Tidex is a cryptocurrency exchange where you can trade different coins. They recently announced that they will be offering staking service for those willing to stake USDT. They are offering an annual return of 12% on USDT which is very high given the fact that USDT is a stable coin and stable coins are known to show very little volatility. I don't know a bank that offers more than 6% annually on your money and this is why 12% sounds great.
What Is Staking
Staking is the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. Users get rewards every day for simply depositing and holding coins and tokens on Tidex as they normally would.
Staking is very similar to a fixed deposit. You just need to put your money in a crypto wallet and lock it for some time. Unlike banks, here you will get daily returns which means that even if you unstake your money before maturity, you will still have earned returns. In the case of Tidex, unstaking takes 24 hours which is pretty reasonable. The minimum amount to a stake is 100USDT.
Why Should You Stake USDT
If you are in crypto space, you must be familiar there are plenty of crypto assets that offer staking benefits and the return on some of them is over 50%. I know it sounds great but crypto assets are the most volatile form of investment. You can earn huge money by staking but at the same time, you can lose money as well. That's the reason why USDT staking is the safest form of staking. It is almost certain that the value of USDT will be $1 at any given time in the future. That means you are guaranteed a return of 12% on your money and this is what makes staking stable coins a good investment.
Currently, Tidex is offering staking on only one stable coin but they might enable staking for other stable coins like, Gemini, Paxos, BUSD, TUSD, DAI, and others. If you are looking to earn some passive income on your money, go check Tidex.com.
They are offering the highest return on staking USDT and that's what prompts a deep dive into their legitimacy.
This is not financial advice. This post is meant for information purposes only. Do your own research before making any investments.