptocurrency savings platform that isn’t at least helping you earn 10-12% a year on your USDT. Also, I would advise anyone to not risk their digital assets using platforms that are not secure, that don’t have your assets insured, and that don’t have experienced management teams. It is simply too risky.
A word to the wise; only go with a cryptocurrency savings platform that is secure, reliable, reputable, and compliant, like Cabital.
Cabital believes that the security of our customers’ digital assets are our number one priority. Cabital Fintech (LT) UAB is a company registered as a virtual currency exchange operator and a virtual currency exchange wallet operator (Registration Number 305748659) with the Financial Crime Investigation Service under the Ministry of the Interior of Republic of Lithuania.