One of the most prominent cryptocurrency wallets in the country of South Africa is the use of the Luno wallet. Whilst this wallet has provided many users with excellent service in the past, and has been given good reviews, the company is now looking to expand their user base by offering interest to the crypto balances of those that use their wallets.
whilst at a first glance this seems like an amazing idea, one needs to consider the risk involved here. First of all, the company aims to include a 4% per annum interest rate. In order for this interest though, the user gives their crypto to the company who then lends out that crypto to other users who need it at an interest rate. This lending process is extremely risky and there is a chance that the person to whom it is lent to may not pay it back and it could result in total loss of your wallet funds.
Is it it really worth it to go through so much of a risk for just 4% per annum? What are your thoughts?
whilst at a first glance this seems like an amazing idea, one needs to consider the risk involved here. First of all, the company aims to include a 4% per annum interest rate. In order for this interest though, the user gives their crypto to the company who then lends out that crypto to other users who need it at an interest rate. This lending process is extremely risky and there is a chance that the person to whom it is lent to may not pay it back and it could result in total loss of your wallet funds.
Is it it really worth it to go through so much of a risk for just 4% per annum? What are your thoughts?