Bitwala is expanding its range. The Bitcoin wallet provider currently advertises with passive income on Bitcoin holdings.
Hodlers are generally said to live a quieter life compared to Bitcoin traders. Simply stack Satoshis, preferably using the dollar cost averaging method , and wait for the Bitcoin price to rise. The recent halving increases the prospect of long-term price increases. After all, supply shortages have become scarcer and BTC is becoming increasingly rare. Halving fans of the stock-to-flow ratio even consider Bitcoin exchange rates of up to $ 288,000 to be likely .
Bitwala now offers such long-term investors the opportunity to increase their holdings . As the company announced in a press release, users can now set up an earnings account using the app and receive up to 4.3 percent interest per year for their stored BTC. The payment should be made every Monday, including push notification via app. To this end, the neobanking service is working with the Celsius Network, the world’s largest crypto loan provider, according to the press release. It is possible to retrieve the BTC at any time, and there is no minimum storage period.
Using the Bitwala app, customers can hand over their BTC to the Celsius Network at the touch of a finger and collect interest — an average of 3.4 percent, Bitwala continues. With the new Bitwala income account, the company from Berlin promises a passive income that is designed for long-term investors.
Ben Jones, managing director of the company, sees this as a way that Hodler can maximize their profits.
BTC is the gold standard for the Internet of Value: there are only 21 million Bitcoin, which is unchangeable. The Bitcoin Halving now halves the daily created Bitcoin by half to only 900 BTC a day. The race for the last around 2 million BTC has started. More and more people trust Bitcoin. Bitwala is the everyday bridge to it. With our new product, we now also stand up to the mini-interest rates at traditional banks, which are now a threat to the pension provision of entire years. We partner with Celsius Network, the world’s leading provider for end customers in so-called bitcoin lending.
Ben Jones, CEO of Bitwala
With this innovation, the company has created a further incentive to keep its 80,000 customers on track. The start-up from Berlin is one of the first movers in the German-speaking area in terms of the interface between banking and cryptocurrencies.
While Bitwala is under the supervision of German regulation, the partner network Celsius is an American company. Accordingly, in the risk exclusion, Bitwala warns that the company cannot pay for losses in the event of a Celsius bankruptcy. The Bitcoin Hodler themselves bear the risk.
Investors are at full risk if the Celsius Network goes bankrupt. The Celsius Network is the only debtor for investors’ claims regarding the agreed income and the repayment of the cryptocurrencies used. Whether the Celsius Network can meet the needs of investors in the future depends only on the success of its business activities. If the Celsius Network becomes insolvent (for example, in the event of bankruptcy), investors will be able to cope with the complete loss of its investment. This also applies to the income that they earned but had not yet been paid.
As always with Bitcoin & Co .: Not Your Keys, Not Your Coins .
Bitwala adds that the Celsius Network is working with over 150 institutional borrowers who have gone through a strict clearing process. The loans are over-collateralized (150%), which means that crypto assets or fiat are provided by the borrower as security. For these borrowers, the crypto credit market offers access to assets for hand, arbitrage or market-making transactions.
Disclaimer: These lines do not represent investment advice.