This is not financial or investment advice*
Bitso+ is a new product in the Bitso App. It is a new way to make your wallet more valuable by earning yields in specific crypto assets when you hold them at Bitso. By enrolling in this product, you immediately start earning yields and increasing your portfolio with more of the crypto assets that you already trust and own.
Yields get paid weekly to your Bitso wallet, so every week you can check the app to see the rate and how your portfolio is growing!
What do you need to know
- Users can earn yields on their crypto assets deposited in Bitso through Bitso+. Users can sit back and watch while their crypto assets automatically grow over time.
- Bitso sources yields from specialized third parties known as yield providers.
- Users enrolled in Bitso+ earn yields by providing their crypto assets (through Bitso) to yield providers that Bitso has partnered with. These yield providers include CeFi platforms (corporations) as well as DeFi protocols (smart contracts) that have different strategies to generate yields for the crypto assets deployed with them. Bitso partners with yield providers that can provide strong risk-adjusted yields in a sustainable way.
Introduction
At Bitso, we aim to provide the best solutions to help our users obtain the maximum value out of crypto. A crypto-earnings account is one of the most simple ways to grow crypto asset portfolios. There are no limits, and no minimum amounts to start earning yields. Users who activate Bitso+ will earn yields on their complete balance in the eligible crypto assets. Funds earning yields through Bitso+ will be visible (and accounted for) altogether with the users’ total crypto holdings/balances in the selected crypto assets.
Furthermore, funds are 100% available and users can withdraw or convert at any time. There are no lock-up periods, which is also an enormous advantage compared to many traditional investments that are subject to lock-up periods.
What is Bitso+?
A new way to accumulate crypto: you can have access to Bitso+ through the Bitso app. Once activated, your entire portfolio of eligible crypto assets stored in the Bitso wallet will start earning yields. Initially, and once activated your whole Bitcoin and USD Stablecoins balance will accrue yields, paid on a weekly basis, every Monday. More crypto will be added over time. Best of all, your funds are always available for withdrawal or conversion, there are no minimum or maximum amounts and no fees for using the product. That’s Bitso+ in a nutshell.
How does Bitso+ work?
- Users activate the product in the Bitso consumer mobile app (only once).
- Users’ eligible crypto assets in their Bitso wallet start earning yields. If you don’t have a balance on the eligible crypto assets earning yields, you will start earning once a deposit or a transfer to your account of an eligible crypto asset is made.
- Bitso deploys the enrolled funds to our yield providers.
- Yields accrue and get paid from yield providers to Bitso.
- Yields are then paid from Bitso to our Bitso+ users.
- At any time, users can withdraw their crypto assets enrolled in Bitso+, just as they can with the rest of their funds in their Bitso wallet.
- If a Bitso+ user withdraws or converts crypto assets enrolled in Bitso+, Bitso then withdraws the relevant amount of such crypto assets from our yield providers.
- When a Bitso+ user withdraws their crypto assets from Bitso, Bitso pays such crypto assets to users nearly immediately.
How is Bitso+ activated?
- Users must sign-in to their Bitso account through the Bitso consumer mobile app.
- Go to the tab labeled “Wallet” or “Crypto”.
- Choose any eligible crypto asset for Bitso+ activation and tap “Start earning” (reading and accepting the Terms of Service and the Risk Disclosure). That’s it!
Redemption of yields
Yields accrue every day using the average daily balance in the eligible crypto asset (which can be withdrawn at any time together with yields already earned and paid). Accrued yields are deposited weekly on Mondays.
Yields are calculated using the applicable daily periodic rate multiplied by the average balance in the account on that day. The daily periodic rate is calculated by dividing the applicable annual yield rate by the number of days in the year.
Source of yields
In the crypto market, the number of earning and yield generating products has grown significantly. Today, yields are generated by both CeFi platforms (corporations) and DeFi protocols (smart contracts) through different strategies. Yields are subject to market conditions and many other factors that can make them change (either downwards and upwards).
Users enrolled in Bitso+ earn yields by providing their crypto assets (through Bitso) to yield providers that Bitso has partnered with. Funds remain 100% available for withdrawals or conversions. In addition to the yields earned by yield providers, it may be the case that Bitso uses its funds to provide the rates offered in certain crypto assets in order to distinguish themselves from other crypto players and increase adoption.
We understand that every strategy has risks, that is why we are committed to performing a strong due diligence process over theCeFi platforms and DeFi protocols we use.
Rates are visible and up to date in our app so users can view at all times. You can learn more about our tiered-structure for rates by clicking here.
Pros and Cons
Like any tool, using Bitso+ has advantages as well as disadvantages compared to other similar mechanisms. Let’s take a closer look:
Bitso+ offers generous yields on your crypto assets that are often higher than other traditional savings products. However, since Bitso is not a bank offering savings accounts, these crypto assets enrolled on Bitso+ are not insured or guaranteed. Traditional savings accounts tend to benefit from some regulatory limited insurance against the loss or theft of the funds and in turn, offer smaller yields. This risk-reward tradeoff is important for users to consider. For sourcing of yields, Bitso is partnering with internally audited third party yield-providers that offer sustainable risk-adjusted yields.
By having no lock-up periods, no minimum or maximum amounts and no fees, Bitso+ is a very flexible product that allows you to quickly and easily deposit or withdraw funds. Additionally, the user experience is dynamic and customer support is just a click away.
One final but important point to consider is that any tax implications that may arise from yields generated through Bitso+ are the user’s sole responsibility to understand, collect, report and remit. Crypto assets yield products are still in their infancy and different countries have different approaches on how to govern them which may affect the availability or structure of Bitso+.
Final Disclaimer
Be alert from frauds. Bitso+ is only offered through the Bitso mobile app and we will never contact you asking you to make any payments or offer you different conditions.
