Why HTX Can Offer Higher Returns Than Banks

Why HTX Can Offer Higher Returns Than Banks

• ​Higher Interest Rates: Traditional banks offer relatively low-interest rates on savings and fixed deposits. For instance, top fixed deposit rates from banks are typically in the range of 6-8% per annum. In contrast, HTX has been known to offer APYs (Annual Percentage Yields) for stablecoins and other cryptocurrencies that can be significantly higher. These higher rates are a key reason many people are drawn to crypto for passive income.
• ​Different Mechanisms: Banks primarily generate income from lending your deposits at a higher interest rate than they pay you. HTX, on the other hand, provides multiple avenues for passive income, including:
  • ​Staking: This involves locking up your cryptocurrencies to support a blockchain network's operations. In return, you receive rewards in the form of new tokens. This is a common method for passive income on proof-of-stake blockchains.
  • ​Lending: You can lend your crypto assets to borrowers through HTX, who then use them for margin trading or other purposes. You earn interest from these loans.
  • ​Liquidity Mining: This involves providing your crypto assets to a liquidity pool on a decentralized exchange (DEX). You earn a portion of the trading fees generated within that pool.

​Specific Steps for Beginners to Earn Passive Income on HTX

​For a beginner, the easiest and most straightforward options for passive income on HTX are through their "Earn" products, which typically include flexible and fixed deposit options.

​Step 1: Create and Verify an HTX Account

• ​First, you need to sign up for an account on the HTX platform.
• ​Complete the identity verification (KYC) process. This is a crucial step for security and to comply with regulations.

​Step 2: Deposit Funds

• ​You will need to deposit cryptocurrency into your HTX account. If you don't own any crypto, you can purchase it directly on the HTX platform using a credit/debit card, bank transfer, or other supported payment methods.
• ​For beginners, it's often recommended to start with a stablecoin like USDT or USDC. Stablecoins are cryptocurrencies pegged to the value of a fiat currency like the US Dollar, which means their value is much less volatile than other cryptocurrencies like Bitcoin or Ethereum. This significantly reduces the risk of your principal investment losing value due to market fluctuations.

​Step 3: Navigate to the HTX "Earn" Section

• ​On the HTX platform, look for the "Earn" or "Savings" section. This is where you'll find various products for earning passive income.

​Step 4: Choose a Passive Income Product

• ​Flexible Deposits: This is the most beginner-friendly option.
  • ​How it works: You deposit your crypto (e.g., USDT) into a flexible savings account. Your funds are not locked for a specific period, and you can withdraw them at any time.
  • ​Pros: High liquidity, low risk (for stablecoins), and easy to manage.
  • ​Cons: The interest rate (APY) is typically lower than with fixed deposits.
  • ​Steps:
    1. ​Select "Flexible" in the "Earn" section.
    2. ​Choose the cryptocurrency you wish to deposit (e.g., USDT, USDD).
    3. ​Enter the amount you want to deposit and click "Subscribe."
    4. ​Your interest will start accruing daily and can be viewed in your account.
• ​Fixed Deposits: This option offers higher returns in exchange for locking up your funds for a set period.
  • ​How it works: You lock your crypto for a specific duration (e.g., 7, 30, or 90 days). During this time, you cannot access your funds.
  • ​Pros: Higher interest rates compared to flexible deposits.
  • ​Cons: Your funds are inaccessible for the duration of the lock-up period, and you lose liquidity. There may be penalties for early withdrawal.
  • ​Steps:
    1. ​Select "Fixed" in the "Earn" section.
    2. ​Choose your cryptocurrency and the lock-up period you prefer.
    3. ​Review the APY and terms.
    4. ​Enter the amount you want to deposit and click "Subscribe."
• ​Other Products (for more advanced users): As you become more comfortable, you can explore other options like "Structured Products" or "On-chain Earn," which may offer even higher returns but involve more complex strategies and potentially higher risk.